CityFibre has announced that their £69m state aid supported Project Gigabit broadband rollout contract for Cambridgeshire and adjacent areas (Lot 5), which was awarded in March 2023 (here), has finally entered the build phase. A total of “around” 45,000 hard-to-reach homes and businesses in the county are expected to benefit. At present the operator is […]

The Fusion Fibre Group, which until this month’s rebrand was previously known as rural UK ISP and network operator FACTCO, has today announced that they’ve become the latest internet provider to join MS3’s new 10Gbps capable Fibre-to-the-Premises (FTTP) broadband network in the North of England. MS3, which is backed by investment from Asterion, is currently […]

Edinburgh-based business broadband ISP Commsworld has announced that they’ve secured a 10-year contract – worth £2.6m – from Dundee City Council (DCC) to help plan, design, migrate and manage a “completely new fibre network service” for 42 schools in and around the city. The proposed new “high-speed fibre internet service” is said to be “replacing […]

News

Inflation is driving up the cost of Virgin Media O2 (VMO2)’s loans, pushing it up to 5.2% from 4.7% a year ago

This week, VMO2 has announced a £3.3 billion loss in 2023, having incurred a goodwill impairment of £3.1 billion related to the increased cost of capital.

The mobile and fixed broadband network operator explained that the difficult macroeconomic environment has seen their £8 billion in debt become an even heavier burden over the last year, costing them hundreds of millions of pounds in additional interest.

“We recorded a non-cash goodwill impairment of £3.1 billion primarily related to an increase in the weighted average cost of capital and the impacts of the broader macroeconomic conditions in the UK on estimated future cash flows,” explained the company in a statement.

The rest of VMO2’s results were somewhat flat. While VMO2 noted that it had added 64,000 new broadband customers last year, as well as 47,000 new mobile customers, this has done little to help the company’s bottom line.

VMO2 recorded a consumer fixed revenue decline of 2.3% to £3.3 billion, which the company attributed to a tightening of purse strings by consumers due to the increased cost-of-living. Their B2B fixed revenue was down a similar amount (2.4%), dropping to £554 million.

Mobile revenues increased by 0.6% to £5.9 billion, with VMO2 attributing the slow growth to “low-margin handset revenue performance which weakened through the year”.

“We ended the year with stable revenues in line with our revised guidance at Q3, and achieved the low end of our mid-single-digit Transaction Adjusted EBITDA growth guidance through accelerated synergy execution which offset the impacts of consumer spend optimisation,” explained VMO2 CEO Lutz Schüler.

“Operationally, we invested another £2 billion in our networks and services, with 2023 being the fastest year of fibre rollout as our fibre footprint reached over 4 million premises. In aggregate, our fully gigabit serviceable footprint now reaches over half of all UK homes, and our 5G network covers half the UK population. We also continued trading momentum with mobile and fixed customer growth, supported by sustained customer-first initiatives like inclusive EU roaming and our O2 Priority loyalty scheme.”

“Looking ahead, the 2024 outlook will be impacted by incremental investment in key initiatives to drive future growth, including increased marketing across our rapidly expanding fixed footprint, new commercial initiatives and wider digital and IT efficiency programmes. We remain focused on delivering against our core strategy and these key investments will help us to lay down strong foundations for future success.”

Also in the news:
Bell Canada announces plans to cut almost 5,000 jobs
EE to invest £6 million in retail stores
Mexican president calls for dissolution of telecoms regulator

Press Release

Verizon, the “Official 5G Network of the NHL,” and the National Hockey League (NHL®) today announced a multi-year sponsorship renewal continuing Verizon’s role as the League’s Official 5G Partner, Official Wireless Services Partner and Official Mobile Edge Computing Partner in the United States. Additionally, as an Official Technology Partner for the NHL, Verizon has been selected to deploy Verizon Private 5G Wireless Network across NHL arenas to help game day operations roll out new and transformative solutions to advance the sport and improve the overall fan experience.

“Innovation is driven by a vision and the technology to support it, which makes this partnership with the NHL a perfect fit for Verizon and Verizon Business,” said Kyle Malady, CEO of Verizon Business. “Our collaboration with the NHL showcases what transformative network connectivity can bring to venues and fans alike. Having a forward-looking partner in the NHL opens up significant opportunities from an operational standpoint, when you look at the business of professional hockey, to enhancing in-game efficiencies and the fan experience.”

NHL Venue Innovation

Under the terms of the agreement, Verizon Business is currently piloting Verizon Private 5G Wireless Network in select arenas, with plans to roll out the technology to NHL arenas in future seasons. Utilizing Verizon’s 5G network technology and Mobile Edge Computing (MEC), the NHL, and enterprises across industries, can tailor solutions to meet specific business needs, delivering enhanced reliability, security, speed, and flexibility both on and off the ice. These advanced technologies, which are enabled by Verizon 5G, include wireless Officials’ iPads for replay review, which is currently piloted at the Prudential Center, as well as video coaching, and coach/video coach communications.

Furthermore, as the “Official 5G Network of the NHL” in the United States, Verizon will continue efforts to deploy 5G Ultra Wideband network across NHL arenas, providing ultra-fast in-arena connectivity to enable fans to download and watch videos, livestream, manage their fantasy teams and check scores with virtually no lag. By creating more immersive and interactive experiences, through the power of 5G and MEC, Verizon is changing how fans consume live sports.

“The passion for innovation and the work already done in partnership with Verizon makes this renewal even more exciting for us,” said David Lehanski, NHL Executive Vice President, Business Development and Innovation. “Creating the solutions and experiences of tomorrow is not only a function of applying cutting-edge technologies from world-class companies, it’s also a function of being able to truly collaborate with them to uncover meaningful new use cases. In Verizon, we have a partner that listens before bringing to bear their industry-best knowledge and solution set.”

The extended partnership with the NHL demonstrates Verizon’s ongoing commitment to shape the future of sports entertainment. With Verizon’s reliable 5G network and innovations like cashierless checkout, Verizon is paving the way for a new and improved stadium experience.

2024 Navy Federal Credit Union NHL Stadium Series™

Fans can experience Verizon’s latest venue improvements and multiple Verizon activations live at the 2024 Navy Federal Credit Union NHL Stadium Series™ on Feb. 17 and Feb. 18 at MetLife Stadium. Verizon invites fans to the New Amsterdam Vodka® NHL PreGame, located in Parking Lot G of MetLife Stadium, where they can tailgate in style with games, charging stations, comfortable seats with plenty of photo opportunities and a chance to win exciting prizes.

By attending the NHL PreGame, Verizon customers can get a chance to win upgraded game seats in Verizon’s exclusive Hotspot section1, which includes comfortable heated seats, cozy blankets and exclusive gift bags. Verizon customers will also have access to the Hotspot Lounge on the 100 level concourse, which will feature charging stations, photo opportunities, and complimentary hot chocolate.

For fans looking for even more Hotspot connectivity, Verizon’s myPlan mobile plans give customers access to $10 monthly “perks,” like 100 GB of Mobile Hotspot. This perk saves you $35 monthly – and over $400 annually – and is only for Verizon customers.

Want to keep up with all of the latest wireless developments in the US? Join the industry in discussion at this year’s Connected America conference live in Dallas, Texas

Also in the news:
Bell Canada announces plans to cut almost 5,000 jobs
EE to invest £6 million in retail stores
Mexican president calls for dissolution of telecoms regulator

The telecoms regulator, Ofcom, has quietly scrapped another fixed broadband related performance report – this time it’s their annual international comparison, which pits the United Kingdom’s broadband and mobile connectivity against the EU’s major economies (France, Germany, Spain and Italy etc.) and some other large countries. Ofcom has been publishing the International Broadband Scorecard since […]

Broadband ISP Virgin Media (VMO2) and its shareholders (Liberty Global and Telefónica) have this afternoon finally announced plans to “create the biggest direct network challenger to BT Openreach in UK history“, which for the first time will open their existing fixed line broadband network up to wholesale by other internet service providers. Regular readers will […]

Nexfibre, which shares the same parentage as Virgin Media (VMO2), has this afternoon confirmed that they will invest £1bn next year to expand their 10Gbps capable Fibre-to-the-Premises (FTTP / XGS-PON) broadband ISP network to an additional 1 million UK premises (on top of their existing coverage). Just to recap. Telefónica, Liberty Global and InfraVia Capital […]

Interview

We spoke to Ahmed Mohamud Yusuf, CEO of Hormuud Telecom and winner of the CEO of the Year Award at the World Communication Awards 2023, to discuss his extraordinary career journey and plans for the future

Your journey from the son of a camel herder to the CEO of the largest business in Somalia is fascinating. Can you tell us a little more about your upbringing and how it has shaped you as a leader?

Raised in rural Somalia, my life has been influenced by community values and the spirit of entrepreneurialism. My father’s hard work ethic enabled me to attend boarding school, which led to my first job as a door-to-door salesman. This experience allowed me to understand the diverse communities of Somalia, enriching my appreciation of our vibrant social fabric.

I eventually took the leap of opening my own shop, rapidly growing it into an import/export business, connecting Somali entrepreneurs with the world, so I could continue my studies at the National University of Somalia.When the civil war forced me to leave my homeland in the 1990s, I had to relocate my business, which showed me how true entrepreneurs are those that can adapt in the face of hardship. When in the early 2000s I was able to return home, my mission was crystal clear: help get Somalia through its time of hardship, and rebuild it, so once again communities can connect with each other and the world.

I joined Hormuud Telecom in 2002. Now as a leader of Somalia’s largest business, I’m driven by three core values: resilience, ambition, and empathy. These principles keep me grounded, and reinforce my faith in our team, mission, and the future of Somalia.

What motivated you to return to Somalia after you were displaced by the civil war? Did you always plan on returning?

I always believed in Somalia’s potential, even during its most turbulent times. When the civil war saw the destruction of financial and telecommunications infrastructure, I saw an opportunity to make a difference and I am grateful every day that I embarked on this journey.

Despite facing numerous challenges, Somalia’s economy has displayed remarkable resilience, largely driven by the dynamism of its private sector. I take immense pride in knowing that Hormuud Telecom is not just driving economic growth but is transforming the accessibility of digital services for ordinary Somalis. I remain dedicated to putting communities at centre of everything I do – for me, not returning was not an option.

What were the biggest challenges you faced when launching a telecoms company in Somalia? 

Restoring confidence in Somalia and its businesses has been a challenge, but to rise to this I’ve learnt to hold Hormuud Telecom to the highest standards and ensure that from necessity comes invention.

For example, when I returned to Somalia, the country was almost devoid of infrastructure and 98% of the Somali Shilling was counterfeit. Hormuud not only rebuilt infrastructure – from telephone masts to basic GSM services and fibre optic cables – we introduced mobile money to the country. Free at the point of use, this ensured that people had a reliable means to transact.

Now, with over 80% of people using mobile money every day, we stand on the cusp of being the world’s first cashless economy. Our mobile money platform, EVC Plus, reaching its 13-year anniversary was one of the proudest moments in my career. It proved how you can turn a challenge into an opportunity that can benefit millions.

One of Hormuud Telecoms’ biggest goals is to extend 4G connectivity throughout the country. Why is this so important for Somalia as a nation?  

The fourth industrial revolution is transforming the world at scale – not least in Africa, which is home to a fast growing, data hungry population. In Somalia, this story is no different. For us, 4G is laying the track to digital transformation, we now need the low-cost handsets to achieve it.

We have one of the youngest, digitally savvy populations in the world, and some of the cheapest internet in Africa. With 4G coverage throughout the country, digital education and healthcare possibilities in last mile communities can be unlocked; our pre-eminent industries like agriculture and fishing can become more efficient; and with EAC admission, we see a future where Somalia is a telecommunications hub for the Horn.

We’re already well on our way. Roughly 70% of Somalia’s population is covered by 4G internet. This expansion isn’t just about convenience; it’s a pivotal step towards Somalia becoming a cashless economy, that fosters inclusive and sustainable economic growth. High-speed internet access is a basic human right. We’re dedicated to bridging the digital divide, even in the hardest-to-reach areas of our country.

Hormuud Telecom played a vital role in supporting the country during the coronavirus pandemic and, indeed, has many charitable initiatives to support the country’s most vulnerable people. Are there any projects you’re most proud of?

During the COVID19 pandemic Hormuud built the first oxygen plant in the country. We also developed a telephone emergency announcement system, which has since been used as part of the El Nino climate disaster response. I’m proud of the instrumental role we play in guiding our country through tough times.

In the fallout of the pandemic, Somalia was on the brink of famine. We needed a way to reach the 1.4 million people displaced by the drought, yet INGOs did not have the capacity to reach them with physical aid. With many internally displaced people already using EVC Plus, we also developed a portal for INGOs to transfer up $1 million through mobile money to 10,000 people each time.

Running on both smart and basic phones, mothers can now purchase food and water to keep their families alive — it has completely transformed aid delivery in Somalia, whilst getting aid money moving through the economy. There’s nothing I am prouder of than that.

What does winning the CEO of the Year Award at the World Communications Award mean to you?

Winning this award is a massive honour, and I’m grateful for the recognition. It means a lot more than just a trophy, as it indicates the future is bright for Somali telecommunications, and that Hormuud is leading our sector’s return to the world stage. I hope this paves the way to exciting collaborations and opportunities around digitalisation.

 What’s next for Hormuud Telecom in 2024? 

2024 is set to be another big year for Hormuud, we’ve got several infrastructure projects and products set to come to fruition, which will further pave the way to a cashless and digitally enabled economy. Watch this space.

Viewpoint

By James McKenna, Senior Systems Engineer, Calix

How long should I stick with my Wi-Fi 6 router?
With the introduction of Wi-Fi 7, is 6E still a ‘thing’?
Am I falling behind by not offering Wi-Fi 7?
How do I address the Fear Of Missing Out?

All valid questions from an ISP’s perspective, and soon the consumer may start thinking something similar. But how long before you, the ISP, should make the jump?

Your Connected Home

How many devices do you have connected to your home Wi-Fi? Probably more than you think. The accumulation of smartphones, laptops, voice control assistants, door bells, smart-meters, kitchen appliances…it is estimated that the average UK household has around 30 devices connected to the home internet. That’s a lot of competition for bandwidth.

These days more and more devices support 5GHz channels (so many of them used to be 2.4GHz only), but this has the knock-on effect of adding load to the 5GHz radios already serving your console, smart TV, iPads and work-at-home machines. All of these devices which really need the best connectivity experience, are now sharing the frequency space with an ever-increasing number of IoT or auxiliary devices.

Additionally, more users have wireless-meshing enabled at home, most likely using 5GHz channels too. We will inevitably reach a point in the connected-home, when the growing number of (30+) devices, mesh, and interference from the neighbours’ Wi-Fi, regularly creates so much wireless contention, that it becomes noticeable to the end-user. This leads to annoyance, generates support calls and negative feedback.

Wi-Fi performance challenges in the home are a commonly occurring issue (ask any support team), and these often prove some of the most frustrating and complex issues to resolve remotely. So, it is a good time to start thinking about a plan to future-proof the home network with next-gen Wi-Fi, that looks to address the issues of reliability, latency and spectrum management.

What Does Wi-Fi 7 Actually Bring?

There are already many articles out there explaining the tech behind Wi-Fi 7, so I won’t attempt to re-invent the wheel here. Long story short – Wi-Fi 7 brings key enhancements to improve data throughput and reliability. The result is client devices in the home or office (where multiple devices contend for airspace), can now make more efficient use of the frequency space available to them. The desired outcome is to reduce latency and maximise throughput. Increased capacity, lower latency and better spectrum management, will all improve the connectivity experience for users, and likely reduce the number of trouble-tickets logged with the ISP. Happy days.

Here is a little more detail:

Higher Speeds:

The theoretical ‘top speed’ for Wi-Fi 7 is 46.4Gbps; a fourfold increase on what was previously possible. Real-world results are around 5.8Gbps for a Wi-Fi 7-capable client, – still 2.4x faster than Wi-Fi 6/6E. Impressive!

Better frequency management in the home/office:

Wi-Fi 7 introduces ‘Multi-Link Operation’ (MLO). Wi-Fi 7 devices can now utilise 2.4GHz, 5GHz and 6GHz to quickly switch frequency, and transmit on a band/channel with less interference, at a moments’ notice. The benefit here will be lower latency, lower packet-loss, and increased reliability. Note that not all devices will support 6GHz.

For context, here are some examples of MLO in action:

For gamers, it will be about lowering latency and reducing packet-loss. The Wi-Fi 7 client (a VR headset) experiences interference, makes a quick assessment and switches to a cleaner frequency space, and disaster (lag) is averted! The gamer survives his encounter with the online adversary and doesn’t have to scream in frustration at his TV for thinking he fired first, eventually realising he didn’t.

For the future-connectivity of mission-critical systems such as 4K/8K CCTV, a stable connection is of course paramount, and it needn’t be a hard-wired connection in the future. Equipping a 4K/8K camera with Wi-Fi 7 could mean mitigating interference at a moments’ notice; by dynamically switching bands using MLO, the camera avoids interference and contention (which can lead to packet loss or a disconnect). This quick channel switching could mean the difference between capturing vital footage vs. Wi-Fi drop-outs causing loss of images. So when your neighbour helps themselves to your prized veg, you’ll catch them in the act with high-res imagery! Until 8K CCTV becomes widespread though, stick a lock on your greenhouse door.

Still in the Starting Blocks

As with the life-cycle of every Wi-Fi standard developed so far, the successful application of Wi-Fi 7’s benefits is dependent on widespread adoption of the technology in broadband and consumer devices. A key factor in adoption, will be the point at which Wi-Fi 7 becomes more affordable. Currently it sits at the ‘bleeding-edge’ of technology and the price-point is naturally higher. The industry is still in the early stages with Wi-Fi 7.

The Wi-Fi Alliance only began certifying Wi-Fi 7 devices in January 2024 and the handful of pre-certified routers currently available today are naturally, very expensive. And enjoying the benefits of a Wi-Fi 7 router also means upgrading the clients connecting to it. Few users are likely to replace a perfectly serviceable laptop just to take advantage of a new Wi-Fi standard. High-end smartphones, PCs, and tablets are expected to lead the way with Wi-Fi 7, an example being the Samsung S24 Ultra.

The Wi-Fi Alliance is anticipating that 233 million Wi-Fi 7-enabled devices will enter the market this year, rising to 2.1 billion by 2028 with mass-market adoption. But let’s assume that much of the market will continue with Wi-Fi 6 devices for quite some time yet – adoption of Wi-Fi 7 in mid-range devices will be gradual. ISPs who choose to utilise this gradual uptake as an opportunity to calmly assess the options for Wi-Fi 7 CPE (and not jump feet-first into adopting the ‘best-available’ Wi-Fi 7 capable router right-now), will find they have more choice of hardware and supported platforms by early 2025.

Do Subscribers Need Wi-Fi 7 now?

Is there a demand right now and will there be in the next 12 months, for widespread adoption of Wi-Fi 7 routers in every home? Understanding subscribers’ current needs and pain-points is helpful in answering this question.

The case for Wi-Fi 7 adoption now: “Sure, Wi-Fi 7 has some valid use-cases and should be offered right-now!”

People will always want the latest gadgets and connectivity, and if you offer it to them, your brand can be seen as a technology leader. Being the first-to-market with the latest Wi-Fi 7 technology is also an exciting prospect.

In the enterprise sector, the higher bandwidth, throughput, and lower latency offered by Wi-Fi 7 could also add value. This could mean providing better coverage and capacity at a public venue such as a sports stadium, or improved connectivity within an industrial IoT setting. There are definitely current use-cases where choosing Wi-Fi 7 now will benefit and future-proof the performance of high-density, manufacturing, and educational environments. But this really concerns enterprise-grade Wi-Fi, rather than residential and small businesses who lean more toward lower numbers of users, and smaller budgets.

The case for biding your time: “Implementing Wi-Fi 7 right now is not essential”:

For the average residential subscriber (even those with 30+ connected devices), existing Wi-Fi 6 technology is likely to be sufficient to meet their requirements for a time yet.

Some high-bandwidth users do exist of course – gamers, online FOREX traders, streamers and videographers, large households, or those experimenting with the very latest consumer tech such as 8K and AR/VR are some examples. Can these customers be served with an existing Wi-Fi 6 router with multi-gig WAN capability, or offering lower-latency peering for gamers perhaps? Those ‘in-the-know’ subscribers will understand the benefit and value of such offerings. Later-on you can combine this with a stepped-upgrade to a Wi-Fi 7 router and boom – you are differentiating yourself from the competition with a monster-offering that doesn’t boil down to just being a simplistic Wi-Fi radio upgrade.

And let’s not forget that a well-designed and executed Wi-Fi 6 network could give them what they currently need. You could support those intensive Wi-Fi users, with a cursory look at their households’ existing bandwidth usage, and offer a call to run some Wi-Fi health-checks and see if anything can be done to improve their experience. E.g. offering mesh units to improve coverage, or a simple channel-change to avoid interference from encroaching neighbouring networks, could be the difference between retaining a customers’ loyalty or losing them to a competitor offering a shiny new router.

For service providers who choose to wait and give the Wi-Fi 7 market time to mature, they will see that product vendors will spend the next year or so refining their Wi-Fi 7 portfolio (and firmware stability). This will have the knock-on effect of improving overall product reliability and quality, as well as allowing time for further Wi-Fi capabilities to be introduced. Ultimately, choosing not to jump-in early is likely to stand the ISP in good-stead. Helping to minimise the risk of deploying ‘bleeding-edge’ tech that an ‘early-adopter’ would generally carry and pass-on to their end-users.

Integrating Wi-Fi into a Winning Package

Simply offering the latest-and-greatest Wi-Fi technology without considering other factors is unlikely to lead to longer-term subscriber retention or profitability.

Service providers should really keep in mind that Wi-Fi performance is just one of many factors that subscribers look-for in a broadband service. Speed, reliability, ease of use, and excellent customer support are equally important. Adopting Wi-Fi 7 should form part of a broader strategy designed to take advantage of the latest technology evolutions to support exciting new services.

Of course, Calix has Wi-Fi 7 systems in the roadmap for 2024. The new standard will be fully integrated with SmartLife managed services and supported by the Calix end-to-end broadband platform. We’re not rushing it out, though.

A fully managed Wi-Fi 7 package will enable service providers to differentiate in the market and target those high-bandwidth users with premium service offerings. For the UK’s Alt Nets this could mean providing tailored services to specific market segments, such as small businesses, gamers, or home-office workers. Those subscribers not in immediate need of enhanced Wi-Fi may be better-off waiting for prices to fall and mass-market adoption to arrive. Developing the insights to accurately understand subscriber trends and expectations is key to getting this balance right.

As we progress through 2024, the increasing number of connected devices and the need for ever-higher bandwidth will drive demand for high-performance Wi-Fi, which will spur adoption of Wi-Fi 7. But suffice to say, pervasive adoption of the very latest Wi-Fi standard is a marathon, not a sprint, so use the opportunity to take a measured approach. Why panic and jump now, just for fear of missing out?

Feel free to reach out to me directly if you have any questions or comments:

James McKenna

Senior Systems Engineer

James.McKenna@Calix.com