Matthew Howett appeared on BBC News’s World Business Report to discuss Apple's intended compliance with the European Commission's DMA in respect of app stores
The ground is shifting in Britain’s broadband market as upstart outfits face uncertainty
Matthew Howett, founder and chief executive of Assembly Research, argues that one of the key purposes of alt-nets has been to push Openreach to build its own network more quickly.
“That dynamic has played out already, it’s happened… so I think once they’ve lit that firework the vast majority of Project Gigabit will happen,” he says.
Virgin Media O2 buys ex-Russian owned Upp — but won’t keep it
Matthew Howett, founder and chief executive of telecoms research group Assembly said this “could well be the first domino to fall in terms of an altnet being bought by one of the big players.”
“The UK broadband market is set to enter an era of scaled connectivity challengers, after first a period of dominance from the incumbent followed by a proliferation of altnets,” he added.
Virgin Media O2 to snap up Russian oligarch-backed broadband firm
While the circumstances behind the sale of Upp are relatively unique, observers believe that many of the more than 100 so-called “alt nets” – mostly small broadband providers rolling out services across the country – will be snapped up by the biggest telecoms players as market conditions get tougher.
“Alt nets are a key piece of the connectivity jigsaw, but consolidation has been inevitable as new sources of funding dry up, focus on take-up intensifies and investors increasingly demand returns,” said Matthew Howett, the founder and chief executive at Assembly Research.
“Today’s announcement could well be the first domino to fall in terms of an alt net being bought by one of the big players.”
Virgin Media O2 buys Russian-backed broadband provider
The deal is one of the first big signs of consolidation among “altnet” broadband providers by the large infrastructure groups that many analysts have been predicting.
Matthew Howett, analyst at telecoms research group Assembly, said: “Altnets are a key piece of the connectivity jigsaw, but consolidation has been inevitable as new sources of funding dry up, focus on take-up intensifies and investors increasingly demand returns.”
UK telecoms groups under fire for adding inflation ‘premium’ to bills
According to a study by Assembly Research, a research company, commissioned by Virgin Media O2, average monthly household spending on telecoms services has fallen by almost one-fifth since 2017.
The report also found that the telecoms industry was investing up to £2.5bn a year in mobile networks, and about £3.8bn into fixed broadband. It estimated that combined capital expenditure accounted for nearly 70 per cent of total investment made by some of the largest industry players.
UK in danger of falling behind on 5G network rollout, analysts warn
Mobile industry executives highlight the decision of Boris Johnson’s government in 2020 to strip Huawei out of Britain’s nascent 5G networks because of national security concerns as a reason for the slow rollout.
“That absolutely put the brakes on deployment for the operators,” Matthew Howett, chief executive of Assembly Research, said.
Inflation heralds the dawn of the £100 broadband bill
A report last month from analysts at Assembly Research showed how the UK was cheaper than most other countries for broadband and mobile.
Mobile data usage per UK consumer trebled in the five years to 2021 and is more than the average in the US, France, Spain, Germany, Italy and Japan. At the same time, the monthly price of a five- gigabit data allowance in the UK has fallen 36 per cent since 2017 to £7.30, according to Assembly. That is only more expensive than Spain of the countries included in the report. The same is true for broadband. The average monthly price for the UK’s most popular broadband speeds (30-100 megabits per second) has fallen by more than 20 per cent to below £20. Of the countries on the list, only Germany is cheaper.
Hunt pushes to make UK ‘the world’s next Silicon Valley’
TMT analyst at Assembly Research James Robinson told City A.M. that whilst the UK have harboured world-leading ambitions for regulating Big Tech, this is yet to materialise.
“With the DMU so far only operating in shadow form, we are playing catch up to the EU, which has seen the DMA and DSA both enter into force,” he said.
Vodafone and Three make progress in merger talks
James Robinson, senior analyst at Assembly, a research firm, said a deal would reduce the number of mobile operators serving so-called mobile virtual network operators, which include the likes of Tesco, “potentially leaving them in a weaker bargaining position”.
He added: “The CMA might consider remedies to maintain retail competition, including requiring the merged firm to reserve a portion of network capacity for virtual players.”
Vodafone merger talks with Chinese-owned rival trigger alarm over undersea cables
James Robinson, an industry expert at Assembly, said: “While the parties might view consolidation as a way to improve returns and unlock shareholder value, we expect the CMA would be eager to protect against the risk of consumer price rises - particularly in light of the current cost of living crisis.”
Vodafone and Three in merger talks
James Robinson, from communication market analysts Assembly, said there would still be hurdles to overcome for the merged firm.
"A combined Three/Vodafone would boast a significant proportion of 5G [spectrum]," he said.
"While the parties might view consolidation as a way to improve returns and unlock shareholder value, we expect the CMA would be eager to protect against the risk of consumer price rises - particularly in light of the current cost-of-living crisis.
He suggested the merged firm may need to provide "legally-binding concessions" to reassure regulators.
Vodafone Confirms Potential Merger With Rival Three UK
The UK’s Competition and Markets Authority “might consider remedies to maintain retail competition, including requiring the merged firm to reserve a portion of network capacity for virtual players,” said Assembly Research analyst James Robinson in an emailed comment, referring to “virtual” mobile network operators which don’t own their own networks, such as Tesco and Sky. He added that he expects the CMA will want to protect against consumer price rises amid a cost of living crisis in the UK.
Vodafone confirms talks with Three UK about merger
“While the parties might view consolidation as a way to improve returns and unlock shareholder value, we expect the CMA would be eager to protect against the risk of consumer price rises – particularly in light of the current cost of living crisis,” said James Robinson, a senior analyst at Assembly. “We would therefore expect this issue to be the most contentious point within a Three-Vodafone merger, and would potentially require legally binding concessions.”
European telcos seek network investment from Big Tech and streamers
Matthew Howett, an analyst at Assembly Research, said tech groups were right to point out that they already contributed to content delivery. “The question is therefore whether it’s enough to meet the demands placed on network infrastructure providers.”
Although previous attempts at changing the rules in Europe have not been successful, Howett suggested that policymakers’ greater awareness of the environmental benefits of network upgrades, and of the importance of connectivity during the Covid-19 pandemic, may pave the way for a different outcome.
Telecoms chiefs urge EU lawmakers to press tech groups on internet investment
Holographic David Attenborough points the way for 5G connectivity
Matthew Howett, founder of Assembly Research, admits that 5G may have appeared to be “just another ‘G’” up until now. But he says standalone is set to “enable a whole host of new use cases that we’ve probably not even thought of yet”, while providing the networks needed to turn “perceived pipe dreams of smart cities and autonomous vehicles into a reality”.
He adds that the transformation of UK factories and plants into 5G standalone test beds will make Britain a more attractive place to invest.
Vodafone reintroduces European roaming charges
Activist Cevian takes aim at Vodafone
Matthew Howett, an analyst at Assembly Research, said Cevian may call for Vodafone to shore up its UK business, where, unlike BT and Virgin Media O2, it lacks a fixed-line network of its own. "It could form closer relationships with CityFibre or TalkTalk,." Howett said.
Alternatively, analysts believe, Vodafone could push to buy Three. "It might want to do that before anyone else does," Howett said.
UK to phase out 2G and 3G by 2033
Assembly Research founder Matthew Howett told BBC News the change would probably come sooner than the government's 2033 deadline.
The switch-off will affect all sorts of older devices, such as 3G-only smartphones.
And it would be crucial for the government to act on behalf of consumers who may be slow to adjusting, Mr Howett said.
"There is an important consumer-protection dimension to all this," he said.
"You will of course have some people who may still rely on a 2G/3G-enabled handset to make calls in emergencies but also because devices such as smart meters run off the 2G network.
"Involving these stakeholders will be crucial to avoid disruption."
