News 

The company claims the investment will allow them to build more than any other fibre network provider in the UK this year besides Openreach  

UK-based wholesale fibre operator nexfibre has announced that it will invest £1 billion in its network over the 2024 financial year. 

nexfibre was formed in 2022 as a £4.5 billion joint venture between InfraVia Capital Partners, Liberty Global and Telefonica. The company aims to build a Fibre-to-the-Premises (FTTP) broadband networks that will cover up to 7 million homes across the UK that are not already served by Virgin Media’s network.  

As of the end of last year, the company had currently expanded its FTTP network to around 830,000 premises, saying they would pass 1 million premises in spring 2024.  

Now, with confirmation of a £1 billion investment this year, nexfibre says it will aim to increase this total by an additional 1 million premises in the coming financial year. 

 “Our focus is on addressing the historical lack of investment that has left the UK lagging behind its European counterparts, and providing a platform for progress and innovation to deliver lasting value to the communities we serve, and the wider economy,” said nexfibre CEO Rajib Datta in a company press release.  

“The £1 billion we are investing this year will be a major boost to the UK’s digital infrastructure. Backed by our world-class investors, we are bringing much-needed sustainable competition and next generation connectivity to the UK,” he continued. 

nexfibre’s September 2023 build report highlighted that the company aims to have 5 million houses covered by the end of 2026, which will be capable of accessing speeds of up to 10Gbps. The report also shows a full, countrywide upcoming rollout plan. 

Beyond their increased investment, nexfibre has also recently been in the news for hitting out at the UK incumbent BT, arguing that its monopolistic position and lack of investment in the UK market has resulted in the UK lagging behind other European countries. 

According to Datta, speaking to the Daily Telegraph, BT behaves like a “typical monopoly”, and has only begun to invest in its core infrastructure when serious competitors arose. 

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

Also in the news:
VMO2 prepares to spin off fixed network business
EU lining up €500m fine for Apple over anticompetitive App Store
Verizon to trial private 5G networks at NHL stadiums

News 

The companies aim to launch the service commercially in 2026, but note that the specific timing remains “uncertain”  

Japanese mobile network operator Rakuten Mobile has announced that it is planning to launch a satellite-to-mobile service in collaboration with AST SpaceMobile in Japan. 

The companies envisage that the direct-to-mobile satellite services will be used for messaging initially, but ultimately being expanded to internet, voice, and video services using regular smartphones.  

Back in November 2022, Rakuten Mobile received preliminary approval from the Japanese authorities to test the service using AST SpaceMobile’s low Earth orbit (LEO) test satellite BlueWalker 3. 

The announcement notes that there is a growing need for such services in Japan because of the country’s high-risk of natural disasters and many hard-to-connect remote areas. For example, in January this year, the country’s Noto Peninsula earthquake cut off of recovery routes, causing delays to emergency responders that could have been mitigated with satellite connectivity. 

“Remote islands and mountainous regions present unique challenges that require innovative solutions, while the threat of natural disasters, coupled with the effects of climate change, has also heightened public awareness of the importance of mobile connectivity for daily life,” said Mickey Mikitani, Chairman and CEO of Rakuten Group and Chairman of Rakuten Mobile. 

“We are proud to partner with AST SpaceMobile to bring their cutting-edge solutions to Japan by realizing satellite-to-mobile services, ensuring our customers would potentially enjoy mobile connectivity across Japan,” he continued. 

The launch is not the first time the two companies have worked together. After entering into a strategic partnership in March 2020, the two firms collaborated on the world’s first two-way voice call in April 2023 between Texas and Tokyo, using two standard smartphones. 

Direct-to-device satellite connectivity is an area of increasing interest for the global telecoms community, with SpaceX’s Starlink beginning to launch satellites equipped with the new technology at the start of this year.  

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

Also in the news:
VMO2 prepares to spin off fixed network business
EU lining up €500m fine for Apple over anticompetitive App Store
Verizon to trial private 5G networks at NHL stadiums

News

Virgin Media O2 (VMO2) says that the new fibre wholesaler will establish the “biggest dedicated fixed network challenger in the country” and could prove a focal point for altnet consolidation

VMO2 is preparing to spin off its fixed broadband network into a fully owned wholesale subsidiary NetCo.

The move will open up VMO2’s broadband networks, which currently provide cable and fibre broadband services to 16 million homes, to wholesale for the first time, giving ISPs looking for scale an additional option beyond Openreach.

VMO2 is also currently in the process of upgrading this entire footprint to fibre-to-the-home (FTTH), a process which will continue under the new NetCo.

The new NetCo will not include VMO2’s mobile assets or any other business units. Nexfibre, the joint venture between Liberty Global, Telefónica and Infravia, will notably remain a separate entity from the new NetCo.

When combined, nexfibre and NetCo currently have a full fibre footprint of just over 4 million premises, a total that will increase to 23 million homes once both companies have completed their respective builds.

“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.

He noted that the new wholesale platform could become a platform consolidation at a time when the UK’s vibrant altnet ecosystem is facing an almost existential financial crisis as a result of inflation and the macroeconomic environment.

“Working closely with our shareholders, this network business will provide a platform for potential altnet consolidation and wholesale opportunities in future, offering widescale network choice for other providers, as well as giving financing optionality. While nothing changes today work is well underway and you’ll hear more from us later in the year.”

This announcement comes as part of a wider restructuring from the company’s joint owner Liberty Global, which is currently seeking to better monetise its telecoms assets throughout Europe. Liberty says it has plans to list its Swiss operator business Sunrise later this year and will seek to do likewise with its Belgian operator Telenet and its stake in Dutch joint venture Vodafone Ziggo.

“I think it sends a message and a signal to the market that (..) this is going to be a big strategic reorientation of our investment focus,” said Liberty Global’s Chief Executive Mike Fries.

What does this spinoff mean for the UK’s broadband landscape? Join the operators in discussion at this year’s Connected North conference live in Manchester

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Press Release

TELUS to supercharge its 5G network using Samsung’s vRAN 3.0 and Open RAN solutions — improving performance, energy efficiency and flexibility for future enhancements

TELUS and Samsung Electronics announced today that they will build Canada’s first commercial virtualized and open radio access network (RAN) — an intelligent, next-generation technology that offers enhanced performance, flexibility, energy efficiency and automation. The companies are expanding their collaboration from greenfield (new builds) to brownfield (existing infrastructure) deployments.

Following TELUS’ selection of Samsung as its 5G network vendor in June 2020, this revolutionary approach to infrastructure deployment embodies the essence of collaboration, bringing together manufacturers and providers to create a modular, state-of-the-art wireless network. It is also one of the first truly virtualized Open RAN deployments within a complex, brownfield network environment.

With an Open RAN, TELUS is able to use components from different manufacturers that best meet its needs, while a virtualized radio access network (vRAN) allows the use of software instead of hardware. This provides TELUS with faster access to the latest technologies as they become available, helping enhance customer experiences and fuel network innovation, while increasing opportunities for equipment vendors.

“This is a very exciting milestone for TELUS and the industry overall, as we now have the most flexible way to offer a diversified set of services to Canadians, unlocking new levels of mobile experiences,” said Nazim Benhadid, Chief Technology Officer at TELUS. “We are proud to be the first Canadian telecommunications company to integrate this cutting-edge technology, together with Samsung and our other partners.”

“Innovation is not a result, but a continuous process that transforms our daily lives,” said Junehee Lee, Executive Vice President, Head of Global Sales & Marketing, Networks Business at Samsung Electronics. “TELUS and Samsung have been spearheading a meaningful transformation in mobile communications and we look forward to continuing to unleash the full benefits of software-centric innovation, by advancing our industry-leading vRAN and Open RAN.”

The companies have extensively tested both the vRAN and Open RAN rollout in select Canadian markets with excellent results, validating the telco-grade performance and reliability of multi-vendor Open RAN technology, powered by Samsung’s vRAN solutions. Commercial deployment will begin in the first half of this year and a large-scale network rollout is expected to begin mid-2024.

For this expanded collaboration, Samsung will deliver its versatile vRAN software and proven Open RAN compliant solutions, including its 64T64R Massive MIMO radios, as well as the support for third-party radio integration. Samsung’s solutions include its latest vRAN 3.0 for 4G and 5G, which features enhanced capabilities for improved energy savings, optimized performance and intelligent automation via Samsung’s Service Management and Orchestration (SMO). Samsung’s AI-based SMO will help TELUS accelerate vRAN rollouts at scale by enabling automated deployment of thousands of network sites simultaneously. It will also provide TELUS with a comprehensive set of capabilities for end-to-end automation for multi-party solutions, enabling easier deployment, operation and optimization of their network.

TELUS’ bold approach to embrace a multi-vendor Open RAN brownfield deployment leverages other ecosystem collaborations as well. Cloud infrastructure will be provided by Wind River, tapping the company’s experience in real-time operating systems and cloud-native, distributed edge platforms. Additionally, Hewlett Packard Enterprise will deliver HPE ProLiant DL110 Gen11 servers featuring 4th Gen Intel Xeon Scalable processor with Intel vRAN Boost, that are workload optimized for Open RAN while being open and flexible, providing the foundation for a Distributed Unit (DU).

“vRAN and Open RAN remain at the forefront of network transformation, with Samsung continuing to demonstrate leadership in proving virtualized Open RAN’s ability to deliver high performance and efficiency in commercial 5G networks,” said Stefan Pongratz, Vice President and Analyst at the Dell’Oro Group. “Introducing vRAN and Open RAN into the Canadian market with TELUS represents another formidable step in the re-shaping of the RAN for long-term advantage.”

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

Also in the news:
VMO2 records £3.3bn loss as interest rates begin to bite
Verizon to trial private 5G networks at NHL stadiums
From humble beginnings: The amazing journey of Hormuud Telecom CEO Ahmed Mohamud Yusuf

News

The ruling follows complaints made by Spotify in 2019 that Apple was abusing its App Store’s dominant position and limiting access to competitive services

This week, according to anonymous sources speaking to the Financial Times, European competition regulators are preparing to fine Apple €500 million for restrictive sales practices related to its iOS App Store.

The fine relates to an investigation launched following a formal complaint made by Spotify in 2019, when the music streaming service alleged that Apple was blocking apps from advertising cheaper alternative services not featured on the App Store to customers.

This constitutes anticompetitive practises, according to the sources, with the European Commission set to accuse Apple of leveraging its dominant market position to create “unfair trading conditions”.

The EU has been strengthening regulations on major tech firms for a number of years now, seeking to rein in companies like Apple, Google, and Meta that have enormous influence on the continent’s digital landscape. Over the past decade, this has seen the European Commission launch numerous investigations into these companies’ competitive practises, resulting in the tech giants being dealt billions of euros in fines by various regulatory bodies.

Alongside these investigations, the EU has also been working towards stronger regulatory legislation, most notably with the introduction of the Digital Markets Act (DMA) in November 2022.

The DMA features a raft of new regulations for large online platform companies – so-called ‘gatekeepers’ – particularly focussed on making the market fairer and more accessible for smaller digital players.

Companies have until next month to comply with the new DMA rules, hence major tech firms are beginning to introduce significant changes to meet the new requirements. This includes Apple last month announcing major changes to its iOS system, though the company warned that some changes, such as the sideloading of apps, could risk reducing customers security and privacy.

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

Also in the news:
VMO2 records £3.3bn loss as interest rates begin to bite
Verizon to trial private 5G networks at NHL stadiums
From humble beginnings: The amazing journey of Hormuud Telecom CEO Ahmed Mohamud Yusuf

CityFibre has announced that their £69m state aid supported Project Gigabit broadband rollout contract for Cambridgeshire and adjacent areas (Lot 5), which was awarded in March 2023 (here), has finally entered the build phase. A total of “around” 45,000 hard-to-reach homes and businesses in the county are expected to benefit. At present the operator is […]

The Fusion Fibre Group, which until this month’s rebrand was previously known as rural UK ISP and network operator FACTCO, has today announced that they’ve become the latest internet provider to join MS3’s new 10Gbps capable Fibre-to-the-Premises (FTTP) broadband network in the North of England. MS3, which is backed by investment from Asterion, is currently […]

Edinburgh-based business broadband ISP Commsworld has announced that they’ve secured a 10-year contract – worth £2.6m – from Dundee City Council (DCC) to help plan, design, migrate and manage a “completely new fibre network service” for 42 schools in and around the city. The proposed new “high-speed fibre internet service” is said to be “replacing […]

News

Inflation is driving up the cost of Virgin Media O2 (VMO2)’s loans, pushing it up to 5.2% from 4.7% a year ago

This week, VMO2 has announced a £3.3 billion loss in 2023, having incurred a goodwill impairment of £3.1 billion related to the increased cost of capital.

The mobile and fixed broadband network operator explained that the difficult macroeconomic environment has seen their £8 billion in debt become an even heavier burden over the last year, costing them hundreds of millions of pounds in additional interest.

“We recorded a non-cash goodwill impairment of £3.1 billion primarily related to an increase in the weighted average cost of capital and the impacts of the broader macroeconomic conditions in the UK on estimated future cash flows,” explained the company in a statement.

The rest of VMO2’s results were somewhat flat. While VMO2 noted that it had added 64,000 new broadband customers last year, as well as 47,000 new mobile customers, this has done little to help the company’s bottom line.

VMO2 recorded a consumer fixed revenue decline of 2.3% to £3.3 billion, which the company attributed to a tightening of purse strings by consumers due to the increased cost-of-living. Their B2B fixed revenue was down a similar amount (2.4%), dropping to £554 million.

Mobile revenues increased by 0.6% to £5.9 billion, with VMO2 attributing the slow growth to “low-margin handset revenue performance which weakened through the year”.

“We ended the year with stable revenues in line with our revised guidance at Q3, and achieved the low end of our mid-single-digit Transaction Adjusted EBITDA growth guidance through accelerated synergy execution which offset the impacts of consumer spend optimisation,” explained VMO2 CEO Lutz Schüler.

“Operationally, we invested another £2 billion in our networks and services, with 2023 being the fastest year of fibre rollout as our fibre footprint reached over 4 million premises. In aggregate, our fully gigabit serviceable footprint now reaches over half of all UK homes, and our 5G network covers half the UK population. We also continued trading momentum with mobile and fixed customer growth, supported by sustained customer-first initiatives like inclusive EU roaming and our O2 Priority loyalty scheme.”

“Looking ahead, the 2024 outlook will be impacted by incremental investment in key initiatives to drive future growth, including increased marketing across our rapidly expanding fixed footprint, new commercial initiatives and wider digital and IT efficiency programmes. We remain focused on delivering against our core strategy and these key investments will help us to lay down strong foundations for future success.”

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Press Release

Verizon, the “Official 5G Network of the NHL,” and the National Hockey League (NHL®) today announced a multi-year sponsorship renewal continuing Verizon’s role as the League’s Official 5G Partner, Official Wireless Services Partner and Official Mobile Edge Computing Partner in the United States. Additionally, as an Official Technology Partner for the NHL, Verizon has been selected to deploy Verizon Private 5G Wireless Network across NHL arenas to help game day operations roll out new and transformative solutions to advance the sport and improve the overall fan experience.

“Innovation is driven by a vision and the technology to support it, which makes this partnership with the NHL a perfect fit for Verizon and Verizon Business,” said Kyle Malady, CEO of Verizon Business. “Our collaboration with the NHL showcases what transformative network connectivity can bring to venues and fans alike. Having a forward-looking partner in the NHL opens up significant opportunities from an operational standpoint, when you look at the business of professional hockey, to enhancing in-game efficiencies and the fan experience.”

NHL Venue Innovation

Under the terms of the agreement, Verizon Business is currently piloting Verizon Private 5G Wireless Network in select arenas, with plans to roll out the technology to NHL arenas in future seasons. Utilizing Verizon’s 5G network technology and Mobile Edge Computing (MEC), the NHL, and enterprises across industries, can tailor solutions to meet specific business needs, delivering enhanced reliability, security, speed, and flexibility both on and off the ice. These advanced technologies, which are enabled by Verizon 5G, include wireless Officials’ iPads for replay review, which is currently piloted at the Prudential Center, as well as video coaching, and coach/video coach communications.

Furthermore, as the “Official 5G Network of the NHL” in the United States, Verizon will continue efforts to deploy 5G Ultra Wideband network across NHL arenas, providing ultra-fast in-arena connectivity to enable fans to download and watch videos, livestream, manage their fantasy teams and check scores with virtually no lag. By creating more immersive and interactive experiences, through the power of 5G and MEC, Verizon is changing how fans consume live sports.

“The passion for innovation and the work already done in partnership with Verizon makes this renewal even more exciting for us,” said David Lehanski, NHL Executive Vice President, Business Development and Innovation. “Creating the solutions and experiences of tomorrow is not only a function of applying cutting-edge technologies from world-class companies, it’s also a function of being able to truly collaborate with them to uncover meaningful new use cases. In Verizon, we have a partner that listens before bringing to bear their industry-best knowledge and solution set.”

The extended partnership with the NHL demonstrates Verizon’s ongoing commitment to shape the future of sports entertainment. With Verizon’s reliable 5G network and innovations like cashierless checkout, Verizon is paving the way for a new and improved stadium experience.

2024 Navy Federal Credit Union NHL Stadium Series™

Fans can experience Verizon’s latest venue improvements and multiple Verizon activations live at the 2024 Navy Federal Credit Union NHL Stadium Series™ on Feb. 17 and Feb. 18 at MetLife Stadium. Verizon invites fans to the New Amsterdam Vodka® NHL PreGame, located in Parking Lot G of MetLife Stadium, where they can tailgate in style with games, charging stations, comfortable seats with plenty of photo opportunities and a chance to win exciting prizes.

By attending the NHL PreGame, Verizon customers can get a chance to win upgraded game seats in Verizon’s exclusive Hotspot section1, which includes comfortable heated seats, cozy blankets and exclusive gift bags. Verizon customers will also have access to the Hotspot Lounge on the 100 level concourse, which will feature charging stations, photo opportunities, and complimentary hot chocolate.

For fans looking for even more Hotspot connectivity, Verizon’s myPlan mobile plans give customers access to $10 monthly “perks,” like 100 GB of Mobile Hotspot. This perk saves you $35 monthly – and over $400 annually – and is only for Verizon customers.

Want to keep up with all of the latest wireless developments in the US? Join the industry in discussion at this year’s Connected America conference live in Dallas, Texas

Also in the news:
Bell Canada announces plans to cut almost 5,000 jobs
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