Alternative network operator and UK ISP Grain has revealed that they intend to deploy their new gigabit-capable Fibre-to-the-Premises (FTTP) broadband network across “more than” 10,000 homes in the Cheshire (England) town of Warrington, which reflects about one tenth of the town’s c.98,000 residential properties. The announcement doesn’t clarify when the rollout will start or how […]
TalkTalk Extends UK Partnership with Business ISP Gamma
The wholesale division of broadband ISP TalkTalk has this week announced that they’ve signed a new agreement with business provider Gamma Communications, which will extend their existing “25-year partnership” to run for another three years until at least April 2026. The announcement, which also states that the pair have “worked together since 2002” (wouldn’t that […]
Administrators Report Updates on Future of Broadway Partners
The administrators for troubled UK network operator Broadway Partners (Broadway Broadband), which had been building fixed wireless and full fibre (FTTP) ISP networks across rural parts of Scotland and Wales, have published their first report and revealed that several interested parties have bid for the business. Just to recap. Broadway – supported by a major […]
Openreach Save £10m on Rural UK Full Fibre Builds with Mini-Exchanges
A few years ago we reported that Openreach (BT) had moved to accelerate and expand their rollout of Fibre-to-the-Premises (FTTP) broadband ISP technology into more challenging rural areas by installing “Subtended Headends” (SHE). The technology has now saved them £10m in build costs in the last year alone (Fiscal Year 22/23). The term Subtended Head […]
1&1 foregoes Telefónica for Vodafone in 5G roaming deal
News
The agreement is a huge knock for Telefonica Deutschland, which generates 40% of its free cash flow from its relationship with 1&1, according to analysts
This week, Germany’s newest mobile operator 1&1 has signed an exclusive deal with Vodafone Germany, allowing it to provide 5G services to its customers using Vodafone’s network.
The operator currently has a similar long-term deal with Telefonica Deutschland to provide 4G services, which will last until June 2025.
1&1 was originally a mobile virtual network operator (MVNO) using Telefónica Deutschland’s network to deliver services. In 2019, however, 1&1 purchased €1.07 billion-worth of spectrum at auction, aiming to build its own 5G network.
Whilst its own network is being built, 1&1 will need to provide services via other operators. It will be able to use Vodafone’s mobile networks wherever it does not yet operate its own sites (starting from 1st October 2024). The agreement is long term, up to 18 years, and will also provide coverage to areas not covered by 1&1’s new network.
Since the news, Telefonica Deutschland’s share prices have dropped by 16%, the most on record. Shares of parent company Telefónica also fell by 7%. On the contrary, shares in 1&1 rose by 15%, the biggest one-day gain since 2008.
There have not been any disclosed financial details, although 1&1 will pay a set price based on the percentage of Vodafone’s network used by its customers.
“Both sides will benefit from this mobile communications partnership in the long term. 1&1 also gets access to 5G. And the attractive conditions of this partnership help us as Vodafone to make even better use of our networks and to further improve them for our customers,” said Phillip Rogge, Vodafone Germany CEO.
The deal marks a change in the tone of the relationship between the two firms. In February 2021, 1&1 filed a complaint to the German Federal Cartel Office, noting that it was facing ‘ongoing obstacles to the rollout of its 5G network resulting from actions by Vodafone’. 1&1 alleged that Vodafone’s tower unit, Vantage Towers, failed to provide access to its sites as per their contractual agreement.
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Also in the news:
Telefónica and Sateliot make history with 5G roaming space connection
e& looks to Europe with €2.15bn stake in PPF Telecom Group
UK government unveils £40m funding for 5G innovation
e& seeking to boost Vodafone stake to 20%
News
The move would be the latest step in e&’s global expansion goals
UAE-based telco e& has put forward an offer to increase its stake in Vodafone to 20%, according to CEO Hatem Dowidar.
The offer is subject to regulatory approval, but Dowidar says the firm is “hopeful [that it will] get these approvals in the next 3 or 4 months”.
e&, which has 165 million global subscribers, first bought a 9.8% stake in the British telecoms company Vodafone for $4.4 billion in May last year. Since then, it has been gradually increasing its stake, which stood at 14.61% in April.
That the company is continuing to increase its stake should not come as much of a surprise, with e& saying in May that it was considering increasing its stake up to 25%, saying that it sought to become a “significant minority investor with enough influence”.
At the time, Dowidar himself had just been made a non-executive director on Vodafone’s board, following the previous stake increase.
In recent months, the Vodafone has reported a relatively weak performance in key markets like German and Spain, leaving its share price somewhat depressed and opening the door for opportunistic investment. Indeed, e&’s stake now makes it the company’s largest shareholder, but it is not the only new investor. Back in February, Liberty Global snapped up a 4.92% stake in the firm, and Atlas Investissement, owned by French billionaire Xavier Niel, purchased a 2.5% stake in September last year.
New CEO Margherita Della Vella has been challenged with steadying the ship, having described the company’s recent earnings as “not good enough”.
For e&, meanwhile, the stake is also closely related to its new strategy of global expansion, with Dowidar saying earlier this year that the company has the “capacity and wallet” for international expansion. Since then, the company has been exploring new opportunities in a number of markets in Europe, Africa, and Asia.
Just this week e& has purchased the controlling stake in PPF Telecom Groups’ assets in Bulgaria, Hungary, Serbia and Slovakia for €2.15 billion. The deal is of subject to regulatory approval but is expected to close early next year.
e& has also shown notable interest in Ethiopia, with reports last month suggesting the company could take a significant stake in the country’s national telco, Ethio Telecom.
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Vocus offers TPG Telecom $4.2bn for fixed infrastructure assets
Cellnex considers selling minority stake in Nordic operations
Vodafone to begin deploying AWS edge technology in Spain
Gov Commits £40m to Trial New UK 5G and Wireless Broadband Tech
The UK Government’s Department for Science, Innovation and Technology (DSIT) has opened a new £40 million fund to help local and regional authorities to test and adopt 5G and other advanced wireless network technologies, which could be used to “pioneer digital connectivity for residents and business“. The new 5G Innovation Regions (5GIRs) fund, which will […]
Three UK Slowly Grows Outdoor 5G Mobile Coverage to 61%
Mobile operator Three UK has today reported their latest results to 30th June 2023, which among other things reveals that their 5G based mobile broadband network is now live across more than 4,400 sites (up from 4,250 at the end of 2022) in over 610 towns and cities – achieving 61% outdoor population coverage (up […]
Openreach Discounts Proactive UK Copper to FTTP Upgrades
Network access provider Openreach (BT) has made it easier for UK broadband ISPs that want to migrate existing customers on slower copper-based ADSL, FTTC (VDSL2) and G.fast lines to faster full fibre (FTTP) ones, which they’ve done by introducing a new discount for their related “Proactive Upgrades” service. The time-limited special offer, which will run […]
RunFibre Bring FTTP Broadband to Falfield in South Gloucestershire
Broadband ISP RunFibre, which is building a new gigabit-capable Fibre-to-the-Premises (FTTP) network across rural areas of South Gloucestershire in England, has announced that they’re extending into the rural South Gloucestershire village of Falfield – home to a population of around 800. The total value of the local network investment is said to be £250,000, which […]