Alternative UK ISP Voneus, which is deploying gigabit-capable wireless (FWA) and full fibre (FTTP) based broadband networks across rural parts of England and Wales, has today announced that SWS Broadband and Cadence Networks are being merged into their operations. On top of that, they’ve saved Broadway Partners from administration. The deal reflects an agreement between […]

Broadband ISP RunFibre, which is deploying a new 1Gbps Fibre-to-the-Premises (FTTP) network across rural parts of South Gloucestershire and North Wiltshire in England, has been awarded the Armed Forces Covenant Silver Award in recognition of their commitment to supporting veterans, active-duty military personnel, and their families. The announcement follows last year’s decision to sign the […]

Broadband ISP TalkTalk has this week informed staff of their plan to formally demerge the group into three separate businesses for consumers, businesses and wholesale. Under the plan, the full legal demerger aims to be completed by 1st March 2024, but some redundancies are expected. As previously reported, the long-established internet and phone provider – […]

Some of Virgin Media and O2’s UK broadband and mobile customers have, in recent weeks, reported having noticed a few changes to the combined operator’s “Volt” bundles, which appears to have quietly resulted in some significant feature downgrades (slower internet speeds, fewer extras etc.) and higher prices. The main example of this that keeps popping […]

Viewpoint Article

by Andrea Dona, Chief Network Officer, Vodafone UK

Although the UK got off to a fast start in the 5G era, we have lost our way a bit. However, the race is far from over and there is still plenty to be hopeful for.

While the “race to 5G” is not as simple as winners and losers, there will be those who win more than others. Developing the right environment for business to thrive not only increases the economic potential of those businesses that already exist, but it attracts international investment to create new jobs and new opportunities.

This increased economic prosperity will also have a hugely positive impact on our society and on us as citizens. Generally speaking, the better performing a countries economy, the better its public services function and the happier its people are.

In a world which is increasingly becoming dominated by technology, having the right digital infrastructure is critical to achieve this objective.

That means 5G, and to be more specific, 5G Standalone, deployed at scale across the length and breadth of the UK.

Sitting in the chasing peloton

Vodafone launched 5G Non-standalone services in 2019, becoming one of the first companies in the world to do so. As a result, the UK took a leadership position in the 5G race.

But much has changed in the last four years. The UK has incrementally moved forward, but not at the same pace as other nations. Looking at the statistics from Open Signal, the UK currently sits in 21st for median 5G download speeds compared to other European nations, and 20th for 5G coverage.

During the summer, we announced the launch of the UK’s first 5G Standalone network. While this is another promising step forward, we must be realistic. Until 5G Standalone, the technologically superior and fully upgraded 5G network, is installed at scale, we will not fully realise the full economic benefits of this new digital era.

Currently, the UK is an “also ran” in the 5G race. There will be benefits from the work we are doing, but let’s not settle for mediocrity.

What is the 5G opportunity?

The 5G opportunity is relatively simple when you condense it down to the simplest message – improving what we have today.

We have all experienced the benefits of digital technologies, from online banking through to simply being connected to our loved ones. And even during the toughest of times, the COVID-19 pandemic, technology enabled business and society to function in ways it would have never been able to in previous generations.

5G will build on that foundation and go far beyond it.

For starters, better digital infrastructure means greater efficiencies. Through real-time access to data and embedding AI, we can improve on what we have today. That could mean less energy intensive factory operations, or an NHS that monitors patients remotely in real-time so we can treat symptoms not diseases.

And then we have the ideas that are impossible today. 5G will bring to life ideas that would normally be at home in Sci-Fi movies. Driverless vehicles, robots to deliver packages, hologram video calls or learning through augmented reality.

5G Standalone could be worth £150 billion to the UK by 2030. This is new revenue growth for existing businesses that embrace the new digital era and the creation of new companies and jobs.

Realising the full potential of 5G

At Vodafone, we believe there are still many miles left in the race and significant opportunity to drive both economic and societal benefit. We just have to create the right environment.

Firstly, the proposed merger between Vodafone UK and Three UK would create a more competitive marketplace. Both Vodafone UK and Three UK are subscale operators, meaning we do not have enough customers to drive return-on-investment for the money we are spending on network deployment. This is unsustainable.

By merging Vodafone UK and Three UK together into a single entity, you create an organisation that can compete with BT/EE and VMO2. Both of these companies have greater scale, and as it stands, we believe the UK is effectively a two-player marketplace. We do not believe this is the best way to deliver value for consumers, businesses or the UK as a whole.

Secondly, we have to create the right policy environment for digital to succeed. The UK Government reformed the broadband market and now fibre installation is growing across the UK. The same should be done for the mobile market.

With reforms to spectrum policy, introducing public sector 5G procurement incentives, addressing the challenging with planning permission for new infrastructure and introducing an investment-first approach to regulation, we can get the UK back on track.

Building momentum in the final furlongs

The UK Government and Ofcom have already begun shifting the dial in the right direction with the Wireless Infrastructure Strategy and the Net Neutrality Consultation, but we need to move faster, and we need to create the right environment to succeed. This means creating three, scaled telecoms players that can effectively compete against each other.

5G is a race for economic opportunity and societal benefit across the UK. We’ve fallen off the pace, but we can quickly gather momentum with the right strategic approach.

Andrea (pictured, centre) spoke about this topic at length on the opening keynote panel of Connected Britain 2023, which took place ealier this week. Use the hashtag #ConnectedBritain to catch up with all the action online! 

News 

This morning, Zegona disclosed the discussion with Vodafone to the London Stock Exchange 

British investment telecom company Zegona has confirmed today that it is in talks with Vodafone regarding the potential acquisition of its Spanish business.  

“(Zegona) confirms that it is in discussions with Vodafone Group in connection with the potential acquisition, and with banks in relation to its financing,” the company said.

The deal is subject to agreements on funding and due diligence. 

“Therefore, there is no certainty that the potential acquisition will proceed, nor as to the final terms of any such potential acquisition,” the firm continued.

Spanish newspaper Expansion reported that Zegona was interested in Vodafone’s Spanish business, which has been the subject of takeover interest for some time. 

The value of the potential deal has not been disclosed by either company. Although, according to Expansion, Zegona is searching for financing to buy a maximum 50% stake in the company, which could value the whole company at over €5 billion. 

Zegona’ strategy, as detailed on their website, is to invest in businesses in the European TMT [technology, media and telecom] sector with the objective to improve their performance to deliver attractive shareholder returns with a ‘Buy-Fix-Sell’ Strategy’. 

The nature of the Spanish telecoms market is highly competitive, which Vodafone has is known to lament. Competition is fierce with Movistar, Orange, and MásMóvil in an ongoing price war.  

Because of this, Vodafone had long hoped that market consolidation would provide a solution to these issues, with rumours of a potential merger with MásMóvil finally withdrawn after the latter merged with Orange last year. 

In last quarter’s earnings call, Vodafone CEO Margarita Della Valle said that “structural change” was very much necessary in the Spanish market, in the context of market conditions. She said the company was “considering a range of options” but it was too early to comment. 

Want to keep up to date with all of the latest international telecoms news? Sign up for Total Telecom’s daily newsletter 

Also in the news: 
Connected Britain 2023: the award winners
VMO2 conducts Connected Farm trial in Barnsley
Project Gigabit contracts awarded by CityFibre 

Press Release

ProLabs has announced the shipment of their 4 millionth product from their UK headquarters. First reported during Connected Britain at the ExCeL London, this milestone reflects the continuous growth of the company within the optical networking and connectivity market.

Serving customers located across the UK and EMEA, ProLabs develop high quality, fully compatible products that are coded in its own facilities. All products, including direct attach cables (DACs), active optical cables (AOCs) and transceivers, are rigorously tested in the customers’ environment prior to shipment to ensure the highest levels of performance. By holding a large local inventory of products in stock, ProLabs are able to supply clients quickly regardless of location. With a life-time warranty at no additional cost, customers can trust they have the full weight of the ProLabs technical support team behind them.

“What we are all hearing at Connected Britain this week is that companies deploying fibre networks are facing pressures to build their networks quickly and cost-effectively, whilst maintaining quality,” said Vice President Sales EMEAI at ProLabs, Sam Walker. “At ProLabs we pride ourselves on our speed of delivery, our broad range of products in our portfolio and our affordability. We save service providers’ budgets through the interoperability of our products, which they can then invest elsewhere, while offering customised solutions, such as Original Equipment Manufacturer (OEM) multi-coding, so our customers can leverage further CapEx and OpEx savings What has been particularly positive is the take up from customers across the product portfolio, including transceivers, DACs and AOCs”.

For over twenty years, ProLabs has maintained a relentless commitment to quality assurance. Unlike competitors that typically rely on sample or batch testing, ProLabs subjects every single transceiver to rigorous testing and cleaning in its cutting-edge engineering facility. This testing approach ensures that ProLabs’ transceivers consistently meet or exceed the quality of OEM alternatives.

“We understand our customers are looking to maximise returns while maintaining top-notch network performance”, continued Walker. “Our product evaluation program, technical support capability and overall solution flexibility offer them value for money that is unmatched in the industry. Service providers across the country are exploring these cost-saving options. By partnering with ProLabs, they stand to save millions while enhancing their network performance.”

The sale of 4 million products underscores ProLabs’ dedication to providing trusted, reliable solutions to customers across the UK and beyond.

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The annual Connected Britain Awards 2023 (Total Telecom) took place this week, which among other things saw full fibre provider brsk scoop both the coveted “Broadband Provider of the Year” and “Full Fibre ISP Innovation” awards, while Vodafone was named for the “B2B Service Provider of the Year” award. All of the organisations that entered […]

Mobile network operator Vodafone has quietly dropped support for inclusive roaming in 83 destinations, which for example used to be available on their Unlimited Max Xtra + Entertainment plan. New customers on supporting plans will now only be able to take inclusive roaming in 51 European destinations. One of the operator’s support agents confirmed the […]