News 

Reasons for the sale, which was initially announced back in December, have not been specified 

NJJ Capital, the investment company owned by French billionaire Xavier Niel, has agreed to buy Turkcell’s Ukrainian operations, including mobile operator Lifecell, for at least $500 million. 

The agreement was initially signed in December when Turkcell agreed to transfer over all shares in the businesses to NJJ for an undisclosed price. At the time, the three business units – mobile operator Lifecell, contact centre specialist Global Bilgi, and telecoms tower firm Ukrtower – were valued at UAH 12.7 billion ($335.5 million), UAH 47.2 million ($1.2 million), and UAH 1.9 billion ($50 million), respectively.  

The deal “makes sense”, according to Niel, due in part to his existing telecoms operations in neighbouring Poland through French telco Iliad, given the large amount of roaming traffic between the two countries.  

For Lifecell in particular, Niel noted that the sale was relatively cheap, saying “it’s an asset we’re not paying very much for compared to its profits”. 

The final price for the acquisition will not be revealed until the deal has closed, but it should be at least $500 million, according to an NJJ spokesperson.  

The deal is still subject to regulatory checks, including the go-ahead from the Ukrainian competition authority. 

Niel appears to have started this year with a renewed appetite for M&A, this month also showing an interest in purchasing Altice Portugal. The company is part of the Altice Group and is owned by another French billionaire, Patrick Drahi, who announced his intention to sell off the unit last summer. The unit has attracted a number of potential buyers, including Saudi-based STC and others who have asked not to be identified. –Three non-binding offers for the business are thought to have been received.  

No decisions have yet been made of yet and discussions remain ongoing. 

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Also in the news:
EE dominates RootMetrics benchmarking study but loses 5G crown to Three
FCC updates spectrum rules to facilitate broadband access on ships and aircraft
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News

A Moroccan commercial court has ruled that Maroc Telecom unfairly used its dominant market position to restrict its rivals in the landline market

This week, a Moroccan court has ordered incumbent operator Maroc Telecom to pay its rival, Inwi (Wana Corporate), 6.36 billion dirhams ($636 million) following a successful legal challenge from its smaller rival.

The ruling relates to a case Inwi brought back in 2021, arguing that Maroc Telecom had unfairly restricted the company’s access to landline customers as far back as 2013.

Inwi had initially issued a complaint to the Moroccan regulator, the National Telecommunications Regulatory Agency (ANRT), in 2016, saying that Maroc Telecom had failed to fairly implement local loop unbundling, the process of allowing new telecoms operators access to the infrastructure connecting customers to their local telephone exchanges.

In 2017, the ANRT upheld the complaint, having found that Maroc Telecom had indeed prevented and delayed their competitors from gaining access to their infrastructure, thereby blocking and delaying them from offering landline services to customers.

After three years of legal back-and-forth, in 2020 the ANRT fined Maroc Telecom 3.3 billion dirhams ($330 million) for uncompetitive practises.

At the time, it was hoped that this fine would put an end to the long running saga, but while Inwi did briefly withdraw its complaint, the third-place operator ultimately sought compensation via the courts in 2021.

This new penalty, if it is upheld after the inevitable appeals, could have a devastating effect on Maroc Telecom, with the total notably exceeding the company’s annual profit of 5.82 billion dirhams ($580 million) in 2022.

“The ruling is anticipated to have a profound impact on Maroc Telecom’s profit margins and distribution strategy for the year 2024 unless the company has made provisions, either in the fourth quarter of 2023 or post-closure,” noted BMCI Capital Global Research, a market research company.

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

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CityFibre has announced that they’ve completed their “primary build” of a new 10Gbps capable Fibre-to-the-Premises (FTTP) based broadband ISP network in the Suffolk (England) town of Bury St Edmunds. The network is now Ready for Service for over 16,000 homes, which is said to reflect about 81% of homes and most businesses in the town. […]

News

All of the UK’s mobile operators demonstrated impressive results, with EE continuing to lead the pack in most categories

This week, RootMetrics (Ookla) have released their bi-annual benchmarking study of UK mobile networks, measuring both performance and coverage of various mobile technologies.

RootMetrics, as ever, have been diligent in their methodology, conducting 634,942 tests in 16 of the UK’s most populous cities, all using the same Samsung smartphone model. These tests took place at various locations around the cities, including indoors and while driving, during both night and day.

The results were largely as expected. For the 21st time in a row, the UK’s largest mobile operator EE took home the UK Overall RootScore Award, having came first in all but one of the measured categories. The study put EE first in terms of overall reliability, accessibility, and network speed, with their lead in the latter category being particularly notable as roughly twice the median speeds of their nearest rival, Vodafone.

The only category in which EE did not come out on top was the Best 5G award, which was marginally stolen away by Three UK.

“Three once again registered good overall speed results in major cities, and the operator’s top combination of 5G availability plus performance allowed Three to edge past EE and earn Best 5G honours in the second half of 2023,” wrote RootMetrics in their release.

Vodafone also put in a typically strong showing, coming in second place behind EE in six out of seven performance categories. Virgin Media O2, meanwhile, demonstrated little change from their H1 2023 results, but nonetheless posted a very respectable performance figures.

How is 5G impacting the UK’s economy? Join the operators in discussion at this year’s Connected North conference live in Manchester

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Press Release

The Federal Communications Commission last week adopted updates to its rules for the 70 GHz, 80 GHz, and 90 GHz spectrum bands to facilitate broadband access on ships and aircrafts, in addition to backhaul service for 5G. This action will promote the efficient use of spectrum and will provide opportunities for the development of new broadband service options.

The Report and Order adopted today establishes new rules and updates existing rules for the 71–76 GHz, 81–86 GHz, 92–94 GHz, and 94.1–95 GHz bands. The new rules authorize certain point-to-point links to endpoints in motion in the 70 GHz and 80 GHz bands to facilitate the use of these frequencies for access to broadband services on aircraft and ships. They also permit the use of smaller and lower-cost antennas to facilitate the provision of backhaul service in the 70 GHz and 80 GHz bands. Finally, the Report and Order changes the link registration process in the 70/80/90 GHz bands to require certification of construction of registered links, which will promote more efficient use of this spectrum and improve the accuracy of the link registration database.

The Commission also adopted a Further Notice of Proposed Rulemaking to seek comment on the addition of another type of link as part of maritime operations otherwise authorized in the Report and Order, and the inclusion of Fixed Satellite Service earth stations in the light-licensing regime for the 70 GHz and 80 GHz bands.

This news was provided by the FCC.

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Openreach (BT) has launched a new special offer for broadband ISPs that discounts the connection charge on 10Gbps Cablelinks for FTTP and FTTC lines (GEA), nationwide, when taken on Layer 2 Switches (L2S) built before 31st December 2023 to just £499 +vat (the regular product cost is normally £1,270.58). The Cablelink (Ethernet) products are how […]

Network access provider Openreach has announced that they’ve started their rollout of a new Fibre-to-the-Premises (FTTP) based broadband ISP network in the town of Dover (Kent). Separately, they’ve also issued a progress update on their £4.5m project to deploy the same network on the Isle of Wight (just off the south coast of Hampshire). According […]

News 

The move comes as a measure to prevent foreign powers from having too much power and influence over British businesses 

Vodafone and the UK government have reached an agreement to implement “proportionate measures” after the government raised concerns over UAE-based e&’s growing stake in the UK operator. 

The government last week said that e&’s significant stake in the business poses a national security risk and ordered Vodafone to take mitigating action, the details of which have now been agreed. 

e&, previously known as Etisalat, is 60% owned by the Emirati government and has built up its stake in Vodafone in recent years, reaching 14.6% in April 2023.  

The increased stake made it Vodafone’s largest shareholder and gave e&’s CEO, Hatem Dowidar, a seat on Vodafone’s board.  

The decision immediately faced scrutiny from the UK government, with the cabinet office warning that the decision would enable e& to “materially influence policy at Vodafone”. 

Given the fact that Vodafone plays a strategic role in the UK telecommunications sector, the government mandated that a “national security committee” is to be set up at Vodafone, which will monitor any sensitive work that could have an impact on the UK’s national security. The government said that the measure is “necessary and proportionate” to “mitigate the risk to national security”.  

The UK government also ordered that it be notified if the relationship between the two companies changes.  

These new governmental interventions have been made under the recently triggered section 26 of the National Security and Investments Act, put in place to address any countrywide security concerns. 

“Where investment might impact the UK’s national security – for example through the acquisition of certain technologies or infrastructure – we will work with investment partners to minimise any risk,” said Oliver Dowden, Deputy Prime Minister in a statement made last week. 

“As part of our Critical National Infrastructure, telecoms is one such sector. Vodafone is also a particularly important company for the UK Government given its critical functions, including as a key partner in HMG’s Cyber Security Strategy,” he continued. 

Since that statement, the Cabinet Office confirmed this week that “proportionate measures to address any potential national security concerns” have been agreed by Vodafone, though further details as to what these measures are have not been announced. 

“We are pleased to have received clearance in our home market for our strategic relationship agreement with e& and for e& to take a seat on our board,” said Vodafone in a short statement. 

Keep up to date with the latest news of the merger by subscribing to the Total Telecom newsletter 

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News

The case begins today at the Competition Appeal Tribunal (CAT) in London 

 

BT is set to appear in court today to face a class action lawsuit that claims the operator had has “disproportionately overcharged” its historic landline customers. 

The claim, which is backed by over three million claimants, alleges that BT excessively overcharged customers by exploiting their dominant position in the market. It is based on an Ofcom market review in 2016/7, which found that landline-only customers were getting worse value for money than people who purchased bundled services including broadband and/or pay-TV.  

BT subsequently agreed to lower its prices in 2018, but the class action lawsuit was nonetheless launched in 2021 to provide compensation to affected customers. The scope of the lawsuit was later expanded to include BT customers who were paying for landline and broadband services separately and were given a worse price than those that purchased bundles. 

BT has denied that its prices at the time were “anti-competitive” and appealed accordingly. However, this appeal was rejected in May 2022, with the CAT allowing the case to go to trial. 

The lawsuit is momentous, as it is the first class action lawsuit to reach trial since 2015, when the law changed to allow collective legal action to be taken against breaches of competition law.  

The claimants are seeking £300–£400 per person in compensation.  

 “Time really is of the essence,” said lead claimant representative Justin Le Patourel. “More than 40% of our claimants are aged over 70, and over 150 of them are dying every day. It really is vital that BT should refund every one of them as soon as possible.”  

BT, meanwhile, remains firm that it has done nothing wrong and will defend itself in court. 

“We take our responsibilities to our customers very seriously and are dedicated to keeping our customers connected, while helping those who need it most,” said a BT representative in a statement. 

“This claim relates to a technical landline pricing issue which was resolved by Ofcom in 2017. We do not accept that our pricing was anti-competitive back then, and are committed to robustly defending our position at trial.” 

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

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