Interview

At this year’s Connected Britain, we had the pleasure of speaking to Clive Selley, CEO of Openreach, to discuss the enormous acceleration of the UK broadband market in recent years and the current chatter around market consolidation 

“Some level of consolidation is inevitable,” explained Selley. “I see well over 100 altnets out there and that possibly is not what we are going to see in five years’ time. Some of the bigger altnets sound like they are interested in being consolidators. Some level of consolidation is likely and healthy, so I look forward to the developments in that space – but it’s highly unlikely to involve Openreach!” 

In the interview, Selley went on to describe the current state of the UK broadband market as “super healthy”, touching on the importance of Equinox 2 pricing offer and the growing focus on public education to promote the take-up of fibre services.    

“Let’s celebrate achievements of the industry over the last few years,” concluded Selley. “How far we have come in the last few years is incredible.”  

 You can watch the full Connected Britain interview from the link below: 

Openreach were a Gold Sponsor at this year’s Connected Connected Britain. To hear more about the UK’s broadband market, join us at Connected North in April next year – book your tickets now!

Also in the news:
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TalkTalk CEO steps down as de-merger continues
Broadway Partners, Cadence Networks, and SWS Broadband folded into Voneus

News

Federal Communications Commission (FCC) chairperson Jessica Rosenworcel (pictured) is set to reopen the ‘open internet’ debate later this week

Earlier this month, Democrat Anna Gomez was finally confirmed as the new FCC Commissioner, ending the deadlock over the agency’s vacant fifth seat that had been immovable for the last two years.

Upon taking office in November 2021, President Joe Biden had quickly indicated his preferred candidate to fill the vacant fifth seat on the FCC as lawyer Gigi Sohn. However, Sohn quickly found herself facing fierce opposition from Republicans within the Senate, with some arguing she “lacked the impartiality to sit on the FCC”.

Now, with the seemingly less objectionable Gomez confirmed to be taking on the position on the FCC, the Democrats once again have a three-to-two majority within the agency, potentially opening the door for a number of reforms.

One such topic that appears likely to be up for debate once again is the matter of net neutrality, with FCC chairperson Jessica Rosenworcel set to release a full proposal on the matter for public comment tomorrow. After a three-week period, the proposal will then be brought to a vote within the FCC itself, which, if successful, would begin the lengthy process of drafting new regulatory rules.

These draft rules would then face further public scrutiny, as well as a final vote by the FCC, before being signed into law.

Net neutrality is the principle that all internet traffic should be treated equally by the internet service provider regardless of content. The concept was a key feature of the Obama administration but was overturned under the Trump government in 2018.

The proposal itself reportedly seeks to reclassify broadband services under Title II of the Telecommunication Act, designating them as a utility and therefore bringing them under the FCC’s regulatory control, just like existing telephony services. This would give the FCC the power it needs to regulate service providers effectively and enforce net neutrality.

However, Rosenworcel says the FCC will also use a “light touch” approach similar to that introduced in 2015, which would make broadband providers exempt from around 700 regulations typically enforced on companies subject to Title II of the Telecommunication Act. These measures, it is hoped, will make the net neutrality proposition more palatable for the concept’s detractors.

“In the wake of the pandemic and the generational investment in internet access, we have a window to update our policies to make sure that the internet is not only open, but fast and fair, safe and secure,” she said. “Now is the time for our rules of the road for internet service providers to reflect the reality that internet access is a necessity for daily life.”

None the less, the proposition is still likely to face significant lobbying from the US broadband industry, which lobbied hard in 2017 and 2018 to see net neutrality rules repealed.

Want to keep up to date with all of the latest US telecoms news? Join the industry in discussion at Connected America 2024 live in Texas

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Press Release

After many years of regulatory, standardization and technical implementation activities, the United States’ dynamic, three-tiered, hierarchical framework to coordinate shared use of 150 MHz of spectrum in the 3.5 GHz CBRS (Citizens Broadband Radio Service) band has finally become a commercial success. Although the shared spectrum arrangement is access technology neutral, the 3GPP cellular wireless ecosystem is at the forefront of CBRS adoption, with more than half of all active CBSDs (Citizens Broadband Radio Service Devices) based on LTE and 5G NR air interface technologies.

LTE-based CBRS network deployments have gained considerable momentum in recent years and encompass hundreds of thousands of cell sites – operating in both GAA (General Authorized Access) and PAL (Priority Access License) spectrum tiers – to support use cases as diverse as mobile network densification, FWA (Fixed Wireless Access) in rural communities, MVNO (Mobile Virtual Network Operator) offload, neutral host small cells for in-building coverage enhancement, and private cellular networks in support of IIoT (Industrial IoT), enterprise connectivity, distance learning and smart city initiatives. 

Commercial rollouts of 5G NR network equipment operating in the CBRS band have also begun, which are laying the foundation for advanced application scenarios that have more demanding performance requirements in terms of throughput, latency, reliability, availability and connection density – for example, Industry 4.0 applications such as connected production machinery, mobile robotics, AGVs (Automated Guided Vehicles) and AR (Augmented Reality)-assisted troubleshooting.

Examples of 5G NR-based CBRS network installations range from luxury automaker BMW Group’s industrial-grade 5G network for autonomous logistics at its Spartanburg plant in South Carolina and the U.S. Navy’s standalone private 5G network at NAS (Naval Air Station) Whidbey Island to mobile operator Verizon’s planned activation of 5G NR-equipped CBRS small cells to supplement its existing 5G service deployment over C-band and mmWave (Millimeter Wave) spectrum.

SNS Telecom & IT’s report forecasts that annual investments in LTE and 5G NR-based CBRS RAN, mobile core and transport network infrastructure will account for nearly $900 Million by the end of 2023. Complemented by an expanding selection of 3GPP Band 48/n48-compatible end user devices, the market is further expected to grow at a CAGR of approximately 20% between 2023 and 2026 to surpass $1.5 Billion in annual spending by 2026. Much of this growth will be driven by private cellular, neutral host and fixed wireless broadband network deployments, as well as 5G buildouts aimed at improving the economics of the cable operators’ MVNO services.

The UK media and telecoms regulator, Ofcom, has today revealed more details about their proposed plan to auction off a large chunk of millimetre wave (mmW) radio spectrum frequency across the 26GHz and 40GHz bands, which will be used by mobile operators to deliver even faster 5G (mobile broadband) services in urban areas. At present […]

News 

From March, CEO Tristia Harrison will become a non-executive director of the new independent wholesale platform 

The CEO of TalkTalk, Tristia Harrison, is stepping down from her role as the firm prepares for its demerger. 

Last week, the Broadband ISP informed staff of their plan to demerge the business into three separate entities: consumer, business and wholesale. 

Harrison, who has been in the role since 2017, will oversee the group’s breakup, before handing over leadership of the wholesale unit to Tom O’Hagan, the consumer unit to Adam Dunlop and former Managing Director of TalkTalk Direct, and for now, it appears that Ruth Kennedy with continue to run the business arm. 

The separation is expected to be effective from 1st November this year, with the legal demerger is aiming to be completed by 1st March next year. 

“The demerger will allow each company to focus on meeting the needs of their distinctive customer bases, eliminate operational complexity, and support balance sheet refinancing and investment on a standalone basis,” said the company in a press release. 

For some time, TalkTalk have mulled the break-up of the group as debt pressure has grown, which now stands at over £1.1 billion. The deadlines to service these debts are quickly approaching, with TalkTalk carrying a £330 million revolving credit facility that matures next November, as well as £685 million of debt that matures in February 2025. 

The cost of refinancing these debts have pushed the firm to reconsider its options. 

Last year, there was chatter around a proposed £3 billion takeover by VMO2, which could have solved TalkTalks’s problems, but this did not materialise. The firm is hoping to fetch £150 million from its business arm, for which Daisy Group is currently the frontrunner, after talks with Sky collapsed.  

How will the TalkTalk demerger affect the UK broadband market? Find out at Connected North 2024 – book your tickets now! 

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Vodafone’s Andrea Dona: The UK has fallen behind on 5G, but not lost the race
BT outlines timetable for analogue landline switch-off 
Connected Britain 2023: the award winners   

News

The UK’s Public Switched Telephone Network (PSTN), which supports analog landline services, is planned for closure by 2025

This week, BT has shared more details about the way in which it will gradually shut down the nation’s PSTN and rollout its replacement Internet Protocol (IP)-based Digital Voice service.

Having successfully completed shutdown trials earlier this year in the East Midlands, Yorkshire, and Northern Ireland, BT says it is now ready to continue the process in a phased manner, region by region, aiming for a nationwide shutdown of the PSTN in 2025.

BT’s Digital Voice Rollout plan:

Autumn 2023

North West
London

Spring 2024

West Midlands
South East
Wales
East Anglia

Summer 2024

North East
Scotland
South West

The UK’s PSTN is best understood as BT’s old copper network that facilitates analogue landline phone calls throughout the country, though it can also support some other older technologies too, such as CCTV and alarm systems.

In recent years, however, this network is increasing becoming obsolete, as more customers prefer communicating via mobile services, messaging apps, and internet calls. All of these services far outclass those delivered via PSTN, being more reliable, more flexible, and even mor energy efficient than their copper counterpart.

As a result, PTSN closures are currently taking place in developed markets all over the world, with markets like the Netherlands, Germany, and Estonia having already completed the process of shifting to digital voice.

Indeed, BT itself had been planning this phase out for a number of years and, in fact, had originally initiated the process on a nationwide basis last year. However, these plans were halted in March when Storm Eunice caused power cuts for some customers, temporarily leaving them unable to contact emergency services over their new IP-based voice service.

With the newly announced schedule, BT is restarting this process, but is being notably more cautious in its planning, noting that it will not proactively switch customers to digital voice in cases where it believes additional support will be needed.

This includes customers with a healthcare pendant that may currently operate on the PSTN, customers who only use landlines, those with no mobile signal, those over 70 years of age, and those that have disclosed any additional requirements.

The operator is also holding events around the country and taking out numerous ads to highlight that the shift is taking place, encouraging customers to get in touch if they are concerned about what the switch off may mean for them.

“Through the work with our Digital Voice Advisory Group and our regional engagement, we’ve held 40 events, placed local radio and newspaper ads and met over 4,000 customers in person,” said Lucy Baker MBE, All-IP Director, BT Consumer.

“We understand that any change can be unsettling, and we’re here to support our customers every step of the way. First-hand experience shows that once people have the facts and have spoken to one of our advisors, they feel confident to make the switch.”

For vast majority of customers, however, the shift to digital voice will be relatively painless, simply meaning they will plug their phone handset into their broadband router rather than the traditional wall socket.

How will the PSTN shutdown affect customrs across the UK? Join the UK’s telecoms ecosystem in discussion at Connected North 2024

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Customers of BT’s national UK network of free and premium public WiFi hotspots, which are currently branded as BT Wi-Fi, have noted that the operator recently started to inform users that the service is shortly going to be rebranded under the EE WiFi name. The move is part of BT’s wider branding shake-up, which was […]

The Zayo Group, which runs a large metro and long-haul fibre optic network that delivers global reach, has just announced that their network capacity across the United Kingdom and Europe has been “supercharged” by becoming fully 400G (Gbps) enabled. Next stop.. 800G! Zayo’s European network is currently built on 5 diverse subsea cables, 3 of […]

News

The mergers come alongside a new cash injection of £250 million from Macquarie Capital, Israel Infrastructure Fund (IIF), and Tiger Infrastructure Partners

This week, Macquarie Capital, IIF, and Tiger Infrastructure Partners have jointly announced that Broadway Partners, Cadence Networks, and SWS Broadband will all be merged into Voneus, effective immediately.

The deal will also see the trio of investors inject up to £250 million into Voneus, with the debt fund raise led by Macquarie.

Voneus primarily focusses on serving rural customers in the UK with superfast broadband via fixed wireless access (FWA) and fibre-to-the-premises (FTTP), having identified roughly 200,000 rural premises that could benefit from a technology upgrade. These lofty goals, alongside the company’s participation in the UK government’s Project Gigabit, have helped Voneus to attract significant investment in recent years, most notably from Macquarie in 2019 (further increased in 2021) and IIF 2021.

But despite the scale of the company’s ambitions, Voneus currently only covers roughly 10,000 premises in England and Wales.

Now, the company is set to receive a much-needed boost via a merger with Cadence Networks and SWS Broadband, two broadband providers both owned by Rural Broadband Solutions Holdings, which, in turn, is majority owned by Tiger Infrastructure Partners.

As a result of the deal, Tiger Infrastructure will become a major shareholder in Voneus.

Alongside directly absorbing SWS and Cadence Networks, Voneus will also merge with Broadband Partners, a fibre altnet that Tiger Infrastructure and Macquarie have now rescued from administration.

Launched in 2016, Broadway Partners is fibre altnet that once intended to connect up to 250,000 homes and businesses by 2025, focussing mainly on rural areas in Scotland and Wales. However, against the economic background of rising costs and soaring interest rates, the company has struggled to remain afloat in recent years, finally entering administration in May.

Two weeks ago, rumours began to circulate that Macquarie and Tiger Infrastructure Partners were seeking to acquire Broadway – rumours that now appear to have come true.

Exactly how many customers this trio of mergers will add to Voneus’ national footprint remains unclear, though Broadway Partners administration filing suggested they currently covered around 11,000 premises.

The scale of the mergers can be somewhat inferred, however, by Voneus’ new rollout goals, with the company now aiming to serve around 350,000 premises across the UK via both FTTP and FWA.

“This is a very exciting time for Voneus, and for our new partners, shareholders, and the communities we serve,” said Christopher Traggio, CEO of Voneus Broadband. “We have the backing of our shareholders to accelerate our roll-out plan, which we know will make a positive impact as we all share the same focus to deliver innovative broadband solutions to communities across the UK.”

“Welcoming SWS Broadband, Cadence Networks and Broadway Partners into Voneus provides us with even more opportunities to support businesses, individuals, and communities to thrive – fostering economic development, education, and communication to help improve the overall quality of life no matter where they are from,” he added.

In recent years, spurred by on by favourable regulation and government subsidies, the UK’s fibre market has grown rapidly, spawning over 100 altnets across the country. More recently, however, the strained economy has seen investment slow and costs rise, inevitably steering the industry towards consolidation. This combination from Voneus is one of the first significant tie-ups in this regard, but it is unlikely to be the last.

Want to keep up to date with the latest developments in the world of telecoms? Subscriber to receive Total Telecom’s daily newsletter here  

Also in the news:
Vodafone’s Andrea Dona: The UK has fallen behind on 5G, but not lost the race
Zegona in talks to buy Vodafone Spain
Connected Britain 2023: the award winners  

News

400G connectivity is increasingly becoming the standard for businesses worldwide 

 

Zayo Group, a leading global communications infrastructure provider, has announced that its network in Europe is fully 400G enabled. 

The upgraded network will allow businesses, carriers, datacentres, and hyperscalers to gain access to high bandwidth, low latency connectivity throughout Europe.  

Zayo’s European network is connected to five subsea cables. Three of these are owned and operated by Zayo, powering 2,500 on-net buildings, 125 core points-of-presence , and 16 metro fibre markets. 

“Our customers are increasingly taking advantage of bandwidth-intensive applications to keep up with the competition – from AI and IoT to advanced analytics – which require significantly higher bandwidth and low latency connectivity,” said Zayo’s European managing director Yannick Leboyer in a statement. 

“Our ultimate goal is to ensure our global clients can remain on the cutting edge. That’s why we’re committed to the continued enhancement and modernization of our network to provide the fastest, most reliable connectivity.” 

Research from Omdia, in partnership with Ciena, showed that companies are increasingly shifting to 400G services, with 74% relying on high-capacity services like 400G connect with enterprise locations or cloud providers, and 58% rely on it for data centre-to-data centre communication. 

“Customers are now starting to buy 400G wave services across Europe, turning this from a niche to a real market,” said Will Rhodes, CMS Consultant at Ciena. 

“They are looking to achieve the highest capacity to support their business outcomes whilst delivering on their sustainability goals. 400G will support the ever-increasing data demand driven by new applications such AI and the aggregation of Machine-to-Machine connectivity.” 

Zayo’s North American network is scheduled to be fully 400G enabled by the end of next year. 

Earlier this year, Zayo’s Operations Vice President James Ovel spoke with Total Telecom following the installation of its new subsea cable, Zeus, connecting the UK to mainland Europe. Zayo claims Zeus to be the most secure subsea cable in the world, with the company noting its interesting deployment process, which included detonating a number of discovered sea mines from World War II. 

Want to keep up to date with the latest developments in the world of telecoms? Subscriber to receive Total Telecom’s daily newsletter here   

Also in the news:
Orange launches new subsea cable vessel
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Vodafone’s Andrea Dona: The UK has fallen behind on 5G, but not lost the race