Week 39 in Telecoms, Internet, Media

M&A

• Orange: To buy out Groupama (21.7%) from Orange Bank (1.6m subs in FR, ES), to raise equity EUR 230m
• Iliad: Xavier Niel (Holdco II) reaches 90%, to start squeeze-out
• Polsat Plus: Plans tender offer (SBB), max 82,904,517 shares at 35.00 PLN/share = PLN 2.9b (EUR 630m) - Plans EGM 211116
• Sony:
• Acquires Bluepoint Games
• Sells Sony Pictures Television Channels (22 channels + 2 OTT services) in Central and Eastern Europe (12 countries: Poland, Hungary, Czechia, Romania, Bulgaria, Slovakia, Croatia, Serbia, Slovenia, Bosnia Herzegovina, North Macedonia, Montenegro.) to Antenna Group
• Mediahuis: Plans offer for Aachener Verlagsgesellschaft (AVG; Aachener Zeitung, Aachener Nachrichten)

STRATEGY

• Vodafone: Vodafone Digital Services & Experiences Briefing: focus on
1. Deep & trusted customer relationships (improve NPS; multi-product connectivity strategy Digital First)
2. Leading digital consumer services (h leads to higher ARPU, improved distribution efficiency, higher NPS and lower churn; to further develop consumer IoT, Vodafone TV, home services, device lifecycle services and loyalty applications)
3. The leading FinTech in Africa (58m customers; Vodacom has clear financial ambitionsto grow its new services, which include financialservices, at or above 20% CAGR)
4. The global IoT connectivity leader (130m devices connected; current rev EUR 0.9b, addressable markety EUR 10b)
• Verizon: Defines 5 vectors of growth:
1. 5G adoption
2. Network monetization
3. Investments in MEC (with AWS)
4. “mix and match” model with partners (Disney+, Discovery+, Apple Music, other)
5. MVNOs
• Ericsson strategy update, launches new look & feel for brand;
• Launches new
• Purpose (To create connections that make the unimaginable possible)
• Vision (A world where limitless connectivity improves lives, redefines business and pioneers a sustainable future)
• Expects 4 future scenarios in era of hyper connectivity
1. Enabling new ways of learning
2. Redefining business
3. Reimagining entertainment
4. Tackling the climate crisis

WHOLESALE

• KPN: T-Mobile NL sues to delay copper switch-off 2 yr on account of: full information available May 2021, ACM market assessment due 21Q4, switching off normally requires 3 yr migration (EC based)
• CTU (CZ) proposes wholesale regulation, starts market consultation
• Verizon: MVNOs as vector of growth (see above)
• Google: platforms (see below)

NETWORKS

• Vodafone and partners (Benu Networks, Casa Systems, Cisco, Nokia) first to test disaggregated broadband: open architecture Broadband Network Gateway (BNG), works across separate software & hardware from multiple vendors
• Rumor: Open Dutch Fiber plans FTTP in Ridderkerk, to finish 2022; KPN plans FTTP in Ridderkerk, to start 2022

SERVICES

• COMMS
• Microsoft: Microsoft updates Skype ("Skype has been in our lives for nearly two decades, and we are here to stay")
• VIDEO
• NBCU: Rumor: to relaunch Peacock early 2022; to hold exclusive rights to Universal movies (after theater window); focus on Winter Olympics China; new UI; marketing phrase For All Fankind
• CNBC: Apple TV+ had <20m subs in US/Canada at 210630 - The Information: 40m global users o/w 20m paying subs; Entertainment Strategy: 8.1m US subs
• Netflix: Viewing stats: top 10 series & top 10 films by # accounts (viewed >2 min) and by overall time spent
• Amazon: Expands IMDb TV (free AVOD) to UK; distr first as part of Prime Video, later as Fire TV app
• Facebook: Distr deal for Facebook Watch with Vodafone in Europe: STB integration; first in DE, IT, CZ, PT, GR
• GAMES
• Netflix:
• Acquires Night School Studio (produces Oxenfree; 21 employees)    
• Expands gaming platform on Android (test) to ES, IT [see 210826]
• WEB
• Google:
• Cancels plans for bank accounts (Plex), syncing with Google Pay [see 191113]
• Google Search On event: enhances Seaarch using Multitask Unified Model (MUM): ML for more detailed and context-rich questions (to combat misinformation); enhances Shopping with Lens (take a photo and add a query to find answers), more images, in-store inventory checks
• Amazon: Hardware event    
• Facebook: Establishes XR Programs & Research Fund, $50m in 2 yr, to develop metaverse ("a set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you")

SPECTRUM

• NKOM (NO) ends 5G auction (190 MHz in 2.6 & 400 MHz in 3.6 GHz, valed 220101 - 411231); winners:
• Telenor (2x40 in 2.6 for 416m + 1x120 in 3.6 for 1.01b, total after discount 1.22b)
• Telia (2x30 in 2.6 for 289m + 1x100 in 3.6 for 781m, total 910m after discount)
• ICE (NOK 554m for 1x80 in 3.6)
• Altibox (= Lyse; NOK 845m; to launch FWA 22H1; 1x50 in 2.6 for 53m, 1x100 in 3.5 for 792m, total 724m after discount)

PLATFORMS

• Google:
• Starts appeal at ECJ (Luxembourg, 5-day hearing) against EUR 4.34b EU antitrust fine over Android [see 180718]; claims markets defined too narrowly, ignores Apple iOS
• ACCC (Australia) publishes Digital advertising services inquiry (final report), claims Google (vertically integrated) dominates in digital ads
• Movement for an Open Web files complaint at EC over Google Search (ad-tracking changes) [see 210622]