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Vodafone UK’s new 2.2Gbps synch broadband goes live

Annie Turner
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Vodafone UK’s new 2.2Gbps synch broadband goes live

The UK’s fastest broadband is offered by Vodafone but runs exclusively on CityFibre’s network, part of the government’s Project Gigabit programme for underserved areas

CityFibre, the UK’s biggest fibre altnet provider, has connected the first customer to its new network in Cambridgeshire, rolled-out as part of the government’s Project Gigabit programme.

The programme provides subsidy to extend full fibre rollouts to hard-to-reach rural homes and businesses across the UK in areas that might otherwise miss out on upgrades to next-generation speeds. 

The first person to connect to the CityFibre network for the new, synchronous (same upload and download speed) 2.2Gbps service is a Vodafone customer in the village of Grantchester, Cambridgeshire. The new speed tier is available exclusively on CityFibre’s national network.

The customer is Josh Newman, from Grantchester. He said “I’m a filmmaker and a film lecturer, so I deal with quite large files. But my upload speed at the moment tops out at 18Mbps. It just means that uploading cuts, uploading rushes, takes a really long time. And it really throttles the internet for everyone in the house and there’s four of us.

“My wife is working for the NHS, doing a lot of video conferences, dealing with research in public health. So her internet connection is vital for what she does. My children obviously are using the Internet for entertainment and also for school work. So we’re a fairly high-usage family. It will be really significant for us to have faster internet.  I’m looking forward to the benefits it will bring us.”

The connection marks an important milestone for CityFibre, which is rolling out its 10Gbps-capable full fibre networks to almost 465,000 hard-to-reach homes through the Project Gigabit programme. 

Rob Winterschladen, Consumer Director, at Vodafone UK, said, “Project Gigabit is a game-changer for rural communities, who can now enjoy the same full fibre benefits of gigabit speeds and improved reliability as those living in cities. Whether it’s for work, education, entertainment or socialising, our customers can do more of what they love online, with no limits.”

Simon Holden, Group Chief Operations Officer at CityFibre, said: “We’re thrilled to see the first customer connected on our Project Gigabit rollout and to welcome Vodafone’s launch of its fastest home broadband service exclusively over our network. This is an important milestone for CityFibre and for the hundreds of thousands of hard-to-reach homes and businesses left stranded on legacy copper networks. We look forward to working with government and our partners to bring the benefits of full fibre and multi-gig services to rural premises nationwide.”

Ericsson announces another, $1.1 bn write-down on Vonage

Annie Turner
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Ericsson announces another, $1.1 bn write-down on Vonage

This reduces the value of Vonage to about a third of what Ericsson paid for it in July 2022 – revenue from network APIs are clearly not coming in fast enough

Ericsson is to include a non-cash impairment charge of $1.1 billion in its next financial results, largely resulting from its acquisition of Vonage, the Communication Platform-as-a-Service platform (CPaaS), in 2022 for $6.2 billion.

The acquisition surprised the industry at the time and many pundits thought it ill-advised. In October 2023, less than two years after the deal, the Swedish firm devalued the acquisition by almost half, writing down $2.94 billion in a non-cash charge in the third quarter.

Now, nine months later, the Swedish equipment manufacturer said this second write-down was due to the deteriorating market environment and values the CPaaS at about a third of what it paid.

What has brought this about? In May, Gartner Research published insights into why the CPaaS sector is struggling. In short, the CPaaS market grew on the back of offerings like SMS and voice calls, but these first-generation services are commoditised and income from them is falling.

Gartner says that although CPaaS vendors have developed “substantial capabilities in areas such as advanced security, messaging, conversations, artificial intelligence (AI) and video”, end-users’ adoption has been limited.

Commenting on research released in October 2023 by Synergy Research Group, Fazil Balkaya, its Principal Analyst, said, “We are at a pivotal point of the CPaaS market where usage and API based interactions can prove further value during the current macroeconomic conditions. The CPaaS market maintains a strong double-digit growth and the market is poised to exceed $10 billion run rate in 2025.”

The long and the short of it is that network APIs are yet enough to justify the monetary value of the Vonage deal. This is despite much fanfare over recent deals such as Telstra’s last month when it announced it is working with Vonage and will add its network APIs to the platform to spur growth in the operator’s enterprise sector.

In May, Deutsche Telekom Global Carrier (DTGC) announced a new portfolio to meet the needs of its wholesale customers and their enterprise clients and the first such offer in Europe. It enables wholesalers to manage wholesale services for their customers and configure the ready-to-go white label section to suit their brands and needs via a portal, provided by Vonage.

You can read a fuller analysis of the Communication Platform-as-a-Service market here.

BT, Nokia and Qualcomm succeed in 5GSA carrier aggregation test

Annie Turner
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BT, Nokia and Qualcomm succeed in 5GSA carrier aggregation test

The tech is designed to boost capacity and enable faster downlink speeds in areas of dense population

BT Group, Nokia and Qualcomm have carried out what they say is the first test of 5G carrier aggregation using five components in Europe. Carrier aggregation is designed to increase capacity and downlink speeds in areas of high demand.

The trial took place at BT’s R&D base, Adastral Park in the east of England (pictured), on live spectrum with a Qualcomm Snapdragon modem and Nokia’s 5G AirScale portfolio equipment. BT said the test is part of its preparations for launching its standalone 5G network later this year, under its EE brand.

The test’s downlink speeds hit a high of 1.85Gbps by aggregating three frequency-division duplexing (FDD) carriers with two time-division multiplexing (TDD) carriers which had a combined bandwidth of 150MHz.

The FDD carriers were NR2600 (30MHz), NR2100 (20MHz), NR1800 (20MHz) and the MDD were both NR3600 (40+40MHz).

Carrier aggregation can combine all available mid-band radio spectrum to provide 5G Standalone devices with a reliable high-speed connection when required.

EE’s 5G Standalone network will also be able to use a “low frequency sixth carrier to provide a superior experience in more places, including indoors”, apparently.

The operator’s Chief Networks Officer, Greg McCall, has publicly stated that BT would not launch 5G Standalone until it was satisfied that the services it support differentiates the operator in the market.

In the statement announcing the successful trial, McCall said BT intended to “further…the benefits of carrier aggregation in delivering greater throughput and speeds to customers. This is particularly important as more and more devices come to market with 5CC [five carrier component] CA [carrier aggregation] capabilities.

“We are focused on maximising our spectrum assets to deliver the very best experience to our customers with that in mind.”

Last August, BT with partners Ericsson and MediaTek, successfully trialled a wideband frequency division duplex (FDD) radio carrier for 5G services, over 20MHz, in EE’s 2.6GHz spectrum.  

Last year, BT Group and Nokia also successfully demonstrated 4CC CA in 5G SA downlink with concurrent 2CC CA in 5G SA uplink.

VMO2, Vodafone extend network sharing and agree spectrum deal

Annie Turner
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VMO2, Vodafone extend network sharing and agree spectrum deal

The proposed spectrum deal strengthens Three UK and Vodafone’s case for their proposed merger, under investigation by the competition authority

Virgin Media O2 (VMO2) and Vodafone UK have agreed to extend their long-established network sharing agreement into the mid 2030s. No further details were available. They will also enter into a spectrum deal that addresses some of the concerns regarding Vodafone’s proposed merger with Three UK, if the merger goes through. Again, details were not forthcoming.

Under the terms of the proposal VMO2 will acquire spectrum from the merged entity at market value. The deal is currently under scrutiny by the UK’s Competition and Markets Authority (CMA).

In a statement, the would-be mergees claim this spectrum deal with VMO2 would address “the current imbalances in spectrum holding” and allow both the merged entity and VMO2 to provide greater capacity, speed and coverage.

According to a joint statement from VMO2 and Vodafone UK, the spectrum deal after the merger would create “three scaled mobile network operators, each with better alignment of spectrum holding”.

The two also say that their merger would result in better “mobile connectivity, choice and competition”. The merged entity has committed to investing £11 billion in its infrastructure over the next 10 years, plus VMO2’s planned annual investment of £2 billion in its networks and services.

This will benefit consumers and business customers, they add, including MVNOs who will have “a choice of three high-quality, scaled wholesale competitors…supporting an already thriving MVNO segment in the UK”.

“The proposed merger, together with this agreement, will boost competition by establishing a strong third player in the UK mobile market and will improve the balance of spectrum holdings, levelling the playing field between the UK’s mobile operators,” said Ahmed Essam, Vodafone CEO for European Markets. According to VMO2’s CEO, Lutz Schüler, the agreement “addresses the issues we have voiced and the CMA outlined in its initial decision, and will now continue our engagement with the regulator in this spirit.”

EE, owned by incumbent BT, has the UK’s largest mobile network and has opposed the Vodafone and Three merger in its response the CMA’s consultation.

e&, ADNOC to build energy industry’s biggest private 5G network

Annie Turner
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e&, ADNOC to build energy industry’s biggest private 5G network

It will span 11,000 km2 and should generate €1.39 bn in value by 2030 due to autonomous operations, fewer emissions and optimised production

ADNOC and e& are to build what they say is the energy industry’s largest private 5G wireless network, spanning 11,000 km2.  ADNOC is a “diversified energy and petrochemicals group” wholly owned by the Emirate of Abu Dhabi.

The 5G network will deliver connectivity across ADNOC’s onshore and offshore operations. The idea is it will allow the energy firm to “to further integrate its advanced artificial intelligence (AI) solutions at its most remote facilities and reduce costs through automation, improve efficiency, minimize emissions and enhance the safety of its people”.

The project is due to be completed in 2025 and expected to generate AED5.5 billion (€1.39 billion) in value during its first five years of operation.

The 5G network will relay information from sensors embedded in more than 12,000 wells and pipelines to autonomous control rooms, to help inform real-time recommendations and thereby increase the lifespan of these assets and improve safety in the field.

The network will also enable the digitalisation of wellheads and provide end-to-end visibility across operations with the aim of driving productivity across the company’s entire value chain

The 5G network forms part of ADNOC’s multi-year programme to accelerate the deployment of AI solutions across the company’s value chain and become the world’s most AI-enabled energy company.

Spain’s broadband market pricing pressures ease 

Simon Dux
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Spain’s broadband market pricing pressures ease 

Ahead of changes in Autumn, Pay TV is providing bundle price stability for telcos despite new fibre customers picking and choosing services

For one of the most competitive fibre markets in Europe, Spain is finally showing some signs of price stability as Summer arrives. There are also signs that a “bipolar” market is developing where price erosion on the one hand is beginning to decelerate for so-called 4P bundles (quadplay): fixed broadband (FBB), mobile broadband (MBB), mobile telephony (MOB), and fixed telephony (home phone service) – particularly with subscribers who take pay TV.  

The year-over-year variation in the cost of 4P bundles is now positive for the first time since 2018, showing a slight increase of 0.15% according to Spanish consultancy firm Nae. However, they also found the variation in home telecom spending for 4P bundles remains negative at -6.28%, which is the largest minimum drop since 2018, as described in CNMC Homes Panel data. 

Nae director Joaquín Guerrero describes the market as “bipolar” because it consists of two distinct segments: a stable segment, which includes customers with TV bundles who are less likely to switch providers; and a price-sensitive segment, which includes new customers who are connecting for the first time. These customers tend to purchase smaller bundles that do not include fixed phone services and are very sensitive to price changes. 

“After years of declining maybe the market has found the price for the FBB services,” Guerrero told Mobile Europe. “Major players as Telefónica or Orange (now MásOrange), or even Vodafone, have been reporting growing ARPUs for convergent services for the last quarters. The migration from 100Mbps to 1Gbps is also a tool to, at least, keep prices more stable. 

He said the so-called bipolar nature of the market doesn’t have a single root cause but there were some key reasons that helped shape it. The first is of course football. “In Spain Football rights are basically hold by Telefónica (and regulatory shared with Orange in wholesale basis),” he said. “Football is the main anchor for pay TV, and pay TV is an anchor for FBB.” 

On the other side, Guerrero pointed out that the FBB market is growing mainly by connecting new homes, homes with no previous connection – new families, but also second residences and previously pure mobile homes. “In this new home the ‘star’ bundle is 3P: FBB+MBB+MOB and customers look for Alternatives or sub-brands for these connections,” he said. “But it looks like migrating an already connected home is a lot more complex and customers are progressively doing this less, except from the Vodafone network which is the only big player losing net customers.” 

Also, pay TV stickiness is down to the TV set-top box which adds a cost to the service plus the TV-related IP multicast service is regulator-defined and usually not billed as part of the basic telecom service by wholesalers. Guerrero added that some of the bigger players have also been able to get “cut-through” on marketing messaging around network and service quality, which also contributes to retaining customers.  

Digi the disruptor 

Digi has already disrupted the Spanish fibre broadband market and local media has been speculated the operator may kick off further price wars given its new Italian operations came out with eye-watering pricing such as 10Gbps for €20 per month – which is lower than Spain – 1Gbps for €15 and 500Mbps for only €10 per month. However, the early signs at least suggest that the Italian pricing is to build market share quickly and Digi may instead be content with its Spanish pricing for now. 

Digi has also already monetised its FTTH network with an agreement with Onivia so may be less prone to lower prices in the future. Guerrero added that in a rare recent public speech Digi Spain CEO Marius Varzaru said the telco fixed its pricing based on its own costs, not the competitor’s. 

Digi is said to be well below the €75 per home passed capex as it deploys in dense urban areas. The subscriber acquisition costs (SAC) – not including cost of sales – can be around €200 (including, installation, truck roll and CPE, but excluding pay TV). Therefore, a casual observer may believe there is further room to decrease prices. 

However, Digi and Onivia announced an agreement for about 6 million homes passed in Spain and this agreement provides a better insight as to why Digi may not drive lower prices right now. In the deal, Onivia will act as wholesaler for Digi and will commercialise the footprint for other broadband players. As a result of this agreement, Digi must pay a per home connected rent to Onivia. Details on prices are confidential, but the Digi profitability is related with this margin, so fixing a minimum for the monthly price Digi is charging their customers, Guerrero surmises.  

Back to school – all change again 

However, the European Summer slows things down and Guerrero said the FTTH net adds is very cyclical with September being by far the most important month. When the back-to-school offers appear, there may be further downward pressure on prices, even if only through temporary discounts.

Guerrero points out there is probably a bigger factor on the horizon that could reshape the wholesale broadband market at least. “CNMC has a regulatory agenda including the Fibre Access market review next fall,” he said “Parts of the market, mainly Telefónica are pushing for ending the regulatory obligations nationwide.” 

“Currently the market is liberalised in bigger cities (competitive zones) but there is obligation for Telefónica to offer a regulatory priced access service in smaller towns (non competitive zones),” he said. “To determine the regulated price Telefónica is subject of ‘replicability test’ by CNMC.”  

“If, as it looks, all Spain is declared ‘competitive’ all these restrictions for Telefónica will vanish, allowing the company to launch new services like XGS-PON, potentially at lower prices,” he said.  

Vodafone wants Connectivity Union to speed Europe’s digital ambitions

Annie Turner
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Vodafone wants Connectivity Union to speed Europe’s digital ambitions

This is the operator group’s response to the Commission’s consultation on the future of Europe’s digital infrastructure

Vodafone is calling for a Connectivity Union to help accelerate Europe’s digital ambitions and its ability to compete on a global scale.

The operator group says that Europe’s future economic success will be underpinned by “next-generation connectivity. Only through 5G standalone will European businesses be able to fully capitalise on the industrial value of the internet and emerging technologies like AI. Connectivity must not become the AI bottleneck.”

Vodafone believes 5G could unlock the potential of the industrial internet for Europe, transforming the way businesses operate. For manufacturing, where Europe has an opportunity to regain its leadership, the impact of digitalisation could be worth an estimated €2 trillion a year for the sector globally.

The European Commission has recognised some of the challenges facing telecoms, including fragmentation, high costs and different rules for different companies offering similar services. They threaten the European Union’s digital decade targets could put the continent at a serious competitive disadvantage.

Vodafone believes the incoming European Commission has a unique opportunity to drive change. Its response to the European Commission’s consultation white paper, “How to master Europe’s digital infrastructure needs?, outlines five policy pillars for a new Digital Communications Framework for Europe that are required to end the piecemeal policy approach to telecoms and lay the foundation for the Connectivity Union:

Scale and Market Structure – Ensuring investment competition in mobile and fixed markets. This would include higher levels of in-country mobile consolidation and a more targeted application of the SMP framework in fixed markets during the migration from copper to fibre. Removing barriers to the provision of cross-border business services. Accelerate the scale benefits of the Digital Single Market by further harmonising and simplifying rules.

Spectrum – Enforcing pro-investment spectrum policies. Longer, or perpetual, licences would unlock network deployment business cases. Harmonised rules would prevent national regulators from using spectrum policy to further fragment markets, or to extract value from the sector through artificially high spectrum fees.

Same Service, Same Rules – Ensuring the policy framework promotes technological innovation. Services should be regulated in a fair way based on the services offered and frameworks designed to prevent ‘gatekeeper’ behaviour. This would level the playing field in the digital ecosystem, guaranteeing equivalent protection for end users irrespective of whether the service provider is a telecoms operator or tech company.

Security and Resilience – Security requirements must be risk-based, proportionate, vertically harmonised, and implemented in consultation with industry. Security requirements should not lead to fragmentation across the Single Market. A more harmonised security framework should be adopted, underpinned by guidelines, common standards, certification, reporting and notification requirements, while limiting localisation obligations.

Sustainability and Social Responsibility – Ensuring all stakeholders commit to sustainability, economic and societal responsibility. Create a more stable and predictable policy and investment environment that incorporates the cost of sustainability requirements in the framework for economic regulation and ensures all ecosystem players make responsible use of networks and services.

Joakim Reiter, Chief External & Corporate Affairs Officer at Vodafone said: “The EU cannot reclaim its digital competitiveness and retake a leadership position without an urgent reset of Europe’s telecoms policy regime. That’s why we’re now calling for a new Connectivity Union that would bring together the Commission, governments, and industry to more aggressively tackle the shortcomings in Europe’s connectivity sector before it is too late.

“If the EU gets this right, it has a chance to build the world’s best connectivity, delivering the services and innovation that its citizens and businesses deserve. This would catalyse the industrial internet, and make Europe a truly exciting place to invest.”

Netia, Marlink boost cybersecurity operations 

Simon Dux
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Netia, Marlink boost cybersecurity operations 

Polish telco Netia protects web apps, while Marlink acquires Croatian firm Diverto

In the face of unprecedented cyber-attacks and scams, telcos are continuing to strengthen their cybersecurity offerings, particularly across managed services. 

Polish operator Netia has introduced another cybersecurity cloud solution to its portfolio of ICT solutions for the B2B segment NetiaNext – called Netia Managed WAF. This solution is designed to protect web applications and their integrated APIs from data leaks and undesirable traffic generated by bots, among other threats. 

The Netia Managed WAF solution operates based on Fortinet’s FortiWeb, which uses artificial intelligence (AI) and advanced machine learning mechanisms with static rules and reputation mechanisms. 

Web applications, especially forms and APIs that facilitate data exchange, are often targeted by cybercriminals due to frequent coding errors. These vulnerabilities allow for content alteration or the theft of sensitive data, including personal information. 

Traditional firewalls and anti-DDoS solutions, due to their different operational characteristics and tasks, typically do not “see” targeted application-level attacks and therefore cannot provide adequate protection for web applications and interfaces. Therefore, a specialised tool like a WAF (Web Application Firewall) is recommended for protecting web applications, according to Netia. Its main functions include preventing the exploitation of vulnerabilities in web applications by isolating them from the internet, blocking malicious queries, and stopping artificial traffic generated by bots. 

“Netia Managed WAF is an excellent addition to our portfolio of managed, cloud-based cybersecurity services from the NetiaNext line, which we offer in collaboration with one of the global leaders in the cybersecurity market – Fortinet,” said Tomasz Łużak, responsible for developing the security service offer for business clients at Netia. “Alongside Netia Managed UTM, Cloud Firewall, and Netia DDoS Protection, Netia Managed WAF forms the first line of defence for various layers of the client’s network interface with the global network.” 

Netia claims it is one of the few entities that provide the service in a managed service model, offering customers comprehensive support in the form of an affordable subscription. 

The Netia Web Application Firewall service is available in two models – local (dedicated instance for the client’s needs) and shared (from the Netia Group’s cloud, based on a high-performance, fully georedundant platform located in two Netia Data Centre locations). At the client’s request, for an additional fee, the service can be monitored 24/7 by experts from the Netia Security Operations Centre. 

“Netia Web Application Firewall will first interest Netia customers who use our cloud services (Netia Compute) and colocation services, on which private clouds are built,” said Łużak. “For such entities, we can quickly secure the application servers hosted with us. Of course, the service is also directed at all other clients with web applications, not necessarily using Netia Group services.” 

Marlink steps up cybersecurity game 

Maritime and enterprise satellite communications company Marlink has acquired Zagreb-based IT and OT security specialist Diverto to bolster its cybersecurity portfolio and capabilities. 

Based in Zagreb, Croatia, Diverto’s portfolio covers professional services including penetration testing, red and purple teaming, security audit, risk management, compliance and other cybersecurity services. Agnostic to the technologies deployed by its customers, Diverto’s advanced Security Operations Centre (SOC), including incident management and forensics, can protect both IT and OT customers. 

Diverto employs more than 50 highly experienced security professionals with more than 150 security certifications. Marlink said the service offerings are complementary to its own (SOC) managed services for remote operations.  

“We welcome very much Diverto and its expert staff in Marlink Group. Demand for expertise and resources to meet the increasing needs of our customers in both IT and OT security is growing fast and this acquisition is an important step in strengthening our capabilities and expanding our reach in cybersecurity,” said Marlink digital director Nicolas Furgé. “The integration of Diverto will enable Marlink to capture growing market opportunities in IT and OT security and to build together a cybersecurity powerhouse for remote operations and critical infrastructure”. 

“Diverto will contribute considerable cybersecurity expertise and engineering capability that will enable the creation of a complete and unique portfolio of best-in-class cybersecurity solutions to meet to increasing needs of Marlink customers,” said Diverto CEO Boze Saric. 

Erik Ceuppens, CEO Marlink Group and Boze Saric, CEO, Diverto.

TIM concludes sale of NetCo to KKR 

Simon Dux
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TIM concludes sale of NetCo to KKR 

Operator said expected reduction in financial debt from the transaction has been confirmed

Telecom Italia (TIM) has confirmed the completion of the sale of NetCo to Kohlberg Kravis Roberts (KKR), via the transfer to FiberCop (a 58% owned subsidiary of TIM) of TIM’s business unit comprising the fixed network infrastructure and wholesale activities, and the subsequent acquisition of the entire capital of FiberCop by Optics BidCo, a subsidiary of KKR.

The investment funds other partners in the deal include Italian infrastructure fund F2i with a 10% stake in the venture, while Abu Dhabi’s sovereign wealth fund ADIA and Canada Pension Plan will hold a 20% stake and 17.5% stake respectively, according to Reuters.

Following the transaction, TIM’s total headcount will decrease from 37,065 to 17,281, equal to 16,135 full-time equivalents. TIM’s fibre and copper landline network covers nearly 89% of the country’s households and its fibre spans more than 23 million kilometres (14.3 million miles) across the country.

The sale of NetCo, valued at up to €22 billion, including earn-outs linked to the fulfilment of certain conditions, allows TIM to reduce its net financial debt in line with its previous disclosure to the market. The expected deleverage upon completion, pending customary post-closing adjustments, is confirmed at €14.2 billion.

“The completion of the transaction with KKR and the Italian Ministry of Finance is the result of two and a half years of intense work, during which we have improved the management of TIM and identified industrial and financial solutions that will enable us to meet future challenges,” said TIM CEO Pietro Labriola. “We reached a milestone that is also a new starting point: we have done so by meeting all targets within the announced deadlines. We intend to continue along this path, further increasing the trust of our employees, our customers and our shareholders.”

He added: As the first European mover, we chose to separate the fixed network infrastructure services from the other services we provide, to ensure the best, sustainable and fastest possible development of TIM. TIM will remain the reference telco in Italy and will continue to be the country’s most infrastructure-rich operator, offering innovative services, across both fixed and mobile services, serving families, the public administration and businesses”.

In addition to confirmed debt reduction, TIM confirmed €0.4 billion adjustments and separation costs, translating into a reduction of net financial debt by €13.8 billion. The operator was quick to point out that the cash component corresponding to the PNRR advances relating to FiberCop, amounting to €0.4 billion, was deconsolidated as part of the transaction

Master Service Agreement

The future business relationships between NetCo and TIM are regulated through a 15-year Master Service Agreement (MSA), renewable for a further 15 years. The services comprised in the MSA will be provided at market prices and without any minimum purchase commitments. Labriola said the transaction provides TIM with the opportunity to adopt a new business model that will allow the group to compete more effectively in the consumer and enterprise markets in Italy, thanks to a stronger focus on the industrial and commercial aspects of its business and thanks to a solid financial structure.

The operator said more details on the completion of the transaction will be provided during the preliminary Q2 2024 results conference call on 1 August 2024. Leading TIM shareholder Vivendi is still challenging TIM’s decision to sell the network in the courts.

Niel makes formal offer to buy out LatAm-focused Millicom

Annie Turner
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Niel makes formal offer to buy out LatAm-focused Millicom

Last week the Latin American operator’s board said that the bid undervalues the company whose shares have risen more than 33% this year

The French billionaire, Xavier Niel, has a made an offer for the stake of operator Millicom he doesn’t already control via his investment vehicle Atlas Investissement. The vehicle is already the largest shareholder with 29%. The move is a few weeks after the billionaire’s investment vehicle, Atlas Investissement, acknowledged it was exploring the possibility of buying out the operator to quell media speculation.

The bid made on 1 July offers $24 per share, valuing the company at more than $4 billion. Last week Millicom’s board last week said this undervalued the operator given its expected financial performance. Its shares have risen more than 33% this year.

Millicom’s shares are traded in the US and Sweden. Atlas Investissement launched its bid in both countries simultaneously. If it goes ahead, it will cost about $2.9 billion.

Under Swedish law, Millicom’s board must either take a position or declare itself neutral regarding the bid and produce an independent assessment.   

The would-be acquirer says it would continue to execute Millicom’s strategy of expanding the reach and capacity of its networks. The map above shows its Latin American opcos.

The would-be new owner said it would continue to support the operator’s strategic plan and would target “expanding the reach and capacity of Millicom’s networks and distribution capabilities to grow its customer base”.

Niel’s other telecoms enterprises include the Iliad Group, which operates under the Free brand in Italy and France, and Play in Poland.

In February, Freya Investissement has entered into a binding agreement with investment house Kinnevik to acquire its entire shareholding in Tele2 for SEK 13.0 billion (€1.16 billion) in cash. This equates to a stake of about of about 19.8% in Tele2.

Freya Investissement is an investment vehicle jointly owned by Iliad and NJJ Holding.

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