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BT lands £1.29bn deal for mobile services to UK’s emergency network

Annie Turner
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BT lands £1.29bn deal for mobile services to UK’s emergency network

Home Office issues contract for Emergency Services Network over the next seven years: no mention of 5G or network slicing

BT Group announced it has signed a new £1.29 billion contract with the Home Office to provide mobile services for the UK’s Emergency Services Network (ESN) over the next seven years. There is no mention of 5G or network slicing.

ESN is a national critical communications system that includes voice, video and data across the 4G network. It is intended to give first responders, including police, fire and rescue, and ambulance services – immediate access to data, images and information in live situations and emergencies. 

The network gives the services priority across the network to ensure they can communicate and respond to emergency events even in remote areas or when networks are busy. 

EE won a contract from the Home Office in 2015 to build the ESN in 2015 as part of a wider programme to replace the Airwave system, which had been in place for more than two decades. 

It included building a new, dedicated, core network for ESN as a mission-critical service and upgrading more than 19,500 of EE’s 4G sites ready for the ESN. At the same time, EE expanded coverage in rural and critical operational areas, and set up the network to give priority and pre-emption for emergency services over other users. 

EE’s original mobile services agreement for the ESN with the Home Office is due to expire on 31 December 2024. 

New contract

Under the new contract, which comes into effect today, BT Group will continue to build, maintain and develop critical mobile coverage and capabilities for ESN as it rolls out to support more than 300,000 users. 

This means providing high service availability across all of EE’s 4G Radio Access Network (RAN), as well as adding additional connectivity to boost national coverage for first responders. There is no mention of 5G or network slicing in sight.

BT Group will also now manage and provide coverage services for the Home Office’s Air-to-Ground (A2G) network, Extended Area Services (EAS) sites, London Underground and specific road and rail tunnels. 

Safer indoors

It is expected that the ESN programme will see BT Group carry out the country’s largest single deployment of coverage at indoor location to meet operational standards for Public Safety Communications Services (PSCS) users. The new contract spans 7.25 years, with the option of a one-year extension. 

Bas Burger, CEO – Business at BT, said, “BT Group has been a committed longstanding partner for Britain’s Emergency Services Network (ESN). We’re proud to double down on this commitment today by broadening the scope of our agreement with the Home Office until 2032 and beyond – as the Government takes ESN from build through to delivery and operation of this critical network.”

As well as connecting national and local government, BT works with more than 200 NHS trusts, 43 police forces, 29 fire services and has supported the emergency services by handling all incoming 999 calls since 1937.

No doubt the contract will be a welcome fillip for the BT’s struggling Business division, and is in line with CEO Allison Kirkby’s plan of focusing on its national, rather than international, market.

How AI is Transforming Telecoms – November 2024 | In conversation: Is bigger better? Large language versus telco-specific models

Tiffany Amorós
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How AI is Transforming Telecoms – November 2024 | In conversation: Is bigger better? Large language versus telco-specific models

From Telecoms Europe Events: https://www.telecomseuropeevents.com/

  • Harrison Lung, Group Chief Strategy Officer, e&

IHS Towers sells Kuwait operations to Zain for $134m

Simon Dux
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0
IHS Towers sells Kuwait operations to Zain for $134m


The previously debt-laden towerco is slowly fortifying its balance sheet while looking to grow in markets like Latam

Towerco IHS Holding has signed a definitive agreement to sell IHS Towers’ 70% interest in IHS Kuwait including its around 1,675 sites and an additional 700 or so sites managed in Kuwait to Zain Group. The transaction is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the first half of 2025. The terms of the transaction reflect an enterprise value of $230 million for the IHS Kuwait portfolio. Under the terms of the transaction, Zain has agreed to increase its 30% ownership of IHS Kuwait to 100%, at an equity value for the remaining 70% stake of US$134 million. 

In announcing the deal, IHS said the proceeds will be used to reduce company debt and the company has recently said that it is still on course to hit full-year 2024 guidance, projecting revenue between $1,670 million and $1,700 million, adjusted EBITDA of $900-920 million. Like many telcos, IHS was slapped by volatility in the Nigerian Naira, where its subsidiary which covers the bulk of its revenue was still able to renew and extend key contracts during Q3. In last month’s financial results the towerco said its deal with MTN Nigeria had secured nearly 13,500 tenancies through to 2032.

It still faces headwinds due to currency depreciation and as a result, has begun shifting more debt into local currencies. It is also attacking costs, reducing capex to $66.5 million and announcing further capex savings for the remainder of the year. This means it has revised its full-year guidance down to $270-300 million from $330-370 million.

“Today’s announcement forms part of our wider ambition to drive shareholder value and enhance our balance sheet,” said IHS Towers chairman and CEO Sam Darwish. “The transfer of IHS Kuwait to Zain, the largest mobile network operator in Kuwait, not only highlights the significant value contained within our portfolio but will also allow us to further reduce our net leverage.”

IHS Kuwait will continue to operate independently and provide passive tower infrastructure services in Kuwait. “This agreement will enhance Zain’s Digital Infrastructure regional expansion strategy in creating capital efficiencies and driving shareholder value,” said Zain vice-chairman and group CEO Bader Al Kharafi. 

“It will also complement our ground-breaking deal with Ooredoo to acquire and merge approximately 30,000 towers. The aim of our sustainable and independent operating model is to provide passive infrastructure as a service, supporting the reduction of MENA’s carbon footprint and empowering the region’s digital future,” he added.

Brazil pivot

IHS Towers has over 40,000 towers across its 10 markets, including Brazil, Cameroon, Colombia, Côte d’Ivoire, Egypt, Kuwait, Nigeria, Rwanda, South Africa and Zambia. There was discussion about the towerco selling off its Zambian and Rwandan assets around August-time but progress on these has gone quiet. 

While it is exiting markets to reduce debt, the towerco is also building up its tower portfolio and tenants in Latam, despite a reduction in revenue and capex related to regional operations in Q3. Brazil is the group’s second largest market after Nigeria, but the one where it is concentrating most of its construction and expansion efforts. IHS ended Q3 with 8,354 towers in place in Latin America, up 8.9% year-over-year. Of the total, 8,109 are in Brazil and 245 in Colombia. During the quarter, IHS built 160 towers in the region, adding to 151 built in Q2 and 161 in Q1.

According to Bnamericas, The number of tenants, that is, unique lessees for the sites in Latin America, grew by 6.5% to 10,812. Yet, revenue decreased 13% to $45.1m, as the group said it felt the hit from FX movements and a reduction in revenues of its customer Oi, which is undergoing judicial recovery. Year-to-date revenue in Latin America decreased 4.4% to $139m. During the quarter, IHS built 160 towers in the region, adding to 151 built in Q2 and 161 in Q1.

Its biggest Latin American clients are Brazil’s TIM, Vivo, Claro, accounting for 7%, 2% and 1% of global revenues. The biggest clients worldwide are MTN (62% of Q3 revenue) and Airtel (14%).


Pictured (l-r): Zain vice-chairman and group CEO Bader Al Kharafiand and IHS towers COO William Saad.

WEBINAR ON DEMAND: Preventing Mobile Money Fraud with High Accuracy Location Intelligence

Annie Turner
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0
WEBINAR ON DEMAND: Preventing Mobile Money Fraud with High Accuracy Location Intelligence

Mobile money apps have transformed access to financial services in developing countries, converting cash to electronic value in real-time at registered retail locations.

But, remote fraudsters impersonating a subscriber device can cause devastating financial hardship for end customers, revenue loss and reputational damage for providers and mobile network operators, and lost tax income for governments.

Watch the recording where SS8 Location Product Manager Michael Gebretsadik and our Editor, Annie Turner, to discover how real-time location intelligence prevents mobile money fraud.

You will learn how to:

  • verify a subscriber and registered agent or ATM are close enough for a mobile money transaction
  • use geofences to monitor high-risk locations and ensure agents operate within designated areas
  • identify SIM swaps, such as when fraudsters persuade an agent that the original device/SIM was lost or stolen
  • support dispute resolution and investigations by determining a user’s location at the time of a transaction

To learn more about SS8 Networks, visit www.ss8.com

MTN opts for ODC to develop and test open RAN for African markets

Annie Turner
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0
MTN opts for ODC to develop and test open RAN for African markets

The operator group was a prominent supporter of open RAN and now appears to be translating its enthusiasm into action

MTN Group has announced it is working with the ORAN Development Company (ODC), “to develop and test innovative Open RAN solutions tailored to unique requirements of networks across Africa”. MTN serves more than 280 million customers in 16 African markets.

Apparently the ODC has headquarters in North Virginia in the US with development teams in the UK and India. Beyond that, there seems to be little information about the company.

MTN was a prominent supporter of open RAN before going somewhat quiet on the subject but now appears to be steaming ahead: MTN and ODC are to collaborate on joint lab tests and field trials.

The press statement said, “This collaboration supports MTN Group’s commitment to provide affordable, high-quality telecommunications throughout the continent, with advanced Open RAN architectures enabling greater network flexibility,”.

Matthew Johnson, Global Head of ODC, was quoted saying, “Our collaboration with MTN Group focuses ODC directly on MTN’s unique network needs, enhancing efficiencies while supporting the evolution of next-generation capabilities, silicon, and AI.”

Telia slashes headcount, moves to country-led model to save €255m pa

Annie Turner
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0
Telia slashes headcount, moves to country-led model to save €255m pa

Last week Telia Finland handed responsibility for the operation and development of its cable broadband and TV services to Teleste

Telia Company says it has completed the change programme it announced on 4 September. It aims to cut costs by shedding 3,000 jobs and decentralising the organisation, shifting to a country-led operating model.

The changes are intended to provide annual savings of at least SEK 2.6 billion (€255.6 million) and the restructuring charges are expected to amount to less than previously communicated, at around SEK1.3 billion instead of SEK 1.4 billion, with effect in Q4 2024.

From 1 December, each Telia opco in Sweden, Finland, Norway, Lithuania and Estonia is, in the main, responsible and accountable for commercial planning and execution. Capabilities in IT, analytics, products, customer contact and strategy have moved from Telia’s central units to the countries to support this.

However, Telia is retaining the scalability and expertise in a central strategic Technology unit and Group functions for group finance, corporate affairs, people & culture, and communications, brand & sustainability. Each has “refocused scopes and responsibilities in the new operating model”.

Telia claims that interfaces between Technology and group functions and the countries have been simplified, “as part of a broad evolution of Telia’s ways of working that will strengthen collaboration, increase efficiency and empower local organisations”.

Patrik Hofbauer, Telia Company’s President and CEO states, “We are creating a Telia fit for the future…We have made tough but necessary changes, and our employees’ dedication during this time has been exceptional. Through our new operating model, we can serve customers better, build performance in our teams, and grow in a way that supports investment and attractive shareholder returns.”

The operator said that restructuring charges of around SEK 1.3 billion in Q4 2024 will not affect Telia’s full-year 2024 financial outlook statements, which relate to service revenue growth, adjusted EBITDA growth, capex excluding fees for licences, spectrum and right of use assets, and the structural part of operational free cash flow.

Telia Finland brings in Teleste

Last week, Telia Finland and Teleste announed they had signed a multi-year agreement to transfer the operation and development responsibilities for broadband and TV services in Telia Finland’s cable network to Teleste.

The service transition is expected to complete by the end of 2024, with “a select group of key personnel joining Teleste as part of the transfer”.

“Our deep experience as a technology supplier and network operations expert gives us a unique perspective on the future of broadband networks. We are committed to supporting Telia Finland in the long-term development of their broadband and TV services, ensuring seamless service continuity while aiding strategic decision-making,” said Hanno Narjus, Head of Teleste’s Broadband Networks business.

The move should bolster Teleste in its domestic market after a tough year in which sales were lower than in its other European markets.

In 2022 Teleste updated Telia Finland’s video streaming platform for its cable network.

Telefónica’s Peruvian fibre sale falls through 

Simon Dux
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0
Telefónica’s Peruvian fibre sale falls through 


More bad news for the Spanish telco after booking a non-cash €314 million write-down on its Peruvian unit in Q3

Despite Telefónica stating it was on-track to hit its 2024 financial targets even after the Peruvian impairment,  the ongoing sale of its stake in its neutral fibre optic network in Peru has fallen through, according to regulatory filings in the country. The Spanish telco wanted to sell its stake to  private equity fund KKR and Chilean telco Entel, and Reuters reported the transaction valued 100% of the network at about €550 million, including debt. 

This deal was first announced in in July 2023 when Telefónica said it had agreed to sell a 54% stake in its fibre network to KKR and a 10% stake to Entel. If the transaction had been completed,  KKR subsidiary Pangea Luxco would have obtained 54% of the shares of Telefónica-owned fibre company PangeaCo.

In a separate filing, Entel stated that talks were still ongoing with Telefónica and KKR but given the wider market conditions, the price the Spanish operator hopes to get may no longer match the price the buyers are willing to pay. Cinco Dias suggests that it was Telefónica that has chosen to terminate the deal. 

Earlier this month, chief financial and control officer & head of Hispam Laura Abasolo (above) told Reuters, the deteriorating outlook for the Peruvian economy, tougher competition and political and judiciary instability pushed the telco to review the present and future value of its whole business in Peru.

According to Entel, the deal fell through “due to the breach of certain closing conditions” it did not specify. Telefónica did not disclose the value of the transaction but said the deal would cut its debt by €200 million.

Peru accounted for 3.5% of overall revenue in the first nine months of the year, Telefónica said at its results in early November. As a result of the write-down, the telco’s overall net profit fell to €10m in the third quarter, down from €502m in the same period a year ago.

Taxing issues

According to Bnamericas, Telefónica del Perú is facing difficulties due to a tax controversy and intensifying competition, leading shareholders to reduce share capital by 1.15bn soles ($302m) to rebalance the company and help offset a 2.8bn-sol loss in 2024. In April, Telefónica announced the payment of 1.36bn soles to Sunat after losing a court case regarding income tax declarations for fiscal years 2000 and 2001.

At the last shareholders meeting, it was agreed to cover the accumulated losses with an issue premium of 2.02bn soles and the capital reduction. In addition, Telefónica Hispanoamérica provided loans of 2.8bn soles this year.

Telefónica del Perú reported revenues of 4.53bn soles in the first nine months, a decrease of 7.2% year-on-year. Competition in the fixed and mobile businesses is also mounting, according to Bnamericas. In the second quarter, Telefónica had a mobile market share of 28.3%, behind Claro with 30.1% and 12.6m lines. Entel had 22.3% and Bitel 18.8%.

Home growth

Peruvian problems aside, in Brazil, EBITDA declined 5.9% in the quarter to €1,030 million, due to the impact of exchange rates, but in the first nine months it grew 2.2% to €3,066 million. So a Peruvian exit is not a signal for a Latam exit, particularly as the region was 24% of group revenues in the first nine months of 2024. 

In Spain, Telefónica Infra ended September with 24 million premises passed with fibre. Telxius, the telco’s submarine cable management company, reported year-on-year traffic growth of 12% in the first nine months and maintained its high profitability ratio (48.9%). Telefónica also did well with fibre. Its international footprint of ultrafast networks in September stood at 178 million premises (+4%), of which 81.6 million were FTTH (+13%). This figure includes a total of 24.1 million premises from the Group’s various fibre vehicles (+19%). Most recently, the telco signed a five-year wholesale network deal with Zegona-owned Vodafone and Bluevia Fibra as part of that telco’s plans to bolster its fibre footprint. 

Spain, UK step up efforts to harness quantum tech

Annie Turner
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0
Spain, UK step up efforts to harness quantum tech

Viasat and Vodafone join state-backed initiative in UK; Telefónica Germany, Telefónica Tech and Universidad Politécnica de Madrid join forces with AWS in Spain

First up, the UK. Seven businesses have joined the Digital Catapult’s latest quantum innovation accelerator. The plan is to speed up the development of solutions and their practical application for sectors including transport, defence and telecoms, while removing risk through supporting consultancy.

McKinsey reckons quantum technology could contribute up to $450 billion to the global economy by 2040. The Catapult claims its work will play a key role in scaling solutions and increasing investors’ confidence in “early stage deep tech”.

The Quantum Technology Access Programme is part of a wider project funded by Innovate UK, Quantum Data Centre of the Future. It was set up to embed a quantum computer in an ordinary data centre to explore real-world access to quantum technologies. Partners include ORCA Computing, Riverlane and PQShield.

The organisers say the inaugural programme saw a 26% boost in confidence about quantum computing from firms such as Rolls Royce, Airbus and the Port of Dover. 

Now seven more companies have joined the endeavour. Through its participation, Vodafone is to explore use cases to address complex telecoms challenges, including the NP-Hard Steiner Tree problem which could optimise networks by finding the most efficient way to connect multiple points. The operator group provides mobile and fixed services to more than 330 million customers in 15 countries, partners providers of mobile networks in 45 more and has one of the world’s largest IoT platforms. 

The other six new member are:

  • Autonomia – is a technology start-up specialising in the development of intelligent software solutions for mobility and energy ecosystems.
  • BAE Systems – a global defence and security company
  • Origami Labs UK – works on AI and autonomy technologies to speed turning invention into deployable capabilities.
  • SIMULEX – an R&D startup working on how to integrate hydrogen into carbon capture and storage, geothermal, renewables and fossil sectors to accelerate energy’s transition through chemical and reservoir engineering.
  • Viasat – a global satellite comms company offering broadband and secure networking.
  • ZF Automotive UK – a global technology company offering mobility products and systems for passenger cars, commercial vehicles and industrial technology.

Spanish steps

Meanwhile, there’s plenty of activity in Spain regarding quantum tech too. Telefónica Deutschland (which operates under the brand of O2 Telefónica), AWS, parent company Telefónica with subsidiary Telefónica Tech, and the Universidad Politécnica de Madrid (UPM) are to run a joint pilot project.

It will investigate the possible use of quantum technologies in planning, optimising and securing mobile networks, for example, to calculate the best place to site towers in Munich (pictured, illustration courtesy of Telefónica Deutschland), and the use of QKD and post-quantum cryptography (PQC) to develop a quantum-safe networking strategy.

According to this detailed statement issued by the operator, the pilot will build on multiple strands of R&D concerning quantum technology explored over the last 10 years in Telefónica’s Technology and Automation Lab in Madrid.

This new phase, the participants says, represents one of the first coordinated efforts globally to test multiple quantum technologies in a cloud environment. Cloud trailblazer Mallik Rao, whose role was recently expanded when he become Chief Technology & Enterprise officer at O2 Telefónica, said, “We are entering the quantum age of digital networking. Quantum physics will enhance digital communication. With our pilot project, we are taking a significant step towards quantum-safe mobile networks of the future.

“We are creating the necessary conditions today to leverage quantum technologies and their possibilities in our O2 network for the benefit of our customers. SIM cards, text messages, and video calls for consumers, companies, and public authorities are secured with advanced security features in the 6G era.”

He continued, “The question is no longer whether quantum-based encryption will be required, but when. With this pilot project, we are looking ahead and testing the necessary technology in real-life use in the network today.

“We are implementing quantum technologies on AWS because they can be applied there more efficiently and quickly than building our own infrastructure. We can also combine quantum-safe connections more easily with the increasingly cloudified telecommunications services.”

Professor Vicente Martin, Director of the UPM research group on quantum information, added, “Quantum communications technology is extremely demanding due to the need to deal with single-quantum signals. This pilot shows how QKD [quantum key distribution] technology can be usefully integrated in a very complex production network to secure real-world use-cases.”

AWS hosts the operator’s 5G core system, developed by Nokia. The operator started to migrate 5G customers to the public cloud platform in May.

How AI is Transforming Telecoms – November 2024 | Have telcos got the right data in the right places to harness AI?

Tiffany Amorós
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0
How AI is Transforming Telecoms – November 2024 | Have telcos got the right data in the right places to harness AI?

From Telecoms Europe Events: https://www.telecomseuropeevents.com/

  • Daniel Dobos, Research Director, Swisscom

How AI is Transforming Telecoms – November 2024 | PANEL: How far can AI go in redesigning core and transport operations?

Tiffany Amorós
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0
How AI is Transforming Telecoms – November 2024 | PANEL: How far can AI go in redesigning core and transport operations?

From Telecoms Europe Events: https://www.telecomseuropeevents.com/

  • Moderator: Emma Buckland, Principal Analyst, Telco Cloud & Networks, STL Partners
  • Goran Klepac, Director of Big Data Analytics, Hrvatski Telekom
  • Alexis Koalla, Director Operations Strategy and Transformation, Orange Business
  • Christos Koimtzis, Business Development Manager, Deutsche Telekom
  • João Antunes, Head of Autonomous Networks, Celfocus

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