First Residential UK Broadband Customers Change ISP via New Switching System

The industry-led One Touch Switching Company (TOTSCo), which holds responsibility for implementing Ofcom’s heavily delayed One Touch Switch (OTS) migration system for faster consumer switching between UK internet service providers, has reported its “first successful residential customer switches” during the final trial phase.

The OTS system was originally due to go live in April 2023, but it’s since suffered big delays (details here, here and here) and is now planned to launch on 12th September 2024 (here). Ofcom has placed most of the blame for this at the feet of the major broadband ISPs, with the regulator singling out BT, Sky Broadband, TalkTalk and Virgin Media (VMO2) for being slow to complete the necessary testing and trials (here). But that’s another story.

NOTE: In May 2024 TOTSCo stated that the ISPs currently participating in their system reflect a combined market-share of 97%, but a fair few smaller players could be caught up in that final 3%.

The good news this week is that TOTSCo’s trials of their OTS system have at least managed to achieve an important milestone with the placement of the first residential consumer switch orders, which is despite the company suffering some recent criticism due to issues with remaining bugs, feature freezes and questionable standardisation etc. (here).

Paul Bradbury, CEO of TOTSCo, said:

“This week marks a significant milestone as we enter the ramp stage of industry trials with the placement of the first residential consumer switch orders. During the ramp stage, participants [ISPs] will place an increasing share of switch orders through OTS, until OTS go-live on 12 September.

With only seven weeks remaining until the OTS go-live, this achievement is both a crucial milestone and a very encouraging sign of our progress. I would like to thank everyone for their hard work and dedication in getting us to this stage. Your continued efforts are crucial as we move forward, and I appreciate all the work still to come.”

The reality is that the OTS system TOTSCo implements is likely to suffer from a few teething problems at launch, so if any savvy consumers are waiting on its launch before committing to a change of ISP then it might be wise to wait a little longer (past the launch date) in order to allow a bit more time for any nasty launch day bugs to be squashed.

AST SpaceMobile prepares to launch first commercial satellites

News

The five Bluebird satellites are set to be launched into low Earth orbit (LEO) in September

Direct-to-device (D2D) satellite communications operator AST SpaceMobile has announced this week that it’s five new commercial satellites, dubbed Bluebirds, are built and ready for launch.

The Bluebirds will be shipped to Cape Canaveral, Florida, at the start of August, where they are targeted for launch in September. The exact launch date will depend on weather conditions at the launch site and will therefore be announced nearer the time.

The five satellites, once placed into LEO orbit, will allow AST SpaceMobile to deliver non-continuous commercial services for the first time. These services will include D2D satellite communications compatible with unmodified smartphones, allowing mobile coverage to reach some of the most remote locations on the planet.

AST SpaceMobile has said it will need between 40 and 60 commercial satellites to deliver continuous coverage in the US.

“This is a momentous occasion for AST SpaceMobile. These first five satellites are built on the success of our in-orbit BlueWalker 3 satellite and will provide US nationwide non-continuous service with over 5,600 cells in premium low-band spectrum, with a planned 10-fold increase in processing bandwidth,” AST SpaceMobile Chairman and CEO Abel Avellan said in a statement. “We are eager to see these pioneering satellites take flight and being laying the foundation of our global cellular broadband network.”

AST SpaceMobile already has strategic partnerships with AT&T, Verizon, Vodafone, Google, Rakuten, American Tower, and Bell Canada, as well as ‘agreements’ with 45 mobile network operators around the world.

Of course, AST SpaceMobile is not the only satellite player targeting D2D connectivity for consumers. Since last year, rival satellite giant SpaceX has reportedly been working on direct-to-device capabilities, working alongside its major US partner T-Mobile. The company’s Starlink satellite constellation is planning to launch initial D2D services in autumn this year, following the successful launch of around 100 of their newest generation of satellites.

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

Also in the news:
Australian Government and AWS Collaborate to Strengthen country’s Cybersecurity
Solving congestion challenges in FTTP deployment
Vodafone Invests £120m in AI Chatbot ‘SuperTOBi’

TalkTalk UK Shareholders Propose £400m Package to Entice Lenders

The efforts to try and save broadband ISP TalkTalk from its rapidly suffocating debts took another twist today after a report claimed that shareholders, led by company founder Sir Charles Dunstone, are attempting to sweeten their offer to lenders by introducing an asset pledge – worth c.£200m – to support an already proposed capital injection of over £200m.

Just to recap. The TalkTalk Group has already spent much of the past few years wrestling with its existing c.£1bn debt pile, which in 2023 culminated in a plan to demerge the group into three separate businesses (TalkTalk Consumer, TalkTalk Business Direct and the wholesale centric PlatformX Communications – here), while also cutting costs (e.g. marketing) and monetising some assets (e.g. selling IP addresses).

NOTE: Back in 2020 the Group became the subject of a £1.1bn takeover by Toscafund (here), which including debt valued the business at around £1.8bn.

The demerger could also, in theory, make it easier to sell off individual parts of the business (selling the entire group has proven tricky) and the first piece to go was technically TT Business Direct, which ended up being sold to the company’s own shareholders for £95m after struggling to attract much interest (here). But so far there have been no further deals and key debt deadlines are fast approaching.

However, a report last weekend (here) indicated that the group’s existing backers – Sir Charles Dunstone, Toscafund and Ares Management – would meet this week to discuss an injection of over £200m to help keep the business rolling (this side of things has already been confirmed). The same report also noted that separate discussions with Australian banking giant Macquarie about a larger investment into PlatformX were also ongoing.

NOTE: In May 2024 we reported (here) that TalkTalk was attempting to raise £450m from the possible sale of a large stake in PlatformX to Macquarie which, if successful, would help to pay off some of the debt and avoid a default.

Suffice to say that the week is now drawing to a close and an official agreement on putting new capital investment into the business has yet to be announced, which could suggest that existing lenders might need some additional encouragement to get them over the line.

According to a new report on Sky News today, Sir Charles has moved to sweeten the aforementioned £200m capital injection by complementing it with an asset package worth roughly the same value (total of c.£400m). Some of the assets that are alleged to be part of this package include wholesaler Virtual1 and the broadband customer base that was recently acquired from Shell Energy via Octopus Energy (here).

In theory and assuming bank lenders and bondholders agree to support the package, such a deal would extend the company’s repayment obligations until 2027 – buying it some much-needed time. Recent reports have suggested that the provider could be at risk of collapse, perhaps even as soon as next month, if they are unable to secure an agreement. Put another way, it won’t be long before we discover the outcome, for better or worse.

Microsoft partners with Lumen to revamp data centres as AI demand soars

Press Release

Lumen Technologies (NYSE: LUMN) and Microsoft Corp. (NASDAQ: MSFT) have announced a partnership that will use the Microsoft Cloud to further drive Lumen’s digital transformation. In addition, Microsoft has chosen Lumen to expand its network capacity and capability to meet the growing demand on its datacenters due to AI.

A network for the AI era

Datacenters have become critical infrastructure that power the compute capabilities for the millions of people and organizations who rely on and trust the Microsoft Cloud. Microsoft is playing a leading role in ushering in the era of AI, offering tools and platforms like Azure OpenAI Service, Microsoft Copilot and others, to help people be more creative, more productive and to help solve some of humanity’s biggest challenges. As Microsoft continues to evolve and scale its ecosystem, it is turning to Lumen as a strategic supplier for its network infrastructure needs and is investing with Lumen to support its next generation of applications for Microsoft platform customers worldwide.

Lumen’s Private Connectivity Fabric℠ is a custom network that includes dedicated access to existing fiber in the Lumen network, the installation of new fiber on existing and new routes, and the use of Lumen’s new digital services. This AI-ready infrastructure will strengthen the connectivity capabilities between Microsoft’s datacenters by providing the network capacity, performance, stability and speed that customers need as data demands increase.

“AI is reshaping our daily lives and fundamentally changing how businesses operate,” said Erin Chapple, corporate vice president of Azure Core Product and Design, Microsoft. “We are focused both on the impact and opportunity for customers relative to AI today, and a generation ahead when it comes to our network infrastructure. Lumen has the network infrastructure and the digital capabilities needed to help support Azure’s mission in creating reliable and scalable platform that supports the breadth of customer workloads—from general purpose and mission-critical, to cloud-native, high-performance computing, and AI, plus what’s on the horizon. Our work with Lumen is emblematic of our investments in our own cloud infrastructure, which delivers for today and for the long term to empower every person and every organization on the planet to achieve more.”

“We are preparing for a future where AI is the driving force of innovation and growth, and where a powerful network infrastructure is essential for companies to thrive,” said Kate Johnson, president and CEO, Lumen Technologies. “Microsoft has an ambitious vision for AI and this level of innovation requires a network that can make it reality. Lumen’s expansive network meets this challenge, with unique routes, unmatched coverage, and a digital platform built to give companies the flexibility, access and security they need to create an AI-enabled world.”

Accelerating growth through innovation and partnership

Lumen has launched an enterprise-wide transformation to simplify and optimize its operations. By embracing Microsoft’s cloud and AI technology, Lumen can reduce its overall technology costs, remove legacy systems and silos, improve its offerings, and create new solutions for its global customer base. Lumen will migrate and modernize its workloads to Microsoft Azure, use Microsoft Entra solutions to safeguard access and prevent identity attacks and partner with Microsoft to create and deliver new telecom industry-specific solutions. This element alone is expected to improve Lumen’s cash flow by more than $20 million over the next 12 months while also improving the company’s customer experience.

“Azure’s advanced global infrastructure helps customers and partners quickly adapt to changing economic conditions, accelerate technology innovation, and transform their business with AI,” said Chapple. “We are committed to partnering with Lumen to help deliver on their transformation goals, reimagine cloud connectivity and AI synergies, drive business growth, and help customers achieve more.”

This collaboration expands upon the longstanding relationship between Lumen Technologies and Microsoft. The companies have worked together for several years, with Lumen leveraging Copilot to automate routine tasks and reduce employee workloads and enhance Microsoft Teams.

Also in the news:
Australian Government and AWS Collaborate to Strengthen country’s Cybersecurity
Solving congestion challenges in FTTP deployment
Vodafone Invests £120m in AI Chatbot ‘SuperTOBi’

nexfibre passes almost 1.3m homes with full fibre

Press Release

nexfibre, the next generation fibre network operator, has today published the latest quarterly update of its nationwide rollout plan

The report reveals planned build locations for 2025 and early 2026, with significantly expanded footprint in previously underserved areas of North Wales and Scotland.

The update demonstrates nexfibre’s commitment to bringing sustainable, national-scale competition to the fibre access market, with network expansion set to benefit towns across the UK, including coverage in Eastbourne, Weymouth, Nantwich and Shropshire, with North Wales being well-served.

The plan details the rapid progress nexfibre continues to make towards its mission of reaching 5 million premises across the UK by 2026, with just under 1.3 million premises passed and ready for service (RFS) – up from 986,000 premises in the last quarterly update.

At the current rate, the business is set to deliver its network to more premises than any other fibre provider in 2024, except for the incumbent, making it the UK’s second largest network provider in only its second year of operations.

Rajiv Datta, CEO of nexfibre, said:

“It is thanks to the hard work of our team, our partners – including our build partner Virgin Media O2 – and our investors that we have been able to build at this pace and achieve this reach in such a short period of time.

“We have exciting plans for 2025 and into 2026, which is part of our commitment to provide a nationwide alternative network and the competition in the fibre access market that the UK needs and deserves. Our work matters because, at its heart, better broadband improves the lives of people and communities across the country, boosts economic growth and will help the UK lead the digital future.”

nexfibre is a critical enabler of the government’s ambitions to close the digital divide and deliver a nationwide ultrafast broadband rollout by 2030. As a wholesale-only provider, it is committed to building and maintaining a quality full-fibre infrastructure platform. This enables it to deliver more choice, more competition and provide people, communities and organisations with quality connectivity.

Join nexfibre and the wider connectivity indutry at Connected Britain, 11-12 September in London. Get your ticket here!

Also in the news:
Australian Government and AWS Collaborate to Strengthen country’s Cybersecurity
Solving congestion challenges in FTTP deployment
Vodafone Invests £120m in AI Chatbot ‘SuperTOBi’

CEO of UK Broadband ISP Zzoomm Prep FTTP Growth via Consolidation

The CEO of Oxfordshire-based alternative broadband provider Zzoomm, Matthew Hare, has revealed that they’re still aspiring to cover 1 million UK premises with their 2Gbps FTTP network (despite the recent move to stop new building work), but “if we can’t build it ourselves then … you have to buy it” (growing through consolidation).

Just to recap. Zzoomm has so far extended their Fibre-to-the-Premises (FTTP) network to cover 202,000 premises (RFS) – with 30,000 customers expected in August 2024 – across 23 towns in England (here) and they originally aspired to cover 1 million premises across 85 UK towns by the end of 2025. The build has typically been focused on smaller towns in parts Berkshire, Oxfordshire, Herefordshire, Yorkshire, Staffordshire, Wiltshire and Cheshire.

NOTE: The network operator is supported by a total of £224m in capital = £100m debt via banks (here), £12m from private investors (“big chunk” of that comes from Matthew Hare) and £112m via Oaktree Capital (here).

However, the altnet’s roll-out was recently dealt a blow after they stopped new network construction in order to focus on growing customer take-up (here and here), which largely stemmed from the fact that the “capital raising market remains extremely tight in the UK and the cost of capital available remains too high to generate equity returns.”

The situation is something that Matthew Hare has now touched on again as part of an illuminating new interview, which was conducted by Richard Tang, the venerable CEO of retail ISP Zen Internet. “Stopping the build is all about availability of capital, it’s not about availability of opportunity or aspiration … 1 million premises is still a good target to get to as a footprint, and probably even a bigger number, but if we can’t build it ourselves then we’ll have to find another way of getting there. The aspiration is absolutely still there,” said Matthew Hare.

Matthew goes on to make very clear that Zzoomm is “really not a fan of overbuild and if you can’t build it yourself you have to buy it“, before firmly indicating that they “absolutely are” on the acquisition trail as a means of achieving their original coverage aspiration. But this would still be very challenging at their current level of funding, which may restrict the sort of scale they’re able to acquire via consolidation.

Speaking of the overbuild challenge, Matthew noted that there’s “no way I thought there would be 40 or 50 operators building [full fibre] in the UK” when he started Zzoomm in 2018. “At that point I think there were six or seven of us, including Gigaclear,” he added. This helps to underline how competitive the market has become in a relatively short space of time, and the difficulty of adapting to that once plans and money have been committed.

Just to underline this point, Matthew later notes that Zzoomm actually descoped about 265k properties from their plan to avoid overbuild with other networks (e.g. they pulled out of Skipton after spending £70-£80k to avoid a more costly risk). But overbuild is still a challenge, which sees “about half” of their network competing directly with Openreach (FTTP), with another 10% coming from altnets and thus c.40% as Zzoomm-only areas.

However, the situation, in terms of future funding sources, remains a challenge. “Right now the debt markets are still, bluntly, completely constipated … and we’re maybe a year away from seeing some more opportunity to raise debt in order to buy assets,” said Matthew before adding that they need to go beyond 200k premises: “You need to have a big fibre footprint to have a good viable business that gets great returns to shareholders.

The interview also briefly touches on market penetration, which reveals that they “want to be in the high 20% penetrations on average to start to get the returns that my shareholders want to see” (they’re currently at an average of c.15% and growing). But they’re already at over 35% in their oldest towns and the cohorts they’ve been in the longest are now over 40%, so Zzoomm’s confidence in the future remains high.

Finally, the interview touches on Ofcom’s much delayed One Touch Switching (OTS) system, which aims to make it easier for consumers to switch broadband ISPs. “I think for OTS we’re in a good place, but I still am quite worried about the potential for bad actors to cause an awful lot of damage to the UK telecoms industry by abusing one touch switching,” added Matthew without elaborating on the ‘bad actors’ remark (most likely a reference to SLAMMING – being switched without your consent).

The full interview is well worth watching (see below) and, just to underline the current challenges with high interest rates, Matthew notes an example with how their debt repayments doubled from £450k/month to £900k/month. This helps to underline the challenges, particularly if the availability of capital remains constrained.

Nexfibre Publish Q2 2024 UK Full Fibre Broadband Rollout Update

Network operator nexfibre, which shares some of their parentage with retail ISP partner Virgin Media (VMO2), has this morning published their latest quarterly (Q2 2024) progress update on the roll-out of their new 10Gbps capable Fibre-to-the-Premises (FTTP / XGS-PON) broadband ISP network. This includes details on build locations for 2025 and early 2026.

We’ll start with the usual recap. Back in 2022 Telefónica, Liberty Global and InfraVia Capital Partners setup nexfibre as a new £4.5bn joint venture (here), which aims to deploy an open access full fibre network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT served by Virgin Media’s own network of 16m+ premises. The funding reflects £3.3bn of fully underwritten financing and up to £1.4bn in equity commitments.

NOTE: Virgin Media is currently the only ISP on nexfibre’s network via an “exclusive partnership” (here), but more ISPs will be added in the future (here) and VM’s own network will also open up to wholesale via NetCo in H1 2025 (here).

The operator has already deployed their network to cover 1,277,800 premises ‘Ready for Service’ (up from 986,000 in the last update), which doesn’t yet include last year’s acquisition of Upp and its c.175,000 premises, and they’re in the process of investing another £1bn this year to help cover an additional 1 million UK premises (i.e. on top of their existing coverage). This should get them to around c.2m by the end of 2024.

The latest report also reveals planned build locations for 2025 and early 2026, with a “significantly expanded footprint” being planned for previously underserved areas of North Wales and Scotland. The next stage will also see “high volumes of build” in Eastbourne, Weymouth and Nantwich.

Sadly, nexfibre doesn’t provide a neat spreadsheet style table to highlight new additions to their build plan (at least not one we can easily paste), although they do provide something similar via their latest Q2 2024 Rollout Update (PDF) and there’s also a fairly vague visual map of their progress.

Nexfibre UK Build Update Map for Q2 2024

Rajiv Datta, CEO of nexfibre, said:

“It is thanks to the hard work of our team, our partners – including our build partner Virgin Media O2 – and our investors that we have been able to build at this pace and achieve this reach in such a short period of time.

We have exciting plans for 2025 and into 2026, which is part of our commitment to provide a nationwide alternative network and the competition in the fibre access market that the UK needs and deserves. Our work matters because, at its heart, better broadband improves the lives of people and communities across the country, boosts economic growth and will help the UK lead the digital future.”

Sky UK Reveals Broadband Traffic, TV and Mobile Network Usage Stats

Comcast-owned internet, TV and mobile provider Sky UK has published an interesting new report, which reveals a lot of interesting details about their network and TV usage, which we haven’t previously seen. For example, Sky Broadband now has 1.5 million FTTP customers and internet traffic peaked at 24.35Tbps on 9th April 2024.

The new ‘Sky Attention Index‘ (PDF) report, which includes data from the January to June 2024 period, broadly summarises a sizeable amount of data from across Sky’s network of services. But naturally our focus is more on the broadband and mobile site of things, although this does cross into video streaming and IPTV a bit too.

On the Sky Broadband side of things, it’s noted that their customers used over 19 billion GigaBytes of data in the last six months alone and a lot of that was spent powering connected homes, with 21 connected devices on average now in UK households. A total of 1.5 million homes are now also taking their Openreach powered full fibre (FTTP) connections, although they don’t give a figure for their other ADSL, FTTC and G.fast lines.

When Sky asked people what they use their home internet for every day, the most popular answer was browsing social media and websites, followed by streaming movies and TV.

In terms of broadband traffic, Sky’s data shows that the biggest uptick in traffic between 9am and 5pm is on Monday and Friday – suggesting they could be the most popular days to work from home, said Sky. The biggest peak so far was seen on 9th of April 2024, when broadband usage hit 24.35Tbps (Terabits per second) as people stayed in to watch Arsenal vs Bayern Munich and Real Madrid vs Manchester City.

Similarly, on the 7th of February, Sky saw a surge to 23.92Tbps as the Call of Duty Modern Warfare III Season 2 update was released to gamers. We also get some detail from the Sky Mobile service, which is being powered by O2’s national network (MVNO).

SkyMobile Traffic and Data

111 million GB (GigaBytes) of mobile data was consumed by Sky Mobile customers in the last six months
Whilst Smart TVs are booming and according to our research, they’re now people’s favourite way to watch video every day. When we’re not watching videos on the big screen, people switch to the small screen – almost half of UK adults (49%) use phones to watch video content every day. 
When it comes to watching video on our phones, there’s a generational gap. Gen Zs are three times more likely to watch videos on their smartphone, than those over 65. 
We’re also seeing weather impact how we use our mobiles – average mobile data usage for Sky Mobile customers was 21% higher in June than in January. Usage grew consistently during the first half of the year as the weather got warmer and people spent more time out and about, to the point of reaching record levels in late June.  
Football is also the single biggest traffic driver for Sky Mobile.  

On the 14th of May 2024, the Premier League match between Tottenham and Man City caused a 5% spike in data usage, rising from 84 to 88 Gbps (Gigabits per second).  
This was felt even more on Championship Sunday, 19th May, when the final match day saw a 13% surge in data consumption after 4pm, from 102 to 115 Gbps.  
This translated across to the Euros too, with data up 10% from the previous Sunday to 113 Gbps during the gripping England vs Slovakia match on June 30. 

Sky’s Managing Director of Connectivity, Amber Pine, said: “We’re at an inflection point when it comes to the growing demand in the UK for data, bandwidth and speed. As this report shows, our homes are increasingly connected and on top of that, we want to scroll, stream and game, wherever we are. The roll out and take up of full fibre and 5G are crucial to meet this increasing need, in and out of the home. At Sky, we have brought our broadband and mobile teams together, to focus on the nation’s connectivity holistically. We’re scaling up to meet people’s changing needs.

Virgin Media O2 See UK Broadband Users Fall to 5.71 Million as Nexfibre Ramps FTTP

The latest Q2 2024 results from Virgin Media (O2) have today been published, which reveals that they’re now home to 5,710,700 fixed broadband customers (down by -12.2k in Q2 2024 vs +5.3k in Q1) and built another 295,300 full fibre (FTTP) premises – mostly via nexfibre (up from 194k last quarter). Both VM and nexfibre now cover 5m premises via full fibre.

According to the latest results, the combined VMO2 and nexfibre broadband network currently reaches 17,489,000 Homes Serviceable (up from 17,193,700 in Q1) and the vast majority of that new build is from nexfibre. The nexfibre network alone accounts for well over 1 million premises passed of this total (here).

NOTE: Virgin Media is the only ISP on nexfibre’s network via an “exclusive partnership” (here). More ISPs will be added in the future (here) and Virgin’s own network will also open up to wholesale via NetCo in H1 2025 (here).

As a result of the above, a total of 5 million Virgin Media and nexfibre premises (footprint) are now covered by FTTP (XGS-PON and RFOG), which is up from c.4.2m in Q1 2024. But a tiny portion of the nexfibre figures will include a bit of infill build for Virgin Media itself (separate to nexfibre). The c.175,000 premises passed by Upp, which was acquired by nexfibre last year, have yet to be integrated into any of Virgin’s totals (inc. c.4,000 customers).

Nexfibre Rollout Progress
Q2 2024 = 295,300 Premises
Q1 2024 = 194,000 Premises
Q4 2023 = c.299,000 Premises
Q3 2023 = 250,800 Premises
Q2 2023 = 175,500 Premises
Q1 2023 = 107,800 Premises
Q4 2022 = 24,000 Premises

Just for context. Telefónica, Liberty Global and InfraVia Capital Partners setup a new £4.5bn joint venture called nexfibre in 2022 (here), which aims to deploy an open access full fibre (FTTP) network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT served by Virgin Media’s own network of 16m+ premises. But Virgin Media, which shares some of the same parentage, is currently the only ISP on this network (here).

At the same time, Virgin Media’s Project Mustang programme is also upgrading their older Hybrid Fibre Coax (HFC1) and FTTP based Radio Frequency over Glass (RFoG) network – covering over 16 million premises – to harness the same XGS-PON based FTTP technology as nexfibre. But this process isn’t due to complete until 2028, although it will eventually mean that VMO2 and nexfibre cover up to 23 million premises with full fibre.

The operator’s (O2) mobile base has also grown during Q1, while sadly Virgin Media has stopped giving any solid figures for their Pay TV (video) base (this often happens when a base is in decline). But most of their mobile growth is coming via wholesale and prepaid, while O2’s own mobile contract base reduced by 118,400 (ending Q2 at 15.9 million).

VMO2 Q1 2024 UK Customer (Connection) Figures – Q2 2024
5,710,700 Fixed Broadband – (down from 5,722,900 in Q1)
45,486,400 Mobile inc. Wholesale – (up from 45,083,300)

The latest results also state that 5G coverage is now available to almost two thirds (65%) of the UK population (up from “more than 50%” in Q1), which follows the switch-on of next generation 5G Standalone (SA) technology in the first quarter. The company said they’re “on track to bring 5G to all populated areas by the end of 2030“, although they haven’t specified a % figure for population or geographic coverage.

On the financial front, VMO2 reported total revenue of £2,673.7m in Q2 2024, which is up from £2,588.8m last quarter.

Lutz Schüler, CEO of VMO2, said:

“Despite a tough trading environment, we remained focused on delivering more for our customers, continuing to invest significantly in our networks and services, to the level of more than £1 billion so far this year and successfully executing price changes. We have maintained consumer fixed and mobile revenue excluding handset, with overall revenue impacted predominantly by mobile hardware headwinds, and profitability is on track and in line with our full year guidance.

“Our fibre deployment has gathered significant pace, with the Virgin Media O2 fibre footprint now hitting 5 million premises as we push forward towards creating the UK’s largest national fibre challenger. Our 5G mobile connectivity now covers almost two-thirds of the UK population and the team pulled out all the stops to hit our Shared Rural Network target, improving mobile coverage in rural areas of the country.

Looking ahead, our new network sharing agreement with Vodafone UK builds on the success of our existing relationship and also keeps Virgin Media O2 in a strong position should the Vodafone-Three merger be approved – an outcome we support and believe would be a positive step for investment in the UK’s digital infrastructure.

Looking to the second half of the year, our strategy to invest in key drivers of future growth is the right one, and we’re focused on delivering while transforming and simplifying our business for long-term success.”

At this point it’s worth not reading too much into Virgin Media’s fixed broadband (customer base) decline, since they often get hit by student and price-rise related contract cancellations in Q2 (this tends to recover in later quarters). On the other hand, Virgin Media are under a lot of pressure from alternative networks (not unlike Openreach) that can often undercut them on price, speed and all without the historic baggage of consumer complaints.

However, the combination of Virgin Media and nexfibre is potentially a potent one for the future, provided they can make their wholesale commercials attractive enough and treat partner ISPs fairly (easier said than done). But they’ve arguably been moving too slowly on all of this, and there’s also a lack of clarity on Project Mustang’s progress.

Which? Name ISP Virgin Media as Worst UK Telecoms Provider for 2024

Consumer magazine Which? have today named the winners of their annual Shoddy Awards 2024, which lists the companies that have done poorly through the year. Suffice to say that broadband provider Virgin Media picked up the award for “Worst Telecoms Company” for the second year running, due to “poor customer service and mid-contract price hikes“.

In order to be nominated for a “Shoddy“, companies had to fall short on one of the following criteria: failing an industry standard, potentially breaking the law, causing consumer detriment or confusion or regularly underperforming in the consumer champion’s customer surveys or lab tests. A judging panel from across Which? then selected this year’s winners based on the findings of past studies and their “in-house experts“.

Given the results of recent surveys (example), it’s perhaps not terribly surprising to find that Virgin Media ended up scooping the not particularly coveted ‘Worst Telecoms Company‘ of the year award.

Which? Statement on Virgin Media

Virgin Media has been awarded a Shoddy for the second year running. It finished at the bottom of the table in Which?’s annual broadband survey – standing out, in particular, for its terrible customer service. Which? has written to Virgin Media’s chief executive urging the firm to improve its customer service.

On top of this, frustrated customers are trapped in a lose-lose situation – where they either accept hefty mid-contract price rises or, in some extreme cases, fork out crippling exit fees of up to almost £700 to leave early.

Which? has also reported Virgin Media to regulator Ofcom last year over concerns it could be breaking the law by giving itself the right to hike broadband bills by unlimited sums whenever it chooses – on top of its annual inflation-based increases. Virgin Media said they are investing in their customer service and refute allegations it could be breaking the law on broadband contracts.

The other winners were as follows.

Shoddy Award Winners for 2024

Most unhelpful energy firm – Scottish Power

Scottish Power has frustrated their energy customers with slow and unhelpful support. Which?’s analysis found that all too often people were left on hold, passed from agent to agent with no resolution to their queries or faced long waits to get a reply to their emails. Which? has written to Scottish Power’s chief executive urging the firm to improve its customer service.

Scottish Power received the lowest satisfaction score in the consumer champion’s recent customer service research for how long it took to get in touch with a person that could help. It also achieved just two stars out of five for overall customer service and one star for value for money in our annual survey.

The energy giant told us it has been working tirelessly to improve its customer service. However, in an essential sector that millions rely on every day, Which? believes that it is completely unacceptable that bill payers are being let down so badly.

Persistent failure on scams – Meta

Malicious content is rife on Facebook and Instagram. Last year, Which? helped one victim recover £3,000 when they paid for a car that was never delivered after clicking on an Instagram ad. The criminals had been impersonating a genuine car leasing company based in Essex after stealing its name, company number and other details from Companies House. Which? reported the issue to Instagram’s parent company Meta immediately, but the profile rebranded itself to imitate another genuine firm.

Meta previously told Which?: “We don’t want anyone to fall victim to fraudulent activity which is why our platforms have processes in place to both protect accounts from being hacked in the first place (including two factor authentication) and to return them to their rightful owners if they do get hacked.”

Which? is calling for Ofcom to set high standards for online safety and take action against those platforms that fail to protect its users from illegal content. The consumer champion also wants to see Meta do more to prevent, identify and remove scam ads from its platforms to stop criminals before reaching consumers and causing financial and emotional harm.

Selling dangerous products – Temu

Which? has found illegal weapons for sale, alongside age-restricted items – such as axes and knives – without age checks taking place.

Temu is also among the online marketplaces the consumer champion found selling unsafe electric heaters that could explode, cause electric shocks or start a fire. Which? welcomes the new government’s commitment to introduce new product safety legislation, and will be pushing for it to place clearer responsibilities on online marketplaces to prevent the sale of unsafe products, putting consumer safety first and prevent dangerous products ending up in people’s homes.

Temu said it “deeply regrets any concern or inconvenience caused by the safety issues we identified”, and stressed that the safety of its customers is its highest priority.

Biggest flight booking letdown – Opodo

In a 2024 survey of Which? members, Opodo achieved an abysmal customer score of 28 per cent – one of the lowest scores Which? Travel has ever seen – and just one star for customer service. Which? investigations have shown it charges over the odds for extras like baggage and seat selection, while customers have reported unwittingly signing up for its subscription service – only to be billed later on. Opodo says its customers clearly value the service it offers and see the benefits OTAs provide, and 90 per cent of the customers it surveys are happy with its service. Opodo also disputes Which?’s research methodology and results.

Grimmest hotel chain – Britannia

Britannia has been at the bottom of the table in Which?’s hotel chain rankings for 11 years running. It received just two stars for cleanliness and one star for the quality of its bedrooms and bathrooms in the consumer champion’s latest survey. Which? also found serious fire safety flaws – including broken fire doors and missing fire extinguishers – when the consumer champion went undercover at Canary Wharf in London and Heathlands Hotel in Bournemouth back in 2022. Britannia said that it had “investigated and addressed” the issues Which? found at both hotels. It also said: “We invest heavily in fire safety at all of our hotels and will continue to do so.”

Dodgiest car company – Goldcar

In 2019, Which? caught Goldcar’s agents misleading and pressuring customers at the rental desk to flog unnecessary extra cover. In response, Goldcar announced ‘a programme of large-scale change’ to ensure a good customer experience.

Which? undercover journalists flew out to Spain again earlier this year, armed with hidden cameras and once again, Goldcar staff used pushy sales tactics to try to panic them into buying extra insurance, even though they had already bought a comprehensive policy online. Goldcar is also regularly rated the worst car hire company by Which? members.

Goldcar said it is “committed to investigating any incidents where a customer believes they have received a service that does not match expectations for a low-cost brand and continue to invest in staff training and best practices.”

Biggest rail rip-off – train ticket machines

Only one in six UK railway stations have a full-time ticket office – and 759 stations do not have one at all. This means consumers are forced to use a ticket machine if they have not bought their fare in advance. Which? mystery shoppers found that most operators have outdated machines that can charge more than twice the price of booking online, with the best-value fares unavailable or hard to find. For example, a one-way fare from Northampton to Cardiff was £107 from a machine, but just £43 from online retailer Trainline – less than half the price.

Most egregious price hike – Norton Antivirus renewal

Norton 360 Deluxe is an excellent product: the Windows version was even awarded a Which? Best Buy. The problem is the renewal price – consumers can sign up for £30, but that price trebles to a whopping £90 for renewal after the first year. It is the largest renewal hike of any of the paid-for antivirus products Which? tests – and the consumer champion believes it is excessively expensive.

Unsafe product – Peg Perego Viaggio Twist

Which? has warned parents against using the Peg Perego Viaggio Twist car seat (£425) after a shocking failure during crash tests. The support leg on the base crumpled and the momentum of the crash hurled the car seat forward – causing it to come loose from the Isofix base and fly through the test vehicle. As a result this car seat – designed for babies and children from six months to four years old – has been rated a 0 per cent Don’t Buy.

Peg Perego has since put distribution of this product on hold and carried out its own testing. It confirmed that the Viaggio Twist needs to be modified, and told Which? that it will soon be providing a new and improved car seat to customers.

Design fail – Nautilus Designs Ascot Mesh office chair

Its sole purpose is comfort, but not only is this Don’t Buy chair incredibly uncomfortable, it is potentially dangerous. Consumers run the risk of tipping backwards if they recline too far and it is not ergonomic – in fact, the lumbar support hurt Which? testing experts’ backs.

Dumbest smart product – Swan Alexa kettle

This kettle is packed with high-tech features but fails to do its basic job well. It is a Don’t Buy because Which?’s tests found it is incredibly slow to boil, overboils for a long time and has a two-cup minimum fill, meaning consumers will waste energy every time they make tea for one. It also has no limescale filter, making it a terrible choice for anyone in a hard-water area.

Useless cleaning product – M&S

M&S Italian Lemon & Ginger Kitchen Surface Cleaner (£2) performed consistently badly in Which?’s tests at removing tough soils, including baked-on grease and starchy spills such as rice water. In fact, Which? would think twice about buying any cleaning products from M&S: Which? testing found its washing-up liquid is a Don’t Buy, and its sensitive non-bio washing powder and laundry liquid are not great either.