Network operator and ISP LightSpeed Broadband, which is building a new Fibre-to-the-Premises (FTTP) network to 200,000 premises across the East of England by the end of 2022 (rising to 1 million by the end of 2025), has introduced a cheaper entry-level 100Mbps (symmetric) plan. Previously, the provider only offered a 1Gbps plan. The new 100Mbps […]

Ookla has announced that they’ve begun to integrate their Downdetector service, which identifies and monitors when various popular online sites (inc. UK mobile operators and broadband ISPs) are suffering from network problems, with their popular internet connection speed testing app – Speedtest.net. The update, which adds a Downdetector tab to the app with lots of […]

News

The mobile operator has reportedly hired Citigroup to help it find a commercial partner through which to fulfil its fibre ambitions

T-Mobile’s focus when it comes to home broadband has long centred around fixed wireless access (FWA) offerings, leveraging its 4G and 5G mobile networks to provide in-home connectivity. Indeed, much like its rival Verizon, T-Mobile has found growing success in this space since rolling out its 5G network, hitting the recording its 1 millionth home internet customer back in April, with over 40 million homes covered.

“A lot of our customers on home broadband are coming in suburban and even urban areas from cable, which is fascinating,” noted T-Mobile CEO Mike Sievert on an investor call at the start of the year. “It’s not all just greenfield stuff where nobody has ever had an option before.”

T-Mobile now hopes to have seven million FWA subscribers by the end of 2025.

But while the rise of FWA has been impressive, the technology is not without its limitations, perhaps the largest of which is the strain it places on the local mobile network. A household using FWA for all its connectivity needs will require far more capacity than an individual mobile user, and the concurrent demand of multiple households can be significant. As such, an operator like T-Mobile can only afford to offer FWA services to a limited number of customers in each area, or else risk the performance of the local network for its more valuable mobile subscribers.

While additional spectrum could help alleviate this bottleneck in the short-term, the rapidly increasing data demand year-on-year means that the growth of FWA services will not be sustainable forever – at least, not in urban areas.

Gigabit-capable fibre, on the other hand, has no such limitations. Deploying a fibre network may be more expensive and time-consuming than deploying a FWA solution, it also offers customers improved reliability and performance, without applying additional pressure to the mobile network.

Last year, T-Mobile gave its first indications that it was considering entering the fibre market, launching a limited pilot program in New York City using an existing fibre player’s infrastructure.

While the success of this project has yet to be formally announced, the results presumably must be promising, with reports this week suggesting that T-Mobile has hired Citigroup to identify a potential partner for a fibre infrastructure joint venture (JV).

According to sources, the combined business could be worth up to $4 billion.

The details of T-Mobile’s fibre ambitions with this JV are not yet, including the structure and ownership of any joint business. The identity of potential partners have also yet to be revealed, though reports suggest that early discussions with potential investors are underway.

While this JV model has relatively little precedent in the US, investment in fibre infrastructure has been booming globally in recent years. In fact, the JV fibre model is proving especially popular in Europe, with new joint fibre efforts being launched earlier this year in the UK, Germany, and Belgium.

It is worth noting that T-Mobile’s largest rivals, AT&T and Verizon, already have fibre offerings of their own, recording roughly 6 million and 7.3 million subscribers, respectively, at the end of 2021.

In fact, AT&T was also reportedly last month as looking for a co-investor for a new fibre JV, with sources suggesting that the business could be worth $10–15 billion.

Want to learn all the latest about the US telecoms market? Join the experts in discussion at the upcoming Connected America conference

Also in the news:
Remaining competitive in an evolving telco landscape
Wi-Fly: Could AFC improve rural connectivity?
BT warns of further job losses as soaring bills force bigger cost-cutting drive

The post T-Mobile eyes US fibre market, wants $4bn joint venture first appeared on Total Telecom.

Press Release

IBM announced today at the IBM Quantum Summit 2022 that Vodafone Group is collaborating with IBM on quantum-safe cybersecurity, and also joining the IBM Quantum Network, which will give the company cloud access to IBM’s advanced quantum computing systems, as well as IBM’s industry-leading quantum expertise. The multinational telecommunications company will work with IBM to help validate and progress potential quantum use cases in telecommunications.

As part of this collaboration, Vodafone will explore quantum computing for a variety of telco use cases. The company will also advance their employees’ skills in quantum technology through iterative prototyping led by IBM, as well as actively recruit quantum computing experts, to build a dedicated capability within its ranks.

Throughout this engagement, Vodafone will explore how to apply IBM Quantum Safe cryptography technology across its entire and diverse network infrastructure and systems.  Future quantum computers will pose a threat to today’s standard security, such as public key encryption. Quantum-safe cryptography protocols not only exist today, and offer the capability to help protect classical data and systems from these future quantum computers’ potential decryption capabilities, but the US National Institute of Standards and Technology (NIST) recently announced that four algorithms — three of which IBM helped develop have been chosen to be part of a protocol for standardization by 2024. Vodafone’s exploration of these protocols marks an IBM Quantum Safe first in understanding and preparing for this risk in telecommunications.

“Partnering with IBM provides us with access to quantum technology which has the potential to provide incredible network optimization. It’s the sort of innovation that existing computers will never achieve alone, allowing us to save energy, reduce costs and give customer great connectivity in more places,” said Luke Ibbetson, head of group R&D at Vodafone Group. “Investing in quantum-safe cryptography, now, also gives us the peace of mind that our infrastructure and customer data will also always be secure as we explore the benefits of quantum computing.”

“Vodafone, as a leading mover in telco, is setting the example for their industry by exploring quantum computing applications for their business operations, as well as applying quantum-safe cryptography protocols to protect their long-term data and systems,” said Scott Crowder, Vice President, IBM Quantum Adoption and Business Development. “We’re excited to partner with Vodafone to help them simultaneously adopt quantum technology, and move to quantum-safe technology as they serve an entire ecosystem of operators, vendors, regulators, and open-source community.”

IBM and Vodafone are also among initial members of the recently announced GSMA Post-Quantum Telco Network Taskforce, whose mission is to help define policy, regulation and operator business processes for the enhanced protection of telecommunications in a future of advanced quantum computing.

Vodafone joins more than 200 members of the IBM Quantum Network, a global community of Fortune 500 companies, start-ups, academic institutions, and research labs working to advance quantum computing and explore practical applications. Their engagement is designed to set them on a path to tap into this future of quantum advantage capabilities: when a computational task of business or scientific relevance can be performed more efficiently, cost-effectively, or accurately using a quantum computer than with classical computations alone.

For more information, visit: https://www.ibm.com/quantum/quantum-safe.

Statements regarding IBM’s future direction and intent are subject to change or withdrawal without notice and represent goals and objectives only.

The post IBM and Vodafone strike quantum tech partnership first appeared on Total Telecom.

News

The debt-laden telco issued three profit warnings last year and has continued to struggle in a price war against its local rivals

This week, sources speaking to Bloomberg suggest that the Italian government is weighing its options for how to reinvigorate national operator TIM, including a potential takeover to pave the way for a single Italian broadband network.

Last month, after months of turmoil all-too familiar to Italian politics, Giorgia Meloni, leader of the right-wing populist Fratelli d’Italia, was sworn in as the new Italian prime minister, replacing the outgoing Mario Draghi.

Since then, the new government has done little to calm the country’s turbulent telecoms sector, which is struggling under the weight of intense competition and stagnant returns. However, its approach to the creation of a controversial single national fibre network through the merger of TIM and Open Fiber’s fixed broadband assets is gradually becoming apparent, favouring a state-takeover of TIM to grease the deal’s wheels.

The concept of creating a single national fibre network in Italy has existed for years, with the Italian government claiming that it would greatly accelerate fibre availability throughout the country and reduce overbuild. Until recently, however, TIM has largely rejected this plan, arguing that it would need majority control of any combined fibre business.

Under the Draghi Cabinet, discussions around the single network had achieved significant progress, with state-run bank Cassa Depositi e Prestiti (CDP) – a stakeholder in both TIM and Open Fiber – suggesting that it would purchase TIM’s fibre network to facilitate the merger. Back in May, CDP, Open Fiber, TIM and additional stakeholders signed a memorandum of understanding (MoU) to this effect, with a focus on integrating the two networks.

However, concerns over the network’s valuation, combined with the political uncertainty within Italy, has seen CDP delay making a binding offer for the fibre business. The deadline for such a bid, outlined in the MoU, was recently extended to the 30th of November with the exclusivity clause notably removed, potentially allowing for alternative offers with new players.

Now, reports suggest that the Meloni administration is in favour of CDP taking full control of TIM, building on comments Fratelli d’Italia had made before the general election began, when they described state control of any national network as ‘a priority’.

Any potential deal to takeover TIM by CDP would likely include US investment firm KKR, which took a stake in TIM’s last-mile grid back in 2020 and went on to present the operator with a €10.8 billion takeover bid in 2021. Despite this bid ultimately being rejected earlier this year after a long delay, sources suggest the firm’s interest in TIM remains considerable.

Similarly, Vivendi, TIM’s largest shareholder, could also be involved in a potential takeover offer by the government.

No formal decision by the Meloni administration has yet been made but, with the extended MoU deadline expiring at the end of this month, their plans will likely become clear later this month.

Also in the news:
Remaining competitive in an evolving telco landscape
Wi-Fly: Could AFC improve rural connectivity?
BT warns of further job losses as soaring bills force bigger cost-cutting drive

The post Italian govt mull TIM takeover to facilitate creation of single network first appeared on Total Telecom.

CONTRIBUTED ARTICLE

With over 100 companies now deploying fibre in the UK, the market is both fragmented and competitive. Consolidation looks inevitable. In this article, Robert Kenny of Communications Chambers explore the prospects for consolidation amongst UK fibre-deployers.

After a slow start, the UK now has over 100 companies deploying fibre, and in aggregate they plan to pass 84m premises. There are only 30m premises in the country, so this suggests that the average home will be passed by 2.8 fibre networks. The combination of fragmentation and competitive intensity means that consolidation is seen as inevitable. But inevitable is not the same as easy. Consolidation of the UK cable sector took 13 years, and saw the two leading consolidators go bankrupt. So how might altnet consolidation play out?

Certainly there are some potential synergies that may drive value creation through altnet deals– for example, the acquiror may bring a powerful brand or wholesale relationships that may help the acquired network up its revenue.

But there are also potential dis-synergies. Some altnets have a retail focus and others a wholesale one, and these business models may not be entirely compatible. Some altnets have promised large wholesale customers that they will not offer service to anyone else cheaper – what if the acquired altnet is already offering a lower price to someone else? And an acquisition may require a refinancing of the target’s debt. Since this would almost certainly be at a higher interest rate, this too would represent a destruction of value. Such factors will limit the number of viable deals.

Further, if a seller really wants to get good value for their business, they need multiple buyers to create an auction dynamic. The challenge is that in practice, any given altnet may have few realistic acquirors.

BT/Openreach is likely to be ruled out of most acquisitions by regulatory issues. Sky and TalkTalk appear to be happy to rent rather than buy access networks. Virgin O2and its parents already have a gigabit network across much of the country, and are planning further expansion – would they place much value on overlapping altnet fibre? CityFibre is certainly a potential acquiror, but is also building quickly. Other larger altnets have their respective niches, and each may only be relevant to certain target altnets.

Thus a would-be seller needs to carefully consider who their likely buyers might be. They also need to consider timing – waiting allows more time to build out network and (crucially) to develop the revenue streams that will truly underpin value. On the other hand, as time passes the risk of overbuild rises (by potential acquirors or other networks), reducing the prospects of a satisfactory exit price.

New players are still piling into the market – Ofcom has authorised 23 new carriers in this year alone – so it may seem early to be thinking about paths to exit. But value for shareholders will depend as much on a well-planned disposal as it does on a well-planned deployment.

If you want to see more detail on Robert’s opinions on this subject, download his more detailed paper, published in September 2022: Roll-up or roll on? Prospects for consolidation amongst UK fibre-deployers, September 2022

The next major gathering of the UK fibre community will be at Connected North when it returns to Manchester in 2023. Find about how you can get involved here.

The post Roll-up or roll on? first appeared on Total Telecom.

Network operator Digital Infrastructure, which is working with ISP BeFibre to cover over 1 million UK premises with their full fibre broadband infrastructure by the end of 2027 (here), has worked with law firm Trenches Law to pilot a new surveying service that could help speed up the time to deployment. At present, Trenches Law […]

INTERVIEW

We had the pleasure of interviewing Wolfgang Heer, Managing Director, BUGLAS, ahead of next month’s Connected Germany, which is being held in Mainz on December 6-7 2022.

Can you introduce yourself and your current role?

My name is Wolfgang Heer and I have been CEO of BUGLAS (federal association for optical fiber access in Germany) for more than ten years now. BUGLAS currently consists of more than 160 enterprises deploying and operating FTTB/H-networks all over Germany, mostly on local and regional basis. Suppliers are also an important part of our association. Furthermore, BUGLAS is Co-Founder and Member of European Local Fibre Alliance ELFA, which strives for more ambitious Fibre Goals on a European Level.

How has fibre rollout progressed in Germany over the last year, and how much more needs to be done to hit government targets for FTTH networks?

In recent years, the fiber rollout in Germany has gained a lot of momentum – yet we are still not near the level needed to achieve the political goals in Germany. We also continue to lag behind in a European comparison. There is still a lot of room for improvement, especially in terms of FTTH. Corona has boosted the demand for a good connection but severe obstacles such as the shortage of skilled workers and resources lie in Germany’s path to a gigabit society.

What impact will open access have on network deployment?

In our view, open access is clearly a key to nationwide fiber roll-out in Germany. It offers advantages for everyone: for the end customer, as it gives him the freedom to choose any ISP, for the infrastructure provider, who can increase the network utilization and refinance its investments faster, as well as for all service providers involved, who can concentrate on their services and marketing power and generate add value on the basis of efficient processes. Even the housing industry benefits as properties are upgraded with the best possible house networks and their tenants will be more satisfied. Overall, open access helps to avoid overbuilding of infrastructure and investments pay off faster which clearly accelerates further fiber roll-out. Last but not least Open Access can speed up the migration from copper to fibre networks. It is a win for everyone.

What are you most looking forward to at Connected Germany?

Connected Germany has established itself as an important meeting place for the industry and once again gives us the opportunity to exchange ideas and learn how fibre deployment goes along in other countries. This exchange is particularly important and I look forward to it.

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

The post “Open access is clearly a key to nationwide fibre rollout in Germany” first appeared on Total Telecom.

Alternative UK network builder and broadband ISP Zzoomm has today announced that they’ve added the South Yorkshire (England) town of Askern to their rollout plan for a new gigabit-capable Fibre-to-the-Premises (FTTP.) network. The operator will invest £1.6m to cover 3,000 homes and businesses in the location. Surrounded by the South Yorkshire countryside, Askern will join […]

The Essex County Council in England has committed £700,000 from their budget to help top-up the funding provided under the UK Government’s rural focused Gigabit Broadband Voucher Scheme (GBVS), which means that poorly served homes can now get up to £8,500 toward installing a gigabit-capable connection from an ISP. The GBVS scheme normally offers vouchers […]