News 

Virgin Media O2 (VMO2) was the most complained about provider of fixed broadband, landline, pay TV, and pay monthly mobile services, according to a quarterly study from Ofcom 

UK communications regulator Ofcom has published a report on the number of complaints thy have received from telecoms customers over the last quarter (Q3 of 2023, July–September).  

Virgin Media topped the list for the most complained about service provider when it came to broadband, landline, and pay-TV services, which was a significant rise on the last quarter, notably after the investigation into their cancellation policy. In the broadband category, Virgin Media had the most complaints at 32 per 100,00 customers, followed by NOW Broadband with 18, and TalkTalk with 15. Sky had the least complaints with just 2 per 100,000 customers. 

VMO2, however, argues that these figures have been somewhat inflated by poor publicity earlier in the year related to an ongoing investigation from Ofcom, which encouraged more people to submit complaints. 

In July last year, it emerged that VMO2 had received a large number of complains about their cancellation policy, which customers argued made it intentionally difficult to cancel their services. A subsequent Ofcom investigation was launched into the issue, as the regulators rules state that cancellation policies “must not act as a disincentive for customers who wish to cancel their contract”. The investigation is still ongoing, and if it is found that they have breached the rules, then Ofcom will issue both a fine and remedial action. 

“As well as engaging fully with Ofcom’s ongoing investigation, we are investing in every area of our business to give our customers the best possible experience, with a real focus on resolving any issues at the first time of getting in touch and making it easier for them to get support when they need it,” said a VMO2 spokesperson. 

In pay-monthly mobile customers, O2 took the most complaints (6 per 100,000) followed by BT Mobile and Three with 4 and 5, respectively. 

In landline phone services, Virgin Media had 19 complaints, followed by NOW broadband, and TalkTalk. Sky again had the fewest complaints, with just2. . 

Finally, in pay-TV, Virgin Media again took the top spot with 20 complaints per 100,000 customers, while TalkTalk had the least with just one complaint per 100,000. 

Sky had the least number of complaints across all four categories.  

“Delivering the best Sky experience is not only underpinned by innovative products, unmissable content, and a reliable network, but by offering outstanding customer service,” said Devesh Raj, Sky’s Group Chief Operating Officer. 

“Having watched our teams across the business work with care and dedication every day, I’m very pleased that we’ve maintained our position as the least complained about provider yet again,” he continued. 

The full Ofcom report can be found here. 

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News 

Nokia’s 2023 financial results reflect the gloom of the current market, similar to Ericsson and AT&T’s results which have also been published this week 

This week, Nokia have released their financial results for Q4 and the full 2023 financial year. Net sales decreased 21% year-on-year in Q4, which the company put down to continuing macroeconomic uncertainty impacting operator spending.  Net sales for the year declined 8% year-on-year. 

“In 2023 we saw a meaningful shift in customer behaviour impacting our industry driven by the macro-economic environment and high interest rates along with customer inventory digestion,” said Pekka Lundmark, Nokia’s President and CEO in a statement. 

Despite Nokia’s success in the current climate, Lundmark warned that the same “challenging environment” of 2023 will continue into this year Nokia’s biggest revenue division, mobile networks, saw a 17% year-on-year decrease in sales to €2.5 billion in Q4, with Lundmark suggesting that 2024 will see operators remain cautious in terms of network investment. 

In Q4 cash flow performance was positive, generating €1.7 billion of free cash flow, and ending the quarter with net cash flow of €4.3 billion. 

Looking ahead at the next year, Nokia expects to see a comparable operating profit of between €2.3 billion to 2.9 billion 

Upon the news, Nokia shares had risen by 8.5%. 

These results come just a month after Nokia was struck a major blow when US operator AT&T signed a $14 billion 5G deal with Ericsson, significantly reducing Nokia’s presence in the US giant’s network. The deal negatively impacted Nokia share price, seeing it drop down 25% compared to the same time last year.  

Lundmark called the deal a “disappointing development” for Nokia, but added he believes Nokia has the right strategy to achieve a double-digit operating margin longer-term. 

Other key market players such as Ericsson and AT&T have also released their financial results this week, which also reflect the conservative nature of the market, with operators expected to heavily cut back on their purchases of 5G equipment. This has led to extensive cost-saving measures throughout the industry, with both operators and vendors implementing job cuts. 

 Back in February last year Ericsson announced it would cut 8,500 jobs. 

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News 

The formal investigation will examine the impact that the deal will have on market competition and what this could mean for customers 

The UK Competition and Markets Authority (CMA) has begun the first phase of its investigation into the proposed merger of mobile network operators Three UK and Vodafone UK. 

Prior to the investigation’s launch, the CMA collected pre-notification evidence and information from both companies, as well as early views from stakeholders. 

The investigation will last 40 days, aiming to identify whether the merger would cause ‘substantial lessening of competition’ and, if this is the case, where a more detailed investigation will be needed. After the 40 days, the CMA will publish its findings and next necessary steps. 

“This deal would bring together two of the major players in the UK telecommunications market, which is critical to millions of everyday customers, businesses and the wider economy,” said Sarah Cardell, Chief Executive of the CMA in a government statement. 

“The CMA will assess how this tie-up between rival networks could impact competition,” she continued.  

The high level of CMA intervention is necessary because, if the deal is given the greenlight, it will reduce the number of MNOs in the UK from four to three, with the newly merged company having a market share of 32.1%. 

The merger was agreed last year, with Vodafone taking a 52% in the new business and Three UK taking the remaining minority stake. Vodafone UK’s CEO Ahmed Essam will lead the business, and Three UK’s Chief Financial Officer (CFO) Darren Purkis will assume his same role at the new enterprise. 

The two companies emphasise that the merger will be beneficial to the UK telecoms market, giving them the freedom to jointly invest £11 billion in services and next generation wireless infrastructure.  

“Thanks to this transaction, 95% of the population and every school and hospital will be covered by standalone 5G by the end of the decade,” said Robert Finnegan, CEO of Three UK. 

The CMA is now inviting views by 9 February 2024 on how the merger could affect competition. 

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