Majority of Frontier stockholders approve of acquisition by Verizon

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News

Over 60 percent of Frontier Communications stockholders have approved a merger agreement proposal with Verizon

This article was originally published Brad Randall, Editor of our sister publicationBroadband Communities

Approximately 63 percent of Frontier Communications stockholders have voted to approve a merger agreement proposal.

Frontier, which announced the news following a Nov. 13 special meeting, also reported that ten of the company’s top 12 stockholders voted in favour of the transaction.

In the deal, subject to regulatory approval, Verizon would acquire Frontier in an all-cash transaction worth $20 billion.

Currently, Frontier serves over 2.2 million fiber subscribers across 25 states. If approved, the deal would give Verizon over 25 million fibre passings across 31 states.

Nick Jeffery, Frontier’s CEO, said the Nov. 13 vote “demonstrates the strong value of the fiber business we have built over the past four years.”

“We look forward to closing this transaction by the first quarter of 2026 and beginning to deliver our premium fiber offering to millions more customers across our combined network,” he said, according to Frontier’s announcement.

According to Frontier, the firm’s shareholders will receive $38.50 per share in cash.

The value represents a 37 percent premium of Frontier’s Sept. 3 share price, Frontier’s announcement stated.

Over the past several years, Frontier has invested over $4 billion into network upgrades and fiber expansions, with planned build outs to 2.8 million fibre locations by 2027.

Verizon’s CEO previously said the deal would enhance Verizon’s ability to deliver premium offerings to millions more customers across a combined fibre network.

Join us at next year’s Connected America, 11-12 March in Dallas. Get discounted tickets here!

Also in the news:
Nokia acquires Rapid in API boost
Swisscom–Vodafone Italia deal gets green light from Italian authorities
Vorboss and Neos Networks sign networks deal 

Virgin Media O2 UK Creates AI Granny to Waste Scammers Time UPDATE

Mobile operator O2 (Virgin Media) has done something rather crafty by creating a “human-like” AI (Artificial Intelligence) ‘Granny’ called Daisy, which is designed to answer calls in real-time from fraudsters and then keep them on the phone and away from customers for as long as possible – wasting them time and money.

Most of the United Kingdom’s major broadband, phone and mobile network providers have already implemented various technical measures to tackle Nuisance Calls and Scam Calls. But rarely do we see systems that are designed to actually retaliate against such calls.

NOTE: Last year alone, O2 blocked 89 million texts, in part thanks to customers reporting scam messages and calls to 7726.

Fraudsters typically robotically call masses of numbers but will only commit any actual human resources toward the tiny minority of people who might actually fall for one of their scams. Suffice to say that if you can waste the time of the human scammers, then that’s another actual human that they won’t be able to engage while their time is being wasted.

This is where Daisy comes into play, which combines various AI models that work together to listen and respond to fraudulent calls instantaneously and is said to be so lifelike that it has successfully kept numerous fraudsters on calls for 40 minutes at a time.

The AI Scambaiter has thus far told frustrated scammers meandering stories of her family, talked at length about her passion for knitting and provided exasperated callers with false personal information including made-up bank details. By tricking the criminals into thinking they were defrauding a real person and playing on scammers biases about older people, Daisy has prevented them from targeting real victims.

Murray Mackenzie, Director of Fraud at VMO2, said:

“We’re committed to playing our part in stopping the scammers, investing in everything from firewall technology to block out scam texts to AI-powered spam call detection to keep our customers safe.

The newest member of our fraud-prevention team, Daisy, is turning the tables on scammers – outsmarting and outmanoeuvring them at their own cruel game simply by keeping them on the line.

But crucially, Daisy is also a reminder that no matter how persuasive someone on the other end of the phone may be, they aren’t always who you think they are. With scammers operating fulltime call centres specifically to target Brits, we’re urging everyone to remain vigilant and help play their part in stopping fraud by forwarding on dodgy calls and texts to 7726 for free.”

The press release doesn’t completely clarify how Daisy decides which calls to answer and whether it has its own number, or if it instead responds to known scammers that are trying to call customers numbers (i.e. essentially, impersonating the customer). But we have asked about this and hope to report back later.

As part of this, Influencer and reality TV star, Amy Hart, has worked with Daisy to produce a new video that shows how she’s taking on phoney fraudsters like the one who targeted her. After receiving a call from someone who said they were calling from her bank on the morning of her friend’s wedding, Amy fell victim to a scam which saw more than £5,000 drained from her bank account in a matter of minutes.

UPDATE 9:30am

VMO2 has informed ISPreview that Daisy has her own number, and they worked with one of the UK’s biggest scambaiters, Jim Browning, to help them attract scam calls to the AI. “Working with Jim and using a range of tactics including something known as number seeding, we were able to get Daisy’s phone number added to a list of online ‘mugs lists’ used by scammers targeting UK consumers,” said the operator.

Ofcom Put NOW, EE and O2 on Naughty Step for UK Telecoms Complaints – Q2 2024

Ofcom has published their latest Q2 2024 study of UK consumer complaints, which names and shames NOW Broadband (NOW TV) for being the worst provider by attracting the most complaints about broadband, while EE did the same for landline phone and O2 took most flak mobile. Finally, both EE and Virgin Media were jointly on the naughty step for Pay TV.

Take note that the regulator’s report only covers complaints that Ofcom itself has received and not those sent directly to an ISP, the ISPA or an Alternative Dispute Resolution (ADR) complaints handler (i.e. Communications Ombudsman or CISAS). Ofcom does not deal with individual complaints, but they do monitor them and can take action if enough people raise a concern.

NOTE: Ofcom received 57,374 complaints via calls, web forms, emails, social media and letters directly from consumers in 2022/23, which is down from 76,135 in 2021/22 and 96,051 in 2020/21.

Otherwise, the results below reflect a proportion of residential subscribers (i.e. the total number of quarterly complaints per 100,000 customers per provider), which makes it easier to compare providers in a market where ISPs can vary significantly in size. But sadly, the study only covers feedback from the largest ISPs (i.e. those with a market share of at least 1.5%) due to limited data.

Take note that the proportion of people who were satisfied with their communications services in 2023 was 77% (unchanged from last year) for landline services, 82% (down from 83%) for broadband and 87% (down from 91%) for all mobile services. We don’t yet have any figures for 2024.

Fixed Line Home Broadband Complaints

NOW Broadband (NOW TV) attracted the most broadband moans in Q2 2024, with customers’ complaints, perhaps ironically, mainly being driven by how their complaints were handled. On the flip side, Sky Broadband once again attracted the fewest complaints of all the listed providers.

  Q3 2023 Q4 2023 Q1 2024 Q2 2024
BT 11 11 9 10
EE 9 9 14 14
NOW Broadband 18 18 22 18
Plusnet 11 9 8 6
Sky Broadband 5 5 6 5
TalkTalk 15 13 11 10
Virgin Media 32 20 18 15
Vodafone 15 14 16 12
Industry Average 15 12 12 10

Fixed Line Phone Complaints

EE attracted the most complaints for fixed line phone services, with their customer complaints being mainly due to issues with faults, services and provisioning. By comparison, Utility Warehouse attracted the fewest complaints after only recently entering the table (they appear to have had zero gripes this quarter).

  Q3 2023 Q4 2023 Q1 2024 Q2 2024
BT 7 7 5 7
EE 5 3 11 15
NOW Broadband 11 10 12 10
Plusnet 7 6 5 5
Sky Talk 2 2 2 2
TalkTalk Group 10 9 8 5
Utility Warehouse     1 0
Virgin Media 19 13 11 8
Vodafone 7 4 5 3
Industry Average 8 7 6 5

Mobile Complaints

Mobile operators generally enjoy lower complaint levels than fixed line providers, but O2 continued to attract the most gripes during the quarter, with issues around complaints handling driving most of it. By comparison, Tesco Mobile attracted the fewest gripes.

  Q3 2023 Q4 2023 Q1 2024 Q2 2024
EE 2 2 2 2
O2 6 7 8 8
Sky Mobile 2 2 2 2
Tesco Mobile 3 2 1 1
Three UK 4 4 4 3
Vodafone 3 2 2 2
iD Mobile 4 3 4 3
Industry Average 3 3 4 3

Pay TV Complaints

Finally, both EE and Virgin Media jointly attracted the most complaints for Pay TV, while Sky received the fewest complaints.

  Q3 2023 Q4 2023 Q1 2024 Q2 2024
EE (prev. BT) 7 7 2 9
Sky TV 2 2 2 1
TalkTalk Group 1 2 3 2
Virgin Media 20 13 11 9
Industry Average 7 5 4 4

Ofcom’s Consumer Complaints Report Q2 2024
https://www.ofcom.org.uk/../telecoms-and-pay-tv-complaints

GoCompare Claim 9.5 Million UK Homes Paying for Unneeded Broadband Speeds

A new survey from comparison site Go.Compare, which used data gathered from YouGov and other sources, has claimed that 34% of respondents (equated to 9.5 million households) are paying for broadband speeds “they don’t need“. This is said to be equal to an estimated £53m spent on “unused speeds” each month (or £637m a year).

According to the findings, the majority of Brits pay for some of the fastest broadband speeds. For example, 34% have speeds of over 150 Megabits per second (Mbps), but it’s estimated that just 21% of internet users actually need broadband as fast as this. Similarly, 27% pay for speeds between 51 and 100Mbps, but only 12% of internet users are said to need speeds in this range. Meanwhile, only 3% settle for the slowest speeds of 15Mbps or less, yet they claim this would be enough for 13% of users.

The comparison site suggests that those who overpay spend an average of £5.58 per month more than they need to on their broadband, which they claim means £66.96 is wasted over 12 months – enough to cover a streamer’s standard Netflix subscription for a year

Meanwhile, users who only need 15Mbps also tend to overpay the most, as just 4% of these users said they pay for speeds around this level. One in 10 of these users stated that they pay for some of the fastest speeds at over 150Mbps – despite the slowest offerings being enough for their usage. As a result, they overspend by £9 per month, equating to £113 being wasted every year.

Need vs Demand is Complex

In order to estimate the number of Brits claimed to be overpaying for their broadband, the comparison site first identified the speeds needed by different groups of internet users using a YouGov survey. These groups were identified by asking respondents what they use their broadband for and the number of people in their household, then comparing their responses to the speeds required to meet these needs (sadly, we don’t get to see this data to check it for accuracy).

The site then asked each group what internet speeds they were actually paying for to identify how many respondents were overpaying for their broadband. This number was applied to the overall number of broadband users in the survey to estimate the percentage of broadband users overpaying. This percentage was then applied to the estimated number of UK households using broadband to estimate the number of households overpaying.

However, there are some problems with this approach, such as with the fact that most UK homes (over 85% of premises) are now within reach of a gigabit-capable broadband network and those often have entry-level speeds that start around the 100Mbps mark. Slower options are sometimes available (usually in non-FTTP areas), but the price difference is often small, while copper-based packages (e.g. FTTC, ADSL2+) aren’t always vastly cheaper.

The other issue is that question of “need“. For example, most of the time I don’t strictly need a 500Mbps+ download or upload speed, but that changes the moment a big backup file needs to be transferred (daily) or a new video game is released – where being able to complete that task in seconds or minutes, rather than hours or days, has a lot of value to me.

So on paper you could get away with slower speeds, but the reality is often more complex and users don’t always feel that taking a faster speed than they strictly need is “overpaying“. Not to mention that faster connections are often delivered via more reliable and better-quality broadband technologies.

Clarus Networks Deploys Starlink Broadband Across Scotrail Trains

Communications provider Clarus Networks has today announced that they’ve teamed up to use Starlink’s (SpaceX) global network of ultrafast broadband satellites in Low Earth Orbit (LEO), which will be used to help bring improved internet connectivity to ScotRail’s trains and related commuters across the highlands of Scotland.

The deployment with ScotRail, which follows a recent trial of the same solution (here), is already said to be underway. This new, rail-certified solution – compliant with EN50155, EN50121, and EN45545 standards – supports everything from real-time vehicle diagnostics and safety monitoring to reliable passenger Wi-Fi.

Clarus is currently equipping Class 158 trains on Scotland’s Far North Line with Starlink to address long-standing communication challenges on the route. Beyond passenger services, Clarus is also deploying Starlink on measurement trains and enhancing trackside infrastructure, delivering real-time data for diagnostics and remote monitoring.

Mike Butler, Director of Rail and Innovation at Clarus, said:

“Our certification of the latest Starlink terminal specifically designed for trains is a game-changer for rail communications. By deploying this advanced satellite technology as an authorised reseller, we’re delivering unparalleled connectivity that transforms operational efficiency and the passenger experience.

This solution offers reliable, high-speed connectivity even in remote locations, supporting real-time monitoring and immediate response crucial for track condition assessments and fault diagnosis. Enhanced safety systems, such as surveillance at unmanned crossings, significantly mitigate risks and improve incident response times.

This marks a major advancement in our mission to bridge the digital divide and ensure secure, reliable communications throughout the rail network.”

Scott Prentice, ScotRail Strategy and Planning Director, added:

“We’re excited to partner with Clarus in testing Starlink on our trains. This collaboration advances our efforts to provide reliable connectivity for passengers, staff, and operational systems. By integrating Starlink’s satellite technology with our networks, we’re addressing long-standing communication challenges and enhancing the overall travel experience.”

The announcement suggests that this particular Starlink system was able to deliver low latency (~40 ms) and download speeds up to 220 Mbps while in-motion. But sadly, the PR didn’t include any images of the setup they’re using.

MetTel Is Now an Authorized Starlink Reseller, Extending Managed Network Services via Space Globally

a close up of a white rocket on a black background

Press Release

NEW YORKNov. 13, 2024 /PRNewswire/ — MetTel has completed agreements making it an Authorized Starlink Reseller for both government and commercial enterprises, enabling it to offer fully managed network services to any location worldwide via Starlink’s ubiquitous laser mesh network of low-Earth orbit (LEO) satellites.

Starlink provides a low-latency network in space to facilitate connectivity on Earth with the majority of users experiencing speeds well over 100 Mbps. This serves high-reliability, and high-performance applications like edge computing, remote monitoring, and back-office operations. Designed for mobility applications and challenging environments, Starlink’s Flat High Performance service affords a wide field of view, offers enhanced GPS capabilities and is suitable for in-motion use for vehicles, ships and planes in approved countries.

 

MetTel is now delivering its award-winning SD-WAN broadband service over Starlink, enabling a whole new range of applications and expanding the definition of a “network.”  As a result, leaders across major sectors, including government, financial services, construction, and environmental management have adopted this powerful anytime, anywhere network connectivity.

The first to deploy SD-WAN over Starlink through its R&D unit, MetTel has now made Starlink generally available to enterprises looking for primary and secondary network access that is persistent, reliable and scalable, regardless of location or circumstances. With more than 4 million active customers all around the world today, Starlink can connect office buildings in major metro areas, remote and rugged locations, and maintain business continuity through disasters and all types of challenging conditions.

MetTel was also among the first to deliver SD-WAN technology as a fully managed service over a decade ago, including to some of the largest business installations in the world.  Today industry leaders across financial services, environmental services construction as well as major government agencies are all engaged in deploying SD-WAN over the Starlink constellation through MetTel’s managed network services.

“In strong partnership with MetTel, we have created a Velocloud/VMware solution that has performed very well for us,” said John Pieratt, Business Unit Executive for FIS, the world’s largest financial technology provider.  “As far as Starlink is concerned, this is a big deal for us.  It adds another option for connectivity we use to build into our designs.  The satellite service allows for low latency, performs very well and provides another level of diversity –wired/wireless versus the wired/wired diversity you would get from other traditional connectivity options.”

SD-WAN and Starlink are two of the fastest-growing network services in the IT communications category.  “The SD-WAN market is forecast to generate a compound annual growth rate (CAGR) of 14.6% in end-user spending from 2022 through 2027,” based on current SD-WAN market penetration of about 60 percent, according to the 2023 Gartner Magic Quadrant for SD-WAN.

“We are seeing a wide range of business and government use cases that call for the secure, high-speed performance of MetTel SD-WAN and the anywhere, anytime access afforded by Starlink,” said Ed Fox, CTO of MetTel.  “MetTel will also leverage technologies such as private 5G and spectrum like Citizens Broadband Radio Service (CBRS) to leverage Starlink to serve fixed networks and mobile devices.”

As an access technology, satellite communication has always been a challenge as signals must travel up to space and back down to earth, introducing latency and eroding performance. Many satellite communication providers use packet manipulation like queuing to provide a better consumer experience, but when using a business-oriented overlay technology like SD-WAN the packet manipulation can inhibit the performance of the network. Starlink’s low-Earth orbit system provides low latency, high bandwidth transmissions without heavy processing of traditional satellite, enabling MetTel to integrate space-based access paths into its existing terrestrial SD-WAN networks.

Working with SD-WAN and Secure Access Service Edge (SASE) solutions, MetTel has built a global cloud network with 20 data centers and points of presence (PoPs) to deliver its secure networking services as a fully managed service.  A recognized leader in the Gartner Magic Quadrant for Managed Network Services for the past five consecutive years (2020—2024), MetTel has engineered some of the largest commercial implementations of SD-WAN and cloud firewall in North America, each connecting thousands of locations with high performance and scalable bandwidth.

About MetTel
MetTel is a global communications solutions provider for businesses and government agencies. We design, deploy and manage tailored connectivity and networking solutions for voice, data, mobility, and IoT by leveraging our global private network and the industry’s broadest portfolio of innovative technology. Recognized as a Leader in the Gartner Magic Quadrant for Managed Network Services for the last five consecutive years, we digitally transform legacy networks with intelligence, security, and dedicated solutions management. This unique combination of solution design, deployment, and management creates an unparalleled customer experience with enhanced productivity and cost-savings, freeing organizations to focus on their core operations. For more information visit mettel.net, follow us on X (@OneMetTel) and LinkedIn, or call us directly at (877) 963-8663. MetTel. Connect Smarter. ™

Seven More 4G Mobile Mast Upgrades Go Live Across Rural Wales

The UK government (DSIT) has this morning announced that seven more 4G (mobile broadband) mast upgrades have gone live across North, South West and West Wales as part of the £1bn Shared Rural Network (SRN) project. The work will benefit parts of Bontddu, Llanelltyd, Llanarmon Dyffryn Ceiriog, Penmaenpool, Tabor, Snowdonia National Park and Bontgoch.

The industry-led SRN – supported by £501m of public funding and £532m from operators – involves both the reciprocal sharing of existing masts in certain areas and the demand-led building and sharing of new masts in others between the operators (MNO). The target is to extend geographic 4G coverage (aggregate) to 95% of the UK by the end of 2025, which falls to 84% when only considering the areas where you’ll be able to take 4G from all providers.

NOTE: The target varies between regions, thus 4G cover from at least one operator is expected to reach 98% in England, 91% in Scotland, 95% in Wales and 98% in N.Ireland. But this falls to 90% in England, 74% in Scotland, 80% in Wales and 85% in N.Ireland when looking at coverage from all MNOs combined.

Most of the early work on the SRN has involved private investment from the main mobile network operators, although over the past year we’ve also seen government-funded mast upgrades taking place in other parts of the UK (examples here, here and here), as well as new mast builds (here).

The UK government have so far helped to fund 26 mast upgrades (this excludes those upgraded or built via private investment through the SRN) and a total of 20 of these upgrades are based in Wales, with more being planned to follow over the “coming months“.

Technology Secretary, Peter Kyle, said:

“From applying for jobs to staying in touch with loved ones, fast and reliable connectivity is an essential part of modern life and should be the digital reality for communities from Llandudno to Cardiff, which is why the upgrades announced today are a welcome step forward.

But we cannot ignore the fact that millions of people need support when it comes to navigating the online world. That’s why this government is committed to boosting digital skills no matter people live, to support people accessing essential services like banking, or education tools, helping them to get on with their lives and work.”

The mobile connectivity boost announced today has been carried out by upgrading existing mobile masts, which previously only connected EE customers and anyone making 999 calls (ESN sites), meaning communities can benefit from improved mobile internet access without the impacts of building new masts. The UK government is investing £184m to upgrade similar Extended Area Service (EAS) masts to provide coverage from all four mobile operators.

The government and the UK’s four mobile network operators ultimately aim for the SRN to provide coverage to an additional 280,000 premises and 16,000km of the UK’s roads.

Dispute Erupts Between UK ISP Onecom and Eve VoIP Partner

Hampshire-based business broadband and cloud provider Onecom, which is backed by LDC and the Ares Management Corporation (here), has caused some concern among their partners after notifying them of an ongoing dispute with their supplier of eve Services (KM Telecom) that threatens to disrupt some services.

Just for context. Eve appears to offer a complete VoIP platform (Hosted VoIP and SIP Trunk provision etc.) and, we understand, was potentially also providing a number of broadband circuits to Onecom’s partners and their related end-customers too. But there have recently been some legal cases involving the aforementioned parties (here and here), while the company details for KM Telecom and EVE Connect also show some issues (here and here).

The above may help to explain why Onecom recently wrote to their partners in order to apprise them of a seemingly serious situation with eve Services, which relates to an alleged breach of an agreement and related issues for partners with billing, invoicing and support.

Onecom’s Statement to Partners

Following our communication earlier this week in which we informed partners that our supplier of eve Services (KM Telecom) has breached its agreement with us, we are writing to provide a further update.

Despite several requests, our supplier has failed to provide a valid invoice for November or the billing files. We can confirm that all prior invoices from our eve supplier have been paid within our payment terms.

We continue to work hard to encourage our supplier to remedy the situation and are taking the necessary legal steps to try to protect you and your end customers from any disruption. We have however since been notified by eve Wholesale that they will not support any of our requests to assist you in managing cases relating to your customers with eve services. Our team is on hand and although unable to escalate to eve Wholesale, we will assist you in order that you can make changes on the portal where necessary.

You should also be assured that we are seeking to address the billing and support situation through dialogue with eve Wholesale and KM Telecom, in order to find a solution that is workable for all parties.

We will of course keep you fully appraised of developments and thank you in advance for your patience and support.

Kind Regards

Adam Cathcart
Managing Director

The situation has caused a great deal of concern for some of the end customers who could be affected by all this, as well as Onecom’s impacted partners. But the presence of a legal dispute means that Onecom are currently unable to provide a comment, while Eve has yet to respond. We can only hope that the situation is resolved in an amicable way that avoids causing disruption for those trapped in the middle.

Nokia acquires Rapid in API boost 

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News 

No financial details of the deal will be disclosed, Nokia said 

Nokia has announced its acquisition of technology assets from Rapid, which includes the world’s largest API hub and a skilled research and development team. This acquisition marks a major step in Nokia’s plan to grow its network API offerings, aiming to support a wider ecosystem of telecom operators, software providers, and cloud giants to unlock the potential of 5G and 4G networks. 

Rapid (formerly known as RapidAPI) is a company that provides a platform for discovering, connecting, and managing APIs (Application Programming Interfaces). It’s particularly well-known for hosting one of the largest API hubs globally, which allows developers to access a vast library of APIs from various providers. Through this hub, developers can find, test, and integrate APIs into their applications, making it faster and more efficient to develop software that interacts with other services or platforms. 

As telecom companies look for ways to capitalise on massive investments in 5G, network APIs are becoming essential tools. By standardising network functions, these APIs allow developers to create new applications for consumers and industries. Nokia’s Network as Code platform, now enhanced with Rapid’s API technology, will give operators a way to integrate their networks, control API usage, manage lifecycle processes, and connect with Rapid’s global developer base. 

Since introducing its Network as Code platform in September 2023, Nokia has attracted 27 partners, including major players like BT, DISH, Google Cloud, and Telefonica. With Rapid’s assets in hand, Nokia is positioned to strengthen its role in the expanding 5G API market, helping operators transform network investments into new revenue streams. 

“Operators need a bridge to connect to thousands of developers to drive enterprise and consumer value creation and monetize their networks. Rapid’s technology and talented R&D team, together with Nokia, will allow us to bring a robust API infrastructure platform to accelerate network API-related product development and drive adoption across its broad global developer community,” said Raghav Sahgal, President of Cloud and Network Services at Nokia in a press release.  

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter   

Also in the news:
Verizon extends US defence contract in $98m deal
Top 5 stories from Broadband Communities last week
UScellular sells spectrum to AT&T for $1 billion

Swisscom–Vodafone Italia deal gets green light from Italian authorities 

a large glass building with a swisscom logo on it

News 

The deal was first announced in March

This week, Vodafone Italia’s sale to Swisscom has been approved by the Italian communication authority AGCOM, Swisscom has confirmed. 

“The transaction is still subject to two other regulatory approvals, including that of the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, AGCM). The latter announced on 11 September 2024 that it had opened an in-depth investigation (Phase II) to assess the acquisition under Italy’s merger control rules,” said a Swisscom statement on Wednesday. 

The deal was first announced back in March, and was given approval by the European Commission in August. The deal will see Swisscom acquire Vodafone’s Italian business unit for €8 billion. 

Once completed, Swisscom plans to merge Vodafone Italia with its Italian subsidiary, Fastweb, creating Italy’s second-largest fixed-line broadband provider, behind market leader Telecom Italia. This, they said, will create around €600 million in savings through increased scale and a more efficient cost structure. As part of the transaction, Vodafone will provide some service to Swisscom for the next five years. 

Vodafone has been actively reshaping its global strategy to streamline operations, reduce debt, and focus on core markets. This approach has seen significant moves across various regions. Last year, the sale of Vodafone’s Spanish unit to Zegona Communications for €5 billion marked a key step in divesting from underperforming markets. In the UK, Vodafone is pursuing a merger with Three, a deal aimed at boosting network investment, accelerating 5G rollout, and creating one of the largest mobile operators in the country. These efforts are part of CEO Margherita Della Valle’s strategy to refocus Vodafone on high-value assets and improve shareholder returns amid a competitive telecom landscape. 

The transaction still requires two additional regulatory approvals, including one from the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, AGCM). On 11 September 2024, the AGCM initiated a Phase II in-depth investigation to review the acquisition under Italy’s merger control regulations. 

Following its 15 March 2024 announcement, Swisscom anticipates completing the transaction in the first quarter of 2025. 

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter   

Also in the news:
Verizon extends US defence contract in $98m deal
Top 5 stories from Broadband Communities last week
UScellular sells spectrum to AT&T for $1 billion