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Telenor and Hafslund to launch new Norwegian data centre company

Press Release

The newly formed company will launch a trio of data centres in the capital region, helping to ensure sensitive data is stored and delivered safely on Norwegian soil

The criteria for security and sustainability are tightening at the same time as Norway is digitising at a historic rate. Together with partners, Telenor and Hafslund are establishing a company that will build secure and energy-efficient data centres in the Oslo area.

“Data centres are, in many ways, the digital heart of any business. This is where the data flows to and from, which involves high quality, security and energy efficiency requirements. Together with Hafslund and partners, we will now establish Norway’s most secure commercial data centre operator, with a strong focus on sustainable solutions”, says Sigve Brekke, CEO of Telenor.

While Telenor has a unique position as the country’s leading telecoms operator, Hafslund is one of Norway’s largest energy and infrastructure groups. HitecVision invests in developing energy companies in Norway and Europe, and Analysys Mason is a leading consulting agency in telecom, media and technology. This partnership offers concrete solutions to customers who demand a safe and energy-efficient location to store data critical to society.

“Backed by Norwegian-managed capital, this partnership will help resolve a significant issue in an increasingly digital society. Norwegian security authorities have requested the establishment of data centres and cloud services for sensitive information, functions and infrastructure of importance to national security interests in Norway. By creating this company, we are facilitating that sensitive data across sectors is stored and delivered safely on Norwegian soil,” says Brekke.

The investment will contribute to establishing more Norwegian data centers and thus increase the possibility that digital services can be produced within the country’s borders, which gives a greater degree of national control and better safeguarding of functions critical to society. The new company is part-owned by Telenor (31.7%), Hafslund (31.7%), HitecVision (31.7%) and Analysys Mason in Norway (5.0%).

Three new datacentres

Together with its partners, Telenor and Hafslund aim for the new company to be a leading player within colocation data centres. This entails the supply of servers and other hardware from private and public businesses with high security and efficient energy consumption requirements.

The new company’s ambition is to build three data centres, with a total capacity of 40 MW, in the capital region. The data centres will be colocation facilities for several tenants. Telenor Norway will deploy its own infrastructure, with associated strict security requirements. The development of the first data centre in Oslo will start towards the end of 2023.

Safe and sustainable

The new company will build and operate safe, energy-efficient data centres with solid and secure owners. Instead of leaving servers tucked away in basements, the new company makes it possible for businesses to move servers and critical IT infrastructure inside state-of-the-art data centres. This aids businesses and society from unnecessarily high electricity consumption and lays the foundation for more efficient and responsible operations. Together with Norway’s largest district heating supplier, Hafslund Oslo Celsio, the company has ambitions to design data centres with efficient solutions for reusing excess heat. The data centres, therefore, become a valuable contributor to a circular economy in Oslo municipality.

“Establishing these data centres will be an important contribution to enabling Norway’s green transformation and digitalisation. With solutions to reuse excess heat, the data centres will free up power consumption for heating and thus provide energy-efficient solutions necessary to reach Oslo’s and Norway’s climate goals”, says Finn Bjørn Ruyter, CEO of Hafslund.

How is Europe’s data centre ecosystem evolving in 2023? Join the operators in discussion at this year’s Total Telecom Congress live from Amsterdam

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Orange facing bumpy regulatory road to Masmovil acquisition

News

Reports suggest the European Commission is likely to object to the $19 billion merger unless certain conditions are met

In March last year, Orange and Masmovil signed a binding agreement to merge their Spanish businesses, with the combined entity expected to have a market value of roughly $19 billion.

The new business, set to be equally owned by both Orange and Masmovil, would have roughly 7.2 million fixed broadband customers and over 20.2 million subscribers, making it a new market leader in both segments.

At the time, the operators said that they hoped to close to deal by the second half of this year.

However, the road to completion is set to be a difficult one, with the tie-up of such major players drawing significant scrutiny from European regulatory bodies.

The European Commission launched an in-depth probe into the deal in April, seeking to explore whether the merger would reduce competition in the market. In particular, the Commission feared that the move, which would reduce the number of mobile players in the market from four to three, would lead to higher prices for customers and restricted access for virtual operators.

Now, according to sources speaking to Bloomberg, the Commission is preparing to issue a ‘statement of objections’ to the operators, explaining reasons that they may yet veto the tie-up. According to the report, the statement will also offer remedies for these issues.

What these solutions to competition concerns might be was not revealed, but typically these include divestiture of key assets and assurances that other market players will have access to the operator’s combined network at reasonable prices.

The European Commission must make its final decision on the merger by 4 September.

Spain is one of the most crowded and competitive telecoms markets in Europe, driven largely by laws requiring operators to share their networks at regulated prices. Over the past decade, this high level of competition has devolved into a vicious price war that wrought havoc with operators’ revenues.

As a result, rumours of M&A have swirled for years, often with Masmovil at their centre. Indeed, Vodafone Spain has long argued that it should be the merger partner for Masmovil, arguing that their networks were more complimentary and that their combination would present less of a headache to regulators.

Nonetheless, Vodafone has been broadly supportive of Masmovil’s decision to ultimately tie-up with Orange, suggesting that this would still be beneficial for the nation’s telecoms market.

Whether the regulators ultimately agree with this sentiment, however, remains to be seen.

Is Europe’s attitude towards telecoms mergers softening in 2023? Join the operators in discussion at this year’s Total Telecom Congress live from Amsterdam

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BT Start Deploying UK Digital Voice Service Across East Midlands

Broadband ISP BT has this morning confirmed that they’ve begun the expected region-by-region roll out of their Voice-over-Internet-Protocol (VoIP) based home phone service, Digital Voice, in the East Midlands of England. Once completed, the deployment will next be extended to Yorkshire & Humberside, and then Northern Ireland. Customers will be contacted at least four weeks […]

Job Cuts Set to Strike More of Virgin Media O2’s UK Staff

Broadband ISP and mobile operator Virgin Media and O2 (VMO2), which is known to employ around 16,000 people across the United Kingdom, has confirmed to ISPreview UK that an unspecified number of their workers were notified this week that they were likely to be made redundant in the near future. The event was noticed after […]

Airtel joins the 5G race in Nigeria

News

The operator becomes the third in the country to launch 5G, following in the footsteps of market leader MTN and newcomer Mafab Communications.

This week, Airtel Nigeria has announced the commercial launch of its 5G services, with its initial deployment focussed on the major cities of Abuja, Lagos, and Port Harcourt.

According to the operator, users with a 5G-capable handset or router will now be able to access improved services, featuring lower latency, higher speeds, and increased capacity.

Airtel Nigeria firstacquired 5G spectrum in January this year, winning 100MHz of 3.5GHz spectrum as the sole bidder in the Nigerian Communication Commission’s second 5G spectrum auction. They soon followed up by winning two blocks of 10MHZ spectrum in the 2.6GHz band the following month.

Initial 5G services will be provided over the 3.5GHz band, with the 2.6GHz spectrum being used to boost capacity on the network.

It is worth noting here that Airtel is actually somewhat late to the 5G party in Nigeria. The operator missed out on securing 5G spectrum in the nation’s first 5G auction back in 2021, having been outbid for the two spectrum licences available by the country’s largest mobile operator MTN Nigeria and newcomer Mafab Communications.

Both operators secured 100MHz of 3.5GHz spectrum for roughly $273.6 million.

MTN subsequently launched commercial 5G services in September last year, doing so on a larger scale than Airtel, covering Ibadan, Kano, Owerri, and Maiduguri, in addition to Lagos, Abuja, and Port Harcourt.

Mafab Communications’ 5G launch was somewhat delayed by licencing issues, but the company nonetheless launched its commercial offering in January this year. However, the greenfield mobile operator’s 5G deployment is considerably smaller than its larger rivals, only covering parts of the capital, Abuja, at least for now.

Thus, with three operators all launching 5G services in the capital and beyond, it would seem that the race to deploy 5G across the Nigeria has officially begun. But to what extent the operators will prioritise this rollout remains to be seen.

4G services were only introduced to the country in 2017 and, since then, the operators have focussed heavily on expanding coverage of this older technology. Around 20,000 additional base stations have been deployed over the past three years, allowing 4G coverage to top three-quarters of the country of last year.

Couple this with the fact that very few customers will have 5G capable phones and it is clear that 5G adoption is unlikely to boom in Nigeria for a few years at least.

Nonetheless, Airtel’s 5G launch lays a much-needed foundation for the country’s more connected future and ensures that Africa’s largest economy will remain a technological leader on the continent.

How is the African telecommunications market evolving in 2023? Join the operators in discussion at this year’s Total Telecom Congress live from Amsterdam

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Virgin Media’s UK Broadband ISP Customers Suffer Email Outage UPDATE2

Customers of UK ISP Virgin Media’s (VMO2) internet service, specifically those that still use their email platform, appear to be experiencing an outage that seems to have started late on Sunday evening. But the majority of people only began to notice it earlier this morning, and the situation is currently ongoing. At the time of […]