Liberty Global and Telefónica have struck a deal to set up a $4.5bn joint venture (JV) that will roll out fibre-to-the-home (FTTH) networks to between five million and seven million households in the UK. The two companies will jointly hold a 50% stake in the JV through a holding company, while the other half will be owned by investment company InfraVia Capital Partners. The JV will aim to deploy FTTH to greenfield premises across the country in close proximity to Virgin Media O2’s existing fibre deployments as well as in completely new areas. Its first target is rolling out fibre to five million homes that are not currently served by Virgin Media O2 by 2026. According to Liberty Global CEO Mike Fries, the deal will allow Virgin Media O2 to expand its fibre network to up to 23 million homes, covering around 80% of the nation. Telefónica chairman and CEO José María Alvarez-Pallete described the UK as “a growth market for us” and added that the deal will help it accelerate access to next-generation broadband connectivity to many UK homes. Find out more.
The European Commission has opened an in-depth investigation into Orange’s proposed acquisition of Belgium’s Voo-Brutélé, first mooted at the end of 2021. The commission’s preliminary investigation showed that the transaction may significantly reduce competition in the markets where Orange, Voo and Brutélé are close competitors, namely fixed internet access, audio-visual services and multiple-play bundles (including FMC services) in the areas covered by VOO and Brutélé’s own fixed networks. The commission’s executive vice president, Margrethe Vestager, who is in charge of competition policy, observed that Orange is already a successful challenger to Voo and Brutélé in parts of Belgium and said she wants to make sure that the proposed acquisition will not lead to higher prices or lower quality for customers in the Wallonia region and parts of Brussels. The commission says the risk is that a reduction in the number of operators from three to two in the areas that both cover will not only reduce competition but might have knock-on effects for other players by increasing the merged entity’s bargaining power and disrupting other third-party relationships – all the usual concerns that accompany any three-to-two consolidation.
The smartphone market isn’t looking so smart now! It declined by some 9% in the second quarter of 2022 to 295 million units which, according to researchers Counterpoint, was the first time it had dropped below 300 million since Q2 2020. The only vendor winners were Samsung, whose shipments grew by 8% year on year, and a recovering Honor. The Chinese vendors Xiaomi, OPPO and Vivo really lost out with dreaded double-digit declines in shipments. Now the industry has to work out whether this decline marks some sort of mass turning away from the category – perhaps in response …….