Gig-ability Target 18,000 Shropshire UK Premises for FTTP Broadband

The relatively new alternative broadband ISP Gig-ability, which we first wrote about in January 2024 (here), has announced that they’ve started the first build phase of their plan to deploy a new gigabit-capable Fibre-to-the-Premises (FTTP) network across poorly served rural villages in Shropshire (England).

Just to recap. Gig-ability originally informed us that they aspired to cover 10,000extremely rural premises“, starting in January 2024 with a build in the small Shropshire parish and market town of Much Wenlock. The town itself is home to a population of almost 3,000 and currently isn’t served by any gigabit-capable broadband networks, although Openreach and FullFibre Limited have both expressed plans to deploy FTTP.

NOTE: The provider is initially targeting the communities of Ackleton, Badger, Beckbury, Chelmarsh, Chesterton, Claverley, Eardington, Hampton Loade, Hilton, Ludstone, Much Wenlock, Stableford, Sutton, Worfield and Wyken. Funded by a mix of private investment and gigabit vouchers from BDUK.

Since then, the provider has increased their coverage aspiration to 18,000 premises in Shropshire alone, and they’ve this week finally started their first build of 1,253 premises in Much Wenlock (a little bit later than previously expressed). The aim is to complete this build within the space of just 2 months. “We’ve had a great response from the local community and a great take up of early adopters,” said CEO Dave Swanston to ISPreview.

Gig-ability has also appointed a COO in the shape of Matt Penman, who is said to add “huge rollout experience” to their leadership team and will help them to “grow at pace with quality and compliance in mind.” The provider initially also aims to create 15 local jobs in Shropshire and there’s still talk of a possible future expansion into parts of Wiltshire and Scotland, which could push their committed initial investment from around £5-6m to £15m.

Once live, the first customers can expect to pay from just £15 per month for their 250Mbps “Equal Access” package on a 12-month term, which rises to only £37.50 for their top 1Gbps tier – all with symmetrical speeds.

UK Ranks 5th out of 179 Countries for Mobile Data Affordability

Comparison site Broadband Genie has today published a new 2024 Mobile Data Affordability Index, which explores the global landscape of mobile data (mobile broadband) pricing and affordability. Overall, the United Kingdom was found to rank 5th most affordable for mobile data out of 179 countries, putting it ahead of “global powerhouses” such as Germany (13th), Italy (20th), the USA (35th) and China (51st).

The study itself produced its results by comparing the average cost of a monthly mobile phone plan with 10GB+ of data against average wages from 70,806 people to determine the mobile data affordability rating for 179 countries worldwide. Worldwide, people were found to spend 4.09% of their salary on a mobile phone plan with 10GB+ of data.

NOTE: The study excluded pay-as-you-go contracts, as well as a variety of countries that lacked enough (or any) data samples, such as Eritrea, North Korea, Mali and so forth.

The average spend on a mobile phone plan with 10GB+ of data is USD 24.20 (£19.19). Singapore was found to have the most affordable mobile data in the world (0.35% of salary and an average plan cost of USD 17.13), while Guinea has the least affordable data in the world (56.29% and USD 115.58).

In the United Kingdom, a similar mobile phone contract typically costs £12.19, which is said to be equivalent to 0.52% of an average wage (£2,337.74). Overall, European and Asian countries take up the majority of places in the top 20, not least since these continents have a greater purchasing power because of higher wages and reasonable tariff prices.

Rank
Country
Mobile data cost (USD)
Mobile data as % of salary

1
Singapore
17.13
0.35

2
Luxembourg
21.16
0.4

3
Israel
12.2
0.47

4
Iceland
23.52
0.51

5
United Kingdom
15.38
0.52

6
Hong Kong
19.72
0.55

7
Denmark
19.84
0.55

8
Liechtenstein
34.39
0.55

9
Monaco
47.62
0.61

10
Poland
8.71
0.64

11
India
3.81
0.65

12
Ireland
22.19
0.7

13
Germany
21.66
0.72

14
Netherlands
24.9
0.72

15
Slovenia
10.74
0.73

16
Kuwait
21.45
0.74

17
San Marino
21.64
0.76

18
Lesotho
5.83
0.81

19
Honduras
4.66
0.82

20
Italy
14.29
0.84

21
Iran
2.24
0.84

22
Austria
21.85
0.84

23
Australia
28.75
0.85

24
Belgium
22.46
0.86

25
Switzerland
59.82
0.9

26
Russia
5.38
0.94

27
Romania
7.83
0.95

28
Finland
28.88
1

29
Sweden
28.17
1.04

30
Spain
20.38
1.06

31
Malaysia
8.76
1.08

32
Andorra
28.2
1.08

33
Liberia
22.5
1.11

34
Lithuania
14.59
1.12

35
United States
52.74
1.13

36
Indonesia
3.69
1.16

37
Cyprus
21.18
1.17

38
Qatar
47.47
1.17

39
Turkey
7.2
1.18

40
Fiji
13.42
1.18

41
Japan
26.73
1.18

42
Brunei
21.55
1.19

43
Uzbekistan
4.36
1.2

44
France
30.98
1.24

45
Bahrain
27.41
1.27

46
Norway
43.83
1.29

47
Estonia
20.73
1.29

48
Vietnam
5.92
1.32

49
New Zealand
38.82
1.33

50
Timor-Leste
30
1.35

51
China
13.39
1.38

52
Ukraine
5.72
1.42

53
Guatemala
19.2
1.43

54
Somalia
5
1.47

55
Armenia
8.91
1.47

56
Sierra Leone
25
1.49

57
Uruguay
16.41
1.51

58
Moldova
7.96
1.53

59
Grenada
18.5
1.58

60
Latvia
18.29
1.61

61
Belarus
7.77
1.61

62
Canada
48.04
1.65

63
Kazakhstan
9.79
1.68

64
Taiwan
28.18
1.68

65
Burundi
10
1.68

66
Saudi Arabia
35.8
1.7

67
Malta
27.16
1.7

68
Croatia
21.22
1.78

69
United Arab Emirates
61.53
1.8

70
Chile
11.89
1.82

71
Portugal
20.79
1.85

72
Czech Republic
28.76
1.86

73
Bulgaria
16.46
1.87

74
Namibia
13.66
1.9

75
South Korea
47.44
1.96

76
Georgia
10.01
2.04

77
Mongolia
7.43
2.11

78
Cambodia
5.94
2.13

79
Oman
45.69
2.15

80
Palestine
14.31
2.2

81
Pakistan
3.91
2.22

82
Senegal
9.07
2.24

83
Nepal
4.92
2.3

84
Serbia
15.76
2.3

85
Greece
22.8
2.35

86
Djibouti
36.55
2.36

87
Bangladesh
5.91
2.4

88
Ecuador
12.47
2.42

89
South Africa
31.18
2.43

90
Kyrgyzstan
7.61
2.43

91
Jordan
15.36
2.45

92
Montenegro
19.76
2.45

93
Colombia
9.17
2.46

94
Solomon Islands
13.07
2.53

95
Morocco
9.92
2.54

96
Sri Lanka
4.84
2.55

97
Costa Rica
22.89
2.58

98
Thailand
14.01
2.59

99
Tonga
21.14
2.66

100
Hungary
26.49
2.81

101
Bosnia And Herzegovina
18.25
2.82

102
Antigua and Barbuda
39.59
2.83

103
Marshall Islands
50
2.86

104
Slovakia
34.43
2.89

105
Albania
16.12
2.9

106
Peru
11.38
2.97

107
Puerto Rico
70
3.07

108
Jamaica
19.62
3.09

109
Yemen
11.5
3.12

110
Libya
9.27
3.2

111
Mexico
24.91
3.26

112
Tunisia
9.75
3.28

113
Democratic Republic of the Congo
18.75
3.31

114
Azerbaijan
12.89
3.32

115
North Macedonia
17.39
3.38

116
Vanuatu
25.27
3.46

117
Rwanda
9.2
3.48

118
Kenya
11.49
3.5

119
Mauritius
20.08
3.54

120
Botswana
26.06
3.67

121
Mauritania
24.98
3.71

122
Saint Kitts and Nevis
42
3.78

123
Panama
30.19
3.79

124
Algeria
11.61
3.99

125
Togo
23.1
4.2

126
El Salvador
17.52
4.21

127
Argentina
17.86
4.23

128
Brazil
19.41
4.26

129
Myanmar
11.84
4.29

130
Saint Vincent and the Grenadines
37
4.3

131
Bahamas
71.49
4.31

132
Iraq
23.61
4.31

133
Barbados
50
4.39

134
Dominican Republic
18.24
4.62

135
Zimbabwe
16.3
4.76

136
Tanzania
11.9
4.81

137
Sudan
9.59
4.86

138
Paraguay
15.77
4.89

139
Maldives
48.3
4.89

140
Comoros
32.85
4.92

141
Egypt
9.03
5.05

142
Belize
49.65
5.16

143
Nigeria
5.71
5.25

144
Trinidad and Tobago
43.64
5.41

145
Niger
16.5
5.49

146
Ethiopia
11.57
5.56

147
Ghana
10.25
5.57

148
Bolivia
22.53
5.77

149
Palau
58.25
5.83

150
Seychelles
43.27
5.86

151
Nicaragua
16.19
6.43

152
Guyana
27.88
6.48

153
Venezuela
13
6.69

154
Eswatini
33.15
6.72

155
Uganda
13.12
6.72

156
Angola
21.28
6.77

157
Gabon
33
6.98

158
Laos
40.19
7.18

159
Mozambique
19.24
7.23

160
Chad
24.75
7.5

161
Afghanistan
15.17
7.62

162
Bhutan
36.13
8.05

163
Tajikistan
13.77
8.09

164
Gambia
22.25
9.38

165
Madagascar
13.15
9.42

166
Saint Lucia
111.01
9.6

167
Suriname
25
9.68

168
Dominica
48.1
11.14

169
Micronesia
40
11.24

170
Philippines
41.46
11.42

171
Lebanon
57.66
13.72

172
Benin
41.33
14.56

173
Cameroon
24.75
15.39

174
Cuba
40
17.09

175
Papua New Guinea
62.81
21.81

176
Syria
9.91
22.11

177
Ivory Coast
41.25
23.2

178
Zambia
87.12
30.29

179
Guinea
115.58
56.29

Currys Investor Urges Sale of UK Mobile Operator ID Mobile

Low-cost mobile operator iD Mobile (Currys), which harnesses Three UK’s national 4G and 5G network via a virtual operator (MVNO) partnership, could be sold. The news came after one of Currys’ top investors, JO Hambro, encouraged the consume electronics retailer to sell the operator (valued at c.£350m) to help resolve its current difficulties.

Over the past few months Currys has faced two failed takeover bids for its wider business. The most recent one occurred after US investor, Elliott, abandoned an attempt to take Currys private after its second offer, which valued the retailer at £757m, was rebuffed. Meanwhile JD.com, a Chinese retailer, promptly also gave up on bidding for the company.

NOTE: Back in November 2023 Currys announced that ID Mobile had seen a 25% year-on-year growth in service subscriptions, which saw them top the 1.5 million customer mark.

According to The Times (paywall), JO Hambro, which holds a 4.5% stake in Currys and is the company’s 8th largest shareholder, now wants the retailer to consider selling iD Mobile in order to better “realise shareholder value” following the withdrawal of recent bids.

The letter suggested that one factor contributing to the failed bids was the stance of certain investors on the “minimum acceptable value for [iD Mobile’s] business“. Selling the operator might help to resolve that, but it remains unclear whether Currys itself will pursue such an option (JO Hambro is believed to have support from at least some other big investors in the business).

Virgin Media UK Deploy Smart Support to Boost Broadband Reliability

Broadband ISP Virgin Media (VMO2) has today begun rolling out a new service called “Smart Support” to a sizeable but limited subset of their customer base, which they say will help to “boost broadband reliability” by proactively identifying and tackling issues remotely at no extra cost for customers.

The new service has been built using technology from Cisco’s ThousandEyes (formerly SamKnows) platform (i.e. cloud-based data sets and advanced device identification technology) and will initially target 300,000 of Virgin Media’s broadband customers “whose connections will be checked throughout the year as the service learns and evolves,” before being rolled out more widely to all customers in the future.

NOTE: A VMO2 survey of 2,001 UK adults found that 34% of broadband users claim they wouldn’t feel confident trying to fix their Wi-Fi if something went wrong (we assume Virgin are using “Wi-Fi” as a catch-all for many internet connectivity issues).

Smart Support essentially monitors their customers’ WiFi Hubs (routers) and assesses the health of their connection, flagging potential issues including speed drops and disconnections to help build a full picture of the Hub’s performance.

Smart Support’s Multi-Layered Approach Includes:

➤ Always-on monitoring: Using smart support technology to constantly monitor the customer’s broadband speeds and connection performance.

➤ Problem solving: If a fault is detected, the WiFi Hub will work automatically overnight to try and resolve the issue.

➤ Tailored advice: If the suspected issue cannot be fixed remotely, the customer will be sent personalised advice on how they can try to resolve the issue themselves.

➤ Easy to book expert help: Should this be unsuccessful; the customer will be invited to book a free engineer appointment at a time that suits them.

The new process is designed to tackle broadband issues remotely, so in theory customers often won’t then need to call and report faults, which will also put less pressure on their support lines. “Irregularities that are detected will be resolved quickly and with minimal action from customers, providing an even more seamless and reliable broadband experience,” said Virgin Media’s announcement.

Gareth Lister, VMO2’s Director of Connectivity, said:

“Virgin Media has long been recognised for ultrafast speeds, but we also know that reliability is equally important which is why we’re rolling out a new, innovative smart support service that will proactively act as a helping hand to fix network niggles and optimise the performance of our connectivity – often with customers not needing to do a thing. Smart support will evolve over time, reducing hassle for our customers and further improving connectivity for those that need it to offer a best-in-class service for all.”

The Smart Support service is expressed as one that is in a state of evolution, which means that it will “become more sophisticated” later in 2024 and will thus be able to “accurately diagnose a wider range of in-home connectivity issues“, as well as enhancing the journey for new customers during the installation period and providing guidance on tackling in-home WiFi blackspots, to ensure great signal throughout the home.

The smart support process will be rolled out in phases, with phase one monitoring enrolled customers’ broadband service, phase two enhancing the onboarding journey and phase three employing machine learning to fix faults and prevent them from reoccurring. Smart support will also develop to support digital TV issues (e.g. buffering) in the future.

We should point out that proactive monitoring of broadband lines is something that some other ISPs have also adopted, albeit to varying different levels of effectiveness and sophistication. Sometimes this comes as part of a premium add-on, while in other cases it’s a default feature. But independently assessing the performance of such systems can be tricky, so we’re not really sure how well any of them ultimately deliver on their promises.

Virgin Media O2 Restart UK Digital Landline Switchover Project

Broadband ISP Virgin Media (VMO2) has today restarted their Digital Landline Switchover programme (i.e. migrating old analogue landline phones to IP-based services), which was paused at the end of 2023 as part of their commitment under a Government-led charter that is designed to limit risks for vulnerable users. But changes are afoot.

At present, most network operators are in the process of shifting from old analogue style phone services to digital ones, which is due to several reasons. For example, very few people today make use of their old home phones to make calls (mobile, VoIP and internet-based messaging have largely taken over) and much of the world is increasingly moving to fibre optic lines, which carry information using light signals rather than electrical ones over metal cables (copper or aluminium).

NOTE: Around 1.8 million people use vital telecare devices / alarms in the UK (e.g. elderly, disabled, and vulnerable people) – with many located in rural and isolated areas.

In addition, the old analogue services have generally become outdated, less reliable, and increasingly difficult to maintain, with spare parts often proving difficult to source or being discontinued altogether. The catch is that newer Internet Protocol (IP) based voice solutions require a broadband connection in order to work (i.e. you plug your old handset into the router or an ATA adapter, rather than a wall socket) and aren’t as reliable (e.g. power cuts can cause problems, especially when protracted).

On top of that, quite a few customers of landline-only phone services are still reliant on older telecare devices / alarms for medical support, especially in emergencies, and these often aren’t compatible with digital phone services.

Speaking of which, Ofcom are currently investigating Virgin Media’s migration of customers from analogue to digital landlines, which focuses upon whether they’ve been treating vulnerable consumers correctly and “ensuring uninterrupted access” to emergency services (here).

Suffice to say that Virgin Media, much like BT before it, has spent the past few months reviewing their approach to the Digital Landline Switchover programme while it was paused. The programme has now restarted, albeit only on a “voluntary basis … with no vulnerable or telecare customers moving across at this stage“. But there’s more..

Changes to VMO2’s Digital Landline Switchover

Ever since we first launched digital voice services in 2018, we put in place a range of measures designed to support customers with the transition.

This has helped millions of people successfully connect to the digital landline network, providing them with reliable services for the decades ahead.

Despite already offering industry leading solutions such as a free-of-charge Emergency Back-Up Line (EBUL) – with an eight-hour battery life that far exceeds the minimum Ofcom requirements – for those who need it, we committed to doing more.

So, after listening to concerns about the industry wide-programme, in December last year, telecoms companies came together to sign an industry-wide voluntary Government charter which saw us commit to better protecting vulnerable and telecare customers through the transition. Following this, we took the decision to pause all switchovers whilst we undertook a detailed end-to-end review of our processes and worked to further improve them.

That work is now complete, and building on the support we already have in place, we’ve now introduced a host of new measures which make it easier to identify and support those who need extra help. For example, we have improved the communications customers receive; our engineers will provide additional in-home support; and we have carried out extensive checks to better identify vulnerable or telecare users.

Following every switchover, we’ll check that customers are using their landline in a similar way to before, and proactively contact anyone we suspect may be having issues.

We are also working closely with the rest of the industry, alarm providers, local authorities and the TSA – the UK’s largest telecare body which we’ve now joined as a member – to identify how we can further collaborate to support our most vulnerable customers and raise wider awareness of what is happening.

However, Virgin Media correctly warns that ultimately “every customer will need to be switched over to ensure they can continue to receive a reliable landline service“, and further details on the steps they’ll be taking to help vulnerable and telecare users switchover successfully will be released in the near future.

At the same time the operator is also calling on local authorities and telecare providers to “step up” their game, particularly those that still haven’t engaged network operators on the issue. For example, they’re calling on the Government to create a Telecare Charter, which they say should set out a range of commitments, create uniformity and clarity and encourage these parties to work with the telecoms industry to help ensure nobody is left behind.

Specifically, the charter should help to ensure relevant data is shared to help us identify more vulnerable customers and detect alarm numbers; that telecare operators check their devices are compatible with the new system; and that local authorities meet their duty of care obligations and proactively provide advice, support and information ahead of switchovers occurring,” added VMO2’s statement.

Now, if only network operators and telecare providers had taken this sort of approach five or so years ago, then the current situation might not be causing nearly as many issues.

Openreach Welcome 4000th Electric Vehicle to its UK Fleet

Openreach (BT) recently issued a short update on the progress they’ve been making in upgrading all of their 30,000+ strong fleet of UK diesel powered vans and cars to electric (EV) by March 2031, which reveals that they’ve just welcomed their 4,000th Electric Vehicle (up from 3,000 in January 2024).

In order to support its drive for cleaner and greener journeys, it was revealed earlier last year that Openreach had also teamed up with ‘Ground Control’ to install an initial 8,500 charging points for Openreach. The new EV charge points will be installed outside engineer’s homes and at key Openreach sites, such as exchanges, up and down the country.

The broadband network operator is also working with other operators, like First Bus, to share charging infrastructure (here) and are currently sourcing their new EV vans and cars from several different suppliers, such as Renault and Vauxhall.

Not to mention that BT and its digital incubation team, Etc., recently kicked off their first pilot of an Electric Vehicle (EV) charger that has been repurposed from one of Openreach’s old street cabinets, which was “traditionally used to store broadband and phone cabling“ (here). Up to 60,000 more could follow.

TSMC wins $6.6bn CHIPS Act subsidy 

News 

The funding will allow the USA to produce 20% of the world’s leading semiconductors by 2030 

The US government has announced that it has signed a non-binding preliminary memorandum of terms to award Taiwan Semiconductor Manufacturing Co (TSMC) a subsidy of $6.6 billion for semiconductor production in Phoenix, Arizona. 

The funding, which has been made possible through The CHIPS and Science Act, will see TSMC build its third fabrication plant in Arizona, taking TSMC’s total investment in the US to $65 billion. Two of the plants are already under construction, with one nearing completion and aiming to begin production next year. Combined, the three plants are expected to create “6,000 direct high-tech, high-wage jobs”, with the wider construction creating an additional 20,000 jobs. 

The funding includes $50 million that will go towards the training and development a local workforce, “so workers don’t have to leave their hometowns to find good-paying jobs in innovative industries.” 

Once all three fabs are in action, they will manufacture millions of leading-edge chips for use in 5G and eventually 6G smartphones, autonomous vehicles, and AI data centre servers. 

“The CHIPS and Science Act provides TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States,” said TSMC Chairman Dr. Mark Liu in a company press release. 

Despite chips being invented in America, the country has gone from producing 40% of the world’s chips to just 10%, which the US government said in a statement makes the country exposed to “significant economic and national security vulnerabilities”. 

“These are the chips that underpin all artificial intelligence, and they are the chips that are necessary components for the technologies that we need to underpin our economy, but frankly, a 21st century military and national security apparatus,” Commerce Secretary Gina Raimondo said in a verbal statement. 

Keep up to date with all of the latest telecoms news from around the world with Total Telecom’s daily newsletter

Also in the news:
Digi Spain sells 6m FTTH accesses to Onivia
Vodafone’s 5G standalone network now connects around half the German population
Broadband poles no problem for Brits says new study

Simplifying fusion splicing and easing the skilled labour shortage

Interview

At Connected America this year, we caught up with Jeff Harsh, Director of Strategic Accounts at UCL Swift North America, to discuss the company’s all-in-one fusion splicing platform and the company’s plans for the future

With a historic level of government funding being delivered to help fund broadband access for all Americans, the US fibre market has never been more exciting.

At Connected America this year, we spoke to UCL Swift’s Jeff Harsh to learn more about the company’s fusion splicing solution and how its ease of use is helping to overcome the skilled labour shortage that comes with the nation’s rapidly accelerating network deployment.

“We can splice, we can cleave, we can strip, and we can also protect the fibre by putting a fibre sleave on. And these machines are easy to use, they are lightweight and easy to train people on,” he explained. “It’s a high tech, high precision machine, but a very simple process. We believe we can be part of the solution [to the skills shortage issue] by fast-tracking training.”

You can watch the full interview with Jeff from the link below.

AT&T sells stake in Sky Mexico 

News 

Mexican broadcaster Televisa will purchase AT&T’s stake in Sky Mexico and take full ownership of the business 

In a press release this week, Televista have confirmed that they are purchasing AT&T’s 41.3% stake in satellite TV provider Sky Mexico. Having already held the remaining 58.7% stake in the business, the deal will give the media group full control over Sky Mexico. 

The deal’s exact cost has not been revealed, but the statement confirmed that the transaction price would be paid by the company in 2027 and 2028. 

“The lack of a published price and the long payment schedule makes me think a significant portion of the consideration will be in the form of an earn-out, in turn reflecting the uncertainty of Sky’s short-term prospects,” speculated Gilberto Garcia, head of financial advisory at consultancy Miranda Partners., when speaking to Reuters. 

An earn-out is a contractual condition of a purchase agreement whereby elements of the price are contingent upon the performance of the business. In this case, AT&T would receive a portion of the purchase price based on Sky’s performance. 

Sky Mexico currently has a 58% share of the Mexican pay TV market, and nearly a 25% share of the broadband market, making it Mexico’s second largest broadband operator. In the third quarter of last year, Sky’s revenues fell by 13.8%, which was put down to a year-on-year decline in RGU’s (revenue generating units, or subscribers). 

The transaction is subject to standard regulatory approval. 

In the announcement, Televisa also confirmed that Luis Malvido will step down as CEO of Sky Mexico next month, after serving in his position for two years. 

“On behalf of Grupo Televisa, we would like to express our deepest gratitude to Luis for his leadership, innovation, and valuable contributions to the Company. Luis has been instrumental in the evolution and simplification processes of our core business at Sky, and we wish him continued success in his future projects,” said Grupo Televisa’s co-CEOs, Bernardo Gómez and Alfonso de Angoitia. 

Francisco Valim, already head of Televisa’s cable unit Izzi Telecom, will take over as CEO of Sky Mexico.  

Keep up to date with all of the latest telecoms news from around the world with Total Telecom’s daily newsletter

Also in the news:
Digi Spain sells 6m FTTH accesses to Onivia
Vodafone’s 5G standalone network now connects around half the German population
Broadband poles no problem for Brits says new study

Microsoft to launch London AI Hub 

News 

The news comes as the UK moves to become a worldwide AI powerhouse 

Microsoft has this week announced plans to establish Microsoft AI London, a new hub aimed at advancing AI research and development in the UK. This initiative follows the recent formation of Microsoft AI, a new company dedicated to improving consumer AI products and research, including Microsoft’s AI chatbot Copilot. 

Led by Jordan Hoffmann, an AI scientist and engineer, Microsoft AI London will focus on developing state-of-the-art language models and infrastructure, as well as creating top-tier tooling for foundation models. The hub will collaborate closely with Microsoft AI teams and partners, including OpenAI.  

“I’m deeply aware of the extraordinary talent pool and AI ecosystem in the UK, and I’m excited to make this commitment to the UK on behalf of Microsoft AI,” said Mustafa Suleyman, EVP and CEO of Microsoft AI in the announcement. 

“I know – through my close work with thought leaders in the UK government, business community and academia – that the country is committed to advancing AI responsibly and with a safety-first commitment to drive investment, innovation and economic growth,” he continued. 

The decision to establish the AI hub in London, the company states, reflects Microsoft’s confidence in the UK’s commitment to responsible AI innovation. It adds to Microsoft’s existing presence in the UK, including the Microsoft Research Cambridge lab, and aligns with the company’s substantial investment to equip the UK workforce for the AI era. 

 

The AI Hub’s launch follows Microsoft’s 2023 pledge to invest £2.5 billion over the next three years to expand its UK data centre infrastructure. UK Prime Minister Rishi Sunak called the investment “a turning point for the future of AI infrastructure and development in the UK,” in a government press release.  

The UK government is currently heavily investing in AI, viewing it as a key factor in growing the UK economy and enhancing its technology sector. In the Spring Budget, Chancellor Jeremy Hunt pledged £100 million in funding to The Alan Turing Institute, the UK’s national institute for data science and AI. Furthermore, in October, the Prime Minister announced that taxpayer spending on AI chips and supercomputers is set to increase to £400 million as part of efforts to make the UK a global leader in cutting edge technology.     

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