News

The Norwegian operator group is set to go ahead with the sale of its Pakistani unit, having been struggling under the weight of intense competition and rising energy costs

According to reports today, Telenor has begun working with Citigroup to find potential buyers for its Pakistani unit, which sources suggest could be worth $1 billion.

These same sources explained that the first round of bidding is being invited to take place later this month, with discussions already underway with unspecified companies in both the Middle East and Asia.

The future of Telenor Pakistan has been up for debate for a number of years. With four national mobile operators, Pakistan’s mobile market is highly competitive, offering the operators little prospect for revenue growth. Indeed, despite Telenor Pakistan’s subscriber base growing by 6% year-on-year by the end of 2021, average revenue per user (ARPU) fell around 10% in the same period.

As such, rumours have been circling for years about potential consolidation in the market, including a tie-up between Telenor with the country’s smallest operator Ufone and, more recently, with incumbent operator PTCL. To date, however, none of these deals have materialised.

But while Telenor appears to have been happy to wait for the perfect merger opportunity to arise in recent years, the changing economic climate may now have forced their hand.

Back in July, Norwegian telecoms group Telenor announced that they would conduct a strategic review of their Pakistan unit, having posted a $244 million impairment to the business, largely due to the rapidly increasing energy prices in the region. One quarter later and the prognosis for the business had not improved, with Telenor Pakistan recording a 22% decline in earnings year-on-year for Q3 back in October.

A brief ray of sunshine was felt two weeks ago, when the company benefited from a legal reversal related to SIM tax within the country, gaining the unit roughly $57.79 for the quarter, but this is little panacea for the company’s long-term future.

Telenor has been reconsidering its future in all its Asian markets in recent months, recently forming Telenor Asia to centralise the management of its operations in the region, which include businesses is Bangladesh, Malaysia, Pakistan, and Thailand.

Telenor is currently involved in large-scale mergers in both Malaysia (DiGi with Celcom) and Thailand (DTAC with True Corp), and recently exited Myanmar as a result of inhospitable conditions imposed by the new military junta.

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The post Telenor invites bids for $1 billion Pakistan unit first appeared on Total Telecom.

News

The deal will create a new joint venture to control the towerco, helping Vodafone to reduce its debt without relinquishing control of its strategic tower assets

This week, Vodafone has announced that it will sell up to half of its 81.7% stake in towerco Vantage Towers to a consortium led by private equity firms KKR and Global Infrastructure Partners (GIP), and reportedly bankrolled by Saudi Arabia’s Public Investment Fund (PIF).

The deal, which values Vantage Towers at roughly €16 billion, will see the creation of a new joint venture, dubbed Oak BidCo, which will take majority control of the mobile mast business.

Once the stake transfer is complete, Oak BidCo will also make a voluntary public takeover offer for Vantage’s remaining 18% stake, with minority shareholders offered a price of €32 per share.

Proceeds from the deal will allow Vodafone to reduce its debt by between €3.2 billion and €7.1 billion, depending on the size of the stake ultimately sold.

“We are excited to partner with GIP and KKR, both world-class investors who bring significant expertise in digital infrastructure and share our long-term vision for Vantage Towers,” said Vodafone CEO Nick Read, describing the deal as a ‘landmark moment’.

“[The deal] delivers on Vodafone’s stated aims of retaining co-control over a strategically important asset [and] deconsolidating Vantage Towers from our balance sheet.”

Spun off by Vodafone back in 2020, Vantage Towers is one of the largest towercos in Europe, now operating roughly 83,000 towers across ten European markets. Last year, Vodafone floated the unit on the Frankfurt Stock Exchange, raising €2.58 billion and leaving the UK-based operator group with an 82% stake in the business.

Since then, with Vodafone under pressure from shareholders to streamline its portfolio and further reduce its £36 billion debt pile, the media has been awash with rumours over potential buyers for a stake of Vantage Towers.

Indeed, rival infrastructure giants, such as Cellnex, American Tower, and Orange’s TOTEM, had all been linked with potential purchase, though Vodafone’s decision in opting private equity partners instead should come as little surprise, both helping to ease regulatory and ownership structure concerns.

This approach mirrors that of Deutsche Telekom regarding its own tower unit, Deutsche Funkturm, earlier this year, with the operator choosing to partner with Brookfield Asset Management and Digital Bridge over the perceived favourite suitor, Cellnex.

Investor interest in mobile tower infrastructure has flourished in recent years, with equity firms viewing the infrastructure as a reliable long-term investment with predictable growth. In fact, for Saudi Arabia’s PIF, this year has seen numerous tower deals already; just last month the PIF reportedly agreed to purchase a 51% stake in Tawal, the tower unit of Saudi operator STC, building on the roughly 8,000 towers it purchased from Zain Saudi Arabia earlier in the year.

How is the steady consolidation of the mobile tower market in Europe impacting the German telecoms industry? Find out from the operators at this year’s live Connected Germany conference in December

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The post “A landmark moment” for Vodafone as private equity consortium buys stake in Vantage Towers first appeared on Total Telecom.

Broadband ISP Virgin Media UK (VMO2) has today confirmed that their new ‘Essential Broadband Plus‘ social tariff is now live for those taking ‘Universal Credit‘, which complements their existing 15Mbps (£12.50 a month) ‘Essential’ plan by offering download speeds of 50Mbps for £20 per month on a 30-day term. The new plan, which was announced […]

Ofcom has today published a refreshed strategy for managing radio spectrum used by the space sector, which among other things will make more spectrum frequency in the 14.25 – 14.5GHz “Ku band” available to satellite broadband operators (capacity boost) and approve new earth stations for use by Starlink and Telesat. Until recently, most broadband internet […]

Contributed Article

By SS&C Blue Prism

Communications service providers (CSPs) worldwide have been using robotic process automation (RPA) for many years to automate repetitive, low value tasks. RPA frees up employees to focus on what they do best: helping customers and being innovative. Fast forward to today and operators are building on RPA with artificial intelligence (AI) to deliver intelligent automation (IA), which has become a strategic tool to help them reimagine their businesses.

Take the case of VMO2 and how they are using IA technology to elevate and transform their business. Every telecom company is transforming, and every transformation is challenging. But, bringing two huge UK CSPs together, with a “mid-air” merger, creating VMO2 and the resulting transformation challenge is unprecedented.

But VMO2 is succeeding. They are using intelligent automation as a platform, through which they are building their transformation at scale and at light speed. The breadth and scope of their program is significant: the customer experience, the B2B business, networks, HR, finance, and revenue assurance, plus a focus on innovation and new income streams. All this needs to deliver ROI within a year.

Challenge accepted.

Operators such as VMO2 are using IA technology to drive new customer experiences and, in parallel, automate back-office processes. Other operators are using IA to deploy and better manage 4G and 5G networks, while many more are selling it as a service to their enterprise customers. Importantly, CSPs can use IA in conjunction with a long-term strategy of adopting open application programming interfaces (APIs) and an open digital architecture, allowing them to evolve from TELCOS to TECHCOS, just as VMO2.

Telcos must become techcos if they want to find new revenue beyond connectivity. Most are working toward this goal by virtualising their networks and making them software defined and autonomous. At the same time, organizations such as VMO2 are embracing open digital architectures and cloud-native IT operations. But for some, this transition will take years, and operators are under tremendous pressure to demonstrate clear progress now.

This paves the way for Intelligent automation, which has already proven itself as way of reducing operating costs, improving the experiences of customers and employees, and preparing for the monetisation of 5G.

Organisations such as VMO2 are embracing this challenge and are meeting it head-on. It is an important stepping stone on the evolutionary path to becoming a techco.

Want to learn more about how VMO2 are executing at pace and scaling their operations using Intelligent Automation powered by Blue Prism? Please visit www.blueprism.com to find out more.

About SS&C Blue Prism
S&C Blue Prism is the global leader in intelligent automation for the enterprise, transforming the way work is done. At SS&C Blue Prism, we have users in over 170 countries and more than 2,000 businesses, including Fortune 500 and public sector organizations, that are creating value with new ways of working, unlocking efficiencies, and returning millions of hours of work back into their businesses. Our intelligent digital workforce is smart, secure, scalable, and accessible to all; freeing up humans to reimagine work.

The post How intelligent automation is kickstarting telco transformation first appeared on Total Telecom.

INTERVIEW

We caught up with Plusnet CEO Ulrich Hoffmann ahead of next month’s Connected Germany, which is being held in Mainz on December 6-7 2022.

1.     Can you introduce yourself and your current role?

I am responsible for the business of Plusnet GmbH as CEO since 2021 – and part of the EnBW family since 2019, when I joined as COO of our sister company NetCom BW. As an expert in the technical and strategic development of modern gigabit networks, I have held management positions at various German telecommunications companies – most recently at Unity Media before joining the EnBW Group.

2.     How does Plusnet fit into Germany’s broadband ecosystem?

We are one of the leading telecommunications providers for business customers in the Ger- man market and part of the EnBW Group. Based on our own nationwide network infrastructure and our extensive experience in the operation of all broadband technologies, we provide more than 25,000 business customers in Germany with reliable and highly secure services – in the areas of internet, voice and corporate networks.

As part of our strategy, we are investing in our own fibre-optic expansion for business customers since 2021 and, in the future, also residential customers. Thanks to our B2B focus, our know-how in the sector of telco services and infrastructure, our nationwide positioning and our agility, we are a partner at eye level for municipalities, other players such as public utilities and the local economy – and thus a pacemaker for the digital future.

3.     What opportunities does open access offer operators, and will it enable greater fibre network expansion?

An important aspect of the rollout decision for operators is the question of network utilisation and thus long-term investment security. Open Access models therefore play an essential role when it comes to a rapid and sustainable fibre rollout in Germany. Only by opening up networks – also and especially in the case of self-sustained infrastructures – we can ensure security of investment and thus sustainable local competition in B2B and B2C markets.

By setting the right course on the subject of open access and the accompanying technical innovations – for example in network aggregation – new value can be created for operators as well as resellers and sales partners in the next few years.

4.     What are you most looking forward to at Connected Germany?

We are currently in an incredibly exciting phase in the German telco market – especially in the fixed network sector. Comparable to the time of market liberalisation more than 20 years ago. With the expansion of fibre optics, the course is now being set for the digital future in Germany. In the sense of a good future together, the exchange of knowledge and opinions in the industry is therefore particularly important. I am very much looking forward to this.

You can hear from Ulrich and the rest of our amazing speaker line-up at this year’s Connected Germany – follow the link to secure your place!

To read a German version of this interview please follow this link.

The post “Open Access models play an essential role in enabling rapid and sustainable fibre rollout in Germany” first appeared on Total Telecom.

INTERVIEW

Wir haben uns mit Ulrich Hoffmann, CEO von Plusnet, vor der Connected Germany im nächsten Monat getroffen, die vom 6. bis 7. Dezember 2022 in Mainz stattfindet.

1.     Können Sie sich kurz vorstellen und Ihre aktuelle Rolle?

Ich verantworte seit 2021 das Geschäft der Plusnet GmbH als CEO. Teil der EnBW-Familie bin ich bereits seit 2019, wo ich als COO unseres Schwesterunternehmens NetCom BW einstieg. Als Experte für die technische und strategische Entwicklung moderner Gigabit-Netze war ich in leitenden Funktionen bei verschiedenen deutschen TK-Unternehmen tätig – vor meinem Wechsel in den EnBW Konzern zuletzt bei Unity Media.

2.     Wie ist Plusnet im deutschen Breitbandmarkt positioniert?

Wir sind einer der führenden TK-Anbieter für Geschäftskunden im deutschen Markt und Teil des EnBW Konzerns. Auf Basis unserer eigenen bundesweiten Netzinfrastruktur sowie unserer umfassenden Erfahrung im Betrieb sämtlicher Breitband-Technologien stellen wir mehr als 25.000 Geschäftskunden in Deutschland zuverlässige und hochsichere Dienste zur Verfügung – im Bereich Internet, Voice sowie Vernetzung von Firmenstandorten.

Im Rahmen unserer Strategie investieren wir seit 2021 zudem in den eigenwirtschaftlichen Glasfaserausbau für Geschäfts- sowie perspektivisch auch Privatkunden. Durch unseren B2B-Fokus, unser Know-How im Dienste und Infrastrukturbereich, unsere bundesweite Aufstellung sowie unsere Agilität sind wir Partner auf Augenhöhe für Kommunen, Ausbauakteure wie Stadtwerke und die ansässige Wirtschaft – und damit Schrittmacher für die digitale Zukunft.

3.     Welche Möglichkeiten entstehen für Netzbetreiber durch Open Access? Und erhöhen sich dadurch Reichweite und Verfügbarkeit von Glasfaseranschlüssen?

Ein wichtiger Aspekt bei der Ausbauentscheidung ist für Betreiber die Frage nach der Auslastung ihrer Netze und damit einer langfristigen Investitionssicherheit. Open-Access-Modelle spielen deshalb eine wesentliche Rolle, wenn es um einen zügigen und nachhaltigen Glasfaser-Rollout in Deutschland geht. Denn nur durch die Netzöffnung – auch und gerade bei ei- genwirtschaftlich ausgebauten Infrastrukturen – entsteht Planungssicherheit und damit nachhaltiger lokaler Wettbewerb im Geschäfts- und Endkundenmarkt.

Durch die richtige Weichenstellung beim Thema Open Access und die einhergehenden tech- nischen Innvotationen – etwa bei der Aggregation von Netzen – können in den nächsten Jahren neue Wertschöpfungsmöglichkeiten für Netzbetreiber und Vermarkter entstehen.

4.     Worauf freuen Sie sich am meisten bei Connected Germany?

Wir befinden uns gerade in einer unheimlich spannenden Phase im deutschen TK-Markt – insbesondere im Festnetzbereich. Vergleichbar mit der Zeit der Marktliberalisierung vor mehr als 20 Jahren. Mit dem Glasfaserausbau werden jetzt die Weichen für die digitale Zukunft in Deutschland gestellt. Im Sinne einer gemeinsam guten Zukunft ist der Wissens- und Mei- nungsabgleich in der Branche deshalb gerade besonders wichtig. Darauf freue ich mich sehr.

Sie können von Ulrich und dem Rest unseres großartigen Redner-Line-Ups auf der diesjährigen Connected Germany hören – folgen Sie dem Link, um sich Ihren Platz zu sichern!

Um eine englische Version dieses Interviews zu lesen, folgen Sie bitte diesem Link.

The post “Open-Access-Modelle spielen eine wesentliche Rolle, um einen schnellen und nachhaltigen Glasfaserausbau in Deutschland zu ermöglichen” first appeared on Total Telecom.

UK ISP Virgin Media (VMO2) has today launched their early “Black Friday” sales, which for the next few weeks will offer big discounts to new customers who order any one of their selected broadband-only packages (e.g. 362Mbps standalone for £27 per month) or dual, triple and quad-play bundles with TV, phone or mobile. As usual, […]

The Welsh Government (WG) has responded to a series of recommendations on improving broadband and phone connectivity that were made by the Welsh Parliament’s Climate Change, Environment, and Infrastructure Committee (CCEIC) in August 2022 (here), albeit mostly only to parrot existing plans, positions and policies. According to Ofcom’s latest data (here), some 95% of Wales […]

Customers of Sky’s NOW (NOW TV / NOW Broadband) sub-brand in the UK, which offers an alternative TV and video streaming service to Sky’s own packages and live channels, may be pleased to learn that the app has now been made available on the latest models of Google’s TV devices and Chromecast sticks. Until now […]