Author: admin

  • 75% Will Pay More For 5G

    75% Will Pay More For 5G

    A recent global survey has found that 75pc of end-user organisations asked would be willing to pay more for 5G mobile connectivity.

    According to Gartner, organisations in the telecommunications industry are the most willing to pay more for next-generation mobile network capabilities.

    Sylvain Fabre, research director at Gartner organisations in the manufacturing, says that other organisations (such as those in the services and government sectors) are “less likely to be willing to pay a premium for 5G than telecom companies, which are willing to pay a 5G premium for their internal use”.

    However, there seems to be a lack of understanding with regard to 5G’s potentially revolutionary effects. 92 per cent of respondents don’t expect 5G to deliver savings or increase revenues for their organisations. Rather, they merely see 5G as a natural evolution of the mobile network.

    “They tend to see 5G migration as a matter of gradual and inevitable infrastructural change, rather than as an opportunity to generate new revenue,” says Fabre.

    On a more optimistic note, 57 per cent of respondents intend to use 5G’s enhanced capabilities to drive IoT. This is despite the fact that the number of devices that make up the IoT won’t exceed 4G’s capacity for another six years in most areas.

    What all of these results seem to point to is that there is a general misunderstanding of 5G and what it will have to offer. For example, 84 per cent of survey respondents believe that 5G will be widely available by 2020, when in fact this is unlikely to be so until 2022.

    As a result of this widespread lack of understanding, Gartner believes that communications service providers need to provide realistic roadmaps for 5G coverage and performance to their marketing organisations, as well as 5G rollout plans in 2023 and beyond.

  • What Does “Fibre Fast”​ Mean?

    What Does “Fibre Fast”​ Mean?

    “Fibre-fast” is a popular term across the fixed-line industry.

    Openreach and BT announced their deployment of Gigabit capable FTTP (Fibre-To-The-Premises) technology has been installed in millions of UK homes.

    The below map provides some insight into the Openreach role-out across East London. See the key for information.

    Since the fibre-fast project began in February 2018, engineers have deployed around 6 million kilometres of optical fibre.

    The massive engineering project has also involved a dedicated team of around 2,000 fibre engineers, using hundreds of heavy plant machinery, pole erection units, cherry pickers, mini-diggers, 3000 spades and a small fleet of drones.

    The overall target was to reach 3 million premises by the end of 2020, which wasn’t achieved, but their target of 10 million by 2025 could be reached, with the rapid rise in recruitment.

    In order to celebrate the progress so far, Openreach gifted the one millionth home (Shaun Duffield’s family of 8 children in Leeds) with free “full fibre” broadband for a year (selected at random from the most recent batch of fibre enabled premises).

    Clive Selley, Openreach CEO said: “Our full fibre build is speeding ahead and we’re now ready to connect more than a million consumers and businesses if they decide to order from a service provider that’s using our FTTP network. Since the launch of our build programme last year we’ve made huge progress – honing our skills, tools and techniques, driving our costs down and helping our engineers to go ever further, faster and more efficiently. Last month we announced plans for Salisbury to become the first entire city in the country to have access to our FTTP network – in what is expected to be the fastest city-wide network build in the UK. But it’s not all about being a fast builder, we’re also keen to encourage fast adoption. We recently launched a consultation with industry to decide how and when we upgrade customers to this new future-proofed digital network. Ultimately our ambition is to deliver the best possible digital connectivity to everyone, everywhere, across the entire country. I believe the progress we have made to date proves that we’re making good on that promise, but there’s more to do. One of this would be possible without our engineering workforce – which is why it is fantastic to see so many new people wanting to join the country’s largest team of telecoms experts working to expand, upgrade, maintain and install services over Openreach’s national broadband network.”

    This effort will help the Government to achieve their current target of supporting FTTP networks to cover 10 million UK premises by 2026, then 15 million by the end of 2028 and they also have an ambition to see a “nationwide full-fibre” network by 2035.

    This will of course involve input from many alternative network ISPs and not just Openreach.

    Margot James, ex Minister for Digital, said “The Future Telecoms Infrastructure Review set out our approach to maximising full fibre coverage, and I’m delighted that Openreach has now reached one million homes and businesses. Significant investment like this from network operators is critical to deliver our plans for nationwide coverage, and we’re working with industry and Ofcom to create an environment that supports and encourages the commercial rollout of full fibre broadband.”

  • 3m People Without Broadband

    3m People Without Broadband

    The digital divide has narrowed considerably since the coronavirus breakout, but there are still 1.5m (5.3%) homes considered to be offline, according to Ofcom.

    It’s 2022!

    For many people, lockdown will leave a lasting legacy of improved online access and better digital understanding. But for a significant minority of adults and children, it’s only served to intensify the digital divide. We’ll continue to work with government and other partner organisations to promote digital literacy and ensure that people of all ages and backgrounds are empowered to share in the benefits of the internet. Yih-Choung Teh, Strategy and Research Group Director, Ofcom

    More households have gone online during lockdown, narrowing the digital divide, new research suggests.

    The proportion of homes without internet access fell from 11 percent in March 2020, as the UK entered lockdown, to 6 percent of homes a year later, according to data from Ofcom. 

    Many had to adapt to working and studying from home meaning some who previously did not have broadband will have found it is now a necessity.

    Adults with previously limited digital skills have also embraced online shopping, digital banking and video calling whilst the younger generation acted as IT support, helping older or less digitally-confident friends and relatives get connected.

    Many previously may have relied solely on their mobile phone contracts instead with some firms offering huge data packages, meaning a broadband connection was not needed when at home.

    This is likely to be especially the case for those who have been able to access a WiFi connection at an office where they did not need to pay.

    Others also piggyback off their neighbours WiFi connection when at home, sometimes as part of an arrangement, meaning they did not need a broadband line themselves – but working from home is likely to have changed all of the above, with a steady and secure connection needed. 

    For the 6 percent of households who remain offline, the research found digital exclusion during lockdown is likely to be more disempowering than ever.

    Some 18 percent of those without home internet access are aged 65+ whilst 11 percent of lower income households still have no connection.

    A further 46 percent of adults who remain offline say it is because they find the internet too complicated while 37 percent say a lack of equipment is a barrier.

    However, three in five of those not using the internet at home have asked someone to do something for them online in the past year.

    The lack of internet has also negatively affected some school age children.  

    While nearly all had online access in the home, 4 percent relied solely on mobile internet access during the pandemic with 2 percent only able to get online using a smartphone.

    Additionally, around 17 percent of children did not have consistent access to a suitable device for their online home-learning. 

    This increased to 27 percent of children from households classed as most financially vulnerable.

    Most children with intermittent access had to share a device to manage home-schooling but for 3 percent, the lack of access to a device prevented them from doing any schoolwork at all.

    Additional data suggests the time children spent watching non-broadcast content each week, such as streamed content or online video, greatly increased last year – from 7 hours 49 minutes in 2019 to 11 hours 19 minutes in 2020, overtaking traditional broadcast viewing, at 6 hours 54 minutes, for the first time.

    Gaming also grew in popularity among adults with 62 percent playing games on a device such as a smartphone, games console or PC, with a third of adults playing online, with or against other people.

    Some 70 percent of 5 to 15 year olds played games online in 2020, with boys in particular using this as a way to connect with their friends.

    Meanwhile, 23 percent of pre-schoolers aged 3 to 4 were also online gaming in 2020 with their parents claiming that nearly half of them now own their own tablet and 4 percent have their own smartphone.

    Access to a fast and secure internet connection is now an essential part of many people’s everyday lives. The pandemic has led to a significant increase in the number of households choosing faster broadband packages as they juggle both their professional and personal lives online. Holly Niblett, Head of Digital, Compare the Market

    Across the UK, there are literally millions of people living in newly built properties that still don’t receive the new 10Mbps minimum download speed as introduced by government legislation back in 2017.

    A surprising highlight was found by an investigative journalist at Daily Mail which was regarding the general lack of access to decent broadband infrastructure as many developers opt for second-grade connectivity – Is this true? Can any of my 11K followers identify if this is true?

    Thinkbroadband also conducted some research and can reveal that four out of ten new-build properties still rely on copper wire rather than fibre-optic cables for their connectivity, despite government efforts to promote the use of full fibre right to the door, as it looks to move the entire country away from a reliance on copper by 2033.

    However, the figures also found one in eight new-build homes cannot even reach the minimum standard needed for decent broadband, defined by Ofcom as an average download speed of at least 10Mbps.

    Several politicians have spoken out against this, with Grant Shapps, chairman of the British Infrastructure Group, saying it is time developers realised that good broadband is not an “optional extra” for homes today.

    Liberal Democrat leader Vince Cable agreed, saying: “Internet connectivity is fundamental to people who work from home – and in a modern economy it is not just a luxury but a necessity.”

    If you need insights to prove why providing temporary broadband is worthwhile to your business unit as a regional or national home-builder, message me in confidence.

  • Top 9 IoT Trends For 2023

    Top 9 IoT Trends For 2023

    4 weeks today, we break up after an incredible 2022.

    However,

    there are many challenges persisting into 2023.

    The current economic position requires enterprise to have a [new] focus on operational efficiencies – a key area for IoT.

    Here are my Top 9 IoT trends to look out for in the next year:

    1. Mobile LPWA uptake ACCERLATES.

    2. Businesses want “GUARANTEED” ROIs.

    3. eSIM will be mainstream. Thanks Apple.

    4. RAPID RISE in Private Mobile Networks (PMNs).

    5. STRONG FOCUS on energy and operational efficiency improvements.

    6. Enterprises with a global fleet of IoT devices will face COMPLEX REGS.

    7. Organisations are already COST AWARE and will want end-to-end solutions that target particular business outcomes.

    8. MUSK has nothing on satellite IoT; yet. Various new networks will launch to add value to terrestrial, mobile and LPWA technologies.

    9. VERTICALISATION of B2B CaaS.

    Remember, the top desired results from IoT applications are:

    • Positive impact and sustainability
    • Data visualisation
  • Outsmarted? Which Smart Home solution will dominate?

    Outsmarted? Which Smart Home solution will dominate?

    Whether you want your toast to be just the right temperature when you roll out of bed or need to turn up the thermostat without exposing your toes to the cold. Smart homes are opening a new realm of possibilities for homeowners, in regard to both convenience and security. 

    Smart homes and home automation are ambiguous terms used in reference to a wide range of solutions for controlling, monitoring and automating functions in the home. 

    But with the market being so broad, it means a lot of solutions and brands have emerged in the past few years. 

    Will they stand the test of time? And will whole-home systems dominate as the market matures? 

    North America – Home of the Smart Home? 

    North America is the most advanced region in the world for smart home solutions.

    As of 2018, an estimated 28.8 million homes in the region were equipped with at least one smart home device [Berg Insight]. This represents a market penetration of 20.3%. 

    A total of 29.7 million European homes had one or more smart home devices installed at the end of 2018, which gives a market penetration of 12.9%. 

    The installed base of smart home solutions is expected to grow substantially in both regions in the coming years. By the end of 2022 market penetration of Smart Homes is expected to be around 36%. 

    Smart Home Trends – Something for Everyone

    There are various application areas in the home for smart and connected solutions. 

    Most fall into seven primary categories.

    Here’s a quick rundown of which smart home devices are really taking off right now and what benefits they are offering to homeowners and businesses everywhere. 

      Security is a priority as CCTV and access control gain traction.

    The siren call of cost savings is making devices for energy management and climate control particularly popular.

    Audio-visual and entertainment systems are the most popular among consumers.

    You never forget your first. According to research, smart light bulbs are the first products consumers purchase.

    Motion and occupancy sensors are helping service users stay healthy and well.

    More white goods are becoming part of Smart Home ecosystems. 

    Service robotics are taking the chore out of home maintenance

    Wifi or Cellular? 

    When you become dependent on your smart home, the last thing you want is to lose the help it offers, that you’ve become accustomed to. That’s why many Smart Home devices are experimenting with their connectivity capabilities.

    There are many different connectivity standards used in smart and connected home spaces. 

    Although this gives vendors and end-customers versatility for any scenario, it has also caused fragmentation in the industry. Incompatibility, for instance, increases the level of complexity and uncertainty that consumers and vendors are facing. 

    Fixed broadband is the primary communication channel between smart home devices and backend servers. 

    However, cellular technology is used as a primary or secondary communication channel, especially in the security and access control sector. For obvious reasons -cellular technology is a more reliable connectivity alternative. 

    Cellular connectivity can also be suitable for smart plugs, thermostats and any IoT devices that need to be more remotely located. 

    Just a Peek Through the Keyhole

    This was just a small rundown of some of the trends emerging in the Smart Home space. And if you ask me, this is only the beginning. 

    But what about you?

    Which Smart Home Solutions do you think will stick around?

  • Go. Mobile. Now.

    Go. Mobile. Now.

    Do not wait for the PSTN switch-off.

    Take the opportunity.

    Go mobile.

    Now.

    Openreach is ceasing its traditional copper service in 2025.

    That’s less than 26 months away!

    DYK:

    • As of March 31st 2021, there were 4.7m registered companies in the UK – nearly 2.5m still use the old PSTN lines.
    • Millions of telemedicine devices need to go mobile by October 2024.
    • 52,500 ATMs need SIM cards.

    Enterprises of all sizes require “last mile” connectivity to be online all the time. What would you do if your business was offline?

    There are hundreds of examples where mobile solutions are needed to maintain services.

    Any ideas on what they are?

    Let me help you.

    • ePOS – Retail
    • Lifts – Smart Buildings
    • CCTV – Smart Security
    • Street furniture – Smart Cities
    • Boats and yachts – Smart Maritime
    • Access control systems – Smart Entry

    Mobile is cost-effective

    Mobile reduces the need for upfront costs, such as ECC – Extra Construction Costs. Last-mile connectivity by BT, Openreach and similar is expensive. Don’t wait months for installations. Go mobile now.

    Mobile is scalable

    Mobile enables a business to “upgrade” its connectivity.

    Mobile can be monitored, managed and controlled from your fingertips. Mobile is [absolutely] the game-changer enterprise needs, for a whole host of applications, not just copper replacement.

    Mobile is flexible

    Mobile connectivity is considered standard in several sectors but has unlimited tariffs. Intelligent mobile solutions that can flex on demand are the ultimate.

    Mobile is faster

    Mobile is a faster solution than FTTP, let alone copper.

    LTE-A averages 45Mbps in a satisfactory signal area.

    5G averages more than 100Mbps and has a lower latency, which is well-suited for high bandwidth requirements.

    For example, the latest fibre solutions for consumers are well under-priced, because they’re designed for homeowners, but business lines and dedicated fibre, are priced as they should be – the latest solutions [on a five-year contract] are more than £300pm!

    5G mobile is under £40 on the same contract length.

    Mobile is reliable

    MOTAM (Managed Over The Air Mobile) seamlessly switches to the strongest network if you have a multi-SIM solution.

    But, if you have a single-SIM product, MOTAM can still benefit you and your customers’ businesses – it just has to be a smart mobile solution with a fully managed back-end to work.

    You might have heard the terms Intelligent Mobile Data and Intelligent Mobile Connectivity…?

    They are popular phrases across the telecoms industry for a reason.

    Tardis’ Smart Mobile solutions are the best choice for your business to become smarter, and this will have a knock-on effect to empower your customers to become smarter, which will enable the replacement of PSTN far easier.

    If you want to Dropship my knowledge so I can act on your behalf, with any of your top-paying clients, book your session with me directly.

  • High Risk IoT Devices: VoIP and IPCCTV

    High Risk IoT Devices: VoIP and IPCCTV

    You all know what CCTV cameras do, and what VoIP and video conferencing systems are, but did you know they are now considered part of an IoT network?

    According to Foresight Technologies (FT) [in America], IP cameras and VoIP phones are Top 5 riskiest devices to be connected on your LAN.

    TOP 5!? That’s not good, especially as we’ll all be on IP solutions from 2025 – period.

    Foresight Technologies identified recurring themes in their 2022 research – highlighting the growing “attack surface” due to more devices being connected to enterprise and small business networks.

    IP cameras, VoIP and video-conferencing systems are the riskiest IoT devices because they are commonly exposed on the internet, and there is a long history of threat actor activity targeting them. Foresight Technologies

    The attack surface now encompasses IT, IoT and OT in almost every organisation, with the addition of IoMT in healthcare. Organisations must be aware of risky devices across all categories. FT recommends that automated controls are implemented and that companies do not rely on siloed security in the IT network, OT network or for specific types of IoT devices.

    This latest research [from America] provides an update to the company’s findings from 2020 in which networking equipment, VoIP and IP cameras were listed and remain among the riskiest devices across our connected world, however, new entries such as hypervisors and Human-Machine Interfaces (HMIs) are representative of trends including critical vulnerabilities and increased OT connectivity.

    Vedere Labs (owns FT) analysed device data between January 1 and April 30 in Foresight’s device cloud. The anonymised data comes from Foresight customer deployments, and it contains information about almost 19 million devices – a number that grows daily, according to the company.

    The overall risk of a device was calculated based on three factors: configuration, function and behaviour.

    After measuring the risk of each individual device, Vedere Labs calculated averages per device type to understand which are the riskiest.

    The challenge we all face here in the UK, is the PSTN switch-off, which will 100% happen by 2025.

    The UK is moving away from analogue connectivity for good – no more copper to the home or office building – FTTP is the standard, but is that it?

    No; there is loads more for you to know off the back of this.

    Next week’s newsletter will cover the details you need to be aware of.

  • How Do You Sell IoT and Mobile Data?

    How Do You Sell IoT and Mobile Data?

    I’m confident you all know Mobile Data revenues will increase significantly in the years ahead…

    But, do you know the factors driving this growth?

    It’s all about NOW NOW NOW – no – nothing to do with NOW TV or NOW Broadband, but it does have everything to do with cellular coverage, download speeds and reliability of the mobile networks.

    Everyone is aware 5G is faster than 4G, but will it replace all the existing IoT (M2M – Machine-to-Machine) applications, from a decade ago to present day?

    Millions of the currently active IoT applications will remain, but there are a lot of new opportunities that require the ultra-low latency of 5G.

    Resellers; this is your opportunity to GROW.

    A very professional, highly efficient and friendly service, assisting our business by keeping our customers connected. (5* Google Review, Tardis Reseller)

    Are you ready to sell Mobile Data?

    Understanding this, especially if you’re fresh, is paramount.

    • How do you solve existing customer problems? (Fixed-line / VoIP / CCTV installations / Handsets)
    • What is your current business model? (CAPex – upfront income / OPex – lease model, like PCP car finance)
    • How do you think SIM cards could create more revenue for you?
    • How big is your sales team?
    • How strong is your support team?
    • Which industries do you focus on?
    • Do you like your existing providers?
    • Have you tried offering SIMs before?
    • Do you want to bill your own customers?
    • Does your current supply chain offer SIMs?
    • Which location(s) do you have the most customers?
    • Would you prefer to act as an affiliate, and earn direct commissions?
    • Is your supply chain innovating often enough? (Are they launching new products and services every 6 months?)

    Who am I selling Mobile Data to?

    Assuming you have an existing mobile-related business and do not require expert guidance, adding alternative SIM solutions can be an easy win, if sold in the right manner.

    As an MSP, ISP or VAR, you need to identify wins, fast.

    The reality is, your customers will be using at least one other provider for the same service, and the below questions are 100% worth asking, but don’t do go all-in straight away – build, build, build your relationship.

    • Why do your customers trust and buy from you?
    • Engage your customers on price-point
    • Understand where your advantage is, and exploit it!
    • Identify where your customers can cross-sell other mobile solutions
    • Out of an exiting SIM base, how many are less than 10Gb per month
    • Leverage IoT technology for low-use SIMs
    • If you offer pooled data plans, what is the utilisation %?

    What do you need to offer Mobile Data?

    Ordinarily, you would need to consider the below:

    • Who are the best performing channel suppliers?
    • Can you act professionally on: commercial and business plans; ease of ordering; holistic provisioning and support; fully managed services; own your billing?
    • Consistent training for your sales team
    • Marketing collateral

    The reality is, the Dropship Data programme, offered exclusively by Tardis, is the easiest way you, as a reseller, can double your pipeline.

    Not only do you white label Tardis’ software as your own, you can offer our [your] portal to your customers – providing the ultimate CX.

    That said, if you’re geared-up as a traditional business, the below could be useful information.

    What’s next?

    DM me [on here] with “MIMO”, and I will send you a link to book a 30 minute chat.

    We can chew the fat to uncover your new SIM opportunities.

    Based on what I find, Tardis will help you create solutions your customers wish they had sooner – some may be for existing issues – all will be affordable, allowing you to gain a good margin and solving your customers problems.

    Win, win. Win.

    About Tardis

    Tardis is a pioneering provider of various technologies – some are internationally patented.

    Direct or wholesale, the intelligent managed connectivity solutions on offer include mobile data, IoT sensors, VoIP, CCTV and video surveillance – fully monitored and managed on one software suite; The Tardis Portal.

    Resellers and partners will never be disclosed, but some of the biggest brands and organisations benefit from Tardis’ capabilities, including Amazon, BBC, Google, MoD, and NHS.

    Tardis has legacy interest in Security & Defence, Broadcast, Construction and Maritime, but in the last 18 months, Tardis has found great opportunities across the UK through a new reseller network.

    There are some amazing prospects across the channel sector.

    Be part of the disruption.

    Only, with Tardis.

  • Apple-y Never After – Will Apple’s Next Move Leave Networks with Cold Feet?

    Apple-y Never After – Will Apple’s Next Move Leave Networks with Cold Feet?

    Don’t worry I’ll be keeping the Apple puns to a minimum. 

    Let’s dive right in and get to the core of this story.

    eSIMs aren’t exactly a new thing, in fact, when Lenovo launched the recent Motorola Razr 5G it was eSIM only, but did anyone notice or care? Not particularly. Although, you could argue Motorola has a smaller fanbase than other devices. Especially compared to the cult following of Apple’s iPhone. 

    When the iPhone 14 hit the shelves earlier this month it was hailed as an unmatched innovation. You guessed it, not another camera or an invisible headphone jack, but Apple has well and truly killed the SIM card tray, with their eSIM-only model. 

    Don’t get me wrong- I too am a champion of the eSIM, its benefits speak for themselves especially when it comes to IoT. 

    But it seems that, following this news, the relationship between Apple and Operators might be on the rocks. 

    An Apple a day makes the People Pay

    Operators are terrified. They’re worried they might lose the iPhone – and currently throw themselves at Apple’s feet for a chance to sell them. 

    The homepage of any UK operator is a testament to this.

    But there are other tight-lipped secrets behind these Apple-centric operators. In fact, Apple insists upon it under their terms of business. Many of these terms are shrouded in secrecy and bound up with countless NDAs, so although we may not know the terms of these agreements, there are plenty of educated guesses out there. 

    The Mayhem’s in the Margin

    Ofcom reckons the average mobile phone bill is £14 a month. The UK population is around 67 million and there is an average of 1.2 subscriptions per person. This equates to £13.5bn revenue coming into the mobile industry in the UK alone.

    Mobile networks once were enormously profitable, but in the last couple of decades, they’ve been faced with phenomenally tight margins. 

    During this time, Apple has become a $1 trillion company with margins that no other business can rival. 

    With the introduction of this eSIM model, Apple could potentially see its profits skyrocket even further – But at what cost to Networks? 

    The mobile industry is built on standards. One of these standards is IR21 which allows devices to know what features a particular mobile network has. IR21 applies from 2G to 5G to any mobile operating system and IoT device. 

    Except for, you guessed it…

    Apple. 

    For an iPhone to recognise your network supports 5G (or whatever) it needs an Operator Profile.

    A Fight for a Spot 

    The eSIM-only iPhone 14 will allow Apple to disintermediate the operator in a way that the traditional SIM has prevented.

    Physical SIMs provide the user with a choice and give operators a direct relationship with their consumers.

    In Apple’s eSIM-only world, consumers will buy their eSIM from the Apple app store. Apple will expect operators to compete for a position in the store and Apple will take a revenue share on the sale of the SIM as well as a share of the call revenue. 

    Consumers will be encouraged to churn and hop from operator to operator, perhaps even on a call-by-call basis as a way of having better coverage.

    Again this is not an Apple-originated innovation. Google does it in the USA and it works very well providing much better coverage than a single operator can. The difference is that Google does it without ‘bullying’ tactics.

    Connectivity is at the heart of the mobile telecoms industry.

    But is Apple about to turn connectivity into just another app that they can capitalise on?  Will this now give Apple the power to make or break an operator? 

    The Apple eSIM will become how Apple can switch iPhone owners to its favoured operator, presumably whoever can bid the highest.

    What do you think?

    eSIMs can open the doors of growth for many businesses and networks but how do you feel about Apple’s approach here? 

    A smart business move? 

    Or a rotten idea? 

  • Crossed Wires – What you Need to Know About the Vodafone and Three Merger

    Crossed Wires – What you Need to Know About the Vodafone and Three Merger

    Three become (Vodaf)One

    Unless you’ve been living under a rock, or have exceptionally bad signal wherever you are, you’ve probably heard about the planned merger of two telecom giants, Vodafone and Three. 

    But what does this mean for the current UK market, and will these two giants in turn become one unstoppable goliath? 

    If this merger were to go ahead, it would mean the UK’s third and fourth largest mobile networks would combine to create a business with 27 million customers. A customer base larger than current leaders BT, as well as EE, and Virgin Media O2.

    The hope is that this collaboration would accelerate the rollout of 5G and rural broadband. Reports suggest the two companies hope to strike a deal by the end of the year, but what are the odds of this deal actually being approved? 

    Deal or No Deal – Will it be Approved?

    Despite the best intentions, we all know that these companies won’t have the final say in regard to whether this merger actually takes place. This decision, of course, is reliant on the enthusiasm of UK Regulators – and as of right now, there are some hurdles to overcome. 

    Based on past events, it seems like Ofcom might oppose this merger. One of the reasons being that it would reduce the number of networks available to consumers in the UK. 

    The concern is this will open up the opportunity for one network to eventually monopolise the market, and ultimately put consumers at risk of price hikes. And with the cost of living crisis raging on, it is understandable that this concern would be spotlighted. 

    However, Vodafone has pointed to a recent report [from Ofcom], which might suggest a new approach. It found that both Vodafone and Three had in recent years delivered returns on investments that were lower than the cost of the capital they used. The argument is that this merger would simply improve returns and unlock shareholder value for these companies.

    If this merger were to be approved, I think there would need to be legally-binding concessions in place in order to reassure regulators of the networks’ intentions. 

    Scale Whilst Cutting Costs

    According to Ben Wood, an analyst at CCS Insight, the leading motivation for these companies to join forces is the sweet siren call of scale. 

    “In Telecommunications, the most successful companies tend to be the largest; bulking up would offer many synergies and cost-saving opportunities. Under the status quo, it’s hard to see either operator growing enough, organically, to get close to challenging BT and Virgin Media O2 for size in the UK.” 

    Is this merger a shortcut for these networks? A cheat code for scale? 

    Well, if the UK wants to be a 5G leader, thriving competition in the UK market needs to be nurtured. Perhaps huge, fast-tracked growth will be the answer.

    How do you think this deal will end? 

    And as consolidation may not be a viable option for some networks, is there an easier way to scale in Telecom? 

    I’d love to know what you think.