The perhaps tediously named telecoms infrastructure provider Altnets, which supplies things like optical fibre cable and active equipment to UK FTTP broadband builders, has announced that they’ve been shortlisted as a finalist for the “Growth Business of the Year” category in the Lloyds Bank British Business Excellence Awards 2023. According to the awards page, the […]

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Starlink, the satellite constellation arm of Space X, launched its business solutions early this year

Spanish telco Telefónica has signed a deal with Starlink to become its worldwide partner, through its global business division Telefónica Global Solutions (TGS).

The deal will allow TGS to access Starlink’s Low Earth Orbit (LEO) satellite constellation, incorporating the satellite services into its existing global portfolio of connectivity services.

The Starlink service can deliver high speed internet (up to 350 Mbps downstream) across the world, including to rural and hard-to-reach areas.

The service is focused on the business sector and “[allows] them to connect to existing networks, thus providing a complement to their connectivity services in stores, operational centres, warehouses, and other places,” according to Rafael Arturo González, Country Director for Movistar Empresas Mexico.

Telefónica debuted this Starlink offering in Mexico in June this year but is now extending the service to five other key markets– Chile, Colombia, Peru, Brazil, and Spain – of which the latter two are two of its four core markets.

“The satellite industry is undergoing an unprecedent revolution,” said Julio Beamonte, CEO of Telefónica Global Solutions.

“Satellite enables connectivity projects to be executed very quickly and efficiently. At Telefónica Global Solutions, we have been offering added value satellite solutions for many years and with this partnership, we start working hand in hand with Starlink Enterprise to offer new generation solutions to our customers.”

Starlink connectivity is intended to be used in addition to existing connectivity solutions rather than to replace them. In Mexico currently, the service uses a subscription-based model which is priced between MXN 1,000–5,000 ($52.52–292.60) per month. It is uncertain whether the same subscription-based the model with be used in other countries.

This is not the first satellite deal that Telefonica has signed in recent months. Last month, the firm signed a deal with Hispasat to resell their rural satellite broadband to isolated areas of Spain, and Telefonica has also partnered with Spanish satellite group Sateliot to connect the Internet of Things (IoT) through satellite and 5G technology.

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Also in the news:
Charlie Ergen’s Dish and Echostar set to merge
TDS considers ‘strategic alternatives’ for UScellular
Rakuten Mobile CEO Tareq Amin makes unexpected exit

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Safaricom confirmed today that Michael Joseph, founding CEO and board director, resigned on 1st August. 

Joseph had been with Safaricom since 2000, serving as CEO from 2000 to 2010 and in various other positions including general manager and, most recently, chairman of the board. 

Under his direction, Safaricom grew from having a subscriber base of less than 18,000 in 2000, to over 17 million upon his retirement as CEO in 2010. This achievement made Safaricom ‘the most successful company in East Africa’, according to the  board in a statement. The company was also taken public in May 2002 under his leadership. 

Joseph oversaw the launch of company innovations such as M-PESA in 2007, a mobile-based money transfer service. The resource has proved to be a huge success, seeing over 1 billion monthly transactions, and helping to increase Kenya’s financial inclusion from 26% in 2006 to 84% in 2021. 

“Michael’s deep foundation and connection with the community is what brought about the phenomenal growth, development of innovative products and services, making Safaricom a part of the society. During his tenure, Michael oversaw highly successful launch and phenomenal growth of M-PESA and its related services,” said the board. 

Joseph leaves Safaricom to focus on other areas of his life, including the continuation of his role as chairman of Kenya Airways.  

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:
Pair of subsea cables severed off the west coast of Africa
Airtel launches first 5G fixed wireless access service in India
Airtel Business passes 20 million IoT connections 

Openreach’s (BT) long road toward completely switching off their old copper-based Public Switched Telephone Network (PSTN) in December 2025 is set to hit a major milestone on 5th September 2023, when it places a UK wide “stop sell” on sales of new Wholesale Line Rental (WLR) and related broadband ISP products. The move, which will […]

Alternative network provider County Broadband, which is working to deploy a new gigabit speed Fibre-to-the-Premises (FTTP) network to 500,000 rural premises across the East of England by the end of 2027, has today launched the ‘Hypercharged Foundation‘ – offering grants to support community-centric causes in their build areas. The full fibre provider, which is supported […]

Some 14,000 homes and businesses in the Kent (England) town of Sevenoaks will soon benefit after Netomnia, supported by UK ISP YouFibre, started a £4.2m project to deploy their 10Gbps capable Fibre-to-the-Premises (FTTP / XGS-PON) broadband network in the area. The operator has contracted civil engineering firm GNS Communications to roll out its broadband infrastructure […]

Infracapital-backed broadband ISP and AltNet WightFibre, which is deploying a new Fibre-to-the-Premises (FTTP) network across the Isle of Wight – just off the South Coast of Hampshire in England, has today issued their first coverage update in a long time and confirmed that they now cover 57,000 premises (up from 40,000 in July 2022). The […]

American credit rating agency Fitch has downgraded TalkTalk’s Long-Term Issuer Default Rating to B- from B and put the UK broadband ISP on Rating Watch Negative (RWN). The move follows recent confirmation that the internet provider, under pressure from its debts, is to be broken up and sold off in pieces (here). The latest Fitch […]

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The merger will see the two firms reunify for the first time since EchoStar was spun off from Dish 15 years ago 

Reports from the Wall Street Journal earlier today suggesting that US firms Dish Network and EchoStar are close to finalising a merger deal have since been confirmed.  

Earlier last month, Total Telecom reported that the two firms had hired advisors to iron out the details of the merger, which is now set to be completed by the end of the year. 

Chairman and founder of both companies, Charlie Ergen, said the move will provide Dish Network with the financial freedom it needs to build a nationwide wireless network that is able to compete with the likes of AT&T, T-Mobile, and Verizon.  

“This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business,” said Ergen. 

In recent years, Dish has been rapidly evolving from a pure satellite television operator to a major player in the wireless market. Dish agreed to purchase Sprint’s pre-paid mobile brand Boost as part of the mega-merger between T-Mobile and Sprint back in 2020, in a bid to become the country’s fourth national mobile network operator. Since then, the company has won 5G spectrum at auction and has been busy rolling out infrastructure across the US.  

Dish has said that it will invest up to $10 billion to deploy its 5G wireless network. 

Now, this new merger will combine EchoStar’s satellite communications structure with Dish’s pay-TV business and 5G network. 

Dish network is valued at around $4 billion, and Echostar at $2 billion. Dish is notably laden with debt, while EchoStar is not, hence the merger appears primarily motivated by the financial support it will lend the mobile operator in continuing to finance its rollout of 5G infrastructure. 

Ergen currently owns 60% of EchoStar shares and over half of Dish’s. Under the terms of the new deal, EchoStar shareholders will receive 2.85 Class A shares from Dish per share of Echostar with the exchange ratio representing a 12.9% premium on EchoStar’s shares closing valuein early July, when reports of the merger first surfaced. 

“Ergen has been trying to win back investor confidence in his wireless strategy. Dish shares have hit lows not seen in more than two decades this year as analysts question whether his project will pay off before billions of dollars of debt come due in the coming years,” the Wall Street Journal article states. 

Dish shares have been trading at their lowest level since 1999 and are down 41%, while EchoStar shares are up 41%. 

After the signing of the deal, Erik Carlson (CEO of Dish) is set to depart, leaving current EchoStar CEO Hamid Akhavan to take over as current CEO and president of the combined company. 

You can hear more about US mergers at next year’s Connected America – secure your place here 

Also in the news:
Rakuten Mobile CEO Tareq Amin makes unexpected exit
Pair of subsea cables severed off the west coast of Africa
Could triboelectric nanogenerators be key to powering the IoT? 

News

UScellular’s owner Telephone and Data Systems (TDS) says it may consider putting the underperforming mobile operator up for auction

This week, reports suggest that UScellular’s parent company TDS are considering “strategic alternatives” for the mobile company, which could include a full sale or the onboarding or new investors.

TDS said that it has begun a strategic review of UScellular, hiring investment firm Citi act as financial advisors in exploring their options for the business.

“The TDS board believes that now is the right time for a comprehensive review of strategic alternatives for U.C. Cellular. We will pursue the pathway that is in the best interest of shareholders,” said Walter C.D. Carlson, Chairman of the TDS Board.

“There is no deadline or definitive timetable set for completion of the strategic review, and there can be no assurance regarding the results or outcome of this review. TDS and UScellular do not intend to comment further on the strategic review process, and we’ll make further announcements as appropriate,” added TDS CFO Vicki Villacrez on a subsequent earnings call.

UScellular is the fifth largest mobile service provider in the US, with roughly 4.2 million subscribers across the 21 states. It currently employs around 4,600 people and has a market capitalisation of roughly $2.65 billion.

Who exactly would seek to purchase UScellular remains unclear, but the most likely candidates are surely the US telco giants T-Mobile, Verizon, or AT&T. These companies not only have pockets deep enough to make such a purchase but could also put the UScellular’s assets to good use – particularly its spectrum holdings.

UScellular spent over a billion dollars on 5G spectrum in the latest spectrum auction, much of which could be used to bolster the larger operators’ existing 5G services.

In addition to its valuable spectrum holdings, UScellular also owns 4,341 mobile towers across the US, assets that have been highly prized by both telcos and private equity investors alike in recent years.

On the other hand, the company’s somewhat disjointed footprint – as seen below – could make it less appealing to an individual buyer.

As such, it is feasible that UScellular would be of most value to TDS if it were to be sold piecemeal, with its consumer business being offloaded to one of the major telcos and its tower infrastructure to a towerco or a private equity investor.

One final possibility worth mentioning here is that of UScellular being acquired by Dish Network. While this move would certainly go a long way towards helping Dish meet its 5G coverage obligations from the Federal Communications Commission, Dish’s poor financial health likely precludes such a deal, with the operator saying earlier this year that it was “desperate” to raise funds for its 5G rollout.

Besides, as of today, the company is likely to have its hands full, having announced plans to merge with sister company EchoStar.

How is the US mobile market evolving in 2023? Join the telecoms ecosystem in discussion at Connected America 2024?

Also in the news:
Nokia looks for a slice of BEAD funding with new Sanmina Corporation partnership
Terrapinn/Total Telecom acquires Broadband Communities
Rakuten Mobile CEO Tareq Amin makes unexpected exit

 

Source: TDS