A new Attest survey of 1,000 UK broadband bill payers, which was commissioned by full fibre ISP Hyperoptic and conducted between 25th to 29th August 2023, has claimed that 25% of broadband customers feel furious, upset or confused after speaking to their internet provider, yet just 5% are in the process of switching. The study […]

News 

Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) have told the Telecom Regulatory Authority of India (TRAI) that so-called over-the-top (OTT) companies like Netflix should be forced to subsidise the telco networks they so rely on  

Telecom operators in India are calling on the government to make major internet and technology companies help pay for the network infrastructure that they use to provide services. 

The proposition to TRAI was created by Reliance Jio, the country’s largest operator, with more than 450 million subscribers. In the proposal, Jio suggests that tech companies who use a large chunk of the network’s traffic should provide a contribution towards the costs of the networks based on factors including turnover, user numbers, and traffic consumption. 

“We suggest that TRAI should recommend for OTT providers contributing in the network development and building a backbone for the country,” said the company. “In this effort, the Other OTT service providers should also be required to pay their fair share.” 

Jio, which reportedly carries 55% of India’s total data traffic, claims that there is a “near consensus” among operators globally on the subject. 

Indeed, the so-called ‘fair share’ debate has been raging in Europe and elsewhere for many months now, receiving large scale lobbying by the operators directly, as well as via associations like the European Telecommunications Network Operators’ Association (ETNO) and the GSMA.  

These calls to action have received a mixed response from international governments, with some – like Spain – supporting the concept, while others – such as Denmark, Sweden, and Germany – warning the European Commission not to be too hasty in ruling in favour of the telcos. 

In the case of India, it should come as no surprise that both of Jio’s major competitors, Airtel and Vi, support the proposed payments, with the former suggesting that only the largest tech companies should be charged. 

Tech companies, naturally, have criticised the suggestion of a ‘fair share’ payment, arguing that their services have boosted operator revenues and that covering network costs would reduce the available capital for innovation. They also warn that such measures could lead to price increases being passed to consumers. 

On a more fundamental level, the tech companies rightly point out that any forced payment would essentially allow the telcos to be paid twice for delivering the same data – once by the content creator and once by the consumer.  

There are also net neutrality implications to consider, with the payments potentially infringing on the principle that requires all internet traffic to be treated equally. 

“A mandatory / mandated collaborative framework between OTT service providers and licensed TSPs [telecoms service providers] may lead to the creation of a system where TSPs [telecommunications service providers] can demand compensation from OTT service providers in the form of revenue sharing or network usage fees,” said Asia Internet Coalition, an industry association group that represents some of the biggest tech companies including Apple, Amazon, Microsoft, Google, Meta, Netflix, and Spotify. 

“This will impact net neutrality and consumer well-being in the long run. More importantly, a revenue sharing or network usage fees model will likely violate the principle of net neutrality.” 

Jio, however, have been quick to refute this claim, saying that “such an approach will be within the principles of Net Neutrality and there will be no impact on prevention of unreasonable discrimination of internet traffic based on content, nature of service etc.”  

If the ongoing back-and-forth on the matter in Europe is anything to go by, the ‘fair share’ discussion in India still has a long way to go before a satisfactory conclusion can be reached. 

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Also in the news:
Reliance Jio seeks $2 billion funding for 5G rollout
Vodafone backs Amazon’s nascent LEO satellite business Project Kuiper
Altafiber raises $600m in funding for fibre expansion 

News

The move will see nextfibre’s footprint expanded by around 175,000 premises in the East of England

Today, nexfibre has announced that it will acquire UK altnet Upp in a deal facilitated by its partner Virgin Media O2 (VMO2).

The financial details of the deal were not revealed, but the partners said the transaction would be all-cash, with VMO2 making the initial purchase and carrying out integration of Upp’s network, before selling it on to nexfibre once integration is complete. VMO2 suggests that this process should take around a year.

Founded in 2021, Upp quickly secured £1 billion in finding from investment firm LetterOne to rollout a fibre broadband network in the East of England. The rollout was initially targeted to cover 50 towns, spanning roughly 300,000 homes, by 2022.

However, the rollout has been slower than predicted, with Upp’s network live in just 24 towns, covering, according to today’s announcement, around 175,000 homes. These homes will now be added to nexfibre’s own growing footprint, with the companies noting that there is currently minimal overlap between their existing networks.

nexfibre is a relative newcomer to the UK’s wholesale fibre scene. Created last summer as a joint venture by VMO2’s owners Liberty Global and French investment firm InfraVia Capital Partners, the company has ambitions of cover up to 7 million UK premises with fibre, 5 million of which it hopes to achieve by 2026. Liberty and InfraVia Capital say they will invest around £4.5 billion into the business to facilitate this rapid rollout.

In terms of the East of England, nexfibre noted that the acquisition of Upp will actually increase the fibre investment in the region, with the company pledging to invest £350 million to pass over 500,000 additional homes with full fibre by 2026.

“Our acquisition of Upp’s network assets represents an important step as we continue to build a world class fibre network along with our wholesale partner Virgin Media O2.  At nexfibre, we are on a mission to build and expand our network in suburban and semi-rural areas, closing the digital divide and boosting local economies. Upp is a high-quality regional fibre network in the East of England and will accelerate our rollout in an area where we expect to invest more than £350 million by 2026,” said Andrea Salvato, Chairman of nexfibre.

This deal arguably marks the first major altnet acquisition by another network operator in the UK, a market that has seen the launch of over a hundred independent fibre providers in recent years. More recently, however, funding has begun to dry up, leading many to suggest that market consolidation on a massive scale is inevitable.

Indeed, for Matthew Howett, Founder & CEO of Assembly Research, the acquisition of Upp could be seen as the “first domino to fall” in a coming cascade of market consolidation.

“Today’s announcement could well be the first domino to fall in terms of an altnet being bought by one of the big players. The UK broadband market is set to enter an era of scaled connectivity challengers, after first a period of dominance from the incumbent followed by a proliferation of altnets,” commented Howett. “Altnets are a key piece of the connectivity jigsaw, but consolidation has been inevitable as new sources of funding dry up, focus on take-up intensifies and investors increasingly demand returns.”

How is the UK’s fibre market evolving in 2023? Join the operators in discussion at Connected Britain, the UK’s largest digital economy event

Also in the news:
“Open dialogue for 5G.”
German fibre coverage hits 36%
Potential ‘remedies’ for Spain’s Orange–MásMóvil merger draw in Digi 

Startup Story

Join Opious on stand S10 at Connected Britain, taking place at the ExCel in London on 20–21 September

Opious are a 100% technology and carrier-agnostic data connectivity provider. We offer the full range of connectivity solutions including fixed line, microwave, satellite, and mobile data, as well as rapid deployment services, Wi-Fi, and cellular surveys and cellular boosting technologies. Our field services operation covers the UK, mainland Europe, and the US, giving customers access to a range of mobile data, satellite, and bonding services for site launches, disaster recovery, and corporate events.

What is your USP?

We are solution led, unrestricted by technology or carrier, and we identify the optimal solution for the customer and provide them with a personalised service to ensure that they are kept informed on available options, progress of installations, support and billing. Likewise, we build long lasting relationships with our carrier base, promoting their technologies in an unbiased and impartial way to all customers.

What is your relationship with the telecom sector?

We have a range of entry points into the market: we have distribution relationships in place for some technologies and direct relationships in place for others. We look to establish the most cost effective and beneficial way forward for each project.

How have you got to your current stage of development?

Honesty, integrity, and a willingness to always do what is right. We have had tremendous, good fortune in the team of people who have joined Opious, the customers we have attracted, and the capabilities of our supplier base to deliver outstanding services.

Why did you set up the business?

As the head of IT for what was to become Amazon logistics, I was tasked with supporting the global expansion of their physical infrastructure on extremely aggressive timescales. The primary blocker for the business was our ability to obtain robust connectivity within timescales that aligned with the operational deadlines. Traditional fibre connectivity wasn’t an option because the lead times would have significantly delayed the business’ ability to deliver on customer promise, therefore I investigated alternative technologies. Microwave proved to be a reliable and cost effective alternative, enabling us to reduce timescales to approximately 20 days. Knowing the growth plans for the department, I took the opportunity to start the business, partnering with all of the UK microwave WISPs before expanding into fixed line, satellite, and mobile data.

We have a current portfolio of around 200 carriers and this is increasing in line with customer requirements and technological advancement. We are very much solution led, offering customers access to unparalleled choice in an honest and transparent way.

Who inspired you? Do you have a mentor?

I have been fortunate enough to have had access to multiple mentors throughout my career and where possible I still actively seek advice and input from industry peers and other business leaders as the opportunity arises.

What does the future hold for your business?

I am honoured to find myself surrounded by a growing team of intelligent, motivated and, most importantly, inspiring people, who amaze me every day with their creativeness and unrelenting desire to do what’s right for our customers.  Our goal is to be our customer’s best supplier and our supplier’s best customer, creating a virtuous ecosystem where the customer gains access to the optimal solutions at the best price, the supplier grows their business, and we get to deal with people we like on both sides.  For me, the future of Opious is unknown but exciting, with a steady stream of new technologies, new geographies, and new carriers for the team to integrate and a mass of customers that we can offer real choice to.

Company CV 

HQ
Cranfield Innovation Centre, University Way, Cranfield, Beds MK43 0BT

Number of employees
30+

Last fund type
Privately funded

URL
https://www.opious.com/

Founders / Linkedin Address
https://www.linkedin.com/company/opious/

Join Opious and a host of start-ups at Connected Britain, the UK’s largest digital economy event

Also in the news:
“Open dialogue for 5G.”
German fibre coverage hits 36%
Potential ‘remedies’ for Spain’s Orange–MásMóvil merger draw in Digi 

The UK Government appears to have softened its controversial stance on end-to-end encryption (E2EE) in the looming Online Safety Bill (OSB), which threatened to undermine the security of internet messaging and communication platforms by allowing private messages to be filtered and moderated. The confusing and ugly mess of legislation that is the OSB, which began […]

News

STC announced the investment on Tuesday after trading closing 

STC Group, Saudi Arabia’s largest telecoms operator, has acquired a 9.9% stake in Telefónica worth €2.1 billion, becoming the firm’s largest shareholder. 

The deal includes the acquisition of 4.9% of Telefonica’s shares, with the remaining 5% stake derived from various financial instruments. The Saudi firm plans to secure voting rights for the 5% interest held through financial instruments after receiving regulatory approvals, the company said. 

STC have confirmed that they do not intend to acquire a majority stake in Telefónica, but rather see the move as a “compelling investment opportunity to use our strong balance sheet whilst maintaining our dividend policy,” according to a statement by STC CEO Olayan Alwetaid in a company press release. 

It is no coincidence that STC’s stake stops just shy of reaching 10%, since any foreign investment of 10% or greater in Telefónica would require the approval of the Spanish Council of Ministers. The Spanish government prohibits the foreign acquisition of over 10% in firms active in sectors related to public order, public security, or public health without prior governmental authorisation. It also prohibits acquisitions of less than 10% if this would result in management of the company. 

 “Telefónica and STC Group share many similarities, with a vision to use technology to connect people and a strategy to drive growth. This long-term, significant investment by STC Group is a continuation of our growth strategy, as we invest in vital technology and digital infrastructure sectors across promising markets globally,” said Mohammed K. A. Al Faisal, chairman of STC Group. 

“Our investment in Telefónica demonstrates our confidence in Telefónica’s leadership, its strategy and its ability to create value. As long-term, supportive shareholders, we are committed to strengthening our partnership,” added Alwetaid. 

STC have made a number of investments across the tech and telecoms sectors in recent months, both within Saudi Arabia and globally. Most recently, STC completed the acquisition of tower assets from Netherlands-based United Group in a deal worth €1.22 billion.  

It is also worth noting that STC is not the only Middle Eastern, state-owned telco investing in major European operators. UAE-based e& has slowly been growing its stake in Vodafone Group since 2022, most recently announcing their intention to increase their equity in business to 20%. 

Want to keep up to date with all of the latest international telecoms news? Sign up for Total Telecom’s daily newsletter 

Also in the news:
CityFibre’s network rollout passes 3 million UK premises
Vodafone to begin UK’s largest Open RAN rollout
Potential ‘remedies’ for Spain’s Orange–MásMóvil merger draw in Digi  

News 

The rebrand was presented to employees and partners this week at the firm’s headquarters in The Hague 

From 5 September, the T-Mobile brand will be totally withdrawn from the Dutch market and be replaced by Odido.  

The operator says its intention with the rebrand is to refocus on putting customer service and new subscription services at the heart of its operations, in an effort to set themselves apart from the competition. 

Specifically, the firm will aim to increase personalisation, access to fibre services, unlimited data packages, and education programmes. 

The name change comes after the company was acquired by two private equity firms – Warburg Pincus and Apax – early last year. Since then, T-Mobile has not been part of the Deutsche Telekom group, which operates as T-Mobile in numerous markets around the world.  

“Shake off who we were. The T-Mobile company in the Netherlands no longer has anything at all to do with that brand and its parent company, Deutsche Telekom, in terms of ownership,” said CEO Søren Abildgaard. 

Odido currently has around 8 million customers and will become the largest provider of 100% fibre optic connectivity in the country, providing service to over 6 million households. 

“All telecom providers now do more or less the same thing. And if you dare to look critically at your own products and services, you realize that things have to be different. The average customer satisfaction of our industry is many times lower than in other industries,” said Tisha van Lammeren, Chief Commercial Officer in a press release. 

“Over the past 18 months we have worked very hard on this new positioning, rebranding and new products and services. Our ambition is to become and remain the ‘customer champion’ with the highest customer satisfaction in the Netherlands. This means that we have to get to work taking customer friendliness to a new level. We have a clear mission to get there. 

To hear more about the global telecoms market, join us at this year’s Total Telecom Congress, 21-22 November 

Also in the news:
“Open dialogue for 5G.”
German fibre coverage hits 36%
Potential ‘remedies’ for Spain’s Orange–MásMóvil merger draw in Digi 

Legal firm Trenches Law, which works with various UK full fibre broadband (FTTP) operators to help them simplify and manage the complex wayleave process (legal land/property access agreements), looks set to expand the features they can offer client networks by seeking Code Powers from Ofcom. Normally it’s the network builders themselves that seek Code Powers from […]

The CEO of UK ISP Zen Internet, Richard Tang, has today published another informative video interview, this time with the CEO, Graeme Oxby, of London FTTP broadband network builder CommunityFibre. The interview covers take-up, coverage, consolidation, pricing, social tariffs and much more. The operator, which also owns ISP Box Broadband – a full fibre network […]

Network operator MS3, which is deploying a 10Gbps capable full fibre (FTTP) broadband ISP network to cover 535,000 premises across the North of England by the end of 2025 (here), has today announced that several ISPs managed under the central Telecom Acquisitions (TAL) group have gained access to their network. The Horsham-based Telecom Acquisitions is […]