Rural focused alternative UK broadband network B4RN, which is a community benefit ISP that has rolled out a 10Gbps speed full fibre network to 25,000 premises (inc. 13,000+ customers), has joined the government’s charter for protecting vulnerable people from harm during the upgrade to digital (IP / VoIP based) phone lines.

Just to recap. At the end of 2023 the government and several major broadband ISPs launched a new charter (here), which set out the “new measures” they would all agree to adopt in order to protect vulnerable customers when upgrading phone lines from the old analogue (PSTN / WLR) to newer digital phone networks.

The charter essentially commits signatory providers to “concrete measures to protect vulnerable households“, particularly those using personal alarms, known as telecare, which offer remote support to elderly, disabled, and vulnerable people – with many located in rural and isolated areas, where mobile signals may also be poor. This is needed because the older telecare systems aren’t always compatible with digital phone networks (mostly due to the fault of telecare providers).

The old phone networks were originally supposed to be completely switched off by the end of 2025, although vulnerable users were recently given more time as the deadline for migration in related households has since been extended to 31st Jan 2027 (here and here).

Key Charter Commitments

➤ All providers have agreed to not forcibly move customers onto the new network unless they are fully confident they will be protected.

➤ Providers will conduct additional checks on customers who have already been forcibly migrated to ensure they do not have telecare devices the provider was unaware of, and if they do, to ensure suitable support is provided.

➤ No telecare users will be migrated to digital landline services without the provider, customer, or telecare company confirming they have a compatible and functioning telecare solution in place.

➤ Providers will be required to work to provide back-up solutions [battery systems] that go beyond regulator Ofcom’s minimum of one hour of continued, uninterrupted access to emergency services in the event of a power outage.

➤ They will collectively work with Ofcom and the UK government to agree a shared definition of ‘vulnerable people’ for this transition, so it is no longer dependent on the company and establishes an industry wide standard.

➤ Government will also continue to work with the telecare sector to reduce risk for users during the digital transition.

At launch the charter was only supported by BT, Virgin Media O2, Sky (Sky Broadband), TalkTalk, Vodafone, Shell Energy and KCOM. But in Feb 2024 they were joined by Zen Internet, then Ogi in May 2024 and now B4RN has become the latest to sign the charter.

We should add that a related charter was also signed and supported by network operators more on the wholesale side of things (here), which launched in March 2024 and included support from Openreach, CityFibre, AllPoints Fibre (Swish Fibre, Giganet, Jurassic Fibre and Cuckoo), CommunityFibre, Ogi, KCOM and WightFibre.

New customers looking to take one of Three UK’s unlimited 5G or 4G based Home Broadband packages may like to know that the operator has just discounted them from £24 to £22 per month on a 24-month term. In addition, you can also get the first six months of service at half price for just £11 (oddly, this only shows up when going to the checkout).

The package includes Three’s latest 5G Hub MC888 router (or a 4G router if you aren’t covered by their 5G network), although it should be noted that Three UK hasn’t made their home broadband service available to every UK postcode yet. In addition, the operator will increase your monthly price each April by the previous December’s Consumer Price Index (CPI) rate published in January, plus 3.9%.

As usual, you’ll need to click the affiliate links above to get these discounts.

The Welsh Government (WG) has chosen to “pause” their long-running Access Broadband Cymru (ABC) grant scheme, which offered funding to help rural homes get a faster broadband service installed in areas of slow connectivity. But given the greater focus on gigabit-capable connections, ABC was starting to look a bit dated.

The ABC scheme has been running for quite a few years and offered vouchers to homes in poorly served areas that aren’t currently planned to benefit from either commercial or other state-aid funded deployment projects. By poorly served, we mean areas which don’t have access to a “superfast connection” speed of 30Mbps+ (i.e. £400 for 10Mbps+ or £800 for 30Mbps+).

However, the UK Government’s £5bn Project Gigabit broadband rollout programme has long since set a more ambitious target, which aims to help extend 1000Mbps (download) capable broadband networks to reach at least 85% of UK premises by the end of 2025 (currently 83.4%) and then “nationwide” coverage (c. 99%) by 2030 (here). But the latter figure is an average, and actual coverage may vary around the country.

On top of that, there’s also the 10Mbps broadband USO and the UK’s central Gigabit Broadband Voucher Scheme (GBVS), which offers grants worth up to £4,500 to rural homes and businesses to help them get a gigabit-capable broadband service installed. Admittedly the GBVS is currently suspended across much of the UK (including Wales), which is partly due to clashing with the aims of the wider subsidised build contracts under Project Gigabit.

Suffice to say that the ABC scheme was in need of some revision and so the WG has opted to “pause” it from 7th August 2024.

WG Statement

We are pausing the Access Broadband Cymru grant scheme from 7 August 2024.

The pause will allow us to:

– update the scheme to reflect new broadband technology and market changes
– review grant limits and how the scheme is run to keep it targeted, flexible, and responsive.

The pause should last no more than 6 months.

Applications received up to and including 6 August 2024 will be assessed and processed normally.

The six-month pause will also give the Building Digital UK (BDUK) agency and the WG enough time to award their long-in-gestation Project Gigabit rollout contracts to a supplier, which for a big chunk of the country is expected to be Openreach (BT). This is because most of Wales has been designed for a Cross regional (Type-C) procurement and BT are the preferred bidder for those, due to a lack of industry interest from other networks (here).

Put another way, the WG will have a better idea of which areas and what solutions they need to target for future vouchers once those contracts have been awarded, which helps to avoid duplication of the public investment.

News 

The decision comes after auditors were unable to sign off the MVNO’s 2022 accounts 

Lycamobile has lost a major dispute with UK tax authorities over its unpaid VAT, according to a report from the Financial Times. 

Lyca Mobile is one of the world’s largest Mobile Virtual Network Operators (MVNOs) and provides services using EE’s network in the UK. 

The dispute is related to the unpaid VAT placed on customer “bundles” over the last seven years, amounting to £51 million. 

Earlier this year, the company’s auditor PKF Littlejohn confirmed that it was unable to sign off its 2022 accounts. Lycamobile had claimed that it did not have to pay VAT unless customers had used the bundle packages (e.g. calls, text, and data allowances).  

A tax tribunal, however, has backed HMRC, which argued that the VAT was chargeable at the point of sale, regardless of whether the customer then used the package. 

According to the most recent 2022 company accounts, the company had1.7 million subscribers with revenues of £145 million. It has set aside £99 million to cover the VAT costs, but the actual amount will be decided at a later date. 

“We are pleased with the judgment, which is consistent with the VAT treatment applied across the telecoms sector,” said a spokesperson for HMRC this morning. 

Lycamobile has confirmed that it accepts the tribunal decision, saying the ruling “takes us one step closer to resolution” and the company is “pleased that it found there should be an adjustment to the amount of VAT assessed in relation to some of the products.”  

Lyca will now work with HMRC to apply the ruling, though still has the option to appeal. 

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

Also in the news:
AST SpaceMobile prepares to launch first commercial satellites
nexfibre passes almost 1.3m homes with full fibre
Telstra joins UNESCO’s Business Council to promote ethical AI

News 

The group calls for a more equitable access to Openreach’s infrastructure 

Five UK altnets – nexfibre, AllPoints Fibre, Community Fibre, Gigaclear, and the newly merged Netomnia and Brsk – have established a new ‘PIA (Physical Infrastructure Access) Coalition’  to push for fairer access to physical infrastructure operated by Openreach.  

The coalition will call on Ofcom do more to ensure a level playing field for access to Openreach passive infrastructure in its upcoming Telecoms Access Review. 

Combined, the Coalition represents over 5 million premises passed with full fibre, making the Coalition one of the largest users of PIA.   

Alongside the announcement of the Coalition’s formation, the group has also revealed the results of their collective analysis of Openreach’s PIA regulation, showing suggesting alternative operators pay significantly more to access ducts and poles than Openreach charges itself.  

The group warn that, without action, competition and investment in the broadband market will be impacted in the long-term, which will threaten the progress of fibre-to-the-premise rollouts, damaging the UK’s ability to compete internationally.  

“At the moment there is not a level playing field between Openreach and alternative network operators on PIA.  Alternative network operators pay significantly more to access infrastructure compared to Openreach,” said Giles Rowbotham, spokesperson for the PIA Coalition, and General Counsel and Chief Development Officer at nexfibre in a press release. 

“If left unremedied, this disparity risks choking investment, slowing down the rollout of high-speed broadband across the UK, and therefore limiting consumer choice. We’re calling on Ofcom to act in its upcoming market review to ensure a level playing field for all providers and fair and equal access to critical infrastructure,” he continued.  

Ofcom’s upcoming Telecoms Access Review will set the rules for the next few years. The coalition hopes this review will fix the pricing issues, ensuring fair competition and continued investment in the UK’s fibre networks. 

Join the altnets in discussion at this year’s Connected Britain, 11-12 September in London. Get your tickets here! 

Also in the news:
AST SpaceMobile prepares to launch first commercial satellites
nexfibre passes almost 1.3m homes with full fibre
Telstra joins UNESCO’s Business Council to promote ethical AI

The Competition and Markets Authority (CMA) has announced that it will need an additional 8 weeks to reach a conclusion on their Phase 2 investigation of the proposed mega-merger (here) between mobile operators Three UK and Vodafone. As a result, the deadline has been extended from 18th September 2024 to 7th December 2024.

The merger, which would see Vodafone retain a 51% slice of the business and CK Hutchison (Three UK) hold 49%, has previously been promoted by the parties as something that would be “great for customers, great for the country and great for competition,” while also resulting in a major £11bn investment to upgrade the UK’s 5G mobile (broadband) infrastructure and network coverage.

Despite this, the first phase of the CMA’s investigation raised some concerns earlier this year, not least over the potential reduction in market competition and the potential for consumers to pay higher prices (here). Since then, the competition watchdog has been busy conducting a deeper Phase 2 investigation.

However, the general complexity of all this and some delays with data requests, as well as the recent network sharing deal between O2 (Virgin Media) and Vodafone, has meant that it will now take longer for the CMA to reach a final conclusion.

CMA Notice of Extension

The CMA published a notice of extension to the original reference period on 10 May 2024, made pursuant to section 39(4) of the Act, as a result of the failure by CK Hutchison to comply with the requirements of a notice under section 109 of the Act (the section 109 notice) issued on 17 April 2024, requiring it to provide documents and information specified in the section 109 notice.

The notice of extension was cancelled on 3 June 2024 following compliance by CK Hutchison with the section 109 notice and the original reference period was extended by 24 days (the revised reference period) and was due to expire on 12 October 2024.

The Inquiry Group now considers that it will not be possible to complete the investigation and to publish its final report within the revised reference period.

In coming to that conclusion, the Inquiry Group has had regard to the following combination of factors, appreciating also the need to be as comprehensive, thorough, and fair as possible within the tight statutory timeframe:

(a) The very wide scope of this inquiry and the technical and regulatory complexity of the sector, which has required the CMA to acquire a detailed technical understanding of the operations of the mobile network operators (MNOs), mobile ‘virtual’ network operators, and the network sharing agreements between the MNOs;

(b) The amount of technical material (including a Joint Business Plan and Joint Network Plan for the Merged Entity underpinned by detailed economic modelling) provided by the Parties in support of their submissions regarding their ability and incentive to realise efficiencies – in particular, the Parties’ Merger simulations and sensitivity analysis (these were provided at such a time that the Inquiry Group was not able to take this evidence into account for the purposes of working papers shared with the Parties, but will need to be considered in the Provisional Findings);

(c) The public announcement on 3 July 2024 (after the Main Party Hearings) of the new Beacon 4.1 agreement between Vodafone Limited and VMED O2 UK Limited,3 which will require the Inquiry Group to assess the implications of the agreement, including gathering and analysing further evidence from third parties; and

(d) The need to complete the CMA’s econometric estimation of consumer demand for mobile services, which is based on granular and voluminous third-party data.

The new date is a hard deadline and the CMA notes that its report may yet be published before 7th December 2024.

Shropshire-based UK ISP Aquiss has today announced that they’ve expanded their range of CityFibre based Fibre-to-the-Premises (FTTP) packages by introducing symmetric speeds of up to 2.5Gbps for business customers (they already had some of these for residential subscribers).

All of Aquiss’ business packages are supplied with unlimited usage, true static IPv4 and IPv6 assignments as standard and have no in-contract price rises. Next Business Working Day SLAs ensure quicker fix times. All options also come with their highly rated UK support and are based upon a 12-month contract.

The first 3 months of service also come at a 50% discounted price.

1.2Gbps £40.00 per month (Offer equivalent to £35.00 per month, ex VAT)

2.0Gbps – £48.00 per month (Offer equivalent to £42.00 per month, ex VAT)

2.5Gbps – £50.00 per month (Offer equivalent to £43.75 per month, ex VAT)

News

Punishing financial results are forcing the company to take “bold action”

Intel has this week revealed that it is laying off over 15,000 workers, saying it will cut 15% of its workforce in efforts to streamline the business.

The company says the cuts are part of a drive to save $10 billion in costs by 2025, which will be achieved through various streamlining measures and spending reductions. R&D and marketing spend will be cut by more than a billion dollars through to 2026, while capex this year will be reduced by 20%.

Announcing the cuts alongside the company’s latest financial results, Intel CEO Pat Gelsinger described the decision as “incredibly hard”, saying the company is “making some of the most consequential changes in our company’s history”.

“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate. Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low. We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected,” read the memo.

Intel has been struggling to compete with rivals in the AI chip space, such as AMD and Nvidia, while also losing ground to the likes of Qualcomm and Apple, which rely on chips from Arm.

In its most recent quarterly results, Intel recorded a loss of $1.6 billion, compounding the $437 million it lost in the quarter before that. The losses can primarily be attributed to the company’s chipmaking Foundry business.

“Weaker spending across consumer and enterprise markets, especially in China, and continued focus on AI server investments in the cloud have reduced our [total addressable market] expectations for 2024,” explained CFO David Zinsner, adding that “customer inventory levels are elevated”.

Intel’s own foray into AI chips, Lunar Lake, is set to be released this September.

Keep up to date with all the latest telecoms news from around the world with Total Telecom’s daily newsletter

Also in the news:
Australian Government and AWS Collaborate to Strengthen country’s Cybersecurity
Solving congestion challenges in FTTP deployment
Vodafone Invests £120m in AI Chatbot ‘SuperTOBi’

Benchmarking firm Opensignal has today published a complementary study to their recent research into the differences in broadband reliability across countries (here), which reveals the ISPs that deliver the strongest and poorest “broadband reliability experience” in the UK. Suffice to say that it’s a good day for Virgin Media and altnets.

Just to recap. Opensignal leverages crowdsourced data collected via end-users on their benchmarking app and services. In this case they also harnessed their new Broadband Reliability Experience metric, which uses a 100-1000 point scale to measure broadband experience in a typical household where multiple devices are used simultaneously (i.e. how well a household’s internet copes with real-world scenarios, with multiple users).

The assessment examines, among other things, the success rate of completing tasks like streaming video, browsing the web, scrolling through social media and generally identifies that a download speed of 25Mbps+ is the “right threshold to define a connection as reliable.”

The latest update to this study, which looked at individual internet providers (i.e. the larger players), found that Virgin Media users “have the most reliable fixed broadband experience” in the UK, which is closely followed by alternative full fibre network providers CommunityFibre, Gigaclear and KCOM.

At the opposite end of the table of larger providers sits Starlink, and just above them in the naughty slot are Three UK and, perhaps surprisingly, Zen Internet.

Top UK ISPs for Broadband Reliability Experience
(Score out of 1,000)

1. Virgin Media 767
2. CommunityFibre 750
3. Gigaclear 735
4. KCOM 719
5. Vodafone 689
6. Hyperoptic 677
7. Plusnet 671
8. BT  655
9. Sky Broadband 651
10. TalkTalk 643
11. EE 606
12. Zen Internet 595
13. Three UK 451
14. Starlink 405

“At first glance, this may seem counterintuitive, as Ofcom … back in January 2024 announced that Virgin Media was the most complained about fixed broadband provider. However, only 22% of complaints about Virgin Media’s fixed broadband service were about faults, services and provisioning, well below the industry average of 37%“, said Opensignal. Virgin’s biggest flaws do indeed tend to emanate more from their support and complaints handling processes.

Given that consumer take-up is likely to drive the results from crowdsourced based data studies like this, then it may be worth considering that one of the reasons why Openreach based ISPs are so common in the bottom half of the table is because many of them still have large bases of ADSL and FTTC (VDSL2) customers on copper or hybrid fibre lines (these are not as reliable as full fibre FTTP).

In addition, we disagree with the approach of conflating satellite and mobile broadband services with fixed line broadband networks, which is due to the often significant differences in technologies and their applications. Not to mention that this makes it difficult to know what products they were actually testing with providers like Vodafone, which can deliver both mobile broadband and fixed broadband services for homes. Take with the usual pinch of salt.

The Broadband Infrastructure Company Ltd (formerly British Fibre Networks), which was once part of the i4 Technology Group, has been ordered to wind up its UK operations by the courts. The development comes after the company, which was previously run by CEO Elfed Thomas, found itself being hit by challenges from former staff over unpaid wages.

In case anybody has forgotten, British Fibre Networks (BFN) originally aspired to create an open access and 1Gbps capable Fibre-to-the-Home (FTTH) broadband ISP network to serve over 35% of UK new build homes by 2020. But the somewhat optimistic ambition never quite came to pass.

However, part of the reason for the winding up order may be found in an earlier piece from Wales Online, which noted how staff who worked for the aforementioned companies had claimed they were still owed “thousands of pounds” for unpaid mounts awarded to them in employment tribunals over the past two years (e.g. the largest of these awards was for more than £65,000).

The staff had claimed everything from a breach of contract, to unfair dismissal, and even unlawful deductions from wages. But the article noted that a number of staff were still fighting to recoup the money years after the tribunal decisions were handed down. Meanwhile, i4TG, which last year survived one “First Gazette notice for compulsory strike-off“, currently has overdue accounts but continues to trade for now.