Zegona Communications has won four out of five tenders to provide various telecoms services to the Catalan government (Generalitat – picture shows Palau de la Generalitat de Catalunya in the Old City of Barcelona). Zegona operates under the Vodafone brand having acquired its Spanish business earlier this year for €5 billion.
The Catalan contracts are reportedly worth about €406 million in total.
Emerging Markets Telecommunication Services (EMTS) which operates under the 9Mobile brand has a new owner, according to local media. The deal has gained approvals from the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC).
It has also been approved by the African Export Import Bank (AFREXIM), which is the main lender to EMTS, which is not having the best of times.
The new owner, LH Telecoms Ltd, is registered in the UK. It has acquired a 95.5% stake in exchange for capital investment. No financial details have been made public. The new owner has appointed an experienced new board with Obafemi Banigbe, a veteran of the African mobile market with 24-year track record, as the new CEO.
9Mobile was formerly part of the Etisalat group, but the group exited Nigeria seven years ago and the operator evolved to become 9Mobile. According to Reuters, the Nigerian regulators intervened back in 2017 to save Etisalat Nigeria from collapse after it failed to renegotiate a $1.2 billion loan. It remains the smallest of the main four operators in the country, having failed to make much ground on its bigger rivals – MTN Nigeria (the biggest with more than 83 million subscribers), Airtel and Glo Mobile.
Its new owners will have their work cut out. In recent months, it is thought that 9Mobile has shrunk further, falling from a market share of about 6% with 13.7 million customers at the end of last September. According to 9Mobile is the smallest operator in Nigeria with around 11.3 million mobile users at the end of June 2024, according to Omdia, this has since fallen to about 11.7 million now.
Telenor Danmark has chosen CSG’s cloud-native, software-as-a-service (SaaS) platforms to help monetise interactions with B2C and B2B customers.
Telenor Denmark is Denmark’s second-largest mobile operator with 1.7 million customers. It is to deploy CSG Ascendon’s AWS revenue management platform, based on AWS infrastructure.
The solution for the Danish operator comes integrated with CSG Xponent, a unified platform designed “to bridges the gap between customer insights and action”. According to CSG, it analyses customers’ journeys to uncover hidden patterns, uses real-time data and decisioning to personalise experiences and manage communication across all channels.
Seize new revenues
Telenor Denmark’s plan is to deliver better digital experiences across all touchpoints and to improve omnichannel support for all business segments and “seize new revenue opportunities”.
With the vendor’s configure, price, quote functions, the operator will be able to bundle offers that can include partners’ products to create tailored solutions for business customers quickly.
Lars Thomsen, CEO, Telenor Denmark, said, “At Telenor Denmark, we make it easy for our 1.7 million customers to connect with the people and services that matter most to them. This is how we earned the industry’s highest customer satisfaction in 2023.
“As we look to the future, we must adapt to meet fluctuating demands and continue to offer new, innovative solutions to our customers. CSG has the proven track record, industry depth and cloud expertise we need to embrace end-to-end digitalisation that will further strengthen our ability to deliver excellent customer service and inspire our customers.”
Italian towerco INWIT has extended its partnership with civil defence organisation Legambiente to monitor and prevent forest fires, one of the main threats to Italian forests. The two have already been collaborating on monitoring air quality but have now stepped up their activities around Abruzzo.
The first territories involved in this new phase are the Abruzzo municipalities of Pescasseroli (AQ), within the Abruzzo, Lazio and Molise National Park, and Pettorano sul Gizio (AQ), in the Monte Genzana Alto Gizio Regional Nature Reserve, where the technology has been installed. This will be followed, within the month of August, by installing fire monitoring in the Lecceta di Torino di Sangro Regional Nature Reserve (CH), the Bosco Don Venanzio Nature Reserve in Pollutri (CH) and the Municipality of Civitella Roveto (AQ) to monitor the Longagna area.
INWIT’s five towers in these territories will be equipped with five gateways and nine smart cameras, integrated with artificial intelligence (AI) software capable of detecting fires at an early stage. Their location at the top of the towers is also the best position to observe large areas.
The maximum distance the cameras can cover varies according to the orographic characteristics of the site and the relative size of the fire plume. The observation radius is on average 2km around the location point, but in certain cases it can extend to 5km, covering a maximum area of around 80 square kilometres. The equipment is also capable of operating in adverse environmental conditions and, thanks to AI, distinguishing chimney smoke from that of fires.
“The implementation of these activities confirms the value for the territory and the role of our digital and shared infrastructures which, in addition to enabling operators’ 4G and 5G, can also host different technologies, offering more integrated and innovative services which are also capable of making an active contribution to the protection of the environment and biodiversity,” said INWIT head of external relations, communication and sustainability Michelangelo Suigo.
He added: “The solid partnership with Legambiente, after monitoring the environment and air pollution in the Parks, has been strengthened and relaunched with the monitoring and prevention of fires thanks to our towers, sentinels supporting the great work of the institutions in charge, and artificial intelligence.”
“Over the years, there has been a rise in the activities in which new technological frontiers combined with the development of digital and artificial intelligence provide increasingly strategic support. The environmental and fire monitoring projects, which we have initiated with INWIT after those on air quality, follow this very direction and focus on a delicate issue with heavy repercussions for the territories,” said Legambiente general manager Giorgio Zampetti.
In July 2023, INWIT and Legambiente initiated the project that would evolve the role of digital and shared infrastructure by installing IoT sensors, smart cameras and gateways on INWIT towers for monitoring and fire prevention. Air pollution monitoring was set up in four natural areas in the central Apennines: the Abruzzo, Lazio and Molise National Park, the Maiella National Park, the Zompo lo Schioppo Nature Reserve and, lastly, the Monte Genzana Alto Gizio Nature Reserve.
Proximus and Wyre, with Telenet and Fiberklaar, have agreed to work together on faster, broader fibre deployment with less civic disruption. The intended collaboration would cover about 2.7 million homes across zones with intermediate to low population density.
The parties are yet to reach a final agreement for which they need regulatory and antitrust approvals.
Carving up the territory
In ‘medium-dense’ areas, Wyre and Fiberklaar will deploy FTTH to about 2 million homes if the agreement reaches fruition, of which 60% would be by Wyre and 40% by Fiberklaar. The infrastructure would offer reciprocal wholesale access to this infrastructure for Proximus and Telenet, respectively. This should result in a more efficient roll-out with less disruptive construction works.
In the most sparsely populated zones, Proximus would start offering services using Wyre’s Hybrid Fiber Coax (HFC) network for about 700,000 homes, meaning it could offer gigabit speeds throughout Flanders. In large cities and dense parts of the territory, operators will continue to roll out their own networks separately.
The speed is much needed. Belgium remains a laggard in terms of FTTH/P penetration however. In a blog, ING noted, “Additional investment is particularly required in Belgium, Germany, and Greece,where less than 30% of homes were connected to fibre in 2022 (FTTH Council Europe).
“This stands in stark contrast to Lithuania, Portugal and Romania, which had connected roughly 90% of their households to fibre at the end of 2022. The difference is largely explained by lower costs per premises in South and Eastern Europe, which is why networks overlap more often.”
What led to the MoU?
The signing of the MoU is after months of discussions after the BIPT’s and BCA’s announcements in October 2023 which said they were willing to consider possible collaborations between operators. The parties have identified key terms for a possible collaboration that aligns with the announcements.
The four parties engaging with the BIPT and BCA and will say they will “fully cooperate with the authorities during their investigations”. They also say no further details will be released until the cooperation agreement is formally signed. This is expected to happen in the fourth quarter at the earliest.
Guillaume Boutin CEO of the Proximus Group said, “We have always been open for partnerships that can guarantee a faster and more efficient roll-out of fibre for households and enterprises, making fibre accessible to as many citizens and businesses as possible…
He added, “I am convinced that smart collaboration between operators would ensure optimised deployment and utlisation of the network, which would be beneficial for the consumers, all stakeholders and for the competitiveness of society as a whole.”
Proximus’ Board of Directors has confirmed Guillaume Boutin as Proximus Group’s CEO for a further six years. He became group CEO in December 2019.
Liberty Global reported a robust consolidated cash balance of $3.5 billion in Q2, bolstered by $420 million from the sale of its stake in All3Media, while delivering strong operational performance in the Netherlands and growing infrastructure investments across Europe. However, these positives were tempered by notable declines in key markets such as VMO2 and Telenet, where revenue shortfalls and customer base declines underscored problems it will need to address. As the telco makes progress with strategic initiatives like the Sunrise spin-off and network sharing agreements, the mixed results showed how much more work needs to be done in the UK and Belgium.
In terms of financials, Liberty Global’s Q2 revenue increased 1.4% YoY on a reported basis and 2.2% on a rebased basis to $1,873.7 million while net earnings (loss) increased 153.8% YoY on a reported basis to $275.2 million. Q2 Adjusted EBITDA increased 0.5% YoY on a reported basis and 1.0% on a rebased basis to $604.7 million. Adjusted EBITDA Growth in Several Segments: Adjusted EBITDA increased in several segments, notably in the Netherlands and at VodafoneZiggo.
Liberty confirmed the spin-off of Swiss telco Sunrise is on track for Q4 2024. That telco’s management team will host a Capital Markets Day in Zurich on 9 September. Sunrise showed strong broadband net additions and an increase in postpaid mobile net adds in Q2, which is encouraging for its future as an independent entity. Meanwhile, Liberty Global made good progress on fibre deployments in the UK, Belgium and Ireland, along with strategic network sharing agreements with Vodafone in the UK and Proximus in Belgium.
However, the telco updated the revenue guidance for VMO2 to reflect a “low to mid-single-digit decline” due to lower handset sales. Telenet also experienced a decrease in revenue driven by a drop in B2B wholesale and mobile revenue. In addition, VMO2’s fixed customer base declined by 13,600, and its postpaid mobile base saw a significant decline of 118,400.
Meanwhile, Telenet’s performance was impacted by a tough comparison to the previous year, with declines in both postpaid mobile and broadband bases. Revenue and Adjusted EBITDA also decreased. Telenet also saw a notable decrease in Adjusted EBITDA, driven by higher staff-related expenses and increased sales and marketing expenses. In the Netherlands, VodafoneZiggo’s broadband base contracted by 22,600, driven by a decline in the consumer segment. Despite the growth in mobile and B2B fixed revenue, the loss in the B2C fixed customer base will be management.
Value over volume
“Against a highly competitive backdrop in the UK our strategy of focusing on value over volume, as well as successful implementation of the price rise, supported a recovery in fixed ARPU,” said Liberty Global CEO Mike Fries. “In Switzerland, we’re continuing to build operating momentum in both the main brand and flanker brands, supporting continued growth in broadband net adds and strong growth in mobile postpaid.”
“We delivered a standout performance in the Netherlands during the quarter, supported by the fixed price rise and solid growth in mobile and B2B,” he said. “In Belgium, as anticipated, a tough comp from the prior year did impact financial performance, but we continue to drive strong fixed ARPU growth, and we’re seeing good trading performance following the launch of our BASE FMC offering nationwide.”
Fries confirmed all 2024 guidance metrics, except VMO2’s revenue. He said this moved from ‘stable to decline’ to ‘low to mid-single-digit decline’. He added that this reflected the continued pressure on low-margin mobile hardware revenues.
Swiss progress
During Q2, Sunrise delivered a second consecutive quarter of broadband growth, achieving 5,000 net adds, primarily driven by reduced churn on the main brand. In mobile, growth in postpaid accelerated, as Sunrise delivered 32,900 postpaid net adds, supported by an improved main brand performance and reduced churn. FMC penetration across the Sunrise broadband base continues to grow steadily, reaching 59% in Q2, an increase of 0.9% YoY. Revenue of $815.8 million in Q2 2024 was flat YoY on a reported basis and increased 0.5% on a rebased basis.
Tough for Telenet
During Q2, Telenet’s postpaid mobile base declined by 500 while its broadband base declined by 4,800. Despite the “intensely competitive market environment”, the sequential improvement was driven by successful marketing campaigns and the launch of BASE Internet and BASE TV in early June. Following the launch of the fixed BASE product in Wallonia and in the Flemish and Brussels footprint, BASE is now a nationwide FMC brand. Earlier today, Telenet announced the signing of a MoU for collaboration on the further deployment of fibre networks in Flanders.
Revenue of $755.1 million in Q2 2024 decreased 1.6% YoY on a reported basis and 0.9% on a rebased basis. The rebased decrease was primarily driven by a decrease in B2B wholesale revenue following the loss of the Voo MVNO contract and a decrease in mobile revenue driven by lower interconnect revenue and handset sales, partially offset by the benefit of the June 2023 price rise.
VMO2 finds it tougher
VMO2’s fixed customer base declined by 13,600 in Q2. Customer growth in the nexfibre footprint continues to build steadily and is expected to rise as marketing increases, however, this was offset by a “moderate loss” on the VMO2 footprint during the quarter when price rises were implemented. Having stabilised in recent quarters, fixed ARPU returned to growth in Q2, growing by 3.1% YoY.
In mobile, the postpaid base declined by 118,400 in Q2. Reflective of wider market trends, activity in the premium end of the market remained lower than the prior year, impacting gross additions, while churn remained stable. VMO2’s full fibre footprint reached the milestone of 5 million premises at the end of Q2. The telco’s fibre build pace increased by 68% YoY, as the total serviceable footprint grew by 295,300 homes in Q2, principally through build on behalf of nexfibre. On the mobile side VMO2 and Vodafone announced a new, long-term network sharing agreement.
Revenue in Q2 2024 was £2,673.7 million, down 0.5% from last year. This drop was mainly because VMO2 sold fewer mobile phones, which affected its overall sales. While they did make more money from their new construction projects and raised prices for home internet services, this wasn’t enough to offset the decline. Additionally, there was a drop in revenue from business-to-business fixed services.
Netherlands solid
During Q2, VodafoneZiggo’s mobile postpaid net adds declined by 18,400, driven by B2B government contract losses. The broadband base contracted by 22,600 in the quarter, as a 27,400 decline in Consumer was only partially offset by a 4,800 increase in B2B. Both mobile and fixed ARPU continued to grow in the quarter, supported by the benefit of the price indexation implemented in October. The FMC broadband household penetration remained stable at 48%. In July, VodafoneZiggo successfully acquired 100MHz spectrum license in the 3.5 GHz band.
Revenue from VodafoneZiggo grew by 0.3% from last year to $1,091.6 million in Q2, mainly due to increased sales from mobile services and business fixed-line services. However, this growth was partly offset by a drop in home fixed-line customers. The telco’s operating profit also improved by 7%, helped by lower energy and consulting costs. Additionally, after accounting for expenses on property and equipment, its adjusted profit rose by 15.5%.
Vodafone Group’s profits rose 2.8% in Q1 to the end of June, rising to €9 billion. Africa and Turkey were the stars of the show, while lower inflation was blamed for the lack of growth in Europe.
Total revenue in Africa increased by 3.2% to €1.8 billion due to higher service and equipment revenue. Total revenue increased by 45.6% to €0.7 billion, with service revenue growth somewhat offset by devaluation of the local currency.
Germany, Vodafone’s biggest market continues to drag on revenues. German revenue fell by 1.7% in the quarter to €3.095 billion compared to the same quarter last year. The operator says this “is expected” due to the change in the law that means those living in multi-tenanted dwellings (MTD) are no longer obliged to accept the landlord’s chosen TV service provider but each unit can choose its own supplier.
The change came into effect this July, later than originally scheduled. Vodafone says, “We have continued to migrate end users to new contracts at scale. We continue to expect to retain around 50% of the 8.5 million MDU TV households.”
Focus on the big ticket stuff
The UK, Vodafone’s second biggest country market continues in a state of quasi-limbo (revenues up 0.3% to €1.689 billion while the Competition and Markets Authority ploughs on with its investigation into the possible effects of Vodafone merging with Three UK.
The group’s CEO, MargheritaDella Valle focused on big number income from disposing of assets: “During the last few months, we have announced the final step in reducing our stake in Vantage Towers to 50% for €1.3 billion and commenced our €2 billion share buyback programme following the sale of Spain.
“We continue to progress our transactions in Italy and the UK as well as the broader transformation of Vodafone, focused on customer experience, Business growth and operational execution in Germany. The actions we are taking now will deliver improved performance and underpin the turnaround of Vodafone.”
In line with expectations
Meanwhile, BT Group hasn’t got that much to celebrate either in its first quarter which ended on 30 June. BT reported a 2% drop its underlying Q1 revenue to £5.1 billion. Its EBITDA still rose 1% to £2.1 billion, thanks apparently to “transformation and tight cost control, including lower staff costs,” according to the group’s still new CEO, Allison Kirkby.
She added, “Our ongoing cost transformation contributed to EBITDA growth, and more than offset the expected revenue declines in Consumer and Business in the quarter. There is much more to do to simplify BT Group and deliver for our customers. We remain on track to deliver our financial outlook for this year.”
Putting a shine on it
BT’s semi-detached wholesale fibre unit, Openreach, passed more than 1 million premises in Q1, which is a rate of 78,000 a week. In total, it has now passed 15 million premises and during the quarter, its FTTP customer base passed 5 million. It said, “strong demand for such services has resulted in a 29% year-on-year increase in orders and net additions of 387,000.
On the other hand, it lost a record 196,000 broadband customers in a single quarter as competition and its price hikes bite. Kirby’s positive take on this is that in the Consumer segment, “the widespread availability of FTTP and 5G, combined with our new EE propositions, has contributed to an improved trend in our customer base, in what remains a very competitive market”.
She also highlighted “improved trends” across its struggling Business unit but reported adjusted revenues down 5% from £2 billion to £1.9 billion over the same period last year.
Not helpful
In May Ofcom fined BT £2.8 million after an investigation concluded it had failed to follow clear and simple contract information rules resulting in at least 1.1 million EE and Plusnet customers had not received contract information and key terms before they signed up, such as information on price, speed and early exit fees. BT must also identity and refund any customer who may have been charged an early exit fee on a contract taken out where the correct information wasn’t given.
In addition, earlier this month BT received a fine from Ofcom of £17.5 million for being ill-prepared to respond to a catastrophic failure of its emergency call handling service last summer. BT was unable to connect calls to emergency services between 06:24 and 16:56 on 25 June 2023. During that time nearly 14,000 call attempts – from 12,392 different callers – were unsuccessful.
Sponsor Interview at Mobile Europe’s Business and Technology Summit event in London on 3rd July 2024.
Michelle Donegan speaks with Benjamin Renaud, CTO at Redis.
To learn more, visit www.redis.io
Sponsor Interview at Mobile Europe’s Business and Technology Summit event in London on 3rd July 2024.
Michelle Donegan speaks with Anthony Palmer, Global Business Development Manager at nVent Schroff Telecoms Solutions
To learn more, visit www.nvent.com/en-gb/telecommunications
According to the local newspaper Expansión, MásOrange and Vodafone are well down the road in talks about creating a joint venture to offer a fibre broadband in Spain. The goal is that the business would be worth €7.5billion to €10 billion.
MásOrange – the biggest converged operator in Spain since the takeover of MasMovil earlier this year by Orange Spain – would own about 50% of the new entity. Vodafone, now owned by Zegona Communications, would hold 10%.
They hope to attract an investor to take the other 40% stake for €1.5 billion to €2 billion. The newspaper pointed out that this would help both of them reduce their considerable debt while maintaining the controlling stake.
The report says the parties expect the negotiations to be concluded by the end of this month.
UPDATE: The Vodafone and MasOrange have confirmed they are forming a fibre JV but they have not confirmed any of the monetary values suggested by the newspaper report.
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