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Edinburgh-based UK alternative network operator and ISP GoFibre, which is primarily focused on deploying their new full fibre (FTTP) broadband network across parts of remote rural Scotland and Northern England, has announced that it’s adopting more of Calix’s cloud, software, and appliance-based platform to help boost their roll-out.

GoFibre is currently busy building their gigabit-capable broadband network across rural parts of Scotland, the Scottish Borders areas and also Northumberland in England. The operator has so far managed to build their network to cover over 120,000 premises (RFS) across 40 “local areas” and today’s focus is on how that compares with a bunch of international cities.

The operator, which according to today’s announcement is also “expanding to reach hundreds more subscribers each month“, has now signed a new partnership to harness optical broadband kit and services from Calix (a number of other altnets, such as CityFibre, also use their services in some areas). The following might not sound terribly interesting, but it offers a few hints toward new features that GoFibre might soon enable (e.g. new internet security services for customers and improved support).

The Official Blurb

With Calix Cloud® on the Calix Platform, GoFibre is benefiting from data-based marketing and customer support insights, along with seamless management for its marketing and support teams. With these capabilities, GoFibre is driving rapid market expansion by:

➤ Deploying services quickly to ensure a secure and reliable online experience. GoFibre deploys SmartHome managed services so subscribers can take further control of their digital lives. The easy-to-use subscriber-facing GoFibre App, built on CommandIQ®, enables convenient self-service and simple, intuitive home network management. GoFibre subscribers can also access and manage ProtectIQ® advanced cybersecurity and ExperienceIQ® enhanced network controls from their app.

➤ Transforming customer support with subscriber experience insights for faster issue resolution. GoFibre has also enabled customer service representatives with Calix Service Cloud for real-time insights across subscribers, systems, and services. This allows GoFibre to transform its customer support approach, enabling representatives to quickly anticipate needs and resolve home network or service issues before they impact subscribers.

➤ Delivering personalised communications about new services that improve subscribers’ lives. GoFibre leverages Calix Engagement Cloud to deliver the most engaging message to subscribers at the optimal time. This data-driven approach allows GoFibre marketers to tailor offerings by accessing subscriber experience insights for more personalised marketing engagement, resulting in stronger subscriber loyalty. Calix customers can also tap into the Calix Market Activation program for thousands of pre-made, customisable assets to support omnichannel campaigns and drive growth.

By partnering with Calix, GoFibre gains access to the award-winning Calix Success organization. Calix Success delivers hands-on support for launching managed services, workforce training, and expert guidance to achieve business goals that drive sustainable growth and long-term differentiation.

“Calix is more than a vendor—they are a true strategic partner, enabling us to deliver personalised, differentiated services that add value to our customers and set us apart in the UK market,” said Neil Conaghan, CEO of GoFibre. “Our partnership with Calix is bolstering our leadership in the Scottish altnet space, enabling us to support initiatives like Project Gigabit to connect many more customers, even in hard-to-reach communities, with high-quality broadband each month.”

Original article ISPreview UK:Read More

Rural UK ISP Wildanet, which is building a gigabit speed full fibre broadband (FTTP) network across rural parts of Cornwall and Devon in England, has today celebrated the graduation of their first cohort of five apprentices (telecommunication engineers etc.) from their new training academy.

The Wildanet Technical Training Academy was first setup in 2023 and is naturally intended to support the operator’s own full fibre deployments. An initial group of five apprentices took part in the company’s brand-new Telecoms Field Operative Level 2 apprenticeship programme, developed in partnership with Truro and Penwith College, with others studying for a range of management, logistics and finance-based courses.

The success of the first cohort is said to be “just the beginning for Wildanet’s Academy“, which has already had an “overwhelming response” to future programmes, including 76 new applicants eager to secure a place on its next engineering apprenticeship. But the news does follow shortly after the provider revealed (here) that its restructuring was expected to result in a loss of up to 35 jobs (roughly 18% of the workforce).

The company is also now looking at how it can extend its training offer, supporting not only its own workforce but also the wider supply chain and local communities as it follows through on its commitment to support digital inclusion and the skills needed for Cornwall’s workforce of the future.

Family and friends were invited to join apprentices for the gathering hosted by Wildanet CEO, Helen Wylde-Archibald, as well as Chief People Officer, Julie-anne Sunderland, Academy Head, Ian Carmichael and guest of honour, Anna Gelderd, the MP for South East Cornwall.

Wildanet’s Chief People Officer, Julie-anne Sunderland, said:

“Today is the culmination of what started out as a dream and became an incredible journey thanks to the support of the company, the hard work of everyone who made the Academy a reality and the dedication of the apprentices themselves. Seeing our first apprentices graduate, with many passing with distinctions and even being recognised for awards, is recognition of their hard work, the quality of training at our Academy and the success of the apprenticeship programme.

It has been fantastic to see individuals come into our business and embrace and learn and immediately start to add value. Watching this blend of knowledge, ages and backgrounds come together has really inspired us to keep doing this into the future. We are not only upskilling our workforce but also supporting Cornwall’s wider economic growth.”

The operator was last year estimated to have so far covered around 30,000 premises (Ready for Service) with their newest Fibre-to-the-Premises (FTTP) network, which stems from a mix of both commercial and publicly funded builds. In terms of the latter, Wildanet has secured several contracts since 2023 – worth £77m (state aid) – to deploy their fibre to over 37,000 premises across Cornwall and the Isles of Scilly under the UK government’s Project Gigabit scheme (here and here)

Original article Total Telecom:Read More

Interview 

As the adoption of AI continues to surge globally, the data centre interconnect (DCI) networks underpinning this transformation are undergoing rapid change. A recent global survey from US-based vendor Ciena has highlighted that data centre bandwidth demands are set to increase by at least sixfold over the next five years, driven largely by AI workloads. 

Total Telecom sat down with Jürgen Hatheier, Chief Technology Officer for Ciena’s EMEA and Asia Pacific regions, to discuss the survey’s findings and how network operators are moving quickly to facilitate surging demand. 

 “Everybody got the headlines for building all the compute and the data centres[…]  but if there’s no network connecting all the good innovations that are happening there, then it would be a car without gas,” said Hatheier. 

AI’s pressure on the network 

Ubiquitous AI usage could present numerous challenges to network operators, not only in terms of sheer data traffic but also in complexity.  

“Historically, network traffic has grown at a rate of 20–30% per year,” said Hatheier. “AI is set to accelerate this growth significantly, meaning operators are rethinking their architectures and planning for how they can meet this demand sustainably.” 

Ciena’s survey, which polled over 1,300 data centre decision-makers across 13 countries, found that AI workloads have now overtaken traditional cloud computing and big data analytics as the primary driver of increased DCI infrastructure demand.  

But what is it about generative AI that puts such strain on the network? The answer lies in the technology’s core architecture, where training AI models, inference, and feedback loops generate constant movement of data between compute clusters. This creates far more intense networking demands than traditional cloud workloads, which tend to be more transactional or batch-based.  

“It is simply the nature of AI,” Hatheier explained. “How it trains, how it interacts with other machines, how it is so hungry for data, and how it generates new data […] That makes a big difference on the expected impact on the network.” 

AI traffic also differs significantly from traditional workloads. Hatheier described AI traffic as “unpredictable and exciting,” requiring networks to be flexible and dynamic, often handling large bursts of data with low latency. For example, an AI system may be required to automatically change a traffic light from red to green, or analyse a video for real-time security purposes,  both of which will require a network that can guarantee a high quality of service.  

“You do not know when you will require that data,” he emphasised. “Networks need to be built with these type of use cases in mind.” 

The study highlighted that to meet this huge surge in demand, 43% of new data centre facilities will be exclusively dedicated to AI workloads, which reflects not only an increase in the amount of data being processed, but also a key change in how data centres are structured and interconnected. 

Distributed computing 

Another key feature emerging from the rise of AI is the growing shift toward distributed computing. As requirements for AI compute continue to grow, the training of large language models (LLMs) is becoming increasingly distributed across different data centres around the world, instead of being conducted in a single location. According to the survey, 81% of respondents believe LLM training will rely on some level of distributed infrastructure, making reliable interconnection between these data centres even more critical. 

“There could be a training job that runs in Vienna, in Texas, and in London,” Hatheier said. “It’s the same kind of workload, but you require connectivity on land and subsea to create the kind of network that is able to transfer a high amount of traffic between sites.” 

Increasing sustainability as networks grow 

As AI drives up compute demand, sustainability has become a core concern for data centre operators. AI workloads are highly energy-intensive, and with growing scrutiny on emissions and energy use, operators are under pressure to expand capacity without expanding their environmental footprint.

Data centres consume significant amounts of energy, to both power servers and to keep them cool. As AI workloads increase, so does the demand for compute, and with it, the strain on power and space. This makes sustainability more important than ever, with operators looking for smarter, more energy-efficient ways to scale their infrastructure without compromising performance. But, as the bandwidth demands of AI intensify, so do the physical limitations within data centres, namely power consumption and space efficiency.  

One practical solution, Hatheier explained, is the use of pluggable optics. These are small, USB-sized devices that slot directly into the back of a server or switch, providing a point-to-point connection . This allows networks to move information quickly through fibre optic cables, reducing the strain on the primarily connectivity infrastructure. Because these optics can be plugged in without needing extra racks or bulky equipment, they help data centres expand their capacity while saving space and energy. 

Looking ahead 

Hatheier believes that the future of AI hasn’t even fully begun yet. “As a society, we are at the brink of starting some massive value creation with AI. And I’m not talking about squeezing a couple of bits out of a network or running some operation better. I’m talking about real creation of value.” 

To create this global innovation, the ecosystem must ensure the right infrastructure is in place, and so the networking industry’s biggest hurdle over the coming years will be to provide all the connectivity required, whether that be subsea or terrestrial. 

“We want to make sure that everybody gets the benefit, right?” 

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Also in the news:
Quickline to extend Yorkshire’s Project Gigabit rollout
‘Adapt or die’: VOX Solutions’ message to telcos in the age of AI
Huawei’s ushers in the AI era with raft of new solutions at MWC 2025

Original article ISPreview UK:Read More

Mobile provider Superdrug Mobile, which is a virtual operator (MVNO) on Three UK’s national network, has today kicked off April 2025 by bucking the industry trend of annual price hikes and instead discounting the prices of several 4G and 5G capable SIM Only plans.

In short, the virtual operator has lowered its prices until 20th May 2025, meaning customers who order before that can now get 30GB of data for £7 per month (previously £10) or unlimited data for £16 per month (previously £20) – lasting for 12 months (it’s a no-contract plan, so you can still cancel anytime). Each plan includes unlimited UK calls and texts, Wi-Fi calling, 5G support, 12GB of EU roaming data, no exit fees, no minimum contract, and any unused data on the 30GB plan can be rolled over.

Superdrug Mobile also has some exclusive benefits, including Health and Beautycard points when signing up, double Health & Beautycard points on all Superdrug purchases and auto enrolment into the Superdrug VIP rewards scheme which gives customers exclusive deals and discounts every month.

Superdrug Mobile’s Senior Business Manager, Vikki Nye, said:

“At Superdrug Mobile, we love giving back to our customers, who we know are feeling the pinch, by creating more affordable sim-only packages that provide flexibility and perks that can’t be found anywhere else. While Ofcom has banned mid-contract price increases based on inflation, networks can still include price increases within their contracts, providing this is clearly detailed when customers sign up online or in-store.

We know people now more than ever need to plan their budgets and cut costs where possible, which is why we’re cutting costs on our sim-only packages. Not only that, but customers benefit from the exclusive Health and Beautycard points and offers, saving customers even more money.“

Original article ISPreview UK:Read More

Fifa-based ISP Transmitair, which specialises in rolling out ultrafast Fixed Wireless Access (FWA) broadband networks to rural parts of Scotland, has confirmed that homes and businesses across their coverage patch in Strathspey (Highlands of Scotland) have been left disconnected for around 5 days due to a legal dispute over a mast.

The issue appears to centre around the Laggan Hill mast, which sits nearby-ish to Dulnain Bridge and appears to be owned by Arqiva (based on a sign hanging outside the site). The site previously only acted as a television relay, although a few years ago it was also adopted to help deploy a new wireless broadband network across the remote rural community of Strathspey.

However, more than 70 homes and businesses across a wide geographical area have, without warning, been left cut off from their wireless broadband link since Friday 28th March 2025. The issue is reportedly down to an unspecified legal dispute between the ISP and the mast site’s owners.

A Spokesperson for TransmitAIR said (Strathspey Herald):

“Further to our notice on Friday we are awaiting an update from our legal team as to the ongoing dispute with the operator of the main Laggan mast. At present we don’t have a timescale for resumption of services but we are looking to receive updates soon and organise a swift resolution.

As a company we have worked hard to build a network to bring an experience that would not normally be achievable for many in Strathspey. We are truly sorry for the disruption to the service our customers have all come to expect and rely on.

Further updates will follow as soon we have them.”

Disputes happen, although the fact this one was allowed to progress to the point of a total service shut-down – without customers being given any prior warning, does not reflect well on either company. Broadband connectivity is a critical service for many users, particularly in some remote areas where viable alternatives may not exist.

The only positive news is that TransmitAIR, which has declined to provide any details on the nature of the dispute itself, has confirmed they will not be charging customers for the period of lost service. Some customers have been able to get back online via local mobile (4G/5G) broadband networks, but this may not be an option for everybody and won’t necessarily perform as well.

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The Welsh Government (WG) has confirmed that new rules will be introduced across wales from 1st July 2025, which broadly follow England’s own updated Building Regulations by requiring housing developers to “ensure all new build houses be equipped with gigabit broadband capability” (some exceptions apply).

Just to recap. At the end of 2024 around 78% of premises in Wales were already within reach of “gigabit-capable broadband” speeds (here), although we also note that around 99% of UK houses constructed these days tend to be covered by a gigabit-capable network (here) – the gap left to solve is no longer quite as significant as it once was. But in terms of the latter, we don’t have any specific figures for Wales.

Nevertheless, Westminster has already updated the old Building Regulations 2010 (Building etc. (Amendment) (England) (No. 2) Regulations 2022) for England in 2022 (here and here), which helped to ensure that new build homes are now constructed with support for such connectivity. But the adoption of similar rules for Wales, Scotland and N.Ireland was left up to the devolved governments (Scotland introduced related changes at the start of this year).

The good news is that the Welsh Government has now approved amendments to Part R in Schedule 1 to the Building Regulations for Wales. The Amendment Regulations and Requirements RA1 and RA2 set out the new infrastructure and connectivity requirements for newly erected dwellings with “certain modifications and exemptions“; alongside amended Requirement R1 infrastructure requirements for other in-scope buildings.

Summary of the Key Amendments

• New Regulation 44ZAA requires a person who is erecting a new dwelling to submit to the local authority, prior to commencement of building work, particulars of any connection to a public electronic communications network to be provided for that dwelling, alongside any evidence which supports their reliance on any exemptions in new regulations 44ZB and 44ZC.
• New Regulation 44ZB provides for exemptions from the new requirements, for buildings to be occupied by the Ministry of Defence or armed forces of the Crown or otherwise for purposes connected to national security, as well as those located in areas isolated from public electronic communications networks.
• New Regulation 44ZC(1)-(4) sets out exemptions from the requirement to provide a gigabit-capable connection if doing so exceeds the cost-cap, as follows:
  ○  where gigabit-capable connections cannot be installed within the cost cap of £2,000, a high-speed network connection must be installed, provided it can be secured within the cost cap. 
  ○  where a high speed-connection cannot be installed within the cost cap, a USO-standard connection must be installed, provided it can be secured within the cost cap. 
  ○  where a USO-standard connection cannot be provided within the cost cap, no connection is required.
• New Regulation 44ZC(5) defines the terms “high-speed public electronic communications network” and “USO-standard public electronic communications network”.
• New Regulation 44ZC(6) treats the developer as being able to secure the provision of one of the above connections unless the developer has invited at least two suitable providers (as defined in regulation 44ZC(9) to provide quotes within a 30-day period and those providers have either declined to provide a relevant connection within the cost cap, or not responded to invitations to provide quotes.
• Regulations 44ZC(7) and (8) set out the cost cap of £2,000, and what factors are to be included when making this calculation.
• Regulation 44C now includes the following new definitions: “gigabit-capable electronic communications network”, “gigabit-capable public electronic communications network”, “gigabit-ready physical infrastructure”, and “public electronic communications network”.
• Schedule 1 (requirements) inserts ‘Requirement RA1: Gigabit-ready physical infrastructure, and Requirement RA2: Connection to gigabit-capable network.
• Requirement R1, ‘In-building physical infrastructure’, is amended to exclude from the scope of that requirement any building work to which requirement RA1 applies.

As expected, the changes broadly mirror those already introduced across England, including the same £2,000 cost cap per dwelling to prevent new build developments from running into issues of economic unviability, such as in some rural areas or individual private house builds. In cases where a gigabit-capable connection cannot be provided within the cost cap, then slower 30Mbps+ or 10Mbps+ connections are allowable. But in extreme cases, it’s still possible to build with no broadband link being required, which makes sense in a few very remote areas.

The changes are welcome, but there’s no escaping the fact that they’re arriving a bit too late to the party to have much of an impact. Most property developers and broadband operators have already adapted, following previous rounds of political pressure, which means that there isn’t much of an issue left to be resolved. The phrase “better late than never” comes to mind.

Naturally, changes like this do at least help to support the wider £5bn Project Gigabit programme, which is aiming to help extend gigabit broadband coverage to around 99% of the UK (“nationwide”) by 2030 (currently at 86%+). Ofcom predicts the level of gigabit coverage in Wales will reach around 93-95% by May 2027 (here).

Original article Total Telecom:Read More

News 

The Cyber Security and Resilience Bill will tighten cyber defence rules for the UK’s critical infrastructure operators and their key suppliers  

The UK government has announced the full scope of its upcoming Cyber Security and Resilience Bill, which aims to strengthen the country’s digital defences and reduce the growing risks posed by cyber threats. 

Set to be introduced later this year, the bill will place tougher cybersecurity requirements on organisations that provide essential services, including hospitals, energy networks, and major IT providers. Over 1,000 suppliers are expected to fall under the new rules, with the goal of boosting resilience across both public services and the wider economy. The government will also gain new powers to direct these companies to act quickly in the face of emerging threats.   

The bill was formally announced in the King’s Speech in July last year, shortly after the current Prime Minister took office. The legislation forms a central part of the government’s broader Plan for Change, which aims to deliver long-term economic growth by protecting the digital backbone of the UK economy.  

“Attempts to disrupt our way of life and attack our digital economy are only gathering pace, and we will not stand by as these incidents hold our future prosperity hostage,” said Technology Secretary Peter Kyle in a press release. 

“The Cyber Security and Resilience Bill, will help make the UK’s digital economy one of the most secure in the world – giving us the power to protect our services, our supply chains, and our citizens – the first and most important job of any government,” he continued. 

The disruption caused by cyberattacks is a major drain on the UK economy. Between 2015 and 2019, cyber threats cost the UK economy almost £22 billion a year, according to the government.  

Additionally, the government is considering new cyber protections specifically for data centres, recognising how crucial these have become to the economy, calling them “drivers of economic growth and innovation”. While it is currently unclear what these additional security obligations might be for data centres operators, the government said it was considering ‘the best route to deliver these additional measures.’ 

Richard Horne, CEO of the National Cyber Security Centre, called the bill “a pivotal step” in improving the UK’s resilience. 

“The Cyber Security and Resilience Bill is a landmark moment that will ensure we can improve the cyber defences of the critical services on which we rely every day, such as water, power and healthcare,” he said. 

More details, including the full policy statement, will be published later today. 

Join us at Connected North, 23-24 April in Manchester. Get discounted tickets here! 

Also in the news:
Huawei launches industry’s first AI-native core network at MWC 2025
Telefónica Tech helps Vecttor do away with physical car keys
FCC to investigate telcos ‘doing Communist China’s bidding’

Original article Total Telecom:Read More

Contributed Article 

At MWC Barcelona, Huawei hosted its 5G-A Core Summit, bringing together over 100 industry executives from across the globe including representatives from GSMA and Dell’Oro and Tier1 operators. Under the theme “5G-A Intelligent Core Enabling New Entries,” discussions focused on how AI-powered 5G-A core networks can drive innovation, enhance user experiences, and optimise network operations for operators. 

The launch of the first AI-native core network 

Opening the event, George Gao, President of Huawei’s Cloud Core Network Product Line, announced the launch of the industry’s first AI-native core network. The launch is a shift beyond traditional connectivity, embedding AI into the core of networks to enable automation, intelligent optimisation, and improved service delivery. Gao emphasised AI’s role in shaping the next generation of telecom infrastructure and invited global operators to collaborate in advancing this technology. 

Leo Ma, Vice President of Huawei’s Cloud Core Network Product Line, expanded on the vision, explaining how intelligent networks will help operators seize new service opportunities, reshape business models, and make the most of cloud-based operations. By using AI, operators can enhance customer experiences, improve efficiency, and create new revenue streams as the space becomes increasingly digital.  

Increasing value in telecoms services 

As 5G-A networks evolve, AI is transforming how telco services are delivered. Huawei introduced New Calling, a platform that improves traditional voice services by integrating AI into the native dial pad. It allows operators to create interactive, AI-powered voice services, opening new revenue potential and enhancing the role of voice communication in the AI era. 

Beyond voice services, user experience monetisation is a huge focus, and has been since the launch of AI. Huawei outlined strategies for operators to introduce premium-tiered service models, ensuring that high-value customers receive tailored experiences with better connectivity and exclusive features. By embedding AI into the packet core network, operators can better monetise connectivity services, creating sustainable revenue streams for the future, as the market becomes more AI-driven. 

AI-powered network operations and automation 

AI is also changing network operations and maintenance (O&M). As Autonomous Networks (AN) progress, Huawei introduced ICNMaster, an AI-powered solution supporting AN Level 4 (AN L4) automation. The solution focuses on closed-loop automation for high-value network functions and improving core network stability, reducing manual intervention while also improving efficiency and reliability. 

To further improve AI integration, Huawei also launched The Telco Intelligent Converged Cloud (TICC), the first AI-native enablement platform for telecom cloud networks. The platform embeds AI into network architecture, automation, and sustainability, providing operators with a future-proof, intelligent infrastructure for seamless network evolution. 

A network ready for the future 

Huawei’s 5G-A intelligent core network has already undergone extensive global testing and application, proving its technical feasibility and business potential. After nearly three years of development, ecosystem collaboration, and standards innovation, the company is working with operators worldwide to deploy and refine AI-integrated core networks. Rather than simply adding AI to existing networks, the company aims to merge AI and core network capabilities, making sure that operators stay at the forefront of intelligent connectivity and next-generation services. 

Original article Total Telecom:Read More

News

The ‘keyless solution’ will allow drivers to access and turn on their vehicle using an app

This week, Vecttor, a subsidiary of Spanish vehicle for hire company Cabify, has announced it will incorporate a new digital key solution from Telefónica Tech and its partner Geotab.

The solution, simply called ‘Keyless’, will allow Vecttor’s drivers to access and turn on their vehicles via the ‘Vecttor Driver’ app, removing the need for a physical key. This, Telefónica Tech explains, will allow Vecttor drivers to share their vehicles more quickly and easily, ‘guaranteeing them a simpler, more comfortable and safer experience, while providing companies with greater flexibility and efficiency in the use of their fleet’.

Use of the app will also provide for extra security by helping to prevent misuse, as well as tracking the real-time location of cars, helping to identify the most efficient drivers.

The deal expands an existing partnership between the three companies, which saw Vecttor implement Geotab’s telematics platform across its fleet back in 2023.

“Technological innovation is fundamental to transform the transport sector and, thanks to the implementation of this solution, it not only improves operational efficiency, but also provides drivers with a smoother and safer experience. The collaboration between Vecttor, Geotab and Telefónica is leading the way towards a more sustainable, innovative and efficient mobility, in line with our commitment to constant improvement,” said Jacobo Domínguez, CEO of Vecttor.

Keyless is compatible with any car model that uses a remotely operated key and is currently being rolled out across Vecttor’s 3,000-strong vehicle fleet in Madrid, Barcelona, Seville, Valencia, and Malaga.

“Vecttor is at the cutting edge of technology and it is a pleasure that they continue to trust in our experience and that of our partner Geotab so that we can accompany them in their digital transformation with solutions, such as ‘Keyless’, that promote more efficient and sustainable driving. This is yet another example of the important role that connectivity plays in generating data that helps make better business decisions,” explained José Manuel Caramés, IoT pre-sales director at Telefónica Tech.

Keep up to date with the latest telecoms news by subscribing to our newsletter, three times weekly to your inbox. 

Also in the news:
Quickline to extend Yorkshire’s Project Gigabit rollout
‘Adapt or die’: VOX Solutions’ message to telcos in the age of AI
Huawei’s ushers in the AI era with raft of new solutions at MWC 2025

Original article Total Telecom:Read More

News

The move will raise the government’s stake to just under 50%

This week, stricken telco Vodafone Idea (Vi) has revealed that the Indian government has converted INR369.5 billion ($4.3 billion) it is owed by the operator into equity, raising its stake in the business from 22.6% to 49%.

The move is related to a government relief package arranged for the telecoms sector back in 2021, which gave the government the option of converting Vi’s upcoming spectrum auction fees into shares.

Vodafone Idea’s latest financial reports in September 2024 showed that it has a total debt of $25 billion, around $18 billion of which was related to spectrum dues owed the government.

As such, this debt relief will offer a significant lifeline for the operator, with analysts speaking to The Economic Times suggesting that the move will offer the company INR400 billion ($4.67 billion) in cash flow over the next three years.

Vodafone Idea is currently struggling to remain competitive against its two larger rivals, Reliance Jio and Bharti Airtel, both of whom are not only more financially secure but also have a significant lead in infrastructure rollout.

Both Jio and Airtel launched commercial 5G services back in 2022, with combined subscribers topping 250 million. Idea, on the other hand, only launched 5G last week, having instead focussed on expanding and upgrading its 4G coverage.

This is the second time that the government has converted debts owed by Vodafone Idea into equity; in 2023, INR161.3 billion ($1.95 billion) of interest owed on spectrum and licence fees was converted into a 33% stake. This stake was subsequently diluted to 22.6% following Idea’s $2.16 billion follow-on public offering last year.

Keep up to date with the latest telecoms news by subscribing to our newsletter, three times weekly to your inbox. 

Also in the news:
Quickline to extend Yorkshire’s Project Gigabit rollout
‘Adapt or die’: VOX Solutions’ message to telcos in the age of AI
Huawei’s ushers in the AI era with raft of new solutions at MWC 2025