BT/EE, Virgin Media O2, Vodafone/Three, Tesco Mobile, TalkTalk, Sky and industry body Comms Council UK (CCUK) have committed to a new anti-fraud measures ahead of the UK Government’s forthcoming Fraud Strategy announcement.

Data shows that 96 per cent%of mobile users decide whether to answer a call based on the number displayed on their screen, with three-quarters unlikely to pick up if it’s from an unknown international number.   Advanced call tracing technology will also be rolled out across mobile networks to give police the intelligence to track down scammers.

There are  commitments to boost data sharing with the police whch will show which mobile networks  let scam calls slip through.

Victims will get faster support from phone networks. Help times will be reduced slashed to two weeks

The new pact follows recent action by the UK government, in partnership with the US, to disrupt major online fraud networks with targeted sanctions on scam centres in Southeast Asia. 

Traceback system

The telco providers pledge to support the development of a Traceback system that would allow operators to identify the origin of suspicious or fraudulent calls as they are connected acros networks. The Charter also calls for data-sharing between telecoms, banking and technology sectors, alongside improved public awareness campaigns and more support for victims.

The CCUK-charter will develop best-practice guidance for business victim support. The aim is to improve how service providers detect, respond to and communicate fraud-related threats with commercial customers.

Significant step

Tracey Wright, Chair of Comms Council UK, said the Telecommunications Fraud Charter marks “a significant step forward” in the industry’s response to criminal activity.

“This initiative brings together government and industry to deliver change for consumers and businesses.The overall message around collaborative data sharing, advanced technology solutions, and unified public messaging will help disrupt fraudulent activity at scale.”

She said sector-wide intelligence sharing continues to demonstrate “the positive impact” of coordinated action.

“Aligning our efforts through this Charter will build building a safer, more trusted communications environment ”

Minister for Fraud Lord Hanson said “Spoofed calls allow scammers to deceive the public with fake identities and false promises. This government is committed to tackling fraud.

“In a major upgrade of our mobile network, call spoofing will be eliminated within a year stripping away the tools scammers use to cheat people out of their hard-earned cash. 

“We’re stepping up our defences to protect victims and make sure the UK is the hardest place in the world for scammers to operate

Further measures targeting scams across digital platforms, banking and telecoms later this month.

Sky has called the remedies suggested by the Competition and Markets Authority (CMA)  “weak” and “temporary.” The company argues that the measures fail to adequately safeguard competition in the mobile wholesale market, leaving MVNO’s like Sky Mobile vulnerable to higher costs and reduced service quality.

Sky’s Concerns Over CMA’s Proposals

In its response to the CMA’s remedies working paper, Sky criticised the provisional conclusion allowing the merger, contingent upon specific remedies. These remedies include an eight-year network integration and investment program by the merged entity, maintenance of certain tariffs and data plans for three years, and assurances to offer competitive terms for MVNOs.

Sky contends that these commitments are insufficient to prevent a significant reduction in competition. It points out that the merger would effectively shrink the number of wholesale mobile network suppliers, potentially leading to less favourable terms for MVNOs. Sky argues that this could result in higher prices or diminished service quality for MVNOs and their customers.

Call for Stronger Wholesale Price Regulation

Sky is advocating for stricter, long-term measures to ensure fair and transparent wholesale pricing. The company is demanding that the CMA implement clear and regulated pricing structures to prevent the merged network from imposing excessive charges on MVNOs. This, Sky claims, is essential to maintain a competitive landscape and protect consumer interests.

“Sky is disappointed with the weak, short-term wholesale remedy proposed by the CMA,” the company stated. “The CMA is taking a significant risk by relying on this weak remedy in the hope that sustainable competition will emerge after the network commitment is implemented.”

 Long-Term Risks to MVNOs

Sky also highlighted the potential for MVNOs to be sidelined under the current remedy framework. The company expressed concern that the short-term nature of the protections could leave MVNOs unprotected once the remedy expires. Sky further warned that the merged entity could use these remedies to “game” the market, potentially disadvantaging larger MVNOs.

“We strongly urge the CMA to err on the side of caution and extend the time frame of this protection,” Sky added. “The merger will set the permanent structure of this critical market, which affects millions of consumers and businesses, and threatens the feasibility of MVNO businesses.”

The CMA’s Balancing Act

The CMA faces a challenging task in balancing the benefits of a merged Vodafone-Three entity against the risks to competition. Proponents of the merger argue it would lead to greater investment in mobile infrastructure and improved services. However, critics like Sky warn that without robust, enforceable safeguards, the merger could harm competition, leading to fewer choices and higher costs for consumers.

Sky’s push for stronger, more transparent remedies underscores the high stakes of this merger for the UK mobile market. As the CMA prepares its final decision, the debate highlights the complex interplay between industry consolidation and the need to protect competition in rapidly evolving markets.

Sky full response to the CMA

VodafoneZiggo is a Dutch company offering fixed, mobile, and integrated communication and entertainment services to consumers and businesses. It is a joint venture of Liberty Global, the international TV and broadband internet company, and Vodafone Group.

Van Rooyen takes over from VodafoneZiggo CEO Jeroen Hoencamp, who is retiring. Hoencamp was Vodafone UK boss for three years between 2013 and 2016. Ritchy Drost, VodafoneZiggo’s Chief Financial Officer, will be VodafoneZiggo’s interim CEO until van Rooyen joins.

Van Rooyen spent 17 years at Sky in the UK and several other countries in Europe, including Germany, Italy, Austria, Ireland, and Switzerland. He was a key part of several major product launches, including Sky Mobile, Sky Broadband, NOW TV, as well as the evolution of Sky’s TV platforms, Sky Q, Sky Glass, and Sky Stream. He was also instrumental in Sky’s content and programming, leading Sky Sports, Sky Cinema, and all Sky channels.

Margherita Della Valle, Vodafone Group Chief Executive, commented: “Having held senior commercial and leadership roles at Sky, Stephen brings considerable expertise in both the telecoms and media sectors in Europe. We wish him every success when he takes over in September. In the meantime, we are delighted that Ritchy will lead the company in an interim role, and we wholeheartedly thank Jeroen, who has expertly steered VodafoneZiggo to success since he took the reins eight years ago.”

Van Rooyen said: “I’m incredibly excited to join the VodafoneZiggo family. Having been based in London for many years, I look forward to a new experience, for both me and my family, living and working in the Netherlands.”

Customers primarily complained about how their complaints were being handled and issues related to changing providers.

Sky Mobile, EE, and Tesco Mobile were the mobile providers who received the fewest complaints.

Vodafone was the most complained-about broadband provider between April and June, as per Ofcom, with complaints mainly driven by customers’ experiences with faults, service, and getting services connected.

“We have engaged with Vodafone regarding their performance in this latest round of complaints data. They have been taking steps to identify and address the causes of these complaints, and we would expect to see the results of this in the coming months,” said Ofcom.

TalkTalk, Shell Energy, and Virgin Media were the most complained-about landline providers. TalkTalk saw a small decrease, Shell Energy remained static, and Virgin Media saw a small increase in their complaints since the previous quarter.

Shell Energy’s complaints were mainly driven by customers’ experiences with faults, service, and getting services connected, while TalkTalk and Virgin’s complaints were mainly related to how they handled customers’ complaints.

Sky generated the fewest complaints in both broadband and landline.

Ofcom’s Consumer Protection Director, Fergal Farragher, said: “It is positive to see that overall complaint volumes have remained consistent compared to the previous quarter. However, complaints are still slightly higher than they were in 2022, and this shows that providers still have work to do in improving customers’ experiences. We work alongside providers to help make sure they improve their performance and acknowledge that Vodafone is taking steps to identify and address the increased volume of complaints during this period.

Sky has announced its ‘Sky Up Tech Grants’ initiative with a £220,000 investment to support young people when leaving the care system.

The initiative will provide 16-25 year olds with equipment and connections to get online and to live independently after leaving the care system.

Sky aims to support thousands of young people leaving care by providing them with individual grants that include personal devices equipped with software, a Sky internet connection and access to skills training.

Those benefiting from Sky Up Tech Grants will receive: free Sky broadband for up to 18 months, a tech bundle including a laptop, rucksack, digital active pen and software- as well as access to events focusing on skills, career and wellbeing.

Dana Strong, group CEO, Sky said: “As part of our £10m commitment to tackle digital inequality, Sky Up Tech Grants aim to provide young people leaving care with the tools, skills and opportunities that they need to unlock the digital world.” 

Sky has partnered with social value agency Spectra to create a new technology grant programme which will first be focussed on Dorset, Gateshead and Stockport.

Ofcom recently published a report on which mobile and broadband customers complain the most about their providers.

As per the data in Q2 2022 from April to June, complaints remained the same as the last quarter (January to March 2022), with a slight increase in complaints from fixed broadbands.

With regards to broadband, Shell Energy generated the most amount of broadband and landline complaints per 100,000 customers. The processing of complaints was the main cause of customer complaints.

Vodafone, TalkTalk, Virgin Media and Plusnet also performed worse than the industry average.

On the other hand, Sky was the best performing broadband provider, with only three complaints per 100,000 customers. EE, BT and NOW Broadband also generated an average of just 11 complaints per 100,000 customers.

Under the mobile category, Ofcom reported BT Mobile and Virgin Mobile as the most complained-about mobile operators, with customers largely lamenting their experiences switching providers (BT Mobile) and how their complaint was handled (Virgin Mobile).

The mobile industry’s least-complained-about carriers were Tesco Mobile, EE, Sky Mobile, and iD Mobile.

Lindsey Fussell, Ofcom’s Group Director for Networks and Communications said: “Overall complaint numbers are stable, but these figures show some providers need to step up. And with household budgets being squeezed during the cost-of-living crisis, people will be taking a closer look at their provider to make sure they’re still the right one for them.”

In June 2021, Virgin Media O2 officially launched as two of the biggest networks merged to create a company that offers fast, widely available broadband.

At the time of the merger, it combined O2’s 34 million mobile users and Virgin Media’s 5.3 million customers in a £31 billion deal and outlined its plans to invest at least £10 billion over the next five years.

Just over a year later, the brand has achieved milestones in connectivity and gigabit rollout, and has even introduced a joint venture called ‘Volt’ which rewards customers for having an O2 pay monthly plan and Virgin Media broadband.

CCS Insight director of consumer and connectivity Kester Mann says it may be too early to say if the Virgin Media O2 merger has been successful, but that it has achieved a lot in 15 months.

“It’s launched the Volt proposition, focused on gigabit broadband rollout, established the fibre joint venture recently, and it’s steadily making inroads into areas like private networks and small businesses,” he says.

“It’s done a good job in making a presence in the market and pushed hard on the marketing and brand awareness.”

Challenges from Ofcom and CMA

Counterpoint Research VP and research director Peter Richardson and associate director Jan Stryjak agree that it may be too early to tell, but it appears to be going well.

“A recent study by RootMetrics revealed that all four major UK mobile operators, including Virgin Media O2, improved download speeds, reliability and latency of their networks in the first half of 2022,” both says.

Meanwhile, IDC research manager Richard Thurston is more certain on the merger’s success.

“We’ve seen Virgin Media O2 win deals in mobile private networks, which is a significantly growing market, and one which we’re excited about because of the multitude of use cases and the innovation in this space,” he says.

Ofcom and the Competition and Markets Authority gave Virgin Media O2 the green light to consolidate despite former potential mergers being blocked.

Three’s attempted acquisition of O2 in 2015 was blocked, but it seems that regulators are becoming more lenient in an ever-changing industry.

“Ofcom is perhaps softening its stance and will want to see the mobile telecoms market thrive despite the turbulent pressures the industry is facing,” Thurston says.

But Mann believes that Ofcom and the CMA awarded Virgin Media O2 the go-ahead because both companies specialise in different aspects of the market.

“The main thing is that we’re talking about a predominantly mobile company and a predominantly broadband company, so it’s two separate markets and no concern that there is a player that can dominate in one particular market,” says Mann.

“The case with Three and O2 was that it would create a significant player in the mobile market and that’s why it got blocked by the CMA, but broadband to mobile mergers should get a good chance of getting through.”

Richardson and Stryjak agree that the Three and O2 merger was most likely blocked because they are both mobile network operators, but they also believe that the regulators are starting to change their views on mergers in general.

“We suspect regulators are more lenient to mergers following the COVID-19 pandemic, which highlighted how important connectivity is to people.

“If a merger promises to improve connectivity and quality of service, then regulators seem to be happy to allow it these days.”

Three and Vodafone to merge

In recent years, consolidation in the telecoms space has become more common, and Thurston says this continues to be a trend across Europe.

“As recently as a month ago, Orange and Masmovil in Spain signalled their intent to combine their operations,” he explains.

“Telecoms is capital intensive, and operators are facing pressure to digitally transform and remain relevant as consumers and businesses face a multitude of network choices.”

Mann adds that the deal between Orange and Masmovil is mobile to mobile, and if this is approved then it gives confidence for other mobile operators to merge.

One merger that could go ahead pending regulatory approval is between Three and Vodafone, which would combine the UK’s third and fourth largest mobile network operators.

“The two companies have made no secret of their interest to consolidate,” Mann says.

“The leading motivation to join forces is scale. In telecommunications, the most successful companies tend to be the largest; bulking up would offer many synergies and cost-saving opportunities.

“Under the status quo, it’s hard to see either operator growing enough organically to get close to challenging BT and Virgin Media O2 for size in the UK.”

But he explains that the companies need to make a deal that works for both, and that regulation will be a major hurdle.

Meanwhile, Thurston thinks Three needs to offer more if it wants to merge with an operator like Vodafone.

“As a self-styled connectivity player, Three has achieved a reasonable set of results, primarily through growing consumer market share,” he says.

“But this is simply not enough going forward as successful telcos evolve to become digital service providers.

“Three will need to grow its business offering as a priority.”

Reasons to consolidate

Three UK’s CEO Robert Finnegan and Vodafone’s chief executive Nick Read have been vocal about the need for more consolidation within the telecoms industry, so it is no surprise that the two mobile companies are in talks about a potential deal.

In a previous Mobile News article in 2020, Finnegan spoke about the need for consolidation: “I think there are too many players; I don’t think it’s good for competition or the customer because investment into the industry is not as much as it would be in a more functional market.”

Earlier this year, Read stated that merged businesses could be attractive to investors and that there is a case for Vodafone to consolidate in the UK, Italy and Spain.

It seems that these operators are keen to strike a deal and Richardson and Stryjak believe that merging with another company can benefit operators in various ways.

“With a high-cost, high-capacity network, the important metric for mobile network operators is to have as many paying customers as possible,” they say.

“It’s about economies of scale- the more customers you have, the lower your marginal operating costs will be.”

They also say that from a customer’s perspective, it doesn’t matter who offers the tariffs as long as there is plenty of choice and some competition at wholesale level.

“As radio spectrum is limited, there needs to be strong regulation to ensure that this scarce resource is used properly and ensure fair competition- but otherwise three operators is likely as good as four.”

Mann thinks consolidation can benefit Three and Vodafone as bigger telecoms companies tend to be the most successful.

“There’s more purchasing power and more customers to sell to, so scale is a major reason for consolidation,” he says.

“You look at a competitive market like the UK, taking a player out of the market is one less provider to compete with.

“There’s also plenty of opportunity in terms of pushing into new markets and cost savings from bringing two companies together.”

Customer concerns

But it’s not just the operators that need to benefit from consolidation, customers also need to get the best out of it.

Regulators need to weigh up options to determine the pros and cons of consolidation and the impact it could have on customers.

Richardson and Stryjak believe that there shouldn’t be any downsides from reducing the competition from four to three players, as long as the deal is strong and fair.

“The only issue would be if the merger creates a dominant player, which could impact competition and therefore be bad for consumers,” they say.

“Looking at Q2 2022 mobile connections numbers, Vodafone UK and Three combined would create a player with a market leading 30 per cent share- but this is similar to Virgin Media O2 and EE with a 28 per cent and 26 per cent share respectively.”

Mann says regulators will always thoroughly investigate and analyse the benefits of mergers and reduce competition in the market.

“The argument for consolidation is that potentially having fewer providers means you can be more focused with investments, build out better quality of networks, infrastructure and therefore a better service to customers,” he says.

“The cons would be that this could be an opportunity for operators to put up prices as there are less of them, and could this impact customers?

“We’re already on the back of significant price rises from the spring, so would there be a concern of too much price rise and the competition being harmed to the detriment of customers.”

Potential broadband mergers

Another speculated merger is between TalkTalk and other telecoms companies, as Virgin Media O2, Sky and Vodafone have all been recently linked to the company.

Virgin Media O2 has put in an offer to buy TalkTalk, which would value the broadband provider at £3bn and will put pressure on those who want to offer an alternative offer.

Not much has been reported regarding offers from Vodafone and Sky, but we do know that Vodafone is facing pressure from its investors to consolidate- whether that is with Three or TalkTalk.

Mann explains that the TalkTalk acquisition is speculation at this point in time and that different operators have different motives.

“Virgin Media O2 could make a move because it comes down to scale and more customers as it can access customers that use the Openreach network that TalkTalk uses,” he says.

“For Sky, it would be about being a bigger player and being a threat to BT.

“Vodafone appears to have played this down and may not be in the running anymore, but we know it has ambitions in broadband.”

The acquisition of TalkTalk could change the telecoms space, but this all depends on which company ends up buying it.

Richardson and Stryjak think that if mergers become more common, then the market will end up evolving.

“Ultimately, we likely reach a point where we have a small number of integrated telecom operators that can provide fixed broadband, mobile and TV services,” they say.

“These can be packaged in multiple configurations to provide end customers with a huge range of options to suit particular needs and interests.”

Mann is a bit more uncertain about what the telecoms space would look like if TalkTalk is acquired.

“If it was VMO2 or Sky, they’re fairly premium brands so it would be interesting to see how they position TalkTalk,” he says.

“But TalkTalk customers get good value for money and they’d be keen to ensure that if it was acquired then they can get a similar level of service that they are getting at the moment.”

Community Fibre has launched London’s ‘lowest priced’ 1,000 Mbps broadband package for £25 per month over a 24-month contract.

Its 1,000 Mbps broadband is more than 15 times faster than London’s average download speed and cheaper.

Customers can make savings over 24 months when switching to Community Fibre, as its 1,000 Mbps package is £852 cheaper than Virgin, £696 cheaper than BT and £770 cheaper than Sky.

The package is ideal for larger households with multiple devices, and for those that want to stream and download games and films.

Savings

Community Fibre’s 1,000 Mbps was £49 per month over 24 months and is now £25 per month which saves customers £288 per year.

Its 1,000 Mbps was £50 per month on a 12-month contract and now costs £27.50, saving £270 per year.

Deals can be found on CommunityFibre.co.uk until September 21.

Unexpected roaming charges have hit 27 per cent of Brits when on holiday, with bills averaging £262 according to research carried out by iD Mobile.

Despite facing costs when roaming without an inclusive bundle, only 21pc say they consider roaming charges when looking for a new contract. 

For 60pc of Brits going abroad this year, 90pc of them will be taking their mobile phone but only 49pc are prepared for using their phone abroad freely. 

Operators like Three, Vodafone, EE and Sky are now charging for roaming, but switching to a network provider like iD Mobile includes roaming in 50 destinations on its phone and SIM only plans. 

Customers can save an average of £149 a year on phone deals compared to the major networks and iD mobile customers who want a SIM only option can save an average of £10 per month. 

iD Mobile head of customer and marketing Lewis Henry said: “At iD Mobile we are committed to providing the best value for our customers. 

“With so many of our competitors now charging for roaming, we’ve decided to continue providing our inclusive Roaming benefit for all new and existing customers to help ease the burden a little in these challenging times. 

Virgin Media is offering savings of up to £363 over the duration of their contract when switching to the provider, compared to equivalent Sky and BT bundles.

It would be £363 more expensive with Sky over an 18-month contract, and £307 more expensive with BT over a 24-month contract.

Virgin Media’s Bigger + Sports bundle is priced at £72 per month and includes all Sky Sports and BT Sport channels on its newest Virgin TV 360 set up box.

The bundle also comes with M500 broadband with average download speeds of 516Mbps so multiple people can stream live sport on multiple devices using Virgin TV Go.

Virgin Media chief TV and entertainment officer David Bouchier said: “Fans should make the switch to Virgin Media ahead of the new Premier League season to net huge savings. 

“Virgin Media is top of the table yet again when it comes to being the cheapest and most convenient place to watch all of the action so come and join us for what is set to be another great year of live sport.”