Room to breathe: TalkTalk secures £400m refinancing deal

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

UK ISP Virgin Media Discount Broadband Packages and Bundles

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).

VMO2 seeking investment for £5 billion network arm 

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

Freedom Fibre Award Grants to 23 North Shropshire Community Projects

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.

NOTE: FF was originally backed by £111m from Equitix and is working to cover parts of Cheshire, Greater Manchester and Shropshire in England and North Wales. The operator previously aspired to cover 2 million UK premises. The operator also holds the state aid supported £24m Project Gigabit contract to cover 12,000 premises in rural parts of Shropshire (here), as well as the £43m contract to reach 15,000 in Cheshire (here).

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.

Giffgaff Boosts Mobile Broadband Data on UK SIM Only Plans

Mobile provider giffgaff, which is a Mobile Virtual Network Operator (MVNO) on O2’s UK platform, has significantly boosted the included data allowances across three of their SIM Only plans with a minimum contract term of 18-months. The change will come at no extra cost to both new and existing customers of the related Pay Monthly plans.

The promotion, which will be available to take until 4th December 2024, means that their £10 per month plan now comes with 60GB (GigaBytes) of data instead of just 25GB, while paying £15 will get you 120GB (up from 40GB) and £20 will get you 200GB (up from 120GB).

All of these plans also come with unlimited UK calls and texts, as well as up to 5GB of inclusive EU roaming (you’ll be charged 10p/MB once 5GB is used).

HORISEN Partners with Vodafone Germany for Groundbreaking Public Transportation Ticketing Concept

Press Release

Rorschach, Switzerland – September 2024 – HORISEN is proud to announce its collaboration with Vodafone Germany and DIMOCO Payments in supporting the first-ever public transportation ticketing concept via RCS (Rich Communication Services) and DCB (Direct Carrier Billing) in Germany.

Powered by HORISEN’s Business Messenger Platform, this innovative solution allows users to book public transportation tickets and pay directly through their phone bill – all this inside an RCS dialogue. The process is quite simple: just scan the QR code at the bus stop, choose a tariff, select carrier billing, and enjoy the ride – making public transport more accessible and convenient than ever.

This solution was showcased at the prestigious Future of Tech event, part of Germany’s largest B2B Startup Expo and Conference, highlighting HORISEN’s role in driving digital innovation in public services.

The initiative is part of Vodafone Germany’s UPLIFT project, dedicated to exploring new innovation partnerships. By focusing on future topics like sustainability, data analytics, and AI, Vodafone UPLIFT connects innovators with the resources and expertise needed to bring market-ready solutions to life. Like HORISEN, Vodafone is committed to creating future-oriented solutions that deliver tangible value and sustainability.

About HORISEN:

HORISEN, the home of omnichannel technology, is the ultimate one-stop shop for wholesale and retail messaging businesses. With over two decades of experience, we push the boundaries of technological innovation to empower Messaging Technologists in establishing, operating, and expanding successful messaging businesses. Our commitment to advancing the industry is evident in our pioneering projects that will drive the next wave of digital transformation.

Indosat Ooredoo Hutchison and Zurich Asuransi Indonesia Partnership to unlock innovative Insurance offerings for Comprehensive Protection

Press Release

Jakarta, September 3, 2024 — Indosat Ooredoo Hutchison (Indosat or IOH) today announced its partnership with PT Zurich Asuransi Indonesia Tbk (Zurich), through a ceremonial signing of a Memorandum of Understanding (MoU) held at Indosat MX Center, Jakarta. With this strategic partnership, Indosat and Zurich have committed to providing comprehensive insurance solutions that are easily accessible to Indosat customers through seamless integration of telecommunications and insurance services in one application, while increasing financial inclusion and empowering Indonesia.

Ritesh Kumar Singh, Director and Chief Commercial Officer of Indosat Ooredoo Hutchison, stated, “This strategic partnership combines Indosat’s extensive network and complete digital ecosystem with Zurich ’s expertise in insurance protection. This combination will not only strengthen our efforts to deliver marvelous experience, but also extends protection for Indonesians, particularly in rural and underserved areas. By leveraging the latest technology and a data-driven approach, we are optimistic that we can significantly improve service accessibility and comprehensive protection to the uninsured as well as insured segment.

The collaboration will utilize Indosat’s ecosystem of over 100 million users to offer protection solutions to various segments of society. Zurich will provide products through Indosat’s app, including reimbursement of postpaid bills and travel insurance for flight cancellations, lost luggage, and emergency medical needs. Future offerings, such as hospital cash plans and cracked screen insurance, are also in development with a view to cover  further protection needs at affordable premiums.

Edhi Tjahja Negara, President Director of PT Zurich Asuransi Indonesia Tbk, said, “ Partnering with Indosat Ooredoo Hutchison marks a significant milestone in Zurich’s mission to build a more resilient and financially strong Indonesia. Our digital-first solutions, designed under the Zurich Edge strategy in this platform, will ensure comprehensive protection is just a click away, fostering greater financial inclusion.”

This partnership proves Indosat as rolling out comprehensive protection solutions for a variety of activities, accessible through the myIM3 and bima+ platforms.Additionally, Free Postpaid Bill Protection plan is included for postpaid customers upon purchasing a plan or renewal, providing coverage against serious health risks along with additional benefits. Guided by the spirit of gotong royong, Indosat and Zurich are dedicated to providing protection that aligns with the specific needs of their customers.

Zurich has been serving customers in Indonesia for over 33 years, offering a range of general, life and sharia insurance products, characterized by affordable premiums, straightforward registration, expedited claims handling, and above all, propositions are designed to deliver a superior customer experience.

PT Zurich Asuransi Indonesia Tbk is licensed and supervised by Otoritas Jasa Keuanga

Ogi received £45m funding to aid expansion 

News

The altnet has been deploying fibre networks in south Wales since 2021 

Wales’ largest altnet Ogi has secured £45 million in funding from the Cardiff Capital Region (CCR) to support the next stages of its fibre rollout.  

Set up in 2017, the CCR represents 10 local councils from across South East Wales and provides funding for projects aimed at job creation and critical infrastructure development across the region. 

For Ogi, the new funding will allow the altnet to expand its full fibre footprint across Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen, and the Vale of Glamorgan. The company already has fibre network deployments in each of these regions. 

“With key strategic sites like Aberthaw to the south and the heads of the valleys to the north, there’s massive potential across the capital region – and partnering with CCR at such an exciting time in their own development is the next logical step for Ogi’s growth in southeast Wales,” said Ogi’s CEO Ben Allwright in the announcement. 

“Ogi has taken regeneration to a new level with its initial investment – connecting communities to new possibilities right across the Cardiff Capital Region and beyond,” said Councillor Mary Ann Brocklesby.  

“Our investment into Ogi recognises that ongoing commitment to boosting the region, and the work already being done to bring vital connectivity to some of Wales’s biggest towns and villages,” she continued. 

The exact number of new premises to be covered as a result of this funding was not revealed.  

Ogi secured its first funding round from Infracapital in 2021 and has since then provided 100,000 premises in South Wales with fibre-to-the-premises. Currently, one in five of those premises have signed up as a customer. 

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

Also in the news: 
Coastguard’s emergency network gets an upgrade from Telent
AT&T fined nearly $1m over 911 failings
How will the CityFibre–Sky deal really affect BT?

Virgin Media O2 Business to Build Dark Fibre Network in Swansea

Broadband ISP Virgin Media O2 Business (VMO2) last week won the contract to deploy a new Dark Fibre network as part of the Swansea Bay City Region project (Digital Infrastructure Programme). The new network should deliver significantly improved data capacity and speed to 36 public sector sites throughout Swansea and Neath Port Talbot.

Just to recap. The UK and Welsh Governments gave their approval for a £55m digital infrastructure investment under the £1.3bn Swansea Bay City Region project back in 2021 (here), which aimed to expand full fibre broadband and 5G mobile connectivity to benefit residents and businesses across Carmarthenshire, Neath Port Talbot, Pembrokeshire and Swansea.

The new network, which forms part of that agreement and aims to become fully available by December 2025, is initially only focused upon catering for public sector sites (e.g. council offices, NHS, doctors, schools etc.). But we’ve seen before how similar anchor tenancy models can also result in such networks being opened up for use by commercial network expansions too, although this would require additional private investment.

Carl Mustad, Assistant Director at Swansea Bay University Health Board, said:

“This is an integral step forward for the health boards, local authorities and universities in this area and will help us collaborate and expand our future research and development relationships.”

Modern networks are essential to provide the backbone for cutting edge telemedicine services, artificial intelligence and improved data management which in turn supports improvements in diagnostics, and patient experience.”

Catherine Amran, Customer Director at VMO2 Business, said:

“We’re looking forward to working with Swansea Bay City Deal to help connect the Swansea and Neath Port Talbot regions. Virgin Media O2 Business have the largest available dark fibre coverage in the UK. With dark fibre right across our national footprint without any regional restrictions, this new network will provide the region with a range of benefits like increased capacity and speed. Collaborations like this are important for public services, enabling growth and ensuring organisations have access to reliable connectivity.”

This new connectivity infrastructure will initially work to “future proof” the digital capabilities of the Welsh Ambulance Service University Trust, Swansea Bay University Health Board, Hywel Dda Health Board, Swansea University, the University of Wales, Trinity St David, and the three local authorities – Neath Port Talbot, Swansea and Carmarthenshire.

Virgin Media UK Partners with TSA Telecare Body for Digital Phone Switch

Broadband ISP Virgin Media (O2) has today given their Digital Landline Switchover (DLS) programme (i.e. migrating old analogue landline phones to IP-based services) a boost by signing a “first-of-its-kind partnership” with TSA, the telecare advisory body, to enhance the support provided to telecare users as the UK transitions to Digital Voice.

Just to recap. Virgin Media restarted their DLS scheme in April 2024 (here), which came after it was put on pause at the end of 2023 as part of their commitment under the Government-led charter that had been designed to limit risks for vulnerable users.

NOTE: The shift to digital phones is an industry, not government, led programme that is partly driven by the looming retirement of copper lines in favour of full fibre (FTTP). Not to mention that modern mobile and IP-based communication services have largely taken over from traditional home phones, and it’s become harder to find parts for the old network.

The switch is a particular concern for the c. 1.8 million people who use telecare devices / alarms in the UK (e.g. elderly, disabled, and vulnerable people), many of which are located in rural and isolated areas. Sadly, a lot of those telecare systems haven’t yet been updated to work with the newer Internet Protocol (IP) based voice / phone services, which is despite the telecare industry having plenty of years to prepare.

In keeping with this, Ofcom are currently investigating Virgin Media’s migration of customers from analogue to digital landlines, which focuses upon whether they’ve been treating vulnerable consumers correctly and “ensuring uninterrupted access” to emergency services (here). The risks here were tragically underlined by the recently reported deaths of two “vulnerable” Virgin Media Phone customers (here).

The new deal between Virgin Media and the TSA is thus looking to help change all this by enhancing support for telecare users going through the DLS. VMO2 claims to be the first telecoms company to form a partnership with the industry body which represents UK telecare organisations, including care providers, device manufacturers, ambulance services, housing associations and local authorities.

The two organisations are already working together on a new trial with Stockport-based telecare provider Carecall to provide dedicated support to telecare users as their services are migrated.

Description of the Stockport Trial

Alongside the existing measures that Virgin Media O2 already had in place, and those brought in earlier this year to support customers, the trial has seen all parties come together to provide enhanced support for telecare device users, ensuring they get the help they need as the essential digital switchover takes place. This includes:

Using the secure data sharing agreement between Stockport Homes and Virgin Media O2 to better identify telecare customers who have not yet made themselves known to the telecoms provider;
Combining resources to communicate and engage with customers;
Providing joint visits with teams from both Virgin Media O2 and Carecall present to support customers with their services and check devices are working as they should and committing to never leaving a property without a working landline.

Having only kicked off in late July, this trial has seen around 80% of targeted telecare customers successfully switched to Digital Voice on a voluntary basis, rising to 95% when accounting for those with appointments booked in (21st August 2024). All customers’ services are being closely monitored post-migration to ensure a smooth transition to the new technology.

Further trials in different parts of the country are now planned to further refine the process “ahead of a potential nationwide roll-out“. Carecall is a part of Stockport Homes Group, which provides housing services on behalf of Stockport Council. The successful trial was made possible because Stockport Homes signed a “data-sharing agreement” with Virgin Media, meaning telecare users could be quickly and efficiently identified.

Rob Orr, Chief Operating Officer at VMO2, said:

“With the decades-old phone network becoming increasingly difficult to maintain, we must take action to ensure we are safeguarding landline services in future. We know that change is never easy, however we’re committed to providing enhanced support and doing everything we can for our customers as we migrate to digital voice services.

Our partnership with TSA and trial in Stockport are helping us develop a scalable model to safely migrate our most vulnerable customers. By helping to better identify telecare customers and working together to reach our shared customers, this innovative project provides a gold standard service which could be the blueprint for our future roll-out.

Cross industry collaboration is essential to make the digital migration a success so it’s deeply concerning that some local authorities and telecare providers are still not engaging with us despite our repeated efforts. We encourage all parties to step up and work with the industry on this switchover, and for Government to create a “Telecare Charter” to make sure everyone is playing their role and is clear on their responsibilities.”

Alyson Scurfield, CEO at TSA, said:

“Over two million people in the UK rely on telecare services to live independent lives and our sector is very concerned about the impact of power failures on digital landlines. Our prime goal is to support older and disabled people as their landlines change from analogue to digital and that’s why we’re working closely with Virgin Media O2 and Carecall.

We’re creating a blueprint for safe, smooth, speedy digital migration that can be adopted by other housing associations, local authorities, care providers and telecoms providers. We’re also developing guidance, training and quality standards that can support this best-practice migration process.”

On top of this, Virgin Media has now written to every UK local authority it operates in, encouraging others to follow in Stockport Homes footsteps and establish invaluable data-sharing agreements where they haven’t done so already.

To date, more than 4 in 5 of local authorities written to have not yet formed a data agreement with VMO2, with “many not responding to communications at all“. As a result of this, both the TSA and VMO2 are now calling on the government to create a Telecare Charter, which will set out a range of commitments and encourages these parties to work with the telecoms industry to help ensure nobody is left behind.

All of this is very positive, although we should add that Openreach is also doing something similar to the aforementioned trial via their own Prove Telecare Trial, which started at the end of July 2024. But the fact is that the industry should really have been doing things like this years ago, rather than waiting until the final couple of years of the migration. The previous government should have also been more proactive on the topic.

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 by BT and Openreach as the deadline for migration in related households has since been extended to 31st Jan 2027 (here and here).