Hyperoptic Grows Full Fibre to Cover 1.6m UK Premises and Enhances Top Team

City-focused broadband ISP and alternative network provider Hyperoptic has revealed the appointment of four new key members to its leadership team. On top of that, they’ve also quietly confirmed that their gigabit full fibre (FTTP/B) network now covers “more than” 1.6 million UK homes (up from 1.4m in Oct 2023) across parts of 64 UK towns and cities.

The operator, which is home to a customer base of 300,000 (5th Oct 2023 – we haven’t had an updated figure since then) and has been targeting 500,000 for the near future, was previously known to be aiming to cover 2 million premises with their gigabit broadband network by some point in 2024 (the prior target was to hit this at the end of 2023).

NOTE: KKR acquired a majority (75%) equity stake in Hyperoptic during 2019 (here) and the operator, which is home to c. 2,000 staff, has so far secured over £600m in debt to fund its growth.

However, Hyperoptic’s plans were tweaked during mid-2023, which occurred after they announced a number of redundancies and appeared to suffer a slowdown in their build due to the difficult economic climate (here). Since then the operator has reportedly been attempting to raise up to £500m of additional capital in order to continue their network expansion (here), but we’ve not heard anything new on that since earlier in the year (interest rates remain high, which may hamper such deals).

The positive news today is that the operator has announced several key hires to help “signify [our] commitment to continuous improvement and innovation“. Joining the company are Robert Osborne as Director of Enterprise Architecture, Robert Baynes as Technical Operations Director, Michele Hanson as Head of Security, and Mike Bywater as Software Development Director. This follows the appointment of Duncan Macdonald as Chief Technology & Innovation Officer (CTIO) in May 2023.

Duncan Macdonald, CTIO of Hyperoptic, told ISPreview:

“Hyperoptic’s world-class technology and innovation leadership team is setting the company up for the future. The expertise and experience that Robert Osborne, Robert Baynes, Michele Hanson, and Mike Bywater bring will play an important role in advancing our mission to be the UK’s most desired and loved broadband provider by driving digital transformation across the nation.”

As part of this the operator has also confirmed that they’re investing in artificial intelligence (AI) and IT transformation initiatives. No specifics were provided to help elaborate on this, although such changes are often aimed at improving existing customer service/support and lowering operating costs.

Speaking of that 1.6 million+ “homes” figure, it’s currently unclear whether this reflects properties that are all ‘Ready for Service’ (RFS). Independent data from Thinkbroadband, which was published in February 2024 (here), put Hyperoptic’s RFS figure at an estimated 1.1 million (vs the then official claim of 1.4m).

Alternative UK ISP Trooli Launches 2Gbps Broadband Package

Alternative network operator Trooli, which was last year acquired by Agnar UK Infrastructure (here) and has so far extended their gigabit-capable full fibre (FTTP) network to cover 334,000 premises (RFS) across England and Scotland (here), has become the latest ISP to launch a 2Gbps (multi-gigabit) speed package.

Until recently, the fastest package listed on the main page of Trooli’s website was still their 900Mbps (symmetric speed) tier for £39.99 per month on a 24-month term, which includes a “free” router + installation and a promise of “no in-contract price rises“.

NOTE: Trooli’s network is mostly found in towns and large villages across parts of Berkshire, Buckinghamshire, Cambridgeshire, Dorset, East Sussex, Hampshire, Kent, Norfolk, Suffolk, West Sussex and Wiltshire in England. As well as parts of North Lanarkshire, South Lanarkshire and Fife in Scotland (formerly Axione UK).

However, one of our readers (credits to Blake of Leaf Networks) recently spotted that they’ve added a 2Gbps (symmetric) package for just £49.99 per month, which seems to be a common top speed for a lot of other Altnet ISPs to adopt. The provider doesn’t appear to have sent out a widely distributed press release about this, but so far as we can tell the package was officially launched a few weeks ago during early May 2024.

Trooli’s Website Statement on 2Gbps

You’re probably used to seeing broadband packages categorised by speed, most commonly in the units of Gbps (Gigabits per second) or Mbps (Megabits per second). But do you know what this actually means? Both units explain the number of ‘bits’, small units of data, that can be transferred per second. Gbps means a billion bits per second, whilst Mbps means a million bits per second.

In 2023 the average speed of broadband in the UK was 0.073Gbps (73.21Mbps) but this is simply not enough for households that want to work, stream, browse, or game without interruption. Luckily, 2Gbps broadband (2000Mbps) is now available and is more than 27 times faster than the average UK broadband speed, allowing you to do more with your Wi-Fi, without frustrating buffering and freezing.

Broadband ISP Plusnet Confirm Closure Date of UK Mobile Service

Budget UK ISP Plusnet, which is typically positioned as BT’s low-cost division for basic internet access services, has now confirmed that their own-brand of EE powered Pay Monthly SIM-Only Mobile plans will finally be closing “throughout” this month (June 2024). Customers must transfer before their accounts are closed to avoid losing their service and number.

In case anybody has forgotten. Plusnet stopped selling mobile plans to new customers at the end of March 2023 (here). The move formed part of the BT Group’s wider branding strategy and their work to turn EE – over time – into their “flagship brand for our consumer customers” (here). As a result of this, we’ve already seen Plusnet stop providing various other services too, such as TV content and landline phones.

NOTE: See HERE for information on switching mobile operators via the “Text-to-Switch” (Auto-Switching) system.

However, at the time it wasn’t clear precisely when Plusnet Mobile would completely close their service, but a recent notice posted on the internet provider’s website has confirmed that the process begins this month (credits to insertfloppydiskhere for spotting via our forum).

The provider is understood to have been communicating their intention to close the service directly with customers since May 2023 and so hopefully most will have now switched away. But there are always some who can end up being caught out by such changes, and this often touches the most vulnerable of users. Hopefully Plusnet are mindful of that.

Plusnet Mobile Statement

From June 2024 we will be closing all Plusnet Mobile Services. We’ll confirm your cease data at least 30 days before your mobile account ceases. Once your account is ceased you won’t be able to make or receive calls (other than emergency 999 calls) send texts or use your data.

You’ll have 40 days from your cease date to move your service to another provider. After 40 days your account will automatically be closed. You will lose all of your services and it will not be possible to transfer your mobile number once your account is closed.

If you want to keep your mobile number when you switch, you’ll need to request a PAC code. Just text PAC to 65075. You’ll get your code in less than a minute and it’s valid for 30 days.

Naturally, the internet provider is currently promoting some “exclusive deals” via EE for those wishing to switch, but it’s worth remembering that those affected can switch to any mobile operator they like and don’t have to stay with the same network.

Verizon secures $2.7bn US navy contract 

News 

The contract will help the US navy undergo a digital modernisation 

The US Department of the Navy has chosen Verizon’s government, education, and public safety arm, Verizon Public Sector, to provide wireless services, in a contract worth up to $2.67 billion over 10 years. 

The new contract will offer improved and cost-effective wireless solutions to related military and federal agencies. 

The agreement forms part of the fourth round of the wireless and telecoms services contract launched by the US Department of Defence (DOD), also known as the Spiral 4 contract. 

“Verizon’s inclusion in Spiral 4 represents our understanding of the DON’s sophisticated demands for mission critical communications, developed through our history of digital modernization partnership with federal agencies including on Spiral 3,” said David Rouse, head of Verizon’s defence portfolio in a press release. 

“We are proud to continue serving military agencies under this new contract and build on our relationship with the DOD,” he continued. 

Verizon plays a critical role in providing communication services to the US Navy to support their operations. Back in December, the company secured another contract with the US Navy to modernise data services and provide it with new voice technologies.  

The year before, it secured a deal worth almost $1 billion with the DOD to provide network modernisation services and technical support services to the Pentagon, the DOD National Capital Region (NCR), and US army base Fort Belvoir. 

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

Also in the news:
Digi set to buy OTE’s Telekom Romania
Billionaire Xavier Neil ponders Millicom acquisition
EU-funded Global Gateways projects on show at Submarine Networks EMEA 2024 

Orange Romania absorbs broadband subsidiary in convergence push

News

The move is the latest in a series of acquisitions and mergers throughout Europe aimed at combining fixed and mobile operations

This week, Orange has announced that Orange Romania will merge with Orange Romania Communications (OROC), combining their mobile and fixed broadband businesses to become a fully converged telecoms operator.

Orange Romania first acquired a 54% stake in OROC (then Telekom Romania Communications) back in 2021 and moved quickly to unify contact channels and launch a joint commercial offering.

Since then, Orange has been looking to take full control of OROC and merge the two businesses, finally getting the green light for the merger from the Romanian government last year.

Following the merger, Orange Group will hold an 80% stake in the converged business, with the remaining 20% held by Romania’s Ministry of Research, Innovation and Digitalization.

“The merger between Orange Romania S.A. and Orange Romania Communications S.A. is a major step for Orange and marks the fruition of the process with the Government of Romania,” said Mari-Noëlle Jégo-Laveissière, Executive Vice President, CEO of Orange Europe. “This merger enables Orange Romania to fully implement its strategy to deliver best-in class offers on mobile and fiber. I warmly thank the teams that have been working on this transaction and wish the new integrated teams all the best.”

The convergence of mobile and fixed broadband operations has been a key strategy for Orange for many years now. Back in 2021, when Orange announced its new strategic priorities for Europe, convergence was highlighted as a key target across the region, with Jégo-Laveissière calling it “the cornerstone of our strategy”.

Since then, the company has moved to expand its converged offerings in numerous markets; last year, for example, the company notably acquired fixed network operator Voo in Belgium last year, allowing Orange Belgium to begin offering combined fixed and mobile packages to customers.

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

Also in the news:
UK government conditionally approves £15bn Vodafone–Three merger
Nokia and Vodafone trial Open RAN with Arm and HPE
T-Mobile and Verizon to buy US Cellular, reports say 

Sure Hike Broadband and Phone Prices on Isle of Man, Jersey and Guernsey

Network operator and ISP Sure, which is present on the Isle of Man, Jersey and Guernsey, has informed existing customers of their intention to increase mobile, phone and broadband prices – in line with the Retail Price Index (RPI) – by “up to” 6.1% (Isle of Man), 5.8% (Guernsey) and 5.7% (Jersey) from 1st July 2024.

We understand that price rises are something most of us would like to avoid, but it enables us to sustain investments in our networks, products and services across the island,” said the network provider. Some customers that have signed or re-signed their services since 1st April or 1st May 2024 “will not be impacted” by this RPI price increase.

NOTE: Further details can be found on Sure’s price notification pages for the Isle of Man, Jersey and Guernsey.

The move follows shortly after local rivals, such as Manx Telecom on the Isle of Man, confirmed that many of their customers would also be hit by annual “inflationary” price hikes.

KKR TIM deal gets EU go-ahead 

News 

The Italian government has already approved the deal after agreeing with KKR to take a stake of up to 20% in the business once the transaction is complete 

The EU competition authority has given KKR the green light for its planned takeover of Telecom Italia (TIM)’s fixed network operations (known as NetCo) for €19 billion. 

The European Commission was notified of the deal on April 19 and officially approved the merger in a statement yesterday, having completed a full investigation. 

“The Commission investigated the impact of the transaction on the market for wholesale broadband access services in Italy and concluded that it would not significantly reduce the level of competition,” read the statement.  

Specifically, the commission concluded that: 

The number of networks and providers will stay the same, preventing KKR from limiting access to infrastructure services. Existing agreements with rival companies such as Fastweb and Iliad will ensure competitive conditions remain in the market. 

In addition, NetCo and Open Fibre, Italy’s second-largest fixed broadband provider, will keep competing for customers and expanding their networks, driven by competition from Fastweb. 

Approval of the deal comes just weeks after TIM reportedly presented a raft of remedies to the European Commission to get it over the line. The specifics of these remedies were not revealed, but anonymous sources speaking to Bloomberg said the measures would likely solve EU concerns over possible price hikes in the wholesale market. 

The acquisition may still face opposition from Vivendi, TIM’s largest shareholder. The company has been vocal in its disapproval of the deal and has said it will use “any legal means at its disposal” to challenge it. The company believes that TIM’s assets are worth around €30 billion and are therefore being undervalued.   

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

Also in the news: 
Digi set to buy OTE’s Telekom Romania
Billionaire Xavier Neil ponders Millicom acquisition
EU-funded Global Gateways projects on show at Submarine Networks EMEA 2024 

Vodafone UK and Sky Mobile Discount Monthly SIM Only Plans

Mobile network operators Vodafone and Sky Mobile have today launched new discounts on their Pay Monthly SIM Only plans. For example, Voda has knocked £5 off the monthly prices of their 24-month plans (i.e. a saving of £120), while Sky has reduced the prices of their mobile plans by 50% for 12-months (e.g. their top 150GB plan is now £15 instead of £30).

Sky Mobile’s 12 Months Half Price promotion, available across both SIMO and Device Data plans, will run until the 28th of June 2024 (excluding on their 100MB data plan that remains at £5 per month). By comparison, Vodafone‘s £5 monthly saving will be available to order until 25th June 2024.

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

ISP Brsk Faces Objections to UK Broadband Poles in Ashton

Alternative network operator and UK broadband ISP Brsk have put part of their plan to roll-out a new gigabit-capable Fibre-to-the-Premises (FTTP) network in the market town of Ashton (Tameside, Greater Manchester) and Dukinfield under review, which comes after locals raised concerns over the provider’s use of poles for part of the build.

The operator – fuelled by an investment of at least £259m – is currently building out its new network across parts of West Yorkshire, Lancashire, Greater Manchester, Cheshire, and the West Midlands (Birmingham and The Black Country). Some 28,000 customers (1st Mar 2024) already use the service and they’ve covered 500,000 premises passed (486,184 RFS – 30th Apr 2024).

NOTE: Brsk, which aims to pass 1 million homes by 2026, is backed by investment from Advencap and the Ares Management Corp.

However, brsk, much like most network operators, have also been deploying some wood poles to help run their overhead cables, which are a very common sight across the UK (millions have been built). Such poles are quick and cost-effective to build, can be deployed in areas where there may be no space or access agreement to safely put new underground cables, are less disruptive (avoiding the noise, access restrictions and damage to pavements of street works) and can be built under Permitted Development (PD) rights with only minimal prior notice.

The lower cost impact of poles can often mean the difference between building a competitive gigabit broadband into an area or skipping it. But not everybody is a fan and those who complain often focus on their negative visual appearance, as well as concerns about exposure to damage from major storms (example), the lack of effective prior consultation or engineers that fail to follow safety rules while building. The issue often becomes particularly emotive in areas that haven’t previously had poles before.

The latest example of this comes from brsk’s ongoing deployment across the market town of Ashton-under-Lyne and neighbouring Dukinfield, where local councillor Dan Costello and several residents have complained about the operator’s use of poles in some parts of the build (as opposed to going underground, which was possible in some other areas). As usual, most of the gripes have to do with the perceived negative visual impact.

Cllr Costello said (The Correspondent):

“I stressed that I thought Brsk were forcing an 1850s solution on residents who do not want it because of their own laziness and lack of investment in a modern, fit for purpose, solution, but, against the weight of their own greed, such an argument had little impact.

Brsk are a disgrace, their greedy approach is a disgrace and their arrogant hiding behind legislation to impose a 170-year-old solution because of their own inability to develop a better solution is an absolute disgrace.”

In response, brsk said their network was being “built within and on the existing telecommunications infrastructure both overhead and underground” (i.e. harnessing Openreach’s existing ducts and poles), albeit with some of the operators own poles being necessary in certain areas to help fill in the gaps where this isn’t possible (usually due to lack of access or spare capacity within the existing network).

Despite this, brsk has taken a constructive approach by putting some of their proposed pole deployments in the area under review, which may or may not mean that they all go ahead. But this could also result in some streets being skipped, due to the high cost of an alternative underground roll-out making some deployments simply too expensive (i.e. leaving locals with fewer competitive network options). Some may still be happy with such an outcome, but this often overlooks the voices of those who do want the choice.

A spokesperson for brsk said:

“The poles are placed in locations which cause the least disruption to residents, and any residents who may be impacted are directly communicated with through our engagement process so that we can discuss and do our best to accommodate where possible. We only stand poles on public land and therefore private property such as gardens would not be selected as a location for a pole.

In the area in question, we need to use overhead infrastructure because there are buried Openreach cables, which means there is no duct for us to access underground, leaving overhead as our only option to connect residents to full fibre.

Having already built a full fibre broadband network that spans over 500,000 homes across various regions of the UK, with 226,000 of those in Manchester alone, we have naturally encountered queries and concerns along the way, however this has been minimal in relation to the total build completed.

We have received no complaints from the area in question, however we have a transparent communication policy and welcome any residents with concerns or questions to get in touch, and our dedicated teams will be happy to assist. In the council district of Ashton Waterloo, there are 248 existing Openreach poles that we will make use of as much as possible.

Where we aren’t able to use this or where there might be significant gaps in the network that need to be accommodated for, our initial plan is to install 50 additional telegraph poles across the area, which will service nearly 4,000 homes. We’re proud to be making Ashton Under-Lyne one of the best digitally connected areas in the country ahead of the national deadline.”

In terms of the town itself, we note that most of the area is already covered by Virgin Media’s gigabit-capable network, while Openreach and Hyperoptic only have a very limited presence via FTTP. But both ITS Technology and now brsk do seem to have already built and put live (RFS) a sizeable full fibre network in the area, although ITS tends to attract more interest for its business solutions.

Meanwhile, the Government’s Digital Infrastructure Minister, Julia Lopez, did recently call on network operators to “limit installation of telegraph poles” (here and here), albeit largely by reiterating the rules that operators already follow. Julia also called on Ofcom to provide guidance to local planning authorities on how to raise complaints, as well as asking them for support to tackle the challenge.

However, Ofcom has yet to take any enforcement action related to poles or even investigate a specific complaint, which is in part because a lot of the local-level complaints people have raised don’t strictly breach the existing and fairly flexible guidelines. See the Revised Cabinet and Pole Siting Code of Practice Nov 2016.

The current government has proposed to “revise” the existing code for poles to “make sure that communities feel engaged in the deployment of new broadband infrastructure, whilst still allowing operators to continue deploying their networks.” We expect more meetings and better notifications to be the result, which may add some extra costs and time to network builds. But the recent move to call a General Election could impact all this.

Scotland Tenders for £106m Gigabit Broadband Rollout in North East

The Scottish Government has issued a contract notice for the North East of Scotland (Lot 5) under the UK’s £5bn Project Gigabit broadband roll-out scheme, which is expected to expand related connectivity to an estimated 68,342 premises in hard-to-reach (rural) parts of Dundee, Angus, Aberdeenshire, Aberdeen City, Moray, Highland and Perth and Kinross.

At present 75% of premises in Scotland can access a gigabit-capable (1Gbps download) broadband ISP network (here), which is expected to increase as commercial builds and the Scottish Government progresses their existing £600m Reaching 100% (R100) project. The R100 scheme largely involves extending “full fibre” (FTTP) networks to another 114,000 premises in areas that lack access to “superfast broadband” (30Mbps+) speeds by 2027/28 – so far, this has already helped to reach 48,000 premises (here). But take note that this 48k figure includes the impact from vouchers (3,800), contracted build and overspill (explainer).

NOTE: The responsibility for broadband in Scotland is reserved to Westminster, but that doesn’t stop local and devolved authorities from making their own investments.

However, Ofcom predicts (here) that Scotland’s full fibre coverage will reach around 78-83% by May 2026, while gigabit-capable broadband (FTTP and Hybrid Fibre Coax / cable) would deliver 83-85% by that same date. Suffice to say that in terms of gigabit coverage, a gap will still be left for Scotland to fill once R100 completes and most of that will be in rural areas (only around 30% of rural Scotland can currently access gigabit speeds).

As a result, the UK Government’s Project Gigabit programme has already allocated £450m (here) to help this project spread 1Gbps broadband speeds into some of the most remote rural areas of Scotland. The associated Building Digital UK (BDUK) agency has previously estimated that some 410,000 premises across Scotland may need support from public funding to help them gain access to such speeds (here).

The first major Regional (Type B) contract notice under this new programme has now been issued, which is for the North East (Lot 5) of Scotland – largely comprising rural parts of Dundee, Angus, Aberdeenshire, Aberdeen City, Moray, Highland and Perth and Kinross. Take note that the ‘LOT’ numbers in Scotland are separate from those already allocated to England (e.g. Lot 5 in England covers Cambridgeshire and adjacent areas).

The Scottish Government’s notice indicates that five potential suppliers are being courted for the new contract under Project Gigabit’s related Gigabit Infrastructure Subsidy (GIS) scheme, which has an estimated value of £105.71m (state aid). The contract itself is expected to run for 11 years (only 4 of that will involve the build phase, with 7 years for an operational period).

According to the notice, “it is the intention that the build period will be completed by the end of 2029,” although this completion date is highly tentative as it will depend upon both how long it takes to award the contract to a supplier and then how long that supplier needs in order to conduct their final engineering surveys (i.e. it may well take longer to complete than the end of 2029). Not to mention any unexpected delays during deployment.

A number of network operators may have an interest in delivering this, such as nexfibre (Virgin Media), Openreach (BT), CityFibre, GoFibre, Trooli, Netomnia (YouFibre) and Lothian Broadband etc. But some of those players lack the investment support and resources to take on such a large deployment, and we don’t yet know which ones will actually put in a serious bid.

The SG is also preparing to launch a number of smaller (Local – Type A) contract notices for other parts of Scotland over the next few weeks and months (e.g. a build for 11,000 premises in the Borders and East Lothian areas will be next on their list).

In addition, other parts of Central and North Scotland may be included within a future call-off procurement under the cross-regional framework (Type C) that is currently in procurement, which will be delivered by BDUK and the preferred supplier for that is already known to be Openreach. Type C’s are the largest contracts and tend to reflect areas that have struggled to attract interest from suppliers when presented as smaller Type A/B contracts.

But today reflects the first contract notice for a regional project in Scotland under Project Gigabit and so it gets its own article, rather than forming part of a general quarterly summary. We should know who has won this contract by around the end of autumn or early winter.