Research Round-up August 2024
- Veronica Speiser
- Sep 4, 2024
- 6 min read
Global broadband subscribers approaching 1.5bn: Q1 2024 update; UK ISP and Network Supplier Metrics Q2 2024; European Broadband Operators and Tariffs Benchmark Report, Q2 2024; UK telecoms sector news; government and Ofcom updates
Key publication of the month:
AltNets’ numbers are still stable as major broadband players are less than impressive
In summary
Total Q2 2024 FTTH/P/B, FTTC, cable, FWA/satellite and DSL wholesale and retail connections saw a very slight increase during the quarter and stood at an estimated 28.92m from 28.90m q-o-q and similar to 28.82m in the previous year.
The stall in the fixed broadband retail market remained, with ~21k net broadband subscriber additions compared to ~38k net additions in Q1, and -65k in the previous year.
Openreach hit its pace FTTP rollout target of just over 1m premises passed during the quarter which will see it reach its build target of 25m premises by the end of 2026; its average build rate reached 78k premises per week with a footprint of 14.82m premises.
For the other major ISPs, Vodafone had the strongest quarter with ~44k broadband net additions; but others struggled and saw modest losses Sky with an estimated -4k, Virgin Media O2’s (VMO2) reported -12k losses, followed by TalkTalk’s -30k losses as it continued to restructure, find cost efficiencies, and grapple with its debt-laden Platform X wholesale division.
VMO2’s full fibre footprint reached the milestone of 5m premises (up 68% y-o-y); its broadband customer base decreased to 5.70m; its overall in-footprint penetration dropped to 32.6% (down from 33.3%) compared to Openreach’s 34%.
AltNets saw ~59k net additions down from around ~70k additions in the previous quarter. AltNets total consumer broadband base reached just over 2.06m up from 2.0m in Q1 and 32% (1.56m) y-o-y .
CityFibre’s connections increased by ~24k to reach 424k during the quarter, with an overall penetration rate of 13%.
Sky lost around -4k subscribers with its broadband base standing at 5.77m.
TalkTalk’s consumer broadband base continued to struggle with an estimated -30k losses bringing its subscriber base to 3.39m.
Read the complete article here.
Key August telecoms sector news
BT Group News
12 August – BT Group announced that Bharti Global has reached an agreement to acquire c24.5% of the issued share capital of BT Group from Altice UK.
14 August – EE’s first 5G small cells go live, with capacity-boosting mini-masts now deployed at 1,000+ locations across the UK.
15 August – Openreach has announced plans to launch a new symmetric 1 Gbps broadband speed tier in certain locations – offering Communications Providers (CPs) further choice when ordering a service over its ultrafast full fibre network. Openreach will look to launch the new symmetric service in April 2025.
22 August – BT Group announced that it will collaborate with Edgio, as their first partner, to integrate their CDN into its MAUD technology solution. They plan to trial delivery of EE TV content on some set-top-boxes in the live network, in the coming months. Unveiling MAUD in December 2023, this collaboration takes the technology from proof of concept to real-world application with the first live CDN deployment, paving the way for other CDNs to follow.
28 August – Openreach announced GEN075/24 GEA Ancillary Product Pricing Update – The briefing informed CPs about changes to the price of certain GEA-FTTC, GEA-FTTP, Multicast for GEA, and LLU ancillary products. In addition, the withdrawal of “Customer Premises Equipment - Supply of Openreach Gfast Modem” is being notified.
Openreach announced price changes to certain GEA-FTTC, GEA-FTTP, Multicast for GEA and LLU ancillary products that will come into effect from 1 December 2024.
“Customer Premises Equipment - Supply of Openreach Gfast Modem” is being withdrawn from 1 December 2024.
29 August – Openreach is joining forces with Wolverhampton Homes to make full fibre broadband available to more than 4,500 flats and apartments across the city. The upgrade is already available in Aldersley, Bilston, Central Wolverhampton, Wednesfield, Tettenhall and Woodcross. Around 1,000 homes across 89 different buildings have been upgraded so far.
Virgin Media O2 (VMO2) News
19 August – VMO2 launched a new mobile plan to support people on low incomes, The plan costs £10 per month and comes with 10 GB of data plus unlimited calls and texts.
28 August – VMO2 announced it had passed 11k premises in Huddersfield, West Yorkshire as part of its FTTP rollout on behalf of nexfibre.
28 August – Three companies Liberty Global Management Services Operations Limited, Liberty Global Management Services 1 Limited, and Liberty Global Management Services 2 Limited have their applications for Code Powers to make rolling out broadband infrastructure open for consultation at Ofcom.
Liberty Global are the parent company of Virgin Media and the reason given for needing code powers is: "The Applicant s is a subsidiary of Liberty Global Holdings Limited and is working with its joint network partner Telefónica SA and intends to create a distinct national fixed network company in the United Kingdom, through their joint venture Virgin Media O2 (NetCo)."
CityFibre (CF) News
1 August – CF signed a wholesale agreement with Lightning Fibre, with the latter offering additional full fibre coverage in the Worthing, Brighton and Hove areas.
20 August – Sky and CityFibre have agreed a long-term partnership that will see Sky launch broadband services on the CityFibre network starting in 2025. CityFibre has a footprint of 3.8m at the time of the announcement.
Independent Operators (AltNets) News
2 August – nexfibre, AllPoints Fibre, Community Fibre, Gigaclear, and Netomnia and Brsk establish new ‘PIA Coalition’ – calling on Ofcom to ensure a level playing field for access to Openreach passive infrastructure in its upcoming Telecoms Access Review (TAR).
The Coalition has conducted a detailed economic analysis of Openreach PIA regulation (carried out by SPC Network), revealing an imbalance between Openreach and alternative network operators, particularly in pricing, where alternative operators pay significantly more to access ducts and poles than Openreach charges itself. The Coalition is calling for Ofcom – in its upcoming Telecoms Access Review – to act and ensure all users of PIA have a level playing field for access to infrastructure.
8 August – Tom Rigg announced as B4RN CEO as Michael Lee steps down.
12 August – Freedom Fibre connected over 20k homes across the North West and West Midlands, including in Stoke-on-Trent, Crewe, Leek, Urmston, Northwich and Whitchurch.
15 August – Zen Internet announced it is to resell full fibre services over Trooli’s network which covered around 370k premises.
15 August – LilaConnect announced it had reached the 15,000 customers connected milestone.
26 August – Fibrus announced that it has secured an additional £100m tranche of Senior Debt, which means the company is fully funded to complete its rural roll-out plan and reach half a million homes across Northern Ireland and Cumbria within the next two years.
The package is an increase to its existing £200million senior debt facility and £20million revolving credit facility. The amendment to the existing facility was supported by all its existing lenders: UKIB, ING, LBBW, ABN Amro, Natwest and Sabadell, and three of these lenders are contributing to the £100m accordion facility.
Other News
12 August – TalkTalk refinancing deal agreed including provision of £235m of funding from Shareholders in aggregate, the contribution of other assets into the Group by the Shareholders, including the Virtual1 business, and the OVO and Shell branded customer bases, and the extension of the first RCF and SSN maturities to September 2027.
13 August – Openreach has signed DSIT Project Gigabit contracts worth £288m to cover 96,600 rural properties in England and Wales. Some of the areas set to benefit named so far parts of Lancashire, North Wiltshire, South Gloucestershire, West and Mid- Surrey, Staffordshire, West Berkshire and Hertfordshire, West and North Devon, and North West, Mid and South East Wales.
There is also talks underway that should once signed see Openreach working to deliver to a total of 312k premises of FTTP in rural areas of Scotland, Wales and England. The total value assuming all the talking translates into signed contracts is around £800m. The additional areas look set to be Central and North Scotland, North and South West Wales, Mid and South Devon, East and South Shropshire, North Herefordshire, North Somerset, Essex, North East England and Worcestershire.
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