What is happening with Vodafone, Three, Tele2 and A1 Group?

In today's industry news review: the proposed merger of Vodafone UK and Three is causing waves of concern due to potential job losses, investment restrictions, and price hikes; Tele2 business continues to move in the right direction; A1 Group is defying macroeconomic trends and becoming best friends with Netflix; and much more!

Planned merger of Vodafone UK and Three

The proposed merger between Vodafone UK and Three has hit a roadblock over fears it would lead to job losses, restrict investment and raise prices for consumers. Executives from the two telecoms companies have told the UK Business and Trade Committee that they believe the merger would create new jobs to deploy and support the network, as well as to build and support IT systems. Nicky Lyons, director of corporate affairs and sustainability at Vodafone UK, could not specify the exact number of jobs he expected from the merger, but acknowledged that there could be a problem with overlapping headquarters, Reuters reported. Commenting on the report, Nick Johnson, head of UKTIN (UK Telecoms Innovation Network), said that while “there are always risks when two companies decide to merge, the connectivity developments envisioned by Vodafone and Three in their commitment to a 5G network for the UK are likely to lead to exciting new roles requiring new combinations of IT, software engineering and telecoms skills.” He added that Vodafone and Three must overcome challenges in accessing talent and skills. “Working together, they need to raise awareness of the network engineering career opportunities available to those who want to enter the industry, as well as those who want to enhance their skills,” Johnson explained. However, not everyone shares the same viewpoint. British and Irish trade union Unite says it has conducted research that shows the merger is “likely to result in price increases for all UK mobile network customers”, suggesting that packages could rise by £300 a year. The union added that there was no evidence that the merger between Vodafone and Three would lead to increased investment. “The evidence is clear: this union is a terrible deal for the UK. When you reduce competition, prices go up, jobs go down and the promise of investment turns out to be hollow,” said Unite union researcher George Stephenson. It has been reported that claims of higher prices for customers after the merger have been rejected by two companies. Vodafone and Three must receive regulatory approval before their merger can become a reality, and last week the UK's Competition and Markets Association (CMA) began collecting comments from “interested third parties” on the potential impact of the merger - see What happens to... BT and Google, Vodafone and Three, smartphones.

Swedish operator Tele2

The Swedish operator Tele2 reported its tenth consecutive quarter of growth. In the third quarter of2023, they reported a3% increase in revenue from end users' services to SEK5.4 billion ($495 million). This was attributed to "successful work" in the Baltics and the business client sector in Sweden. Additionally, due to cost reductions, the operator achieved a growth in net profit to SEK2.8 billion ($257 million). The total revenues of the operator amounted to SEK7.3 billion ($669 million), remaining unchanged compared to the same period in2022. CEO Kjell Johnsen characterized this period as "another good quarter for our business," as the company achieved "a3% revenue growth, marking our tenth consecutive quarter of growth.

A1 Group and Netflix

A1 Group (Telekom Austria) reported third-quarter revenue of €1.33 billion, up 2.6% year-on-year, while earnings before interest and taxes (EBIT) rose 1.7% to €278 million. The operator has also partnered with Netflix to offer the streaming video giant's service to its fixed broadband and mobile customers in six countries - Austria, Bulgaria, Croatia, Northern Macedonia, Serbia and Slovenia. "We are always looking to combine the most sought-after services with our offerings to enrich our customers' experience with A1," said A1 Group CEO Alejandro Plater. "As A1 Group, we were able to launch our partnership with Netflix today in Austria - and we plan to expand to other markets in the near future. This again makes us the operator of choice in the respective markets for both customers and partners looking for long-term deals," the CEO added. The partnership is made even more interesting by A1's support for the so-called 'fair share' movement in Europe, where a host of telecoms companies are putting pressure on the European Commission to force big tech companies such as Netflix and Google to contribute to the capital costs of telecoms companies - see European telecoms pressuring for 'fair share'.

US carrier Verizon plans to hire 1,800 additional technicians to help expand its broadband network on the East Coast. The new positions are mainly focused on building, maintaining and installing Fios, a bundled Internet access, telephone and television service offered by Verizon. Work will be performed in rural and underserved areas as committed to a project funded in part by the American Rescue Plan (ARP). The plan is to fill all positions by July 2026. Learn more.

Vodafone's partnership with e&

Vodafone and e& (formerly Etisalat) are already benefiting from their relationship, renewed in May, with their "first joint major customer win". In a joint statement, representatives from the corporate arm of UK operator Vodafone Business and its UAE ally announced that they will supply Al-Futtaim Group, an Emirati conglomerate operating in automotive, retail, real estate, finance and healthcare with advanced software-defined broadband networks (SD-WAN) from Vodafone and hybrid managed connectivity solutions from e&, to help drive digital transformation and further cloud adoption, primarily in eight countries. "We will now focus on the growth opportunities represented by the emergence of key trade corridors between the Middle East and Europe, as well as favorable regional macroeconomic policies driving the deployment of digital infrastructure in both the private and public sectors," said Fanan Henricks, director of Vodafone Business International and EU-Cluster. In addition, Vodafone Business and e& have also signed a letter of intent outlining how they will jointly market, sell and service public sector businesses and organizations in their respective regions. In May, the companies agreed to explore the possibility of jointly offering various services, including fixed and mobile connectivity, mobile private networks, internet in the

Latvia's support for Ukraine

Latvia has pledged to help rebuild the ICT infrastructure of conflict-ridden Ukraine. In an emailed press release, Ukraine's Ministry of Digital Development and Latvia's Ministry of Transport announced that they have signed a memorandum of cooperation (MoC) to support the "immediate restoration" of broadband connectivity, as well as to support the country's ICT infrastructure development and European Union (EU) integration and joint projects. It is estimated that Ukraine's ICT infrastructure has suffered around $2 billion worth of damage since Russian aggression began in February 2022, including the destruction of more than 4,000 base stations and 60,000 kilometers of optical lines, and 12.2% of households are expected to have lost access to mobile services. In the next steps under the MoC, the two countries will develop an action plan and a joint plan, organize joint events and meetings, and develop procedures for information sharing.