News 

The US secretary of Commerce Gina Raimondo has dismissed Huawei’s latest chip technology breakthrough powering its latest smartphone, the Mate 60 Pro, which was released in August last year

In an interview with CBS News’ “60 Minutes”, Raimondo said smartphone is still not as advanced as American made chips, which shows that US sanctions against the company are working.  

Sanctions against Huawei first began in 2019 under President Trump, when US companies were banned from doing business with the Chinese giant without a licence. President Biden then upheld the sanctions, and tightened restrictions on the sale of semiconductors for 5G devices. 

“The export controls are working because that chip is not nearly as good, … it’s years behind what we have in the United States, she said. “We have the most sophisticated semiconductors in the world. China doesn’t. We’ve out-innovated China.” 

The smartphone is powered by a new Kirin 9000S chip manufactured by China’s top chipmaker, Semiconductor Manufacturing International Corporation (SMIC), and developed by Huawei’s chip-design unit, HiSilicon. 

Although trade with China accounts for 750,000 US jobs, “we want to trade with China on the vast majority of goods and services,” Raimondo said. “But on those technologies that affect our national security, no.” 

Despite many chips being designed in the US, almost 90% are made in Taiwan. The extreme outsourcing of production exposed the fragility of the chip supply chain, and led to President Biden launching the CHIPS and Science Act in 2022. The US hopes investment from the CHIP act will result in a much-needed boost for US domestic chip manufacturing to decrease its reliance on other countries. 

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

Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m

Oxfordshire-based alternative broadband network and UK ISP Zzoomm, which has already extended their 2Gbps Fibre-to-the-Premises (FTTP) network to cover 190,000 premises (RFS) in England, has today revealed that their customer base has now grown to 25,000 (up from 23k on 5th March 2024).

The operator, which is being fuelled by an equity investment of £100m from Oaktree Capital (here) and a £100m debt facility via an international banking consortium (here), has typically focused their roll-out on smaller towns in parts Berkshire, Oxfordshire, Herefordshire, North Yorkshire, Staffordshire, Wiltshire, West Yorkshire and Cheshire. But their deployment has recently suffered from a slow-down and job cuts (here and here).

However, despite the noted challenges, Zzoomm has continued to focus on growing service take-up and have now passed the milestone of 25,000 customers.

Matthew Hare, CEO of Zzoomm, said:

“We’re delighted to welcome our 25,000th customer to Zzoomm! We are delivering a brilliant Full Fibre broadband service to happy customers. We welcome our latest family to our service and wish them many years of gigafast, faultless Zzoomming.

These now-happy Zzoommers have access to some of the fastest broadband speeds anywhere in the world! Zzoomm is all about delivering a fabulous Full Fibre broadband service to happy customers and we look forward to hitting our next major milestone as we continue to grow our share of the market.”

Customers who take their residential service typically pay from £29.95 per month for an unlimited 150Mbps (symmetric speed) package on a 12-month term with an included router, which goes up to £54.95 (normally £64.95) if you want their top 2Gbps tier. The ISP is also offering a £100 Amazon gift card to new customers.

Network operator nexfibre, which shares some of the same parents as Virgin Media UK (VMO2), has announced that they’ve expanded their 10Gbps capable Fibre-to-the-Premises (FTTP / XGS-PON) broadband ISP network to cover 2,000 premises in Loughborough – forming part of their plan to reach 22,000 premises in Leicestershire during 2024.

The company has already covered 1 million premises across the UK with their new full fibre network, and they’re currently in the process of investing another £1bn during 2024, which should enable them to cover an additional 1 million UK premises (on top of their existing footprint). But we should point out that Virgin Media already covers most of Loughborough, which makes this build more of a complementary expansion (infill).

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

Fernando Molina, CTIO at nexfibre, said:

“Delivering our high-quality, future-proofed network to over 2000 premises across Loughborough – and the wider Leicestershire area – is part of our mission to provide lasting value to the people and places we serve. By boosting access to broadband, we are enabling local communities to access the tools they need to participate and thrive in a modern, digital society and stoking growth in the local economy. Myself and the whole nexfibre team look forward to working with local leaders as we deliver on our commitment to provide next generation broadband to thousands.”

Sadly, the announcement doesn’t state precisely how many premises in Loughborough itself are expected to benefit from this work by completion.

In an unusual move, the boss of Shropshire-based broadband ISP Aquiss, Martin Pitt, has today publicly accused rival provider Vodafone of “handling a large percentage of migrations cases completely incorrectly” by treating them as “New Installs” rather than following the correct Ofcom process for consumer switching.

According to Aquiss, the issue seems to largely impact switches that occur across Openreach’s national broadband network (FTTC and FTTP lines). Consumer switches between Openreach based ISPs are required to follow Ofcom’s Gaining Provider Led (GPL) process, which is a largely automated process that starts when a customer contacts their chosen (new / gaining) ISP to begin the migration.

Switches like this are usually a fairly smooth affair and should take place with only a minimal amount of downtime, particularly if the type of line being switched remains unchanged (i.e. FTTP to FTTP or FTTC to FTTC) as this should not require an engineer to visit. The customer is not required to contact their old provider for the switch to be put into effect.

However, Aquiss appears to be indicating that Vodafone are now treating a lot of normally smooth migrations incorrectly, which they say can “butcher the current connections” and “results in live assets remaining active with the losing provider, as no formal transfer has taken place.”

Martin Pitt, Managing Director of Aquiss, told ISPreview:

“We are repeatedly seeing Vodafone handling a large percentage of migrations cases completely incorrectly, especially across the Openreach network, treating them as New Installs, rather than following the correct migration transfer path as laid out within the GPL process. Their approach results in the unnecessary attendance of engineers to properties, who either fit a 2nd ONT or butcher the current connections, where a working service and ONT is already present. This results in live assets remaining active with the losing provider, as no formal transfer has taken place.

If you catch these early on in the process, normally via the customer making contact, Vodafone representation, will often claim this is how the process is done or the losing provider is on CityFibre (even
where no coverage exists), completely deflecting their responsibility to make sure orders are handled correctly and trigger, where required, a takeover of live services.

Customers are therefore left in a “they said this” and “they said that” approach, which is totally unacceptable, especially as this process should be seamless. We are seeing far too many examples where this is a normal process, rather than an exception”.

We have reached out to Vodafone for a comment and will report back once they respond.

The recent launch of Virgin Media UK’s new 2Gbps full fibre (FTTP / XGS-PON) home broadband package was a welcome development (here). But one notable caveat was that it shipped with a new variant of the Hub 5 router, the Hub 5x, which lacked a functional Modem Mode, although this is planned to be introduced.

Customers of Virgin Media have long learnt to expect a Modem Mode option, which switches-off some of the bundled router’s networking features (e.g. WiFi) and makes it easier for users to essentially connect a second router to handle their local network / WiFi connectivity. Advanced users often like to do this in order to get around some of the limitations of Virgin’s own kit.

However, for reasons unknown, and despite the Hub 5x being cosmetically almost identical to the prior Hub 5, customers who received the Hub 5x soon found that it lacked Modem Mode as an option (here). Several months have now passed since we first saw people using the Hub 5x and little has changed, although the odd user of the 5x did recently claim to have seen the option appear and then disappear from the device’s menus.

The official line from Virgin Media is that they “have nothing to say on this at this stage“, which is about as informative as we’ve come to expect from the operator. Some rumours from customers have previously indicated that it might launch this spring, but we’ve never been able to confirm those.

ISPreview’s own sources have indicated that the tentative plan is to introduce Modem Mode to the Hub 5X by the end of the year, which means those taking Virgin Media’s new XGS-PON powered packages (e.g. 2Gbps) may have a bit of a wait on their hands. Clearly something about this familiar feature is proving to me more tedious than usual to implement on the 5x.

Telecoms giant Vodafone UK, specifically their business focused Carrier Services (wholesale) division, has launched a new service called Scam Signal that allows businesses to protect their customers from impersonation scams, such as Authorised Pushed Payment (APP) fraud.

APP fraud typically involves a criminal tricking someone into sending them money, often through impersonating representatives from banks, government departments, or even a family member. They can also deceive a victim into making advance payments for fraudulent investments, counterfeit goods and services, or even extort money through a seemingly genuine romance or friendship.

The new Scam Signal service, which is part of Vodafone’s suite of Application Programmable Interfaces (APIs), is designed to tackle this by enabling financial institutions to identify and thwart fraudulent bank transfers as they occur in real-time. The system leverages advanced analysis of real-time network data during live transactions to help it detect and mitigate social engineering attempts aimed at deceiving and defrauding account holders.

Statistics published by the UK government show that 1 in 15 people have fallen victim to fraudulent activity. In 2022, more than £485m was lost to APP fraud alone. As new UK legislation mandates that banks reimburse customers for fraudulent transaction losses, financial institutions are looking to adopt better protections to help tackle the problem.

Fanan Henriques, Director of Vodafone Business International and EU Cluster, said:

“Vodafone is using the intelligence in our networks to help financial institutions to protect consumers by tackling fraud at its source. Scam Signal provides both end users and banks with an additional layer of protection against scammers and peace of mind that their transactions are legitimate.”

Scam detection is said to have improved by 30% after only three months of a successful pilot of this service with a leading UK bank. At present the service is only being made available to businesses in the UK, but other markets are planned to follow.

The introduction builds on the launch of other APIs in several markets to improve online verification and security, including SIM Swap and Number Verify (see details). These APIs use common open standards defined by the global alliance CAMARA in conjunction with the GSMA industry body.

Belfast-based UK network builder and full fibre broadband ISP Fibrus has launched a new 2024 Community Fund, which is worth a total of £120,000 and will be distributed to a variety of rural community groups across the operator’s network patches in Northern Ireland and Cumbria (England).

At present the operator’s gigabit-capable Fibre-to-the-Premises (FTTP) network has already been expanded to cover 354,000 premises (337k RFS), which is up from 339,000 premises on 31st January 2024 (321,000 RFS). Many of their locations are in rural villages and towns, which is where the latest fund has been targetted.

So far Fibrus have already allocated £115k to local groups in Northern Ireland since launching the fund in 2021, with a further £60,000 allocated for Cumbria in 2023, and today’s announcement means they’ll be continuing this sponsorship throughout 2024 with more funding and a “focus on addressing digital poverty and fostering inclusivity within local communities.” The grants are worth up to £2,000 for each organisation selected.

Some of the projects that have already won funding through the scheme include the Armagh Westenders’ initiative, which supports elderly and vulnerable individuals with digital literacy programmes, and HYPE Learning’s homework club in Killicomaine, which received iPads to facilitate internet access for children after school.

Linda McMillan, Chief People Officer at Fibrus, said:

“Giving back to the local community is one of our core missions at Fibrus and our partnership with the Community Foundation allows us to play a vital role in enhancing people’s lives through improved digital literacy and connectivity.

Originally established to combat digital poverty, the Fibrus Community Fund directs all available funding for the year towards deserving organisations, underlining our dedication to create a digitally inclusive society. We are delighted to continue this sponsorship in 2024 and help all within our community get connected.”

The next round of funding is now open for applications and will close on Friday 17th May 2024. Details of the fund for Northern Ireland can be found here, while the page for Cumbria is here.

The Scottish Government’s (SG) £28.75m 4G Infill Programme (S4GI), which has spent the past few years improving rural mobile voice and data (broadband) coverage by building new masts in rural parts of Scotland, has officially updated to announce that “mast build and 4G activation within the programme has been completed.“

The initiative, which was part-funded by the European Regional Development Fund (ERDF) and delivered in partnership with WHP Telecoms (the main infrastructure provider), Cellnex UK and the Scottish Futures Trust, has managed to deliver 4G infrastructure and services to 55 mobile “notspots” in rural and island parts of Scotland. All the sites are now live and providing a service.

Mobile operators including EE (BT), O2 (VMO2) and Vodafone have helped by providing a 4G service via many of the new mast sites. But the vast majority of live sites are currently still only providing a service via EE’s network, while Three UK seems to have largely shunned the project. Further details on the project sites can be found on the SG’s page for the 4G Infill Programme.

However, it’s worth noting that the expansion of 4G and 5G mobile coverage in Scotland will not stop. The UK government’s wider and industry-led £1bn Shared Rural Network (SRN) project is separately working to extend geographic 4G mobile coverage to 95% of the UK by the end of 2025 (91% in Scotland) via a mix of mast sharing and new mast builds.

Members of the Parliament of the Isle of Man (Tynwald) have backed calls for the Communications and Utilities Regulatory Authority (CURA) to introduce a low-cost social tariff for vulnerable broadband users (e.g. unemployed people). Separately, Manx Telecom are being accused of “non-compliance with Universal Service Obligations“.

Social Tariffs are today somewhat of a normal thing in the UK. The related packages tend to cost around £15 per month and provide an entry-level style broadband and / or phone service to those on certain state benefits – see our Guide to UK Social Tariffs, which helps to tackle digital exclusion. But the same can’t be said for the Isle of Man.

Admittedly, broadband ISP and mobile operator Manx Telecom do offer a Low User Choice Tariff, but this is only a basic home phone solution, which isn’t available to those with a broadband service. But according to the BBC News, Tynwald members are now pushing for true Social Tariffs to be introduced, pending further research to help establish how much need for them actually exists (c.10% of people on the island are currently classed as “digitally excluded“) and what kind of solution(s) should be included.

However, Alex Allinson MHK warned the parliament that it should be “wary” of the potential “ramifications“, such as “in terms of the general population and the overall cost of internet services if we try to carve out some specific groups Tynwald think are more worthy than others“. The argument has echoes of when BT warned that social tariffs in the UK may eventually become unsustainable (here), although not everybody shares that view.

The CURA has indicated that more consultation will be required before a decision can be made, although they don’t “foresee any issues in implementing this proposal in principle.”

A USO Headache for Manx Telecom

Separately, CURA recently launched an investigation into Manx Telecom’s “alleged non-compliance” with its Universal Service Obligations (USO) for telecoms services. On the Isle of Man, the USO is intended to ensure that Manx consumers can access telephony services regardless of which communications provider they subscribe to for other services, while also ensuring that all consumers pay fair, uniform prices for their service.

CURA’s Notice of Investigation (Extract)

The Communications and Utilities Regulatory Authority (the Authority) has received information that would lead it to believe that an investigation is required as to whether Manx Telecom is meeting its Universal Service Obligations (USO) as required in its Licence.

In particular, it has been alleged to the Authority that:

• Manx Telecom charges broadband customers of other service providers a higher price for telephony services than it does for Manx Telecom’s own customers;

• Manx Telecom requires broadband customers of other service providers to install components for telephony services that it does not require its own customers to install; and,

• Manx Telecom is advising its own customers that they cannot switch broadband providers and retain a telephony service with Manx Telecom.

At this stage, it’s unclear how long the investigation will take to reach a conclusion.

News 

Australian investment banking firm Macquarie, owner of Hull-based operator KCOM, is considering putting the company up for sale, according to a report from The Telegraph

The bank has appointed advisory orientated investment bank PJT Partners to undertake a strategic review of KCOM, which could lead to a sale or merger. 

Back in August 2019, Macquarie finalised the deal to acquire KCOM with a £627 million cash offer. The operator was subsequently taken off the London Stock Exchange. 

According to The Telegraph article, CityFibre and Virgin Media O2 are among potential companies that could snap up the Yorkshire operator, although no decision has been made. As the telecoms market continues to succumb to consolidation, however, the sale price is expected to be significantly lower than when Macquarie made its purchase. 

Hull is the UK’s only city that is not served by BT’s open reach network. When KCOM was founded in 1904 as Hull Telephone Department, it was one of few local authorities permitted to run its own telephone network through a licensed grant. All of these local networks (apart from Hull’s) were gradually absorbed into the Post Office Telephone department, which later became BT. Hull refused this, and have since operated independently–which is the reason why Hull and surrounding villages have cream coloured phone boxes, not the traditional red. 

KCOM has long been accused of being a monopoly. Ofcom legally requires the company to allow other companies to use its infrastructure, but these other companies would have to install their own equipment in KCOM’s exchanges and employ their own engineers, which is obviously costly. New entrants the market such as MS3 and Connexin have been attempting to challenge this through building out their own infrastructure, which in some cases has angered local residents, who disagree with the construction of more infrastructure. The feud has become an ongoing political issue.  

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

Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m