News 

Firms dubbed ‘gatekeepers’ will be forced to share data with rivals and make their services interoperable  

The European Commission has named six global tech giants – Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft – as ‘gatekeepers’ under the new Digital Markets Act (DMA). 

The DMA, launched in November last year, aims to make the digital economy fairer by establishing a definitive set of rules for so–called ‘gatekeepers’ – those that have an overwhelmingly dominant position in their respective digital markets and essentially control businesses’ access to customers. 

These rules include forcing the companies to share relevant data with rivals and increase the interoperability of their products. It would also force these players to allow device users to decide which apps were preinstalled on their devices. 

Companies that do not comply with these stipulations could face fines worth billions of euros. 

“We know that some tech giants have used their market power to give their own products and services an unfair advantage and hold back competitors from doing business and creating added value and jobs,” said Thierry Breton, EU internal market commissioner, in a speech this week. 

“These practices distort competition, undermine free consumer choice and hold back SMEs’ innovation potential notably arising from Web 4.0 and virtual worlds.”  

To qualify as a ‘gatekeeper’, firms must hit certain thresholds, such as having over 45 million active local users and having a turnover of over €7.5 billion in the last three financial years. 

As a result, 22 platform services have been indicated in the EU’s initial ruling: TikTok, Facebook, Instagram, LinkedIn (social media services); Google Maps, Google Play, Google Shopping, Amazon Marketplace, iOS App Store, Meta Marketplace (“intermediation” services); Google, Amazon and Meta (ads delivery systems); Chrome, Safari (browsers); Google Android, iOS, Windows PC OS (operating systems); WhatsApp, Facebook Messenger (Number-Independent Interpersonal Communication Service); Google (search engine); and YouTube (video sharing platform). 

There are, however, some notable absences from the above list, including web-based email services such as Gmail and Outlook, despite meeting the prerequisite criteria. 

“[T]he Commission has concluded that, although Gmail, Outlook.com and Samsung Internet Browser meet the thresholds under the DMA to qualify as a gatekeeper, Alphabet, Microsoft and Samsung provided sufficiently justified arguments showing that these services do not qualify as gateways for the respective core platform services,” noted the EU. “Therefore, the Commission decided not to designate Gmail, Outlook.com and Samsung Internet Browser as core platform services. It follows that Samsung is not designated as gatekeeper with respect to any core platform service.” 

The firms will now have until 6th March next year to ensure that they are fully compliant with the Digital Markets Act obligations or else face large fines of up to 20% of their global annual turnover. 

‘The DMA will likely face legal challenges from the disgruntled tech giants, who have similarly been challenging its sister law, the  Digital Services Act (DSA) of 2022, which regulates the obligations of digital services that act as intermediaries in their role of connecting consumers with goods, services, and content. 

In June, both Amazon and Zalando filed legal cases in European courts against the EU’s classification of them as “very large” platforms under the DSA.  

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News 

The UK government has acknowledged that the controversial “spy clause” (Clause 122) of its Online Safety Bill may not be “technically feasible” 

The Online Safety Bill aims to make websites and other internet–based services and platforms free from illegal and harmful material by requiring the platform owners to remove all prohibited content. 

By failing to do so, these firms could face financial penalties of up to £18 million or 10% of annual revenue, whichever is greater. 

The task of defining which content should be censored is controversial and onerous enough, but the Bill has grown even more contentious due to the so-called “spy clause”, which would force platforms to scan private and encrypted user messages for prohibited content. 

The clause would also give Ofcom the power to issue messaging services with notices requiring them to develop and roll out software to carry out the scanning processes. 

As it turns out, the technology needed to carry out the scanning without infringing on customers privacy, does not yet exist.  

“Scanning is fundamentally incompatible with end-to-end encrypted messaging apps. Scanning bypasses the encryption in order to scan, exposing your messages to attackers,” said Matthew Hodgson, co-founder of Element, a decentralized British messaging app. 

“If appropriate technology does not exist which meets these requirements, Ofcom cannot require its use,” said culture minister Stephen Parkinson in the House of Lords yesterday. “Ofcom cannot require companies to use proactive technology on private communications in order to comply.” 

Even if the technology was available, its us would still be hugely controversial. Its detractors argue that the passing of the bill would make wider surveillance of consumers inescapable. 

“You make mass surveillance become almost an inevitability by putting [these tools] in their hands,” said Alan Woodward, a visiting professor in cybersecurity at the University of Surrey. “There will always be some ‘exceptional circumstances’ that [security forces] think of that warrants them searching for something else.” 

Despite this apparent win for user privacy rights, the government’s position on the clause itself remains unchanged. UK government officials have said that the government could still “enable Ofcom to direct companies to either use, or make best efforts to develop or source, technology to identify and remove illegal child sexual abuse content — which we know can be developed.” 

If the bill is passed, service giants such as WhatsApp have threatened to pull out of the UK altogether. 

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EU hits tech giants with new regulations under the Digital Markets Act
STC Group acquires a €2.1 billion stake in Telefónica
Vodafone to begin UK’s largest Open RAN rollout 

Contributed Article

by FullFibre

The strong desire for seamless connectivity is driving the direction of the telecommunications industry in 2023, and its influence is expected to last for many years. In this dynamic environment, providers are working hard to come up with new solutions to satisfy the growing need for fast and affordable internet services all over the UK

In an era marked by remote working and the integration of AI-driven services in business and personal lives, the demand for steadfast, reliable connectivity looms large. And the shift towards a connected future is already in progress, with the race to full fibre underway and the advent of technologies like 5G, which promise to redefine the telecom industry for years to come.

The sector’s transformation unfolds against the backdrop of a concerted drive for efficient network management and collaborative infrastructure sharing. This change isn’t just about technology progressing; it’s a crucial plan to make the industry more resilient and relevant. So, as we think about the future, a major question to consider is: will the UK become a fully connected country by the goal of 2025?

Empowering connectivity

Historically, the UK telecoms market has long been a global powerhouse, a trend that shows no sign of slowing down. Industry projections echo this sentiment, forecasting a surge from USD 34.32 billion in 2023 to an impressive USD 42.95 billion by 2028. This trajectory underscores the UK’s resolute stance as a commanding force in the telecommunications domain on the global stage.

Central to the UK’s journey is the government’s ambition to foster a new era of digital connectivity. By aiming to provide every household and enterprise with access to gigabit-capable broadband by 2025, the government envisions not only economic prosperity but also social cohesion.

The roadmap to this reality relies on full fibre digital connectivity and 5G technology, but security and resilience of the underlying infrastructure is of the utmost importance moving forward.

This effort goes beyond simply possessing advanced technology; it’s a change in society that requires being ready and able to adjust. It’s a cultural shift, a change in the way we interact, work, and live in a world that’s increasingly interconnected. This shift requires individuals, businesses, and institutions to be proactive in embracing the changes, open to exploring new ways of operating, and flexible enough to adjust to the evolving landscape.

A blueprint for transformation

A cornerstone of this transformation is the UK’s pivot to fibre optics, coupled with the impending end of the Public Switched Telephone Network (PSTN) by 2025. Guided by this ‘national switch,’ the outdated copper phone network will gracefully step aside, creating space for the introduction of full fibre connections. Although there might be small interruptions expected, the UK government and Ofcom have taken proactive steps to safeguard the interests of consumers during this significant transformation.

The benefits of this change go beyond just new technology. According to the Centre for Economics and Business Research (CEBR), moving to full fibre could bring together communities that previously had lacklustre internet. This shift could also boost the economy by almost £59 billion because it will enable people to work more efficiently. Additionally, as flexible working becomes more widespread, around a million people might be able to join the workforce again, which would create more opportunities for both individuals and businesses.

At the same time, the widespread introduction of 5G technology since 2019 has opened up exciting possibilities in the world of telecommunications. Offering the advantages of reduced delays, increased data capacity, and faster connection speeds, the fifth-generation cellular network enhances the ability to smoothly navigate a world that’s more connected than ever before. Going beyond these improvements, 5G’s real value becomes evident in its stronger security measures, including advanced ways of confirming identities and verifying users. As 5G becomes available to more people, consumers can look forward to increased efficiency, better cost management, and stronger protection against cyber threats.

A horizon of connectivity

Against this backdrop of transformation, UK consumers stand at the precipice of unprecedented benefits. The upcoming digital revolution could completely change not only how we talk to each other, but also how we live, work, and interact. As time goes on, it’s important for individuals to be prepared so they can take advantage of these chances and make the most of the different aspects of this new digital era.

The trajectory of the UK’s telecommunication sector is promising. With pioneers like Digital Infrastructure and sister company BeFibre leading the way and government support strengthening the progress, the dream of a completely connected UK by 2025 is achievable. The merging of full fibre broadband and 5G technologies is at the heart of a future where consumers and businesses play a key role in a nation that’s empowered by digital advancements. In the upcoming digital era, connectivity is transforming from a luxury to becoming an essential part of everyday life, moulding the shape of an exciting new world.

Want to hear more from Full Fibre on the UK’s broadband journey? Join them at Stand 68 at Connected Britain, the UK’s largest digital economy event

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Ofcom’s summer 2023 study of UK fixed broadband and mobile coverage has reported that “full fibre” (FTTP) now reaches 52% of the UK (up from 48% in Jan 2023), while 75% are within reach of a gigabit-capable network (up from 73%) and 76-85% of premises can get an outdoor 5G signal from at least one […]

Mobile operator O2 (Virgin Media / VMO2) has today become the final operator to reveal their plan for switching off the old 3G mobile (mobile broadband) network, which unlike their rivals is a process that won’t actually begin until 2025. The withdrawal will then occur in phases, with completion by the end of that same […]

A new survey of several thousand UK adults, which was commissioned by Uswitch, has claimed that over 21.7 million people experienced “broadband outages” of 3 or more hours over the last year – double 2022’s figure of over 11m. This stopped 15% of respondents from working and is estimated to cost the economy £2bn (lost […]

The Welsh Government (WG) has released a new update on the £52.5m Phase 2 Superfast Cymru contract with Openreach (BT), which confirms that the “build phase of the contract has now concluded” and a total of 37,497 extra premises (up from 36,869 in Q1) have gained access to their full fibre (FTTP) broadband ISP network. […]

A new Attest survey of 1,000 UK broadband bill payers, which was commissioned by full fibre ISP Hyperoptic and conducted between 25th to 29th August 2023, has claimed that 25% of broadband customers feel furious, upset or confused after speaking to their internet provider, yet just 5% are in the process of switching. The study […]

News 

Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) have told the Telecom Regulatory Authority of India (TRAI) that so-called over-the-top (OTT) companies like Netflix should be forced to subsidise the telco networks they so rely on  

Telecom operators in India are calling on the government to make major internet and technology companies help pay for the network infrastructure that they use to provide services. 

The proposition to TRAI was created by Reliance Jio, the country’s largest operator, with more than 450 million subscribers. In the proposal, Jio suggests that tech companies who use a large chunk of the network’s traffic should provide a contribution towards the costs of the networks based on factors including turnover, user numbers, and traffic consumption. 

“We suggest that TRAI should recommend for OTT providers contributing in the network development and building a backbone for the country,” said the company. “In this effort, the Other OTT service providers should also be required to pay their fair share.” 

Jio, which reportedly carries 55% of India’s total data traffic, claims that there is a “near consensus” among operators globally on the subject. 

Indeed, the so-called ‘fair share’ debate has been raging in Europe and elsewhere for many months now, receiving large scale lobbying by the operators directly, as well as via associations like the European Telecommunications Network Operators’ Association (ETNO) and the GSMA.  

These calls to action have received a mixed response from international governments, with some – like Spain – supporting the concept, while others – such as Denmark, Sweden, and Germany – warning the European Commission not to be too hasty in ruling in favour of the telcos. 

In the case of India, it should come as no surprise that both of Jio’s major competitors, Airtel and Vi, support the proposed payments, with the former suggesting that only the largest tech companies should be charged. 

Tech companies, naturally, have criticised the suggestion of a ‘fair share’ payment, arguing that their services have boosted operator revenues and that covering network costs would reduce the available capital for innovation. They also warn that such measures could lead to price increases being passed to consumers. 

On a more fundamental level, the tech companies rightly point out that any forced payment would essentially allow the telcos to be paid twice for delivering the same data – once by the content creator and once by the consumer.  

There are also net neutrality implications to consider, with the payments potentially infringing on the principle that requires all internet traffic to be treated equally. 

“A mandatory / mandated collaborative framework between OTT service providers and licensed TSPs [telecoms service providers] may lead to the creation of a system where TSPs [telecommunications service providers] can demand compensation from OTT service providers in the form of revenue sharing or network usage fees,” said Asia Internet Coalition, an industry association group that represents some of the biggest tech companies including Apple, Amazon, Microsoft, Google, Meta, Netflix, and Spotify. 

“This will impact net neutrality and consumer well-being in the long run. More importantly, a revenue sharing or network usage fees model will likely violate the principle of net neutrality.” 

Jio, however, have been quick to refute this claim, saying that “such an approach will be within the principles of Net Neutrality and there will be no impact on prevention of unreasonable discrimination of internet traffic based on content, nature of service etc.”  

If the ongoing back-and-forth on the matter in Europe is anything to go by, the ‘fair share’ discussion in India still has a long way to go before a satisfactory conclusion can be reached. 

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Reliance Jio seeks $2 billion funding for 5G rollout
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News

The move will see nextfibre’s footprint expanded by around 175,000 premises in the East of England

Today, nexfibre has announced that it will acquire UK altnet Upp in a deal facilitated by its partner Virgin Media O2 (VMO2).

The financial details of the deal were not revealed, but the partners said the transaction would be all-cash, with VMO2 making the initial purchase and carrying out integration of Upp’s network, before selling it on to nexfibre once integration is complete. VMO2 suggests that this process should take around a year.

Founded in 2021, Upp quickly secured £1 billion in finding from investment firm LetterOne to rollout a fibre broadband network in the East of England. The rollout was initially targeted to cover 50 towns, spanning roughly 300,000 homes, by 2022.

However, the rollout has been slower than predicted, with Upp’s network live in just 24 towns, covering, according to today’s announcement, around 175,000 homes. These homes will now be added to nexfibre’s own growing footprint, with the companies noting that there is currently minimal overlap between their existing networks.

nexfibre is a relative newcomer to the UK’s wholesale fibre scene. Created last summer as a joint venture by VMO2’s owners Liberty Global and French investment firm InfraVia Capital Partners, the company has ambitions of cover up to 7 million UK premises with fibre, 5 million of which it hopes to achieve by 2026. Liberty and InfraVia Capital say they will invest around £4.5 billion into the business to facilitate this rapid rollout.

In terms of the East of England, nexfibre noted that the acquisition of Upp will actually increase the fibre investment in the region, with the company pledging to invest £350 million to pass over 500,000 additional homes with full fibre by 2026.

“Our acquisition of Upp’s network assets represents an important step as we continue to build a world class fibre network along with our wholesale partner Virgin Media O2.  At nexfibre, we are on a mission to build and expand our network in suburban and semi-rural areas, closing the digital divide and boosting local economies. Upp is a high-quality regional fibre network in the East of England and will accelerate our rollout in an area where we expect to invest more than £350 million by 2026,” said Andrea Salvato, Chairman of nexfibre.

This deal arguably marks the first major altnet acquisition by another network operator in the UK, a market that has seen the launch of over a hundred independent fibre providers in recent years. More recently, however, funding has begun to dry up, leading many to suggest that market consolidation on a massive scale is inevitable.

Indeed, for Matthew Howett, Founder & CEO of Assembly Research, the acquisition of Upp could be seen as the “first domino to fall” in a coming cascade of market consolidation.

“Today’s announcement could well be the first domino to fall in terms of an altnet being bought by one of the big players. The UK broadband market is set to enter an era of scaled connectivity challengers, after first a period of dominance from the incumbent followed by a proliferation of altnets,” commented Howett. “Altnets are a key piece of the connectivity jigsaw, but consolidation has been inevitable as new sources of funding dry up, focus on take-up intensifies and investors increasingly demand returns.”

How is the UK’s fibre market evolving in 2023? Join the operators in discussion at Connected Britain, the UK’s largest digital economy event

Also in the news:
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German fibre coverage hits 36%
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