Week 4/2022 in Telecoms, Internet, Media

Corporate

• Orange: BoD appoints Christel Heydemann (Schneider Electric; formerly BCG, Alcatel, Alcatel-Lucent) CEO from 220404; Stéphane Richard to remain Chair until successor found
• Telecom Italia: CEO Pietro Labriola presents guidelines for industrial plan 2022-24 to BoD (full plan 220302):
• transformation of consumer services, focus on enterprise services (cloud, IoT, cybersecurity), cost control, stable long-lasting growth outlook for the network infrastructure
• to explore strategic options to maximize shareholder value ("with specific reference to the Group’s infrastructure assets, including solutions that go beyond vertical integration")
• committee analysing KKR's plans constinues work with financial advisors
• Telia
• To sell of 49% stake in towers (3800 sites) FI & NO (2021 rev SEK 649m, EBITDA SEK 398m) to Brookfield & Alecta [see 210630] at EV SEK 11.224b (28.2x EBITDA 2021), cash proceeds SEK 5.500b, to close 22Q3; plans SBB or extraordinary dividend
• 21Q4
• Vodafone: Cevian Capital (activist) acquired stake
• Altice Europe: Reuters: dropped plan to sell Altice PT (wanted EUR 7b, highest bid EUR 6b)
• AT&T: 21Q4
• WarnerMedia rev +15%, HBO Max ARPU US $11.15; expects to close WarnerMedia/Discovery merger 22Q2, expects to win back lost customer after leaving Amazon Channels after merger with Discovery
• outlook 2022 (incl WarnerMedia & Xandr): rev growth LSD, adj EPS $3.10-3.15, gross capital investment (inc vendor financing ($4b), excl FirstNet reimbursements) $24b, capex $20b, FCF $23b; 2022 contibution from WarnerMedia & Xandr: rev $37-39b, EBITDA $6-7b, FCF $3b
• plans to deploy C-band (3.45 GHz) with one-climb strategy
• plans to reduce fiber cycle (from engineering to commercialisation) from 12 to 9 mo, target 30m FTTH HP YE 2025
• plans analyst event early March 2022
• Verizon: 21Q4
• Comcast: 21Q4, rev Universal Pictures Home Ent $392m (+31%), content spend NBCU + Sky ~$20b in 2021; Comcast lost 349k pay-TV subs, Sky lost 198k subs, Peacock 24.5m MAU, >9m paid subs + 7m free subs via cable subscriptions; plans to double content spending for Peacock to $3b in 2022, to $5b in couple of years; plans BB coverage expansion 
• Google: Acquires 1.28% stake in Bharti Airtel, $700m (734 INR/share); to invest $300m in development 
• Facebook: EC approves Kustomer (CRM software) acquisition, with conditions for 10 yr: non-discriminatory access to APIs for messaging channels to competing CRM software providers, omproved features of Messenger, Instagram messaging, WhatsApp to be made available to Kustomer's rivals
• Microsoft: 21/22Q2
• Apple: 21Q4

FTTP

• Eir: Establishes 51/49 JV Fibre Networks Ireland with InfraVia to add 50k HP/annum, 250k YE 2023; to sell exclusively via Open Eir (= Eir Wholesale); combined coverage target 1.9m premises YE 2026
• Virgin Media O2: Rumor: plans to establish fiber JV, to invest GBP 1b 
• Infopact: Established Fiber Crew (Jonaz Wholesale): unbundles KPN FTTP, max 10 Gb/s, reaches 250k HP (incl 50k in Hilversum); customers: Fiber.nl, Freedom, Greenet, Jonaz, Netrebel, Plinq
• KPN complies with free modem choice regulation for FTTH [see 210727] - Ziggo and T-Mobile NL provide specs  
• T-Mobile NL raises BB prices: 100/100 Mb/s for 35 EUR/mo, 400/400 Mb/s for 40 EUR/mo, 1/1 Gb/s for 45 EUR/mo (60 EUR/mo in KPN/VULA areas); promo: first 4 mo 30 EUR/mo for each; add-ons: TV 12.50 EUR/mo, FT 2.50 EUR/mo; discount 5 EUR/mo for mobile subs (T-Mobile or Tele2); T-Mobile claims wholesale pricing KPN ~20 EUR/mo for ODF access (in P2P/AON areas), 36 EUR/mo for VULA access (in P2MP/PON areas); expands 1 /1 Gb/s coverage to 3.3m addresses; targets to become #1 fiber provider
• Proximus plans to starts switching off copper (VDSL, 27.50 EUR/mo) March 2022 in Brussel (Anspachlaan), to charge same price temporarily for fiber subscription (from 42.50 EUR/mo)
• Community Fibre expands roll-out plan to 2.2m HP (= 61% of 3.5m) in London YE 2024 (currently 435k) [also owns Box Broadband (Surrey, West Surrey)]
• AT&T raises max speed to 2/2 (110 $/mo + tax or 225 $/mo for businesses) and 5/5 Gb/s (180 $/mo + tax or 400 $/mo for businesses) in parts of 70 metros (max lab speed 10 Gb/s); scraps annual contracts, equipment fees, data caps; adds ActiveArmor (security), next-gen WiFi, HBO Max to fastest tiers (free)
• MetroNet (= Oak Hill Capital, KKR) to merge with Vexus Fiber (Texas, NM, Louisiana; = Oak Hill Capital, Pamlico Capital)

Networks, Vendors

• KPN launches Digitenne (DVB-T2) CI+ module with antenna V6 (free for Digitenne subs)
• DVB and 5G Media Action Group partner to develop broadcast (DVB-I) over 5G
• Folded 2014; founder wanted combination with Starry (FWA)
• BAI orders datacenter space in London from BT Wholesale to support neutral host network (incl colocation for MNOs) in London Underground (20 yr concession from Transport for London) for mobile & WiFi coverage
• Ericsson 21Q4
• BT plans Open RAN trial in Hull, with Nokia
• Signify (formerly Philips Lighting) acquires Telensa (smart streetlights, PLANet platform manages 2m streetlights in 400 cities) from Plextek Group
• Sigfox (LP-WAN for IoT) in receivership (as result of pandemic-related slowdown and chips shortage)
• FCC (US) establishes 6G Technological Advisory Council of 44
• Facebook: Plans AI Research SuperCluster (RSC) supercomputer to train content-moderation systems, develop new AR tools, help build the technology necessary to power the metaverse; to launch mid 2022 - To change reporting from 21Q4 (Family of Apps, eality Labs)

Services

• Deutsche Telekom: Discontinues MagentaGaming [see 200825]
• MTG: Sells ESL Gaming (91.46% stake) to Savvy Gaming Group (SGG), $960m, at EV $1.05b, plans special dividend, to close 22Q2 
• Vodafone PT launches Smart Home Hub (Nevo Butler), manufactured by Universal Electronics Inc (UEI), with voice control
• AdlC (FR) starts investigation of cloud market, plans consultation summer 2022, final conclusions early 2023
• Bloomberg: Diem Association plans to sell IP - WSJ: sells to Silvergate Capital, $200m
• DPG Media: Raises EUR 100m debt from EIB (part of EUR 244m digital investment project)
• Salto asks authorities to deal with asymmetry of remote controls having direct access buttons for US streamers (Netflix, YouTube, Amazon) only  X, Sky Ticket; CH & IT to follow
• Viaplay: Distr deal with Ziggo, promo: first 4 mo for EUR 20, then 10 EUR/mo - And with KPN: promo 10 EUR/mo until 220801 for existing subs, first 9 mo free for new subs - Not with SKV: refers to Viaplay app (14 EUR/mo) or F1 TV Pro app (8 EUR/mo or 65 EUR/yr) 
• Disney+: Plans expansion to 42 new countries + 11 territories in Europe, W Asia, Africa summer 2022: Albania, Algeria, Andorra, Bahrain, Bosnia & Herzegovina, Bulgaria, Croatia, CZ, Egypt, Estonia, GR, HU, Iraq, Israel, Jordan, Kosovo, Kuwait, Latvia, Lebanon, Libya, Liechtenstein, Lithuania, Malta, Montenegro, Morocco, N Macedonia, Oman, Palestine Territories, Poland, Qatar, RO, San Marino, KSA, Serbia, Slovakia, Slovenia, ZA, Tunisia, Turkey, UAE, Vatican City, Yemen + Denmark’s Faroe Islands, France’s French Polynesia, French Southern Territories and St Pierre & Miquelon Overseas Collective, Finland’s Åland Islands, the Netherlands’ Sint Maarten, Norway’s Svalbard & Jan Mayen, UK’s British Indian Ocean Territory, Gibraltar, Pitcairn Islands & St Helena
• Discovery+ plans launch in DE & AT summer 2022 on Sky platforms (X, Q, Glass)
• YouTube: Update 'Our 2022 Priorities' (Annual Letter); Shorts [see 200625] reached 5t all-time views, to integrate shopping in Shorts; 2021: >50m subs (incl trials) for YouTube Music/Premium, gaming content during 21H1: 800b views, 90m hr of live streaming, 250m uploads; channels earning 10k $/yr up 40%, total 10 ways to make money, channel memberships 110m (new & renewal); Oxford Economics report: supported >880k jobs globally in 2020; plans expansion in podcasts & new tech (NFT, Web3)

Regulatory

• Google: Privacy Sandbox to end FLoC (Federated Learning of Cohorts) trials for tracking, to replace with Topics: lets advertisers target users online based on select topics (Google Chrome generates 5 topics from users' browser history (out of total 300) with participating websites, stored for 3 weeks then deleted) - German media groups oppose cookie phase-out
• Apple: ACM rejects payment solution [see 211224], fines EUR 5m (max 50m): no alternative payment system available
• RTL
• M6: Association of Advertisers (UDM): TV advertising and digital advertising not substitutable
• ACM starts in-depth investigation (data analysis) of Talpa merger (RTL & Talpa required to apply for license); focus on advertisers (will prices rise?), producers (fewer outside productions?), distributors (higher carriage fees?)
• Spotify: 
• Neil Young pulls music from Spotify protesting podcaster Joe Rogan (anti-vaxxer) - Spotify maintains support for Rogan - Joni Mitchell also pulls all music
• To add a content advisory to any podcast episode that includes a discussion about COVID-19, to improve transparency [see 220126]
• CMA (UK) starts study of UK streaming music market
• Film windows France:
• Netflix: New film window to be reduced to 15 mo in FR under new agreement (to invest 40m EUR/yr to produce 10 indie movies to be owned by producers & creators)
• Canal+ (Vivendi): New film window to be reduced to 6 mo in FR under new agreement (formerly 8 mo), total availability 16 mo (based on Canal+ investments in film)