News

The companies, both owned by Charlie Ergen, have reportedly hired advisors to detail how the merger could play out 

EchoStar Communications, once a distributor of satellite television equipment, was founded by Ergen in 1980. In 2008, the company was renamed Dish Network after its consumer arm, and its satellite assets were carved out as a separate unit that retained the name Echostar. After some reorganisation over the past decade, today Dish Network controls the broadcast satellite services and the company’s growing 5G network, while Echostar is the satellite communications provider. 

Now, according to a recent report from Semafor, the two companies are considering recombining their operations, with both engaging financial advisors to explore the possibility.

According to the report, Dish debt stands at a staggering $22 billion, while EchoStar is relatively financially healthy. Therefore, it would appear that the motivations behind the rumoured merger are financial in nature, helping to reinforce Dish’s shaky cashflow.

There have been no official comments from either company, or Ergen himself. 

Dish is currently facing a decline in consumers, losing over half a million pay TV subscribers in the first quarter of this year. On top of that, they are spending $10 billion on the rollout of their Open RAN-based 5G network. 

The company recently hit the target of 70% population coverage (240 million people) set by the Federal Communications Commission (FCC); however, much of their traffic is still carried over T-Mobile and AT&T’s networks as part of their Mobile Virtual Network Operator agreements.  

Another FCC deadline is looming, requiring the company’s network to reach 75% of the US population by 2025, for which another $2–3 billion will be needed. 

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

Also in the news:
Vodafone warns of investment cuts if Three merger is blocked
TIM to enter exclusivity negotiations with KKR
Viasat completes Inmarsat merger deal  

News

Reports suggest that both companies are exploring bids for a 45% stake in the state-run telco, hoping to capitalise on of Africa’s most rapidly growing markets

Anonymous sources speaking to Bloomberg suggest that both Orange and e& have been separately consulting with advisors to consider taking a stake in Ethiopia’s incumbent operator, Ethio Telecom.

According to the sources, discussions are at an early stage and no decisions have yet been made.

“We are looking closely at Ethio Telecom in particular to see under what conditions the Ethiopian authorities might allow a partner to take a stake in the operator,” explained a spokesperson for Orange.

e& could not be reached for comment.

The Ethiopian government has been in the process of liberalising its telecoms sector for a number of years now, but progress has been sluggish. The first of two new telecoms licences made available by the regulator was granted to what is now known as Safaricom Ethiopia back in May 2021, but the second licence proved harder to sell, with a bid from MTN being deemed too low for consideration.

Since then, the Ethiopian government has been struggling to restart the liberalisation process effectively, delaying the relaunch of the tender for the second telco licence as well as a plan to sell 45% stake in Ethio Telecom, largely due to unrest in the country’s Tigray region. However, after a peace treaty was signed late last year, these processes have gradually begun to restart.

Nonetheless, as of today there is still no fixed timeline for either sale.

Orange and e& have both demonstrated interest in the Ethiopian market for some time. With the second largest population in Africa and, until recently, one of the last remaining telecoms monopolies in the world, Ethiopia is viewed as something of an untapped goldmine for telcos, with huge potential for growth.

For Orange, which already has a major African footprint in 18 African countries, securing a significant interest in Ethiopia would further solidify their position on the continent, a key part of the company’s strategic plan for 2030.

e&, similarly, currently operates in 13 African markets, largely under the Moov brand and has been eyeing up international expansions in recent months. Earlier this year, the operator group increased its stake in Vodafone to 14.6% as a way to expand its international portfolio. More recently, the company has notably entered discussions with PPF Group over a potential strategic partnership.

PPF Group owns and operates five telecoms companies in Central Europe.

How is improved connectivity transforming the African continent? Join the operators in discussion at this year’s Total Telecom Congress in Amsterdam

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A new “independent report” from policy institute Curia, which was commissioned by rural UK ISP Wildanet, has claimed that the rollout of gigabit-capable broadband across Devon (England) could generate £1.125 billion of new business gross value added (GVA) for the county by 2030. The report was designed to assess the potential impact of gigabit-capable broadband […]

Customers of UK ISP Sky Broadband may like to know that the latest release of the provider’s ‘My Sky‘ app for iOS users appears to have officially confirmed the existence of both their new “WiFi Max” (mesh system) home coverage guarantee and a Wi-Fi 6 capable router for consumers. At present, we still don’t know […]

News

Vodafone CEO Ahmed Essam has warned that if the Vodafone–Three merger is stopped by the Competition and Markets Authority (CMA), vital investments in digital UK infrastructure will be prevented

This week, the head of Vodafone UK has stressed to regulators that the planned merger between Vodafone and Three will be critical to achieving the government’s 5G rollout targets. CEO Ahmed Essam told The Times that if the deal is blocked the group “won’t be able to invest as much, and we won’t be able to deliver the 5G ambition that’s coming in the wireless infrastructure strategy from the government.”   

The government’s Wireless Infrastructure Strategy, published in April, set out a plan for the UK to bring world-class digital infrastructure to the entire UK, aiming to provide nationwide coverage of standalone 5G to all populated areas by 2030 

Vodafone and Three signed a formal £15 billion merger agreement last month, a deal that will see the newly combined company majority-owned (51%) by Vodafone, with Three UK’s parent company, CK Hutchison taking the remaining 49%. No cash will be exchanged under the agreement. 

If approved, the newly merged group will become the largest mobile network operator in the UK, surpassing both Virgin Media O2 and EE, with more than 27 million customers. 

The deal will see the two companies invest £11 billion in UK mobile infrastructure. This includes promises to reach 99% of the UK with their newest 5G standalone network by 2034 and offering fixed wireless access to 82% of UK households by 2030. 

“As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator – with a clear £11bn network investment plan – driving growth, employment and innovation,” said Vodafone Group Chief Executive Margherita Della Valle. 

“The combination of Three UK and Vodafone UK will bring the advantages of 5G to every business and household in the UK, enabling the UK to deliver its ambitions for digital and economic growth and fully supporting the UK Government’s objectives for a world-leading digital economy,” added Three UK CEO Robert Finnegan. 

However, critics have warned against the monopolistic nature of the merger, which they argue will lead to higher prices and job cuts. They point to similar mergers in other markets, such as Vodafone Hutchison’s combination with TPG in Australia in 2020, which saw prices increase for customers and investment in the sector decrease, according to research from trade union Unite. 

As a result, the CMA and other regulators are expected to take a largely skeptical view of the deal and are likely to impose stringent conditions on the duo before agreeing to give the deal the green light. These conditions could involve anything from forbidding the company from hiking prices for a number of years to divesting of spectrum – a commodity in which the newly merged entity will hold a major advantage over rivals.  

How will the merger play out? It is sure to be a hot topic for discussion at Connected Britain this September – get your ticket today! 

Also in the news:
Voda – Three – well that’s just great…
Orange facing bumpy regulatory road to Masmovil merger
Orange-MásMóvil merger may reduce competition in Spain, says European Commission 

News

Succession planning is already underway, with Jansen expected to step down from the role of CEO in the next 12 months

Today, BT has confirmed media reports from the past weekend, announcing that they are currently preparing for Group CEO Philip Jansen to leave the role over the next year.

According to BT, planning to replace Jansen is already underway, with candidates already being considered for the position.

“The succession process to replace Philip is something that the Board was well prepared for,” said BT Group’s Chairman, Adam Crozier. “All appropriate candidates are being considered and we expect to be able to update the market on progress over the course of the summer. In the meantime, it is business as usual, and we are focused on executing our plans and delivering for all our stakeholders.”

The news should come as little surprise to those following BT’s activities in recent months, with reports suggesting that BT has been mulling the potential replacements for Jansen since at least March this year.

Jansen’s four-year tenure with BT has been turbulent to say the least. He joined the company in 2019, replacing previous CEO Gavin Peterson, at a time when the company was already attempting significant cost-saving measures to improve its performance. Since then, Jansen has expanded these plans significantly, now seeking to generate £3 billion in savings by 2025 through a variety of measures, including accelerated digitalisation and job cuts.

Indeed, the company said earlier this year it will aim to cut around 55,000 jobs – roughly 40% of its total workforce – by 2030, suggesting the business would increasingly simplify its structure and adopt new streamlining technologies, such as AI. Just last week, the company said it was restructuring its workforce of almost 3,000 people at its Adastral Park site in Ipswich, though insists that this is not part of its wider job cutting operation.

But despite these efforts to increase efficiency, expensive infrastructure rollouts with low returns, coupled with a punishing global economic climate, have seen BT’s share price has fallen by around 45% under Jansen’s tenure so far.

“Mr Jansen had been looking on increasingly shaky ground at BT. The company’s shares have almost halved since he took over in early 2019, while recent inflammatory comments about the role of fibre altnets drew concern from Ofcom,” commented Kester Mann, Director of Consumer and Connectivity at CCS Insights, referencing Jansen’s comments that the UK broadband race would “end in tears” for BT’s competitors.

BT’s depressed share price has attracted opportunistic investment from major players outside of the UK in recent years.

Over the past year, Altice UK, backed by French-Israeli billionaire Patrick Drahi, has gradually increased its stake in the operator to 24.5%, though he continues to deny that his company is is interested in staging a full takeover of the UK operator. Meanwhile, recent rumours suggest that BT could soon face a takeover attempt from Deutsche Telekom, which currently owns a 12% stake in BT.

All told, BT appears quite vulnerable right now, leaving Jansen’s replacement with numerous challenges going forward.

“The CEO has endured a rollercoaster ride at BT. He presided over the operator’s impressive response to the pandemic; embarked on a massive cost-saving drive; oversaw a major acceleration in the deployment of full fibre; witnessed Patrick Drahi take a near-25% stake in the company; and watched thousands of staff strike over pay,” said Mann, summing up Jansen’s time as CEO.

As to who will succeed Jansen in the CEO role, speculation is rife. While no clear frontrunner has been suggested, sources suggest that both Mark Allera, CEO of EE and BT’s consumer business, and Allison Kirkby, president and CEO of Telia, have both been suggested as possible candidates.

How is the UK telecoms landscape evolving in 2023? Join the operators in discussion at this year’s Connected Britain event

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Network builder and UK ISP FACTCO has today announced that their new gigabit-capable Fibre-to-the-Premises (FTTP) broadband network has finally started to go live in the rural Northumberland (England) town of Rothbury, which comes almost three years after the project (here) was first announced. At present the local deployment, which has been partly or fully funded […]

News

The UK altnet says its full fibre rollout is accelerating at an “exponential” pace, aiming to reach one million premises passed by the end of the year 

The announcement means that over 500,000 homes and businesses will now have access to speeds of up to 10Gbps on its XGS PON fibre infrastructure. The company already provides services to roughly 40,000 customers via its sister company YouFibre. 

The milestone is a significant progression towards the company’s growth targets to pass one million homes by early 2024. Netomnia passed over 125,000 premises in Q2 of 2023, with the company now operating at a building rate of 500,000 homes and businesses a year 

“Reaching half a million premises and already providing service to 40,000 of them is a significant achievement and is a testament to the hard work and dedication of the entire team. Especially when you consider we only started out two and a half years ago, and we are now the sixth-largest network in the UK, have the third-fastest build rate and are building in all four UK countries,” said CEO Jeremy Chelot.  

“I am particularly pleased about the speed at which we are now building. We truly understand the need for a future-proofed network like ours, so we are working as hard as we can to bring it to as many people as possible”. 

The rollout of the full-fibre broadband network aims to bring competition to areas with existing connections, whilst introducing fast and reliable speeds to rural and under resourced areas in England, Wales, Scotland, and Northern Ireland. 

To hear more from the altnets, join the ecosystem in discussion at the UK’s largest digital economy event, Connected Britain 

 

Also in the news: 

What’s in a name? Trials and tribulations of being an altnet 

GoFibre kicks off fibre build in rural Northumberland 

CityFibre wins trio of Project Gigabit contracts worth £318m 

The CEO of mobile operator Vodafone, Ahmed Essam, has indirectly warned regulators that a decision to block its attempted merger with Three UK (CK Hutchison) would result in them cutting their investment in digital infrastructure (5G broadband etc.) and being unable to deliver on the Government’s goals. Last month saw the operators reveal that they’d […]

Network builder Digital Infrastructure – supported by broadband ISP BeFibre – has today announced that their new gigabit-capable Fibre-to-the-Premises (FTTP) infrastructure has added another five locations to their rollout plan for the United Kingdom and this time they’re all in South Yorkshire (England). The operator, which began its rollout in 2021 and aims to cover […]