What’s up with… Proximus, FTTX in the UK, Apple and Google

• Belgium’s Proximus appoints interim CEOs
• UK regulator opens broadband sector review
• EC pushes Apple and Google for product changes

In today’s industry news roundup: Belgium’s national operator has appointed two interim CEOs as it seeks a new permanent chief; Ofcom is laying out its plans for UK wholesale broadband market regulation for the coming six years; Apple and Google are feeling the heat of Europe’s digital market rules; and much more!

With its current head honcho Guillaume Boutin about to depart for a new role at Vodafone Group, Belgium’s national operator Proximus has appointed two interim chiefs to run the business while the board seeks a permanent replacement for Boutin. From 17 April, Jan Van Acoleyen, currently group and global human capital lead, will serve as interim CEO of the Proximus Group, while group CFO Mark Reid, will serve as interim CEO of Proximus Global, working closely with Rajdip Gupta, currently Proximus Global business lead. Boutin, who is currently the CEO of Proximus Global as well as the Proximus Group, will continue in that joint role until the end of the telco’s general assembly meeting on 16 April, after which he will “take a more consulting role to ensure a smooth transition and prepare the transfer of his files till his departure [in] mid-May,” noted the telco. It remains to be seen whether the Proximus board will hire a single permanent replacement for Boutin or hire two individuals for the CEO roles, though it might make sense to go down the dual route in order to make the most of the international growth potential of the recently formed Proximus Global, a revamped subsidiary – valued by the telco at €3.1bn – that brings together BICS (connectivity services), Telesign (digital identity) and Route Mobile, the communications platform-as-a-service (CPaaS) specialist in which Proximus acquired an 82.7% stake in May 2024. That subsidiary, in which Proximus holds a 91.3% stake, aims to take advantage of the growing demand from enterprises for secure connectivity and digital communications via cloud-based platforms. 

The UK’s broadband network operators are all on their best behaviour currently as telecom sector regulator Ofcom sets out how it proposes to regulate the wholesale broadband markets from 2026 to 2031 as part of its Telecoms Access Review. According to the regulator, its current regulations, introduced in 2021, have served the country well. “The roll out of full fibre across the UK is a British infrastructure success story,” stated Natalie Black, Ofcom’s group director for networks and communications. “Four years ago, less than a quarter of UK homes and offices had access, and it now stands at nearly seven in 10. But we do not take this momentum for granted and today, we are setting out how we can work with the sector to finish the job. It means that people and businesses in nearly all corners of the country will get faster, better broadband, fuelling economic growth and enabling technologies like artificial intelligence to benefit everyone,” she added. Ofcom noted that 69% (or 20.7 million) UK premises now have access to full fibre, while coverage of gigabit-capable networks has increased from 11.6 million premises (40%) in 2021 to 25 million (83%) last year. For customers, more than seven in 10 premises can now choose between two or more different broadband networks. According to network operator data collated by Ofcom, full-fibre coverage could reach 96% by 2027 “with the right regulation and support”. There are a lot of moving parts to the sector, as this announcement lays out in some detail, but overall the regulator believes it can continue to promote broadband sector competition by providing competitive operators with access to the passive infrastructure (ducts and poles) owned by BT’s quasi-autonomous wholesale fixed broadband division Openreach and “strengthen [its] rules around Openreach’s wholesale deals and discounts, so that it cannot unfairly stifle competition”. And here’s a tantalising prospect: “We expect to continue our approach of supporting investment and competition if it is still emerging in five years’ time. If there is a need to set price controls on Openreach in the future, over time the company would have the opportunity to earn a return above the cost of its investment. After 2031, if effective competition has developed, there will be no need for Ofcom to regulate.” Industry analyst Kester Mann, who is director of consumer and connectivity at industry research firm CCS Insight, believes “alternative network providers will welcome continued access to ducts and poles and firmer rules around discounts, however, they will likely complain that the proposals don’t go far enough to bring fresh competition to Openreach.” Meanwhile, “BT will welcome the update which should support its continued strong investment in the UK fibre market through its Openreach arm. All eyes will be on whether it extends its target from 25 million premises to 30 million by 2030, which it has said is predicated on the ‘right regulatory and investment environment’,” added Mann. One of the companies challenging Openreach in the UK wholesale broadband sector is CityFibre which, having recently reported a (small) annual pre-tax profit for the first time, is believed to be lining up fresh funding to fuel its M&A ambitions as it seeks to grow further. Commenting on Ofcom’s announcement, CityFibre CEO Greg Mesch was positive about the regulator’s approach to the coming six years. The “Telecoms Access Review marks yet another major milestone in creating a sustainable competitive market. By supporting wholesale network competition, Ofcom is helping to drive better services, greater choice, and lower prices for consumers and businesses, while unlocking economic growth across the country. As the UK’s leading wholesale challenger, CityFibre has been at the heart of this transformation, delivering the competition that fuels innovation and investment. We fully support Ofcom’s direction and look forward to working together to ensure the UK benefits from a thriving, sustainable digital infrastructure market.”

Apple and Alphabet, the parent company of Google, face charges of breaching European Union Digital Markets Act (DMA) rules, with the European Commission specifying measures that Apple must take in order to comply with “certain aspects of its interoperability obligation”. In addition, the commission has “informed Alphabet of its preliminary view that certain features and functionalities of Google Search treat Alphabet’s own services more favourably compared to rival ones, thus not ensuring the transparent, fair and non-discriminatory treatment of third-party services as required by the DMA. In addition, the commission has informed Alphabet of its preliminary view that its app marketplace Google Play does not comply with the DMA, as app developers are prevented from freely steering consumers to other channels for better offers.” The decisions will likely not help current transatlantic relationships and, with that in mind it seems, the EC has tried to depoliticise the rulings, reports Politico. Google, meanwhile, has published a rebuke to the European Commission, claiming that its push for more changes to Google Search, Android and Play “will hurt European businesses and consumers, hinder innovation, weaken security, and degrade product quality”.

DSP Leaders Council member Max Gasparroni has been appointed as CTO at Fastweb + Vodafone, the Italian operator formed earlier this year when Swisscom completed its €8bn cash acquisition of Vodafone Italy and merged the mobile operator with its Italian fixed-line operation, Fastweb. That merger created a converged telco that is the largest mobile operator in Italy when measured by the number of connections (more than 20 million). Gasparroni, who is currently VP of core network strategy at Liberty Global, will join the Italian telco in May and report directly to CEO Walter Renna. At Fastweb + Vodafone he will “assume responsibility for the integration and development of fixed and mobile network infrastructures… with the aim of promoting technological innovation and the implementation of next-generation digital services,” noted the operator in this announcement.

Vodafone Spain (now owned by Zegona Communications) is to deploy a 5G standalone (5G SA) core platform from Ericsson, based on the vendor’s dual-mode 5G core technology, for its residential service provision. “The agreement spans four years and will enable the improvement of Vodafone’s network operational processes and customer experience,” noted Ericsson in this announcement.

– The staff, TelecomTV