Week 46 in Telecoms, Internet, Media

Corporate

• TIM:
• S&P downgrades to BB (from BB+), outlook stable (adjusted leverage 4.3x) 
• KKR (owns 37.5% of FiberCop) considers friendly offer conditional on 51% acceptance level (for both classes of shares) & due diligence (4 weeks) & gvt clearance: 0.505 EUR/share cash (premium 46%) = EUR 10.8b (excl EUR 22.5b net debt (gross debt EUR 29b)); Reuters: plans gvt-regulated fixed-line network spin-off (comparable to Terna (energy grid) and Snam (gas grid)); Reuters: Vivendi (24%, paid 1.071 EUR/share) finds offer too low 
• Deutsche Telekom:
• Handelsblatt: plans (partial) sale or spin-off of T-Systems (29k employees; Project Falcon, Eagle) by Sep 2022, candidates: Accenture, Capgemini; 2 customers (Bundeswehr, Bundesnachrichtendienst) may complicate sale; DT may have to pay EUR 1b; may sell 33% to German gvt, 33% to investor
• Proposes tower merger and deconsolidation of GD Towers, not IPO (Deutsche Funkturm 32800 towers in DE; Magenta Telekom Infra 7000 sites in AT), could add towers in CZ and Slovakia
• Orange: Expects 4-to-3 consolidation among MNOs FR
• BT: Reuters: Altice UK considers expanding stake (12.1%)
• Vodafone:
• 21/22Q2    
• Vantage Towers: Vodafone proposes merger with TOTEM (= Orange); interested in buying out Telefonica (Virgin Media O2, owns 50%) from Cornerstone Telecommunications Infrastructure Ltd (CTIL; 14200 macro sites, 1400 micro sites); interested in acquiring towers from VodafoneZiggo
• Vodacom: Plans spin-off of towers ZA
• Bouygues: 21Q3; maintains outlook 2021, BouygTel: organic SR growth 5%, EBITDA AL growth 7%, capex EUR 1.3b; Ambition 2026 targets maintained: SR >EUR 7b, EBITDA AL 2.5b (margin 35%), FCF 600m
• Iliad: 21Q3
• Altice: Altice FR 21Q3; acquired MVNO Prixtel - Altice PT not for sale

Media

• RTL: Iliad objects to M6-TF1 merger at EC, Canal+ may join [see 210517]; Ministry of Culture and CSA already approved, Autorité de la Concurrence to decide
• UMG (Vivendi): Variety: to acquire Sting (Gordon Matthew Thomas Sumner) song catalog from Sony Music, >$250m
• Mediaset: Vivendi supports plan for dual-class share structure; to sell entire stake held through Simon Fiduciaria
• Warner Music: Raises $535m from sr secured note for potential acquisitions
• TIDAL: Plans user-centric royalties system and direct-to-artist payments for new HiFi Plus tier (20 $/mo, Master Quality Authenticated, Dolby Atmos, Sony 360 Audio); launches free tier TIDAL Free (entire catalog of 80m tracks, max 160 kb/s, shuffle mode, interruptions from TIDAL)
• Spotify:
• Expands podcast subscription globally [see 210818]
• Expands to 6 new countries (180m pops): Iraq, Libya, Tajikistan, Venezuela, Republic of the Congo, Democratic Republic of the Congo
• Storytel: Acquires Audiobooks.com (US, 300k audiobooks) from KKR, $135m
• SoundHound: Plans IPO via SPAC merger with Archimedes Tech SPAC Partners Co at $2.1b valuation, IPO price $10.00
• MoviePass: Co-founder Stacy Spikes acquires the company from Helios & Matheson Analytics, plans relaunch 2022     
• Netflix: Launches Top 10 on Netflix website (global & country lists for films (English), TV (English), films (non-English), TV (non-English), weekly and all-time), refreshes Tuesdays based on Monday-Sunday data - Viewing stat for series Squid Game: 1.65b hr (182k yr) of viewing during first 28 days - Movie Red Notice sets opening weekend record: 149m hr
• NLziet: Min OC&W (NL): NPO and RTL/Talpa sometimes have different views on developing NLziet; RTL/Talpa propose new free ad-supprted tier with reduced content: no live channels, limited replay, required registration (NPO opposes ads), NPO proposes  new cheaper tier (incl live channels & 7 days replay) with options for paid add-ons (such as Videoland, NPO Plus and 3rd-party SVOD services)
• Walt Disney:
• Disney+: Rumor: board disagrees on expanding Disney+ content beyond family fare
• Hulu: Raises Hulu With Live TV price from 65 to 70 $/mo 211221 but includes access to Disney+ and ESPN+; Hulu (ad-free SVOD) + Hulu With Live TV (incl Disney+ amd ESPN+) from 71 to 76 $/mo
• NBCU: Sky UK/IE launches Peacock content (premium tier with ads) 211116, free add-on for subs; later in DE, CH, AT, IT
• Discovery: Discovery+ plans Spot-Lite Ads (ad-free viewing after watching 3 consecutive episodes), Green-Light Ads (one-day sponsorship where a commercial will be the first thing viewers see), High-Light Ads (first ad break in a show), Stop-Light Ads (appear at pausing), Showcase Ads (allow viewers to make purchases via the TV screen), Search-Light Ads (contextually relevant content), Marquee Collections (messaging exposure)
• Facebook: To add tools for users to control News Feed (opt out of ad topics) & for advertisers to exclude topics (News & Politics, Social Issues, Crime & Tragedy) early 2022, updates from 22Q1
• Snap: Launches Multi-Format delivery (includes all video ad formats: Snap Ads, Story Ads, Collection Ads), allows brands to purchase all video ad formats in a single ad set
• Google:
• To invest AUD 1b over 5 yr into Australian Digital Future Initiative (talent, tech, partnerships), plans research hub, to develop cloud services; will create >28k jobs, to add AUD 6.5b to GDP
• Partners with Agence France-Presse (AFP), 5 yr, for content in Search in Europe - And with German publishers (Spiegel, Zeit Handelsblatt, Tagesspiegel, Ströer, Wirtschaftswoche, Watson, Giga, Potsdamer Neueste Nachrichten, Manager Magazin, Golem, Netzwelt)
• Apple: Rumor: plans autonomous car 2025
• DuckDuckGo launches feauture App Tracking Protection for Android (beta): blocks data collection
• Mozilla expands Firefox Relay (hides email address) with premium tier $/EUR/CHF 1 per mo
• Brave adds native cryptocurrency wallet

Services, Broadband, Wholesale

• Ookla Speedtest Global Index (Oct 2021), based on averages: global average FBB 117/65 Mb/s, MBB 68/14 Mb/s; FBB: Monaco #1 (270), HK #2 (260), Sing #3 (257), RO #4 (241), CH #5 (232), NL #25 (170); MBB: UAE #1 (274), S Korea #2 (214), Qatar #3 (179), NO #4 (179), Qatar #4 (172), Kuwait #5 (171), NL #17 (108)
• Ookla Speedtest Global Index (Oct 2021), based on medians: global average FBB 56/24 Mb/s, MBB 29/8 Mb/s; FBB: Singapore #1 (188), Thailand #2 (173), HK #3 (170), Chile #4 (163), DK #5 (147), NL #21 (95) MBB: UAE #1 (130), NO #2 (108), S Korea #3 (99), Qatar #4 (93), NL $5 (92)
• Accenture for CTIA report (5G Fixed Wireless Broadband: Helping Close the Digital Divide in Rural America)
• Virgin Media O2: Liberty sees opportunity for wholesale in UK
• CityFibre launches new National Access service for ISPs 
• TPG Telecom: ACCC opens consultation on functional separation based on Telecommunications Legislation Amendment (Competition and Consumer) Act 2020: allows TPG to expand network and offer BB retail & wholesale services (to compete with NBN), requires structural or functional separation; subsmissions until 211217, decision Feb 2022

Networking, Open RAN, WiFi, Cloud, Security, Quantum computing

• Qualcomm Investor Day: addressable opportunity to grow from $100b today to $700b in next decade (more devices become intelligently connected); Focus on handsets, RF front-end (modems), automotive, IoT; 5G as wireless fiber; cloud growth CAGR 35%; "In an intelligent connected world, virtually every road leads to Qualcomm" - Partners with BMW - Partners with L&L Holding Co to create immersive visitor experiences in NYC's Times Square
• Ericsson launches cloud-native Intelligent Automation Platform for service management & orchestration for 4G & 5G Cores, supports Open RAN, facilitates AI & ML automisation through monitoring & optimisation
• Nokia launches Software-as-a-Service for CSPs for analytics, security, data management early 2022; first offering Nokia Data Marketplace (data trading and AI), to add NetGuard Cybersecurity Dome and Nokia Anomaly Detection; to create 3 SaaS suites to house its various services: Digital Engagement; Marketplaces; Networking
• TIP launches Fixed Broadband Project Group (chaired by Vodafone and Telefónica) covering the access, broadband and service gateway technologies; to design, develop, test & validate a new generation of open & disaggregated technologies that will enable operators to deliver services in a more flexible & cost-effective way; common principle: Interoperability, Modularity, Sustainability, Simplicity, Flexibility
• TIP update on OpenRAN, Open Optical and Packet Transport (OOPT), OpenWiFi, Fixed Broadband Project Group (FiBr); partners with International Finance Corporation (IFC) for the Networks as a Service (NaaS) Solution Group to support the creation of an avenue for the financial community to invest in NaaS companies; Connected City Infrastructure Solution Group rolls out in Dublin; 5G Private Networks Solution Group trials in Brazil
• Recommendations from DT, Orange, TIM, Telefónica, Vodafone (Building an Open RAN ecosystem for Europe), based on Analysys Mason report: 1. Open AN as strategic priority, 2. EC should establish European Alliance for Next Generation Communication infrastructures and a roadmap for innovation, 3. tax incentives to operators, vendors and start-ups, 4. Promote European leadership in standardisation to contribute to globally harmonised standards, 5. promote a secure, diverse, and sustainable digital and ICT supply chain
• TIP and WBA propose WiFi 6 GHz for mobile backhaul
• IBM launches Eagle processor: can handle 127 qubits
• Thales Cloud Security Study report 2021
• Gvt Australia to invest AUD 111m in quantum computing

Regulatory

• EU Competition chief Margrethe Vestager proposes increased competition for European champions (not less, allowing them to emerge) as it forces them to innovate and come up with more efficient solutions; wants NRAs to refer small acquisitions to EC to prevent killer acquisitions (buying innovative startup firms with the goal of preventing them from becoming rivals [see DMA])
• Copper switch-off: NKOM (NO) orders Telenor to keep copper network (currently 180k active lines; targets closing 2022) open until autumn 2025
• Platforms:
• EP special committee (AIDA) approves internal AI report: to make AI regulation less burdensome and more innovation-friendly
• Report: internet majors (Facebook, Google, CCIA) lobby for case-by-case approach in the DMA
• EU Ambassadors approve general approach to DSA: centarlised enfrorcement  of VLOPs at EC; illegal hate speech to be taken down in max 24 hr; search engines added as #4 stand-alone category; to functions as lex specialis to the e-Commerce Directive; moderation of harmful (but legal) content left to providers of intermediary services (based on their T&Cs); VLOPs required to conduct risk assessments for harmful content; to be approved by Competitiveness Council 211125
• EU lawmakers agree on DMA adjustments: sales >EUR 8b, market cap >EUR 80b, fine between 4 and 20% of annual trunover; ban on killer acquisitions (deigned to cut off emerging competitors), ban on targeted ads aimed at minors, targeted ads for adults only based on explicit user consent (personal data related to politics, religion, race, trade union membership, health conditions, sexual orientation); interoperability of ancillary services (devices, messaging services, social media); prohibition to self-reference extended to all services (not only those providing a ranking); users to be able to uninstall apps, change default settings, move data they generated to a different platform; more than 1 Core Platform Service (e-commerce, video sharing platforms, search engines, social media, operating systems, cloud & messaging services, web browsers, virtual assistants, smart TVs) approach to determine gatekeepers rejected [ie one-trick ponys can also be gatekeepers]; EP IMCO to approve 211122, EP vote Dec 2021
• MIT: clickbait & fake news farms in southern regions (Myanmar, Cambodia, Vietnam, Macedonia, Kosovo) register with Facebook's Instant Articles & Audience Network (ads) & Ad Breaks (inserts ads in videos) & IGTV Monetization (for Instagram) & In-Stream Ads (for Live videos); also with Google's AdSense; "created an information ecosystem where content that goes viral on one platform will often be recycled on the other to maximize distribution and revenue"