CONTRIBUTED ARTICLE

With over 100 companies now deploying fibre in the UK, the market is both fragmented and competitive. Consolidation looks inevitable. In this article, Robert Kenny of Communications Chambers explore the prospects for consolidation amongst UK fibre-deployers.

After a slow start, the UK now has over 100 companies deploying fibre, and in aggregate they plan to pass 84m premises. There are only 30m premises in the country, so this suggests that the average home will be passed by 2.8 fibre networks. The combination of fragmentation and competitive intensity means that consolidation is seen as inevitable. But inevitable is not the same as easy. Consolidation of the UK cable sector took 13 years, and saw the two leading consolidators go bankrupt. So how might altnet consolidation play out?

Certainly there are some potential synergies that may drive value creation through altnet deals– for example, the acquiror may bring a powerful brand or wholesale relationships that may help the acquired network up its revenue.

But there are also potential dis-synergies. Some altnets have a retail focus and others a wholesale one, and these business models may not be entirely compatible. Some altnets have promised large wholesale customers that they will not offer service to anyone else cheaper – what if the acquired altnet is already offering a lower price to someone else? And an acquisition may require a refinancing of the target’s debt. Since this would almost certainly be at a higher interest rate, this too would represent a destruction of value. Such factors will limit the number of viable deals.

Further, if a seller really wants to get good value for their business, they need multiple buyers to create an auction dynamic. The challenge is that in practice, any given altnet may have few realistic acquirors.

BT/Openreach is likely to be ruled out of most acquisitions by regulatory issues. Sky and TalkTalk appear to be happy to rent rather than buy access networks. Virgin O2and its parents already have a gigabit network across much of the country, and are planning further expansion – would they place much value on overlapping altnet fibre? CityFibre is certainly a potential acquiror, but is also building quickly. Other larger altnets have their respective niches, and each may only be relevant to certain target altnets.

Thus a would-be seller needs to carefully consider who their likely buyers might be. They also need to consider timing – waiting allows more time to build out network and (crucially) to develop the revenue streams that will truly underpin value. On the other hand, as time passes the risk of overbuild rises (by potential acquirors or other networks), reducing the prospects of a satisfactory exit price.

New players are still piling into the market – Ofcom has authorised 23 new carriers in this year alone – so it may seem early to be thinking about paths to exit. But value for shareholders will depend as much on a well-planned disposal as it does on a well-planned deployment.

If you want to see more detail on Robert’s opinions on this subject, download his more detailed paper, published in September 2022: Roll-up or roll on? Prospects for consolidation amongst UK fibre-deployers, September 2022

The next major gathering of the UK fibre community will be at Connected North when it returns to Manchester in 2023. Find about how you can get involved here.

The post Roll-up or roll on? first appeared on Total Telecom.

Network operator Digital Infrastructure, which is working with ISP BeFibre to cover over 1 million UK premises with their full fibre broadband infrastructure by the end of 2027 (here), has worked with law firm Trenches Law to pilot a new surveying service that could help speed up the time to deployment. At present, Trenches Law […]

INTERVIEW

We had the pleasure of interviewing Wolfgang Heer, Managing Director, BUGLAS, ahead of next month’s Connected Germany, which is being held in Mainz on December 6-7 2022.

Can you introduce yourself and your current role?

My name is Wolfgang Heer and I have been CEO of BUGLAS (federal association for optical fiber access in Germany) for more than ten years now. BUGLAS currently consists of more than 160 enterprises deploying and operating FTTB/H-networks all over Germany, mostly on local and regional basis. Suppliers are also an important part of our association. Furthermore, BUGLAS is Co-Founder and Member of European Local Fibre Alliance ELFA, which strives for more ambitious Fibre Goals on a European Level.

How has fibre rollout progressed in Germany over the last year, and how much more needs to be done to hit government targets for FTTH networks?

In recent years, the fiber rollout in Germany has gained a lot of momentum – yet we are still not near the level needed to achieve the political goals in Germany. We also continue to lag behind in a European comparison. There is still a lot of room for improvement, especially in terms of FTTH. Corona has boosted the demand for a good connection but severe obstacles such as the shortage of skilled workers and resources lie in Germany’s path to a gigabit society.

What impact will open access have on network deployment?

In our view, open access is clearly a key to nationwide fiber roll-out in Germany. It offers advantages for everyone: for the end customer, as it gives him the freedom to choose any ISP, for the infrastructure provider, who can increase the network utilization and refinance its investments faster, as well as for all service providers involved, who can concentrate on their services and marketing power and generate add value on the basis of efficient processes. Even the housing industry benefits as properties are upgraded with the best possible house networks and their tenants will be more satisfied. Overall, open access helps to avoid overbuilding of infrastructure and investments pay off faster which clearly accelerates further fiber roll-out. Last but not least Open Access can speed up the migration from copper to fibre networks. It is a win for everyone.

What are you most looking forward to at Connected Germany?

Connected Germany has established itself as an important meeting place for the industry and once again gives us the opportunity to exchange ideas and learn how fibre deployment goes along in other countries. This exchange is particularly important and I look forward to it.

You can hear from Wolfgang and the rest of our amazing speaker line-up at this year’s Connected Germany – follow the link to secure your place!

The post “Open access is clearly a key to nationwide fibre rollout in Germany” first appeared on Total Telecom.

Alternative UK network builder and broadband ISP Zzoomm has today announced that they’ve added the South Yorkshire (England) town of Askern to their rollout plan for a new gigabit-capable Fibre-to-the-Premises (FTTP.) network. The operator will invest £1.6m to cover 3,000 homes and businesses in the location. Surrounded by the South Yorkshire countryside, Askern will join […]

The Essex County Council in England has committed £700,000 from their budget to help top-up the funding provided under the UK Government’s rural focused Gigabit Broadband Voucher Scheme (GBVS), which means that poorly served homes can now get up to £8,500 toward installing a gigabit-capable connection from an ISP. The GBVS scheme normally offers vouchers […]

Independent rural broadband ISP GoFibre (BorderLink) has announced the appointment of Neil Conaghan as their new Chief Executive Officer (CEO). The move is part of the provider’s effort to expand their full fibre (FTTP) network to cover 500,000 premises (here) in the North of England and Scottish Borders by around the end of 2025. Changes […]

Mobile operator 1p Mobile has recently introduced a couple of new Pay Monthly plans to complement their usual Pay As You Go (PAYG) offerings, which will now bundle in up to 200GB (GigaBytes) of monthly data (mobile broadband) alongside the usual pledges of “no contract“, “no credit checks” and unlimited calls / texts. The operator […]

NEWS

The Distribution Partnership Agreement will see OneWeb provide connectivity services to government and enterprise customers across parts of Africa

Today, OneWeb has announced a new distribution deal with Airtel Africa, giving the telco access to their growing low-Earth-orbit (LEO) satellite constellation to provide connectivity to customers.

The strategic agreement focusses on using the LEO satellites to deliver connectivity to government and enterprise customers, especially those in hard-to-reach areas. Agricultural sites, schools, hotels, hospitals, and the energy and mining sectors are also noted as targets for the satellite service.

OneWeb is set to begin trialling its low latency communications services in South Africa in September 2023, with the long-term goal to rollout the service across Airtel Africa’s entire continental footprint, comprising 14 countries in East, Central, and West Africa.

“At OneWeb, we believe that connection everywhere changes everything, so we are excited to be working with Airtel Africa to enhance OneWeb’s connectivity solutions across the African continent,” said Ben Griffin, VP Mobility and AMEA at OneWeb. “This is a strategic fit, given our shared commitment to resiliency and excellence in communications services and the partnership represents another exciting milestone on our path to delivering global connectivity. We look forward to delivering high-performance service across Africa, even in the hardest to reach places.”

For the time being, however, OneWeb’s potential African customers will need to wait before they can receive connectivity services; the company currently has 462 satellites in orbit, allowing it to only offer commercial services above the 50th Parallel North – essentially, Northern Europe and Canada.

OneWeb says they will need 648 satellites to offer global coverage, including across Africa, with the company suggesting that this will take four more launches. The full constellation is expected to be operational in 2023.

Alongside this deal with Airtel Africa, OneWeb has today also announced a similar partnership with Middle Eastern satellite player Azyan Telecom, allowing them to satellite connectivity throughout Oman.

These are the latest in a long string of telco partnerships that OneWeb has struck over the past year, including with giants such as AT&T in the US and BT in the UK.

Also in the news:
Remaining competitive in an evolving telco landscape
Wi-Fly: Could AFC improve rural connectivity?
BT warns of further job losses as soaring bills force bigger cost-cutting drive

The post OneWeb and Airtel Africa partner to deliver telecoms services across Africa first appeared on Total Telecom.

Leicestershire-based telecoms support and civil engineer firm HG Comms Ltd (HGC), which works with a number of UK broadband operators in different capacities (e.g. Cityfibre), has announced that they’ve been acquired by global infrastructure giant Vinci for an undisclosed sum. The purchase is said to have been undertaken and completed by Cobra IS, a Vinci […]

Contributed Article

When it comes to effective cyber defences, SOCs – Security Operations Centres – have a vital role to play, says Nadia Doughty, Technical Pre-Sales Consultant with BAE Systems Digital Intelligence.

The trouble is, not every organisation has them…

I had one of those awful phishing emails earlier today – apt timing given writing this blog was on my to-do list. Luckily, I spotted it and was quick to report and delete, but I imagine such attempts can often get through. It takes only a momentary lapse in concentration and cyber attackers can be free to run amok across your private digital terrain.

That I was aware enough to spot the attempt was down to the fact that I’d had my coffee this morning and, more importantly, I work at BAE Systems Digital Intelligence, where the importance of one’s personal cyber security is drilled into us, both verbally and through various operational exercises. This is particularly pertinent given we have recently shifted to hybrid working and so we’re not always protected by our office-based firewalls.

That said, despite such defensive efforts, there’s no doubt that the cyber threat has evolved and matured. All too often, the rapidly emerging threat landscape means that corporate safeguards constructed only a few years ago may no longer be able to detect, mitigate and respond comprehensively to the ever circling threat of cyber attackers.

Traditional security operations only protect against predictable threats. Effective cyber defence against sustained threats now require advanced security operations, threat intelligence and incident response capabilities.

In other words, what’s needed is a Security Operations Centre (SOC), but what is this exactly?

Signalling for a SOC

We’re all familiar with the concept of a one stop shop, something which brings together myriad services and personnel under one roof. Well, a SOC is the same but is specifically for cyber defence. Basically, a SOC is a team of IT security professionals who are tasked with safeguarding an organisation’s IT systems and infrastructure, detecting threats and responding in real time.

As my colleague Chris Holt attests, although their design and construction do not always run smoothly, SOCs have the potential to offer an array of benefits. Not only do they combine advanced protective monitoring and detection techniques to detect and counter targeted attack campaigns but they can also proactively detect and reverse engineer emerging threats. And as well as being responsible for implementing a robust incident management process, they can also lead the way in strengthening security operations capabilities, tailoring security objectives to meet an organisation’s bespoke needs.

So that all sounds great – what’s the problem?

Well, in addition to the issues that Chris has described, it transpires that not every organisation has opted to have a SOC spearheading their cyber defences.

Wanted: More SOCs

I work predominately in the telecoms industry and my colleagues and I have found that all too often, organisations focus their services on responding to Advanced Persistent Threats. Now that’s fine, but these are only nation state threat actors – it by no means captures the scale of the threat. And monitoring only happens on an ad hoc basis – hardly the 24/7 approach on offer from SOCs.

We believe telco organisations can take a three step approach to achieve more effective monitoring and reduce their cyber risk. In the short term, analysts should be deployed to existing IT teams to establish a regular monitoring cadence. Over the medium term, the focus should switch to recruiting new security specialists who can assist with knowledge transfer and better prepare each organisation for the cyber challenges taking shape on the horizon. And then over the longer term, SOCs can be set up and strategically integrated within each organisation’s structure and processes.

How we can help

BAE Systems has a wealth of experience in the design, build and continuous improvement of SOCs, and more importantly understands the need to establish a proportionate operation which maximises value to the customer organisation.

BAE Systems offers a range of services to help organisations traverse their SOC journey.

Security Operations Needs Assessment (SONA):
It is difficult to establish or mature a SOC in a unified and strategic way without a clear understanding of what that security operation should look like in the context of the threat, risk and business posture of the organisation. SONA offers detailed consultancy and thought leadership to define the requirements and target state for security operations within an organisation, proportionate to their threat and risk landscape and in line with their business requirements, compliance obligations and risk appetite.
SOC Design & Build:
BAE Systems has successfully delivered several large SOC implementations globally using our proven, vender-agnostic SOC blueprint. The blueprint architecture is modular, open and flexible, enabling customers to wrap around existing investments, as well as building from the ground up, to create a security operations capability which fits the needs of the organisation. BAE Systems implements a design, build, run, transfer model, enabling the upskilling of in-house capability and eventual enterprise ownership once staff reach a sufficient level of expertise.
Security Operations Centre Maturity Assessment (SOC MA):
In light of the ever-evolving cyber landscape, SOCs established only a few years ago may no longer be able to detect, mitigate and respond as comprehensively and effectively as they once were. Organisations with a desire to improve must have a detailed understanding of current maturity and the gaps and challenges which may be impeding growth. BAE Systems’ SOC MA offering is a short engagement which uses a simple, scalable and repeatable methodology based upon our proven SOC blueprint, to conduct a thorough assessment of the maturity of existing SOC capabilities and produce pragmatic, prioritised recommendations to help customers maximise the value and effectiveness of their SOC operation.

Learn more about our Security Operation Centre design and delivery services
https://www.baesystems.com/en/cybersecurity/product/secure-operations-centre-design—delivery

 

The post SOC it to them first appeared on Total Telecom.