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The Chartered Institute of Internal Auditors (CIIA), which recently complained that some of the UK’s major broadband ISPs operated without an internal audit (here) – potentially exposing them to “unchecked risks and increasing the likelihood of corporate collapse“, has now sought to drum up new business by pressing the government to make it a requirement of their revised telecoms security code.

The government are currently in the process (here) of updating the already fairly recent Telecommunications Security Code of Practice (2022). But the Chartered IIA this week “warns that the current proposals do not go far enough” and points to how it remains “silent on the critical role of internal audit in providing independent and objective assurance to boards and senior management that telecoms security risks are being identified, managed and controlled effectively“.

For the uninitiated, the core role of internal audit is to provide independent and objective assurance that an organisation’s risk management, governance, and internal control processes are operating effectively, thereby ensuring the organisation can achieve its goals (although audits aren’t a 100% guarantee of this). In the UK and Ireland, the requirement for having an internal audit function is not universal across all types of organisations.

We should point out that Ofcom’s regulation via their General Conditions of Entitlement (industry rules), which are designed to protect consumers, do require broadband and phone providers to carry out regular audits of their Metering and Billing to ensure customers are billed correctly. But this is not quite the same thing as the deeper and wider role of audits being highlighted by the Chartered IIA.

Anne Kiem OBE, Chief Executive of the Chartered IIA, said:

“Telecommunications are the backbone of our digital economy and touch all of our daily lives. Yet too many telecoms providers operate without the independent assurance that internal audit brings to business-critical risks, despite increasing digital security threats. Ministers need to recognise the vital role of internal audit in supporting robust governance in the Telecommunications Security Code by setting a clear expectation for companies to obtain independent assurance.”

The Chartered IIA’s consultation response thus recommends that the Telecommunications Security Code is “strengthened” by:

➤ Recommending that the Code make clear that a telecom company’s security governance framework should integrate and be consistent with internal and external audit and assurance mechanisms. This aligns and is consistent with a similar requirement in DSIT’s Cyber Governance Code, published in April.

➤ Requiring telecoms providers to explain how they obtain independent assurance – whether through internal audit or equivalent mechanisms – so boards can demonstrate that security measures are effective in practice.

We suspect that more than a few broadband ISPs and network operators may view see this as being just another sneaky way for auditors to drum up a bit of extra business, forced through by new government legislation. But the CIIA argues that it’s “about protecting people, businesses, and the UK’s digital economy. By ensuring a stronger focus on governance, assurance and oversight … the Government can help build a more resilient and secure telecoms sector.”

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Finnish vendor Nokia reported a third-quarter profit that surpassed market expectations, driven by strong demand in optical and cloud services, including sales related to AI-focused data centres following its acquisition of US optical networking firm Infinera. The company’s comparable operating profit reached 435 million euros in the quarter through September, significantly exceeding the 342 million euros analysts had forecast.

This profit beat comes despite a challenging year for Nokia, which had previously issued a profit warning in July due to factors including US tariffs, a market slowdown, and a weaker dollar. The company has also “lost ground in the North American telecoms market” after US carrier AT&T chose Nordic rival Ericsson for a $14 billion 5G contract in 2023, phasing out Nokia’s existing deal.

The AI and Cloud Catalyst
Despite these headwinds, Nokia’s quarterly group net sales rose 12% to 4.83 billion euros, above the 4.6 billion forecast, supported by strong growth in Optical Networks and cloud services. Artificial intelligence (AI) and cloud customers accounted for 6% of group net sales and 14% of network infrastructure sales, with optical networks alone seeing a 19% rise on a constant currency basis.

Nokia’s CEO, Justin Hotard, highlighted the accelerating demand, stating, “AI and data center demand continues to be robust. In fact, it continues to accelerate from our perspective”. This focus on high-growth areas like AI is part of a strategic investment, with mobile networks remaining Nokia’s core business. Looking ahead, the Finnish company anticipates annual operating profit to be between 1.7 billion and 2.2 billion euros, a slight increase from the previous range of up to 2.1 billion.

Ericsson’s Cost Discipline
Meanwhile, rival Ericsson is executing a strategy that pivots “from prioritising top-line growth to being disciplined on costs and considering non-core disposals and cash returns”. This strategic pivot is playing out better than anticipated, with Morgan Stanley raising its price target on Ericsson due to “stronger-than-expected cost efficiencies and higher profitability forecasts”. Operational improvements, including a 6% workforce reduction and better management of the geographical mix, are helping to sustain margins at historically high levels. Analysts now expect gross margins in mobile networks to reach “record levels above 50% in 2025 despite a 6–7% revenue decline”.

Ericsson’s improved expense management is forecasted to keep operating margins steady in the 12–15% range through 2026. The company, which analysts now describe as resembling a “Telco” with a focus on free cash flow, is also expected to significantly boost shareholder returns. The firm is estimated to distribute 30 billion kronor in 2026, which is around 10% of its market capitalisation, through a mix of ordinary dividends, a special dividend, and share buybacks.

A Shared Path to Value
Both Nokia and Ericsson are demonstrating a business focus on margin expansion and financial discipline. For Nokia, this involves leveraging its Infinera acquisition and capitalising on surging demand from AI and cloud customers to drive growth in optical networks. For Ericsson, the emphasis is on rigorous cost control and operational efficiency to deliver strong profitability and substantial returns to shareholders.

This dual focus on profitability and capitalising on high-growth sectors signals a maturing phase for the telecom equipment industry, where disciplined management of costs and strategic investments in future technologies are key to driving value for a technically knowledgeable and business-focused audience.

Ericsson have made the shortlist for this years World Communication Awards in several categories including the 5G Award alongside Batelc0, Jio Platforms, KT and Singtel. View all the finalists here

Total Telecom are testing AI tools for content generation. This article used Noah Newsroom, please let us know about any inaccuracy

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Applied Digital has signed a lease with a US investment‑grade hyperscaler for roughly $5 billion of contracted revenue over an estimated 15‑year term, covering 200 megawatts (MW) of critical IT capacity at its Polaris Forge 2 campus near Harwood, North Dakota.

The agreement, announced on 22 October 2025, phases the initial 200MW across two buildings that are expected to begin coming online in 2026 and reach full commissioning in 2027. The hyperscaler holds a first right of refusal on an additional 800MW — the remainder of the campus’ 1 gigawatt (GW) build‑out — giving Applied Digital potential to scale the site substantially if demand materialises.

With this deal, Applied Digital says its total leased capacity in North Dakota with two major global hyperscalers across Polaris Forge 1 and 2 reaches 600MW. The company has promoted the project’s design and sustainability metrics, stating Polaris Forge 2 is engineered for a projected power usage effectiveness (PUE) of 1.18 and “near‑zero water consumption,” and built for high power density and liquid cooling.

Wes Cummins, Applied Digital chairman and chief executive, said: “What sets us apart isn’t just the size of our pipeline – it’s how fast we can deliver. The real constraint in this industry is execution, and our team continues to prove that large‑scale, next‑generation data centers can be designed, financed, and brought online faster and more efficiently than anyone thought possible.”

The lease follows a string of recent transactions for Applied Digital, including a 150MW lease with CoreWeave at Polaris Forge 1 and a previously announced $5bn partnership with Macquarie Asset Management. The company has also been highlighted in industry rankings for rapid growth.

Industry observers say the deal underlines continued hyperscaler appetite for purpose‑built, inland sites that offer grid capacity and cooler climates for high‑density AI and high‑performance compute workloads. Questions remain about execution risks — including permitting, financing and construction timelines — and how quickly additional capacity can be monetised if the tenant exercises expansion rights.

For B2B buyers and suppliers in the data‑centre ecosystem, the transaction signals ongoing demand for specialised AI infrastructure and opportunities in power, cooling and construction services as hyperscalers shift more of their build‑out into large, modular campuses outside traditional coastal markets.

Hyperscale Live: INFRASTRUCTURE, ENERGY, AND FINANCE FOR AI
New from Total Telecom 21-22 October 2026, Lisbon. Find out more

Total Telecom are testing AI tools for content generation. This article used Noah Newsroom, please let us know about any inaccuracy 

Original article ISPreview UK:Read More

Internet provider and network builder CommunityFibre, which has deployed their 5Gbps speed Fibre-to-the-Premises (FTTP) broadband network to cover 1.342 million homes (inc. 185k businesses within 200 metres of their network) – mostly in London, has today launched a new installation option – “Fibre to your Room“.

The provider, which is currently being backed by funding of c.£1bn and has connected over 400,000 customers, said that their new Fibre to your Room service allows customers to choose the optimal location for their fibre broadband installation for maximum performance in any room of their property, such as in the study.

Once agreed, CommunityFibre’s engineers will then “neatly and discreetly” install fibre cables to help unlock speeds for more devices to game, work and stream. The tidy, bespoke engineer installation is available for all new and existing customers, on all broadband packages and contract lengths, at a one-off £75 fee.

The provider added that they will deploy up to 40 metres of full fibre cable from the point of entry to reach your chosen location, which should be enough for most regular homes. But CF does say that “there may well be internal drilling (with a pencil-sized hole) if required to go from one room to another. Any internal holes will be filled/fire stopped, as with the externally drilled hole. Garden rooms, garages, or outbuildings not attached to the main building will not be eligible for installation.”

In fairness, most network operators will allow you to choose where to position the ONT and thus router on the day of installation (with some restrictions), but it sounds like this approach is a bit more flexible and probably akin to the premium installation option on some other networks.

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The Government’s Building Digital UK (BDUK) agency, which oversees their £5bn Project Gigabit broadband roll-out and the Shared Rural Network (SRN) programme for upgrading 4G coverage in remote areas, has today published their combined annual progress report and accounts for the period 1st April 2024 to 31st March 2025. This also includes some data on the level of fraud in their programmes.

In terms of their progress on delivery of Project Gigabit, the new report doesn’t really add much to last month’s annual progress update, as it covers the same period of time (here). But it does also contain a lot more information about BDUK’s accounts and management (if that’s of any interest), although you’ll need to pick out your magnifying glass to scan across all 104 pages of it to find any interesting bits.

For example, the report acknowledges that “there is a risk that BDUK will not achieve its target of 99% gigabit-capable connectivity by 2032 due to supplier challenges, funding constraints, market conditions or deployment complexities” (this target was only recently delayed from 2030 to 2032).

A similar statement is also made about the SRN’s January 2027 completion target, with BDUK noting the “complex delivery challenges associated with very rural areas” and the fact that they do not have “direct contracting relationships with power and transmission suppliers and therefore relies on grant recipients to deliver outputs to necessary timescales.”

Something else we noted was the data on fraud and error controls within BDUK, which exist in most public programmes to help prevent abuse (e.g. abuse of public funding, such as in the gigabit voucher scheme), although a lot of the context is missing to help explain where this arises. The fact they stick fraud and errors together for a lot of combined figures is also a little annoying, but they do separate it out in other areas.

BDUK Figures on Fraud and Error

Our fraud and error audit has found (based on cumulative results since 2022 to 2023 to ensure the robustness of the sample) 0.9% of the sampled transactions were categorised as irregular with 0.7% being classified as Supplier Error and 0.1% being classified as Official Error. 0.1% were classified as Suspected Fraud. For the cases specifically identified as part of our audit work the main causes of error identified included:

Beneficiary eligibility;

Retrospective requests for vouchers, where the connection was delivered prior to the request for a voucher.

Based on this estimation the overall level of underlying fraud and error in the vouchers scheme for 2024 to 2025 is therefore estimated to be £650,700 (based on spend of £72,300,000), £72,300 of which would be suspected fraud. This aligns with the total detected and recovered fraud and error figures submitted through the 2024/25 Consolidated Data Return.

If we were to apply the above estimation to the £180,500,000 of spend on our Gigabit contracts there would be c.£1,624,500 of fraud and error, £180,500 of which would be suspected fraud. In future years we will focus more attention on fraud and error in our Gigabit contracts as they increase in spend and delivery. However, our detailed fraud risk assessments show this mechanism as being relatively low risk given the extensive contract management controls, processes and procedures in place.

The full report covers many more areas and so, if you’re interested in the inner workings of BDUK, then this is for you. On the other hand, if you’d much rather have a cup of tea and a biscuit, then you’ll probably save your sanity by not having to read through 104 pages of mostly political / economic waffle and statistics.

Finally, we should remind readers that the government are currently in the process of ending BDUK’s status as an executive agency and instead integrating it back into the Department for Science, Innovation and Technology (DSIT) from 1st November 2025 (here).

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Broadband ISP Virgin Media (O2) and network operator partner nexfibre, which share some of the same parentage, have today announced that they’ve once again expanded the reach of their symmetric 2Gbps speed full fibre (FTTP) network to more than 6,000 additional homes in the coastal South Wales town of Llantwit for the first time.

Assuming the operator actually means Llantwit Major (Llanilltud Fawr), then the deployment could be quite useful as the town is currently only partly covered by a gigabit-capable broadband network from Openreach, although alternative network ISP Ogi seems to have the strongest coverage across the area.

Nexfibre reflects a £4.5bn joint venture between Telefónica, Liberty Global and InfraVia Capital Partners (here). This has so far already covered around 2.4 million premises across the UK with their new full fibre network, which is being built by Virgin Media’s engineers. But the operator’s original plan to cover “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT currently served by Virgin Media’s network of 16m+ premises was recently dealt a blow by Telefonica’s strategic review (here).

The network operator now only expects to reach 2.5 million UK premises by the end of 2025 and uncertainty remains over what comes next. But Virgin Media has recently announced the creation of a new fixed wholesale until, which will enable retail ISPs to harness both of their FTTP networks (here) – currently available to a combined 7 million UK premises.

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Lynk Global and Omnispace have announced plans to merge, aiming to create a leading direct-to-device (D2D) satellite connectivity provider by combining key technological and spectrum assets. The merger would unite Omnispace’s 60 megahertz of globally coordinated S-band spectrum with Lynk’s multi-spectrum satellite technology platform, which is currently operational with five low Earth orbit (LEO) satellites offering intermittent messaging and alert services across several island nations.

The combined entity, backed strategically by Luxembourg-based multi-orbit operator SES, which is set to become a major shareholder, intends to utilise this S-band spectrum aligned with international 3GPP standards for non-terrestrial networks. This move will deliver enhanced D2D and Internet of Things (IoT) connectivity solutions. These services are targeted at mobile network operators (MNOs), enterprises, government users, and commercial sectors worldwide, signalling a significant expansion in satellite-based mobile communications offerings.

Omnispace, headquartered in Washington, D.C., initially planned to deploy a constellation exceeding 600 satellites utilising its spectrum for global D2D coverage. However, its progress was hindered by interference issues reportedly related to the overlap with SpaceX’s spectrum usage in the U.S., particularly concerning T-Mobile’s cellular frequencies. According to Omnispace’s vice president of strategy and marketing, George Giagtzoglou, this interference was specific to the U.S. market, with expectations that a recent Federal Communications Commission (FCC) regulatory request by SpaceX could alleviate conflicts by aligning frequency usage with international S-band allocations.

Lynk CEO Ramu Potarazu expressed confidence that the merger provides the “right mix of technology, spectrum and leadership” to accelerate the delivery of seamless messaging, voice, and data services globally, extending coverage to commercial and industrial vehicles, governments, utilities, and consumer markets. Potarazu is slated to become CEO of the new combined entity, with Omnispace CEO Ram Viswanathan taking on the role of chief strategy officer.

This strategic pivot towards spectrum ownership marks a critical step for Lynk, which recently discontinued a planned public merger with Slam Corp., a special purpose acquisition company, following legal disputes that had constrained its capital-raising efforts. Instead, Lynk has been focusing on leveraging SES’s extensive satellite network in geostationary and medium Earth orbits and focused on a technology validation launch that will test new multi-orbit relay functions.

The timing of this merger also places Lynk and Omnispace alongside major industry competitors such as SpaceX and AST SpaceMobile, both actively securing satellite spectrum to bolster their D2D services. SpaceX is in the process of acquiring S-band spectrum rights from EchoStar (DISH), a deal reported to be valued at up to $17 billion in total considerations, which would significantly expand its licensed spectrum. The move is intended to grow its capacity from the modest 10 megahertz currently licensed through T-Mobile to a potential 50 megahertz for a next-generation service. Its constellation of over 650 Starlink satellites currently supports text messaging, emergency alerts, and select apps in specific markets.

Meanwhile, AST SpaceMobile, currently operating five test BlueBird LEO satellites, aims to scale rapidly with U.S. carriers AT&T and Verizon. It is pursuing various global spectrum agreements to provide higher-throughput satellite broadband, competing directly with the newly combined entity.

The Lynk-Omnispace merger is positioned to strengthen the landscape of D2D satellite communication by combining spectrum assets—Omnispace’s 60 MHz S-band and Lynk’s operational platform—with financial backing from SES. The companies anticipate finalising the transaction by late this year or early next year, subject to customary regulatory approvals. This consolidation reflects a growing industry trend where satellite firms seek to secure expansive, globally coordinated spectrum bands in order to deliver seamless, low-latency connectivity directly to consumer devices without relying solely on terrestrial cellular networks.

Total Telecom are testing AI tools for content generation. This article used Noah Newsroom, please let us know about any inaccuracy 

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A recent survey of 5,014 UK adult consumers, which was conducted by Which?, has claimed that the average broadband-only ISP customer could save £100 per year by switching to a new provider – rising to £160 and £155 on Sky Broadband and Virgin Media respectively. Similarly, those who haggled saved £65 (rising to £92 and £85 respectively on Virgin Media and BT).

The story is similar for mobile and TV customers. Mobile customers who switched operators and swapped to a SIM-Only deal were found to have saved an average of £258 a year, while those who stayed with their existing network and instead opted to haggle their way to a SIM-Only plan were able to save £210.

Across all types of mobile contracts, EE, O2 and Vodafone customers stood to make the biggest savings by switching away from their provider. Meanwhile, EE, O2 and Vodafone customers who left their current provider and switched to a different network or SIM-Only deal saved an average of £163, £127 and £121 respectively. Finally, out-of-contract TV and broadband customers could save an average of £169 by switching (rising to £237 on Sky TV), while haggling with an existing provider resulted in savings of £99.

However, it’s important to say that haggling is more likely to work with providers, particularly the biggest players (they have dedicated retentions departments), where discounting is a routine practice for attracting new and retaining existing customers. By comparison, smaller providers don’t traditionally offer big discounts to new customers and their prices may be more stable, thus haggling is less likely to return a positive result. Nevertheless, it’s always worth a try, and the worst thing they can say is “no”.

All of this is particularly relevant given the recent announcements from a number of broadband and mobile providers (e.g. BT – here and Virgin Media – here), which have increased the level of mid-contract price hikes they apply. For example, BT’s mid-contract hikes, which are applied from April each year, jumped from £3 to £4 (monthly). We’re expecting a number of other providers to soon follow suit, as per usual.

On the other hand, it’s now easier for consumers to switch providers than even before, thanks to systems like One Touch Switching (OTS) on broadband and Text-to-Switch (Auto-Switch) on mobile. Which?’s survey similarly discovered that most consumers found the switching process easy. This was the case for 80% of broadband and 79% of mobile customers, albeit falling to 69% for those with a broadband and TV bundle.

The main reason(s) people switched also varied by sector. Mobile customers switched for a better mobile deal with another provider (41%) or because they had issues with signal and reception (13%). By comparison, broadband customers switched to avoid slow speeds (21%) or an unreliable connection (16%), while broadband and TV bundlers looked for a new provider because of poor customer service (17%).

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The FCC took the initial step of revoking permission for Hong Kong Telecom (HKT) to continue providing telecom services in the United States.

By: Brad Randall, Broadband Communities

The Federal Communications Commission (FCC) has sent an order to Hong Kong Telecom (HKT) asking them to explain why revocation proceedings against HKT shouldn’t commence.

The FCC announced the development last week. It marks an initial step to revoke HKT’s ability to operate in the United States, the FCC said.

According to Chairman Brendan Carr, the order to HKT is the latest of the FCC’s efforts to unravel Chinese Communist Party involvement in U.S. telecom networks.

“As an affiliate of China Unicom—a provider that is already listed on the FCC’s Covered List due to national security concerns—the FCC’s action on HKT today is an appropriate step towards ensuring the safety and integrity of our communications networks,” Carr said through the FCC’s release. “The FCC will continue to
safeguard America’s networks against penetration from foreign adversaries, like China.”

A report, published by CNBC, said HKT acknowledged receiving the order.

The company further pledged to appropriately respond to relevant authorities, according to CNBC.

Scrutiny on Chinese telecoms is bipartisan

As the FCC’s release explains, the commission’s intensified focus on companies like HKT has continued with bipartisan support.

In addition to HKT, the FCC said they also directed HKT’s wholly owned subsidiaries to provide similar explanations regarding why their authority to operate in the U.S. should not be revoked.

Other companies to face denials, or revocations of the ability to operate in the U.S., have included China Mobile International (USA) Inc. in 2019 and China Telecom (Americas) Corp. in 2021.

The following year, along with China Unicom, Pacific Networks Corp. and ComNet (USA) LLC. in 2022 faced similar actions, the FCC said.

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The Senior MD at Macquarie, Oliver Bradley, has revealed that that one of the alternative broadband networks they support, Voneus, recently completed a renegotiation on their existing £70m debt facility over the summer. The move saw existing investors inject an unspecified amount of fresh funding to keep the operator going.

Some readers may recall that Voneus, not unlike many other altnets, has been struggling a bit recently with redundancies and a slowdown in their network build (here). This came after the operator also found itself having to withdraw (here) from their publicly funded Project Gigabit broadband roll-out contract for Mid West Shropshire (Lot 25.01), which was this month picked up by Openreach (here).

The company’s most recent accounts, which cover the year to 31st March 2024, revealed that turnover had increased by 34% to £4.417m, while gross profit shrank by -17% to £768.6k and total employees grew from 156 to 238. But Voneus’ loss before tax has also more than doubled to £36.65m (up from £14.83m), although their net assets have grown to be worth £93.43m (up from £23.32m).

However, a new report on TelcoTitans (paywall) reveals that Voneus appears to have quietly completed an important refinancing effort over the summer, which is a process that took around 3 months and involved some difficult negotiations with banks (creditors). The hope is that this will now enable the network operator to reach positive cash flow in the future.

Oliver Bradley indicates that this resulted in a sort of “amend and extend” agreement, wherein Voneus has been given some relief on the covenants it had agreed in securing the £70m debt facility, and an extension of the loan term by a number of years “to give us breathing room while we get to profitability and cash flow break even”.

In the meantime, details of how much extra funding has been injected alongside this remain unclear, although Voneus does confirm (Companies House) that the stated capital in terms of allotment of shares held by the company is now worth £131.48m (up from £110.68m a year earlier).