Keysight outbids Viavi on Spirent in dramatic move 

News 

US-based Keysight Technologies has out bid rival Viavi Solutions on the purchase of Spirent Communications, offering £1.16 billion for the company this week 

Earlier this month, US technology company Viavi Solutions made a £1 billion takeover bid for UK-based telecoms testing group Spirent Communications.  

At the time, Viavi CEO Oleg Khaykin said that the deal would “deliver enhanced product solutions and applications, accelerate growth in new markets and strengthen innovation through expanded engineering and design capabilities”. 

Now, however, facing a higher offer from Keysight, Spirent has withdrawn its non-binding agreement with Viavi. 

“Following my discussions with the Keysight management team, I am excited about the broader reach and expanded long-term prospects for Spirent arising from the combination with Keysight,” Spirent CEO Eric Updyke said in a statement to Reuters. 

Spirent is a leading provider of automated testing for networks, with a portfolio that includes 5G, cloud, and autonomous vehicle services. 

In a statement on the London Stock Exchange, Spirent directors said that “combining with the Keysight Group will allow the business to better serve customer needs, with increased resources and a broader product offering.”  

“The Spirent Directors also consider that the Acquisition provides an exciting opportunity to better deal with the complexity customers are seeing in today’s world with the Combined Group’s broader capabilities, operational and financial power, and investment in research and development,” the statement continued. 

“Our superior Offer recognizes the value of Spirent’s achievements to-date, and the exciting prospects of the combination of our complementary product portfolios to provide end-to-end solutions for customers across their lifecycle needs,” said Satish Dhanasekaran, President & Chief Executive Officer of Keysight in a press release. 

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

Also in the news:
BT wins £26m contract to connect UK schools
Apple fined €1.8bn by European Commission over Spotify row
Japan to reduce regulatory pressure on incumbent NTT

 

Amazon invests $2.75 billion in AI startup Anthropic 

News 

Founded in 2021 by former Open AI executives, Anthropic is now one of the most well-funded AI firms in the world 

Amazon has announced an investment of $2.75 billion in San Francisco-based AI startup Anthropic, as it looks to compete with AI rivals such as Google and Microsoft through its AI chatbot Claude. 

The move is Amazon’s largest external investment since it was founded in 1994. 

As part of the deal, Anthropic will use Amazon Web Services (AWS) as its primary cloud provider, as well as using AWS’s Trainium and Inferentia chips to build, train, and deploy AI models. 

Back in September, Amazon announced that it would invest an initial $1.25 billion in Anthropic in exchange for a minority stake in the business, with the possibility that the investment could reach up to $4 billion. With this week’s investment, that  milestone has now been hit. 

“Generative AI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next,” said Dr. Swami Sivasubramanian, vice president of Data and AI at AWS in Amazon’s press release. 

Interest in Anthropic is growing at a meteoric pace, having received around $7.3 billion in funding over the past year alone. 

Part of this backing has come from South Korea’s SK Telecom (SKT), which invested $100 million in the company in an effort to develop a multilingual large language model (LLM) customised for global telcos.  

SKT currently has ambitions of becoming a world leader in AI, with Chief Financial Officer Kim Jin Won saying on an earnings call last year that the company was “stepping up efforts on all fronts to transform itself into an AI company”. 

In related news, this month AWS, Anthropic, and Accenture joined forces to help organisations in highly regulated industries – such as healthcare, banking and insurance – to adopt and scale generative AI solutions so that their organisations can improve innovation and productivity.  

“By combining Anthropic’s focus on model performance and safety, AWS’s approach to security and reliability, and Accenture’s deep domain expertise with technical know-how, we aim to build tailored solutions that enable key use cases,” said Anthropic’s CEO Dario Amodei in a statement. 

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

Also in the news:
VEON exits Kyrgyzstan to focus on key markets
BT pledges to upgrade payphones nationwide
Spanish govt buys 3% stake in Telefonica, eyes 10%

T-Mobile gets green light to appeal class action lawsuit

News

A US judge ruled this week that T-Mobile can appeal a pending class action lawsuit that is seeking damages related to T-Mobile’s merger with Sprint

This week, Illinois U.S. District Judge Thomas Durkin has ruled that T-Mobile can proceed with an appeal of a class action lawsuit that could cost the company billions of dollars in compensation.

The class action lawsuit, which is being brough by seven subscribers of AT&T or Verizon, argues that the merger of Sprint and T-Mobile reduced competition in the wireless market to such an extent that it forced AT&T and Verizon to increase their prices. This, they say, saw tens to hundreds of millions of consumers paying more for their wireless services than they would have otherwise.

The plaintiffs are seeking monetary compensation as well as other remedies, which could even include the reversal of the Sprint–T-Mobile merger entirely.

Back in November, courts declined to dismiss the lawsuit at T-Mobile’s request, saying that AT&T and Verizon’s price increases could “plausibly” be linked to the merger.

T-Mobile immediately signalled their intention to appeal the decision, saying that the case’s “expansive conception of antitrust standing is unprecedented”.

The plaintiffs’ lawyers, on the other hand, argued that a length appeal process would delay potential compensation and could make dissolving the merger more difficult. They subsequently argued that the case should be put before a jury before an appeal was presented.

Now, Judge Durkin has confirmed that T-Mobile will be allowed to proceed with their appeal, with the operator arguing the plaintiffs’ have not sufficiently alleged antitrust standing.

Antitrust lawyers will be watching the proceedings of the case closely. Federal antitrust law allows consumers to bring private challenges against mergers and acquisitions, but cases arguing that a company’s M&A activity had negatively affected a rival’s customers are very rare.

If the case is ultimately allowed to proceed, it could significantly expand the scope of future antitrust proceedings.

Has the Sprint–T-Mobile merger negatively affected the US mobile landscape? Join the discussion live Houston, Texas, at this year’s Broadband Communities Summit

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Openreach Offer New Multiport ONT Service with UK FTTP Broadband

Network access provider Openreach (BT Group) is preparing to launch a new service for broadband ISPs, which will optionally allow their customers to choose a Multiport Optical Network Terminal (ONT) device instead of the normal single port unit that is deployed during home installs. But some installs will get it by default.

The ONT or optical modem device is usually installed inside your home or office (wall hung), near to where the fibre optic cable physically enters your property, and its primary job is simply to take the optical signal and convert it into an electrical one that can be connected to your broadband router via a Local Area Network (Ethernet) port. The standard ONT is usually a very small single port device.

NOTE: Openreach’s full fibre network currently covers 13 million premises and is expected to reach 25 million by December 2026 (80%+ of the UK) – at a cost of up to £15bn. After that, there’s also an aspiration to reach up to 30 million by 2030.

The operator has supplied 4 port ONTs in the past (i.e. 1 optical input and 4 LAN outputs), which in the early years was actually the default. Openreach also trialled a 4 port ONT from Nokia (G-040G-B – GPON Multiport 4+0 ONT) back in 2021 (here), albeit only for specific order journeys, such as to replace an existing ONT upon request. The new service appears to be using the same Nokia device, albeit no longer as a trial.

However, Openreach have now launched a new optional Multiport ONT service for FTTP, which will become available from 1st May 2024. But the new service will attract a cost (pricing). For example, a standard FTTP install charge (like the one you might have in a normal home)for a Multiport ONT will cost £120.05 +vat for packages at a speed of less than 500Mbps, which rises to £500 for speeds of 500Mbps or more (we’re not entirely sure why the latter is that expensive).

Customers who merely want to replace (Box Swap) their existing / older ONT for a new Multiport ONT will be charged £90 +vat for sub-500Mbps packages and £500 for 500Mbps or faster tiers. Existing “Equinox” connection discounts on standard installs, where applicable, will also apply to Multiport ONT first installs.

Openreach Statement

Multiport ONT is capable of supporting up to 4x FTTP services, each with a maximum download speed of 1000 Mbit/s, using a single fibre lead-in. The Multiport ONT is available as an optional add-on at the point of install when ordering a first Openreach FTTP service to an end customer, and will also serve as the default ONT for a specific list of premises types.

For second line installs where a single port ONT is present with an active Openreach FTTP service, Openreach will carry out a Box Swap to replace the single port ONT with a Multiport ONT to host both FTTP services.

The mention of Multiport being the default ONT for “specific” premises is largely intended to cover installs for locations such as education sites, libraries, post offices, petrol stations, hotels and more. But ISPs will also gain the option to override the use of a Multiport ONT on Box Swaps via the Restrict Swap functionality, but Openreach has yet to fully implement this feature.

One obvious catch above is that, for some reason, Openreach are launching this without support for their fastest 1.2Gbps and 1.8Gbps FTTP broadband tiers. We hope to have some pictures of the new kit soon, but given that it’s the day before Good Friday, then it may be after the long weekend before we hear back.

Lit Fibre Discount Broadband for Western and South Western UK Towns

Alternative network provider and broadband ISP Lit Fibre, which is currently in the process of being acquired by CityFibre for an undisclosed sum (here), has informed ISPreview that customers on their FTTP network in several Western and South Western towns will be able to benefit from a special price discount.

The provider, which has rolled out their gigabit broadband network to cover numerous towns across several of England’s counties (e.g. Wiltshire, Gloucestershire, Hertfordshire, Worcestershire, Essex, Suffolk and across the Midlands), has so far covered 200,000 premises and will ultimately reach 300,000 as part of the CityFibre deal.

However, people covered by Lit Fibre’s network in Cirencester, Chippenham, Evesham, Westbury, Melksham, Redditch, Stratford Upon Avon, Sutton Coldfield, Warminster, Midsomer Norton, Erdington and Streetly, may like to know that they’ve being given a special price discount – available until 20th June 2024 (presumably to encourage more take-up).

Consumers in these specific areas will be able to take Lit Fibre’s 100Mbps package for just £18 per month on a 24-month term (usually £30), which rises to £22 for 500Mbps (usually £45) and £32 for 1000Mbps (usually £65).

KingFisher CEO Georgiann Reigle talks mobile sustainability at MWC 

Interview

At MWC this year, we spoke to Georgiann Reigle, founder and CEO of Kingfisher to discuss sustainability in the mobile market 

Georgiann notes that what is so interesting at Mobile World Congress this year is all the innovation, which is fantastic and is exciting is going to push us forward as a society as communities. However, there’s a side effect of this innovation. Every time we want to upgrade our devices and access into the latest best technology, the old technology is still left. 

The GSMA has estimated that in 2023, over 5.3 billion phones ended up in drawers and landfills. An interesting tension therefore develops, and so the industry must to find ways to continue to drive innovation and growth and find ways to get those 5 billion devices back in circulation, instead of ending up in the drawers and landfills so that they’re being used by other customers.

There is an interesting dichotomy between wanting the new devices with the new technology and wanting to become sustainable at the same time, and the consumer has got stuck in the middle of this. But should consumers be more involved in order to drive a circular mobile device economy? 

Yes, says Georgiann, and for this, education is paramount. Many customers don’t know for example, how much carbon is involved in the manufacture of a device, or that the devices that are sitting in their drawer can actually be used and have value. 

Kingsfisher launched a launch an initiative at the end of last year called World Phone Amnesty, which is all about bringing attention to the idea of every time you get a new phone, you hand in your old one–what they call the one for one. For Kingfisher, the end goal is to increase the circularity metric, which is how many new device sales are accompanied by a return device. 

Hear Georgiann’s full insights in our interview below: 

CityFibre Moves FTTP Broadband Rollout in Lincoln to New Areas

CityFibre has today provided a progress update on their £21m project to roll-out a 10Gbps capable Fibre-to-the-Premises (FTTP) broadband ISP network across the Lincolnshire (England) city of Lincoln, which began in March 2022 (here) and has now largely completed its build across the wards of Abbey, Glebe, Minster, Castle, Carholme and Birchwood. The deployment, which […]

Wessex Internet’s New Forest Project Gigabit Broadband Network Goes Live

Rural UK ISP Wessex Internet has today announced that the first customers have been connected as part of their £14m state aid supported Project Gigabit broadband contract in the New Forest area (Lot 27.01) of Hampshire (England), which is extending their Fibre-to-the-Premises (FTTP) network to cover “around” 10,500 hard-to-reach premises. The operator’s civil engineers started […]

Report: Three quarters of wireless customers considering switching provider 

Insight

The latest global report from Salesforce sheds light on customer’s shifting priorities and why communication service providers (CSPs) must adapt to improve customer retention 

In 2024, it is easier than ever for customers to jump from service provider to service provider in search of the best deal and the best experience. In fact, the latest report from Salesforce suggests that constantly being on the lookout for a better offer is deeply ingrained in the CSP customer mindset, with 76% of wireless customers considering switching, while 78% of broadband customers said they were at least somewhat likely to use tech provider instead of their current provider, if available.  

To make matters worse, the report also notes that 50% of wireless customers and 47% of fixed broadband customers feel that threatening to switch providers is actually an effective way of ensuring that they get the best deals from their existing providers. 

So, why is customer loyalty seemingly so low in the telecoms sector? And how can CSPs and reduce churn? 

The answers, of course, are deeply nuanced. Customer expectations have increased enormously as their lives have grown increasingly digitalised. Not only do customers today demand greater speeds and reliability from their CSP, they also want a more seamless and flxible relationship with their provider.  

Automated interactions are becoming the norm, providing the CSPs with a huge boost in efficiency and potentially cost-reduction, but these automated services are often failing to deliver the excellent quality customers demand. The report suggests that only 22% of B2C customers would describe their provider’s automated services as ‘excellent’, while over half admitted to never having used their providers self-service.  

This is not solely an online issue either. In fact, expectations for excellent service are only increased when it comes to in-store interactions, with the report finding that less than a quarter of B2C customers would describe their experience as pleasing or efficient. 

Ultimately, this report reflects an industry in which customers remain sceptical of their provider’s ability to meet their needs and CSPs must work diligently to change their mindset when it comes to defining excellence in customer service.  

You can access the full Salesforce report, which surveyed 500 telecoms experts and 6,000 customers, here: Trends in the Communications Industry. 

This report is being published at a pertinent time for the UK connectivity market, with industry discussions beginning to move beyond infrastructure rollout and towards full fibre and 5G adoption. Indeed, the country’s fibre market, which at its peak contained more than one hundred altnets, is starting to consolidate, making customer experience and service differentiation more important than ever in ensuring a positive ROI. 

Against this backdrop, achieving excellence in customer service is expected to be at the forefront of next month’s Connected North conference live in Manchester, with specialists from throughout the telecoms industry coming together to discuss key issues and the shifting connectivity landscape.  

Get the full report here Trends in the Communications Industry and join the discussion at Connected North now.  

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Telecommunications (security) Act (TSA): are VPNs the right solution for secure remote access?

Insight

By Rob Pocock, Technology Director, Red Helix

The initial deadline for the Telecommunications (Security) Act (TSA) 2021 is fast approaching. Drafted in response to our growing reliance on communications technology, and to help protect our networks from an expanding threat landscape, the Act is set to have a major impact on the UK’s approach to security and resilience in the telecoms industry.

The first of the deadlines requires all network operators in the tier 1 category (those with an annual turnover in excess of £1 billion) to action ‘the most straightforward and least resource intensive measures’ by March 31st, 2024. While there is no explicit guidance as to what this means, one of the easier measures to action is the implementation of secure remote access – a necessary measure which will help prevent unauthorised access to telecoms networks and systems.

There are a couple of different solutions that operators can put in place to try and achieve this. The traditional approach would be to use a VPN. In fact, as part of the code of practice, included with the guidance on regulation 4 ‘Protection of data and network functions’, there is a recommendation to use exactly that. Yet, while a VPN may address some of the requirements within the legislation, it is now quite outdated technology and could fall short of achieving others.

To avoid further work later down the line, and to benefit from far more robust network access control, operators ought to consider implementing a Zero-Trust Network Access (ZTNA) solution instead. It is widely recognised as the successor to VPN technology, offering increased security by working to the assumption that all requests have hostile intentions, and uses US military-grade AES-256 encryption to keep connections secure.

The shortcomings of a VPN

VPNs have been around for several years, and work by creating an encrypted tunnel between a user’s device and the network. This creates a point-to-point connection that, in theory, cannot be accessed by unauthorised users. They have, however, seen little change since they first came about in 1996, and their effectiveness in the context of modern cyber security threats is being increasingly questioned.

There are two key reasons for this. Firstly, authentication requirements for the VPN itself are often very basic, requiring little more than a username and password. Secondly, they can make it difficult to control or prevent any over-privileged lateral movement once inside the network. Therefore, if a cyber criminal were to bypass the authentication requirements, there is a chance they’ll be able to access systems and data across the entire organisation.

Of course, using a VPN is no doubt better than not having any access controls in place whatsoever, but it is far from the most secure choice. A VPN is also unlikely to help operators meet some other the more stringent security measures required in the TSA. For example, regulation 7 identifies measures needed to reduce supply chain risks, and regulation 8 outlines further details on the measures required for the ‘prevention of unauthorised access or interference’, both of which would be hard to achieve full compliance with using a VPN alone.

Additionally, there is a section included in the TSA code of practice that states providers should establish the principle of ‘assumed compromise’. This means assuming that network oversight functions are subject to high-end attacks that may not have been detected, and to ensure there are measures in place to make it difficult for the attacker. As lateral movement can be hard to prevent with a VPN, this is another area in which they are lacking.

Improved access control through ZTNA

In contrast, ZTNA has been designed with assumed compromise in mind, operating on the principle that the network is always hostile. Trust is never implicit, meaning users are only granted access to the specific applications and resources they need; with granular policies to determine what, where and when information can be accessed.

Not only does this meet with the requirements outlined in regulation 4 for which a VPN was recommended, but it can go a long way to complying with some of the other regulations as well. ZTNA’s comprehensive approach to network security ticks off most of the measures outlined in regulation 8, alongside many of those included in regulation 7 – by providing control over what third-party suppliers have access to, and limiting any potential damage should they be compromised.

ZTNA is also likely to become more of a significant factor in obtaining or maintaining cyber insurance. Owing to the rise in severity and frequency of cyber attacks, insurers have continued to increase the requirements needed to pass the risk assessment process. While the exact standards may vary between insurance providers, strong access control is one that appears to feature often, and the use of ZTNA will go a long way in demonstrating this.

Ultimately, ZTNA represents a more forward-looking approach to access control, aligning with the broader trend in cyber security of moving towards a more adaptive, dynamic, and user-centric security model. With its emphasis on continuous verification and granular access policies, it is a more robust solution that hits a number of the TSA regulations and will provide operators with stronger protection across their networks.

A future-proof solution

As the first deadline for the TSA approaches, network operators are faced with a choice. Either use traditional VPN technology to achieve secure remote access or to implement the more advanced ZTNA.

Despite their long-standing presence within the industry, VPNs fall short in addressing modern cyber security challenges, owing to their basic authentication processes and limitations in controlling internal network movements. ZTNA, on the other hand, offers a robust solution operating under the principle of ‘assumed compromise’, ensuring stringent access controls and aligning with several of the TSA’s requirements.

While continuing to use a VPN may seem like the most straightforward approach, and can help operators to meet the first ‘least resource intensive’ deadline, it is likely to be only a temporary solution. ZTNA is an easy to implement alternative that offers a more comprehensive, adaptable, and future-proof strategy – so why settle for something inferior when the option for better security is already present?