Verizon secures $2.7bn US navy contract 

News 

The contract will help the US navy undergo a digital modernisation 

The US Department of the Navy has chosen Verizon’s government, education, and public safety arm, Verizon Public Sector, to provide wireless services, in a contract worth up to $2.67 billion over 10 years. 

The new contract will offer improved and cost-effective wireless solutions to related military and federal agencies. 

The agreement forms part of the fourth round of the wireless and telecoms services contract launched by the US Department of Defence (DOD), also known as the Spiral 4 contract. 

“Verizon’s inclusion in Spiral 4 represents our understanding of the DON’s sophisticated demands for mission critical communications, developed through our history of digital modernization partnership with federal agencies including on Spiral 3,” said David Rouse, head of Verizon’s defence portfolio in a press release. 

“We are proud to continue serving military agencies under this new contract and build on our relationship with the DOD,” he continued. 

Verizon plays a critical role in providing communication services to the US Navy to support their operations. Back in December, the company secured another contract with the US Navy to modernise data services and provide it with new voice technologies.  

The year before, it secured a deal worth almost $1 billion with the DOD to provide network modernisation services and technical support services to the Pentagon, the DOD National Capital Region (NCR), and US army base Fort Belvoir. 

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

Also in the news:
Digi set to buy OTE’s Telekom Romania
Billionaire Xavier Neil ponders Millicom acquisition
EU-funded Global Gateways projects on show at Submarine Networks EMEA 2024 

Orange Romania absorbs broadband subsidiary in convergence push

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The move is the latest in a series of acquisitions and mergers throughout Europe aimed at combining fixed and mobile operations

This week, Orange has announced that Orange Romania will merge with Orange Romania Communications (OROC), combining their mobile and fixed broadband businesses to become a fully converged telecoms operator.

Orange Romania first acquired a 54% stake in OROC (then Telekom Romania Communications) back in 2021 and moved quickly to unify contact channels and launch a joint commercial offering.

Since then, Orange has been looking to take full control of OROC and merge the two businesses, finally getting the green light for the merger from the Romanian government last year.

Following the merger, Orange Group will hold an 80% stake in the converged business, with the remaining 20% held by Romania’s Ministry of Research, Innovation and Digitalization.

“The merger between Orange Romania S.A. and Orange Romania Communications S.A. is a major step for Orange and marks the fruition of the process with the Government of Romania,” said Mari-Noëlle Jégo-Laveissière, Executive Vice President, CEO of Orange Europe. “This merger enables Orange Romania to fully implement its strategy to deliver best-in class offers on mobile and fiber. I warmly thank the teams that have been working on this transaction and wish the new integrated teams all the best.”

The convergence of mobile and fixed broadband operations has been a key strategy for Orange for many years now. Back in 2021, when Orange announced its new strategic priorities for Europe, convergence was highlighted as a key target across the region, with Jégo-Laveissière calling it “the cornerstone of our strategy”.

Since then, the company has moved to expand its converged offerings in numerous markets; last year, for example, the company notably acquired fixed network operator Voo in Belgium last year, allowing Orange Belgium to begin offering combined fixed and mobile packages to customers.

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Also in the news:
UK government conditionally approves £15bn Vodafone–Three merger
Nokia and Vodafone trial Open RAN with Arm and HPE
T-Mobile and Verizon to buy US Cellular, reports say 

Sure Hike Broadband and Phone Prices on Isle of Man, Jersey and Guernsey

Network operator and ISP Sure, which is present on the Isle of Man, Jersey and Guernsey, has informed existing customers of their intention to increase mobile, phone and broadband prices – in line with the Retail Price Index (RPI) – by “up to” 6.1% (Isle of Man), 5.8% (Guernsey) and 5.7% (Jersey) from 1st July 2024.

We understand that price rises are something most of us would like to avoid, but it enables us to sustain investments in our networks, products and services across the island,” said the network provider. Some customers that have signed or re-signed their services since 1st April or 1st May 2024 “will not be impacted” by this RPI price increase.

NOTE: Further details can be found on Sure’s price notification pages for the Isle of Man, Jersey and Guernsey.

The move follows shortly after local rivals, such as Manx Telecom on the Isle of Man, confirmed that many of their customers would also be hit by annual “inflationary” price hikes.

KKR TIM deal gets EU go-ahead 

News 

The Italian government has already approved the deal after agreeing with KKR to take a stake of up to 20% in the business once the transaction is complete 

The EU competition authority has given KKR the green light for its planned takeover of Telecom Italia (TIM)’s fixed network operations (known as NetCo) for €19 billion. 

The European Commission was notified of the deal on April 19 and officially approved the merger in a statement yesterday, having completed a full investigation. 

“The Commission investigated the impact of the transaction on the market for wholesale broadband access services in Italy and concluded that it would not significantly reduce the level of competition,” read the statement.  

Specifically, the commission concluded that: 

The number of networks and providers will stay the same, preventing KKR from limiting access to infrastructure services. Existing agreements with rival companies such as Fastweb and Iliad will ensure competitive conditions remain in the market. 

In addition, NetCo and Open Fibre, Italy’s second-largest fixed broadband provider, will keep competing for customers and expanding their networks, driven by competition from Fastweb. 

Approval of the deal comes just weeks after TIM reportedly presented a raft of remedies to the European Commission to get it over the line. The specifics of these remedies were not revealed, but anonymous sources speaking to Bloomberg said the measures would likely solve EU concerns over possible price hikes in the wholesale market. 

The acquisition may still face opposition from Vivendi, TIM’s largest shareholder. The company has been vocal in its disapproval of the deal and has said it will use “any legal means at its disposal” to challenge it. The company believes that TIM’s assets are worth around €30 billion and are therefore being undervalued.   

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

Also in the news: 
Digi set to buy OTE’s Telekom Romania
Billionaire Xavier Neil ponders Millicom acquisition
EU-funded Global Gateways projects on show at Submarine Networks EMEA 2024 

Vodafone UK and Sky Mobile Discount Monthly SIM Only Plans

Mobile network operators Vodafone and Sky Mobile have today launched new discounts on their Pay Monthly SIM Only plans. For example, Voda has knocked £5 off the monthly prices of their 24-month plans (i.e. a saving of £120), while Sky has reduced the prices of their mobile plans by 50% for 12-months (e.g. their top 150GB plan is now £15 instead of £30).

Sky Mobile’s 12 Months Half Price promotion, available across both SIMO and Device Data plans, will run until the 28th of June 2024 (excluding on their 100MB data plan that remains at £5 per month). By comparison, Vodafone‘s £5 monthly saving will be available to order until 25th June 2024.

As usual, you’ll need to click the affiliate links above to get these discounts.

ISP Brsk Faces Objections to UK Broadband Poles in Ashton

Alternative network operator and UK broadband ISP Brsk have put part of their plan to roll-out a new gigabit-capable Fibre-to-the-Premises (FTTP) network in the market town of Ashton (Tameside, Greater Manchester) and Dukinfield under review, which comes after locals raised concerns over the provider’s use of poles for part of the build.

The operator – fuelled by an investment of at least £259m – is currently building out its new network across parts of West Yorkshire, Lancashire, Greater Manchester, Cheshire, and the West Midlands (Birmingham and The Black Country). Some 28,000 customers (1st Mar 2024) already use the service and they’ve covered 500,000 premises passed (486,184 RFS – 30th Apr 2024).

NOTE: Brsk, which aims to pass 1 million homes by 2026, is backed by investment from Advencap and the Ares Management Corp.

However, brsk, much like most network operators, have also been deploying some wood poles to help run their overhead cables, which are a very common sight across the UK (millions have been built). Such poles are quick and cost-effective to build, can be deployed in areas where there may be no space or access agreement to safely put new underground cables, are less disruptive (avoiding the noise, access restrictions and damage to pavements of street works) and can be built under Permitted Development (PD) rights with only minimal prior notice.

The lower cost impact of poles can often mean the difference between building a competitive gigabit broadband into an area or skipping it. But not everybody is a fan and those who complain often focus on their negative visual appearance, as well as concerns about exposure to damage from major storms (example), the lack of effective prior consultation or engineers that fail to follow safety rules while building. The issue often becomes particularly emotive in areas that haven’t previously had poles before.

The latest example of this comes from brsk’s ongoing deployment across the market town of Ashton-under-Lyne and neighbouring Dukinfield, where local councillor Dan Costello and several residents have complained about the operator’s use of poles in some parts of the build (as opposed to going underground, which was possible in some other areas). As usual, most of the gripes have to do with the perceived negative visual impact.

Cllr Costello said (The Correspondent):

“I stressed that I thought Brsk were forcing an 1850s solution on residents who do not want it because of their own laziness and lack of investment in a modern, fit for purpose, solution, but, against the weight of their own greed, such an argument had little impact.

Brsk are a disgrace, their greedy approach is a disgrace and their arrogant hiding behind legislation to impose a 170-year-old solution because of their own inability to develop a better solution is an absolute disgrace.”

In response, brsk said their network was being “built within and on the existing telecommunications infrastructure both overhead and underground” (i.e. harnessing Openreach’s existing ducts and poles), albeit with some of the operators own poles being necessary in certain areas to help fill in the gaps where this isn’t possible (usually due to lack of access or spare capacity within the existing network).

Despite this, brsk has taken a constructive approach by putting some of their proposed pole deployments in the area under review, which may or may not mean that they all go ahead. But this could also result in some streets being skipped, due to the high cost of an alternative underground roll-out making some deployments simply too expensive (i.e. leaving locals with fewer competitive network options). Some may still be happy with such an outcome, but this often overlooks the voices of those who do want the choice.

A spokesperson for brsk said:

“The poles are placed in locations which cause the least disruption to residents, and any residents who may be impacted are directly communicated with through our engagement process so that we can discuss and do our best to accommodate where possible. We only stand poles on public land and therefore private property such as gardens would not be selected as a location for a pole.

In the area in question, we need to use overhead infrastructure because there are buried Openreach cables, which means there is no duct for us to access underground, leaving overhead as our only option to connect residents to full fibre.

Having already built a full fibre broadband network that spans over 500,000 homes across various regions of the UK, with 226,000 of those in Manchester alone, we have naturally encountered queries and concerns along the way, however this has been minimal in relation to the total build completed.

We have received no complaints from the area in question, however we have a transparent communication policy and welcome any residents with concerns or questions to get in touch, and our dedicated teams will be happy to assist. In the council district of Ashton Waterloo, there are 248 existing Openreach poles that we will make use of as much as possible.

Where we aren’t able to use this or where there might be significant gaps in the network that need to be accommodated for, our initial plan is to install 50 additional telegraph poles across the area, which will service nearly 4,000 homes. We’re proud to be making Ashton Under-Lyne one of the best digitally connected areas in the country ahead of the national deadline.”

In terms of the town itself, we note that most of the area is already covered by Virgin Media’s gigabit-capable network, while Openreach and Hyperoptic only have a very limited presence via FTTP. But both ITS Technology and now brsk do seem to have already built and put live (RFS) a sizeable full fibre network in the area, although ITS tends to attract more interest for its business solutions.

Meanwhile, the Government’s Digital Infrastructure Minister, Julia Lopez, did recently call on network operators to “limit installation of telegraph poles” (here and here), albeit largely by reiterating the rules that operators already follow. Julia also called on Ofcom to provide guidance to local planning authorities on how to raise complaints, as well as asking them for support to tackle the challenge.

However, Ofcom has yet to take any enforcement action related to poles or even investigate a specific complaint, which is in part because a lot of the local-level complaints people have raised don’t strictly breach the existing and fairly flexible guidelines. See the Revised Cabinet and Pole Siting Code of Practice Nov 2016.

The current government has proposed to “revise” the existing code for poles to “make sure that communities feel engaged in the deployment of new broadband infrastructure, whilst still allowing operators to continue deploying their networks.” We expect more meetings and better notifications to be the result, which may add some extra costs and time to network builds. But the recent move to call a General Election could impact all this.

Scotland Tenders for £106m Gigabit Broadband Rollout in North East

The Scottish Government has issued a contract notice for the North East of Scotland (Lot 5) under the UK’s £5bn Project Gigabit broadband roll-out scheme, which is expected to expand related connectivity to an estimated 68,342 premises in hard-to-reach (rural) parts of Dundee, Angus, Aberdeenshire, Aberdeen City, Moray, Highland and Perth and Kinross.

At present 75% of premises in Scotland can access a gigabit-capable (1Gbps download) broadband ISP network (here), which is expected to increase as commercial builds and the Scottish Government progresses their existing £600m Reaching 100% (R100) project. The R100 scheme largely involves extending “full fibre” (FTTP) networks to another 114,000 premises in areas that lack access to “superfast broadband” (30Mbps+) speeds by 2027/28 – so far, this has already helped to reach 48,000 premises (here). But take note that this 48k figure includes the impact from vouchers (3,800), contracted build and overspill (explainer).

NOTE: The responsibility for broadband in Scotland is reserved to Westminster, but that doesn’t stop local and devolved authorities from making their own investments.

However, Ofcom predicts (here) that Scotland’s full fibre coverage will reach around 78-83% by May 2026, while gigabit-capable broadband (FTTP and Hybrid Fibre Coax / cable) would deliver 83-85% by that same date. Suffice to say that in terms of gigabit coverage, a gap will still be left for Scotland to fill once R100 completes and most of that will be in rural areas (only around 30% of rural Scotland can currently access gigabit speeds).

As a result, the UK Government’s Project Gigabit programme has already allocated £450m (here) to help this project spread 1Gbps broadband speeds into some of the most remote rural areas of Scotland. The associated Building Digital UK (BDUK) agency has previously estimated that some 410,000 premises across Scotland may need support from public funding to help them gain access to such speeds (here).

The first major Regional (Type B) contract notice under this new programme has now been issued, which is for the North East (Lot 5) of Scotland – largely comprising rural parts of Dundee, Angus, Aberdeenshire, Aberdeen City, Moray, Highland and Perth and Kinross. Take note that the ‘LOT’ numbers in Scotland are separate from those already allocated to England (e.g. Lot 5 in England covers Cambridgeshire and adjacent areas).

The Scottish Government’s notice indicates that five potential suppliers are being courted for the new contract under Project Gigabit’s related Gigabit Infrastructure Subsidy (GIS) scheme, which has an estimated value of £105.71m (state aid). The contract itself is expected to run for 11 years (only 4 of that will involve the build phase, with 7 years for an operational period).

According to the notice, “it is the intention that the build period will be completed by the end of 2029,” although this completion date is highly tentative as it will depend upon both how long it takes to award the contract to a supplier and then how long that supplier needs in order to conduct their final engineering surveys (i.e. it may well take longer to complete than the end of 2029). Not to mention any unexpected delays during deployment.

A number of network operators may have an interest in delivering this, such as nexfibre (Virgin Media), Openreach (BT), CityFibre, GoFibre, Trooli, Netomnia (YouFibre) and Lothian Broadband etc. But some of those players lack the investment support and resources to take on such a large deployment, and we don’t yet know which ones will actually put in a serious bid.

The SG is also preparing to launch a number of smaller (Local – Type A) contract notices for other parts of Scotland over the next few weeks and months (e.g. a build for 11,000 premises in the Borders and East Lothian areas will be next on their list).

In addition, other parts of Central and North Scotland may be included within a future call-off procurement under the cross-regional framework (Type C) that is currently in procurement, which will be delivered by BDUK and the preferred supplier for that is already known to be Openreach. Type C’s are the largest contracts and tend to reflect areas that have struggled to attract interest from suppliers when presented as smaller Type A/B contracts.

But today reflects the first contract notice for a regional project in Scotland under Project Gigabit and so it gets its own article, rather than forming part of a general quarterly summary. We should know who has won this contract by around the end of autumn or early winter.

US parents prioritize reliable internet over affordable childcare

News

Parents in the U.S. are more likely to relocate if they lose access to reliable internet versus affordable childcare according to a new study.

This story was originally released by our sister publication Broadband Communities

A recent study has ranked reliable internet as more important than affordable childcare for American parents.

The study, conducted on behalf of internet exchange operator DE-CIX this spring, surveyed over 2,000 respondents.

A quarter of parents surveyed said access to reliable internet is a priority when deciding where to live. By comparison, only 16 percent of parents surveyed responded that access to affordable childcare was a priority.

The survey, conducted by Censuswide, also reported residents in San Francisco, New York City, and Los Angeles “showed a high propensity to relocate if remote work options were available.”

A summary of the survey reported over half of respondents in those cities expressed a desire to move.

“These survey findings are a wake-up call for businesses and urban planners alike to invest in robust internet infrastructure to retain and attract a vibrant, innovative workforce,” said Ivo Ivanov, the CEO of DE-CIX.

Ivanov, through comments provided to the media, said internet infrastructure will be key for competitive advantage and community resilience.

“Strengthening internet exchanges across America is no longer just about business continuity,” he said.

Also revealed by the survey were findings that nearly two thirds of respondents between the age of 18 and 24, value remote working arrangements. Conversely, only 31 percent of respondents over age 55 prioritized remote work and workplace flexibility.

“Our study indicates that the younger generations in the workforce—particularly Gen Zs — place a high value on flexibility and mobility, elements that will shape future workplace policies and urban planning of digital infrastructure,” Ivanov said.

In total, 44 percent of those surveyed said they’d consider relocating to maintain remote work jobs, according to the research made public by DE-CIX.

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Also in the news:
Digi set to buy OTE’s Telekom Romania
Billionaire Xavier Neil ponders Millicom acquisition
EU-funded Global Gateways projects on show at Submarine Networks EMEA 2024

Submarine Networks EMEA 2024: Supporting Africa’s growing ICT sector through infrastructure development 

News 

A key panel on day one of Submarine Networks EMEA in London delved into how infrastructure can assist the growth of Africa’s ICT sector

The session was moderated by Ed McCormack, Director of Mc Corporate Services, and consisted of:

Rosalind Thomas, Managing Director and CEO at SAEx International Management

Dylan Carver, Global Account Manager at Medusa Submarine Cable System

Mohammed Aliyu, Chief FiberCo Officer at Bayobab

Nikki Popoola, Director of Sales West Africa & DRC at WIOCC Group

Africa is home to 1/6 of the population and is the fastest growing population in the world. That sounds promising, but that does not mean the market is without challenges. 

An obvious big challenge are cable outages currently going on, such as in the  Red Sea or in West Africa. “This a major challenge,” said Nikki Popoola “I don’t recall a time when there have been so many cables down”. 

“But there’s so much opportunity in Africa,” she continued. “More than anything, we need to develop the terrestrial. That’s a big challenge”. 

Africa has a population 1.4 billion people, so there is a huge opportunity for expansion. “If you want to go fast you go alone, but if you want to go far, you go together,” said Mohammed Aliyu. Collaboration is vital for African growth.  

The challenges are also opportunity. “We are operating in a bipolar global economy with geopolitics impacting us. We can’t ignore that,” continued Rosalind. 

Power is a huge challenge in Africa, especially in South Africa, which has an issue with load shedding. Without power, you can’t have any of the advanced technologies such as data centres, so “Africa is paying catch up”. 

Rosalind notes that there’s also a problem with getting skilled people, which must be addressed collaboratively. Skills are a challenge everywhere, but it is more intense in Africa. In South Africa, there is 65% youth employment rate, who simply are not skilled enough to be able to work in a digital economy. In other countries on the continent, due to the problems in country, many of them leave for jobs elsewhere. 

Some answers to this could be visa free travel within Africa or driving pan African initiatives, because there’s less employment issues in Kenya, Nigeria etc. Youth employment is much lower in Kenya for example, 12.5%. In South Africa, there are 330,000 people filled by employees on critical skills visas in South Africa, and 77,000 jobs they cannot fill, but around 14 million unemployed youth. 

Because the industry is a global one, it attracts skills globally. There are not seeing enough people entering the subnets industry, and they go to the likes of meta or google related to the end user applications, not the submarine cables bit!  

Africa has built thousands of kilometres of cable in recent years. But what is different in the business plan for the development of new cables?  

There are now more players in the market with different interests. Collaboration must be seen one the ground, as people are far too protective of what they own, there need to be more of an open access model, the panel argues. In South Africa, there are more than 17 fibre providers duplicating fibre in the same areas, and its impacting on their Return on investments because they are not collaborating. “The idea of sharing is very important”, confirms Rosalind. 

The areas in need of investment 

It has been made clear that some cables will reach the end of their life in the next 10-15 years. The recent outages on the continent are shifting mentalities on how to address the next cable initiatives. 

The current problem with African cables is that they all follow the same routes, Rosalind argues. Last year, there were 9 cable cuts. Climate change will also be a factor in these cuts, because they have all been laid too close to the continent.  

“In the short term, because there have been many more data centres built in Africa. There must be a focus on domiciling content in Africa, so you don’t need to go out of Africa to get this continent,” says Mohammed. 

“We need to be able to connect the hubs in Africa: the three major ones are Kenya, Nigeria and South Africa,” he continues. Therefore, building terrestrial connectivity is equally important.  

Technology has leapfrogged the continent no end. The phone has become the way that we all work, live and play. It becomes your banking, source of information, everything. 

The panel concludes that there is ample opportunity for Africa to be better connected within the next five years. The growth potential in the market is great. Working together has been a key takeaway here – cross collaboration will be the pathway to success. 

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

Also in the news:
Digi set to buy OTE’s Telekom Romania
Billionaire Xavier Neil ponders Millicom acquisition
EU-funded Global Gateways projects on show at Submarine Networks EMEA 2024

Broadband ISP Octaplus Joins Freedom Fibre’s UK FTTP Network

Hull-based UK ISP and Pay TV provider Octaplus, which sells services to consumers via various alternative full fibre broadband networks (e.g. MS3, CityFibre and FullFibre Limited), has today confirmed that they’ve just added Freedom Fibre’s network in the North West of England to that list.

Freedom Fibre’s Head of B2B, Lee Sutch, said: “The team at Freedom Fibre are excited to be partnering with such a customer-centric internet service provider. Partnering with Octaplus is a great opportunity to work with connectivity resellers to deliver our industry leading XGS-PON network to homes and businesses across the North West and provide value to customers who want this service.”

Freedom Fibre, which recently merged with VX FIBER (here), was originally backed by £111m from Equitix and has been working to cover parts of Cheshire, Greater Manchester and Shropshire in England and North Wales. The operator previously aspired to cover 2 million UK premises and has so far reached 300,000 (27th Mar 2024) and rising.