Author: Luke Kehoe

Luke Kehoe leads Ookla’s research and thought leadership efforts in Europe. An electronic engineering alumnus of University College Dublin, Luke has extensive experience collaborating with mobile operators, telecoms vendors, and government agencies in research and advisory roles across Europe. He has contributed to internationally recognised thought leadership publications in areas such as 5G, IoT, open RAN, and edge computing, working with prestigious organisations like the Telecom Infra Project and the World Economic Forum.
Ookla Research™ Articles
| January 27, 2025

Impact Analysis: Storm Éowyn Tests the Resilience of Telecoms Infrastructure in the UK and Ireland

Network Resilience

Record power outages have crippled mobile network infrastructure, underscoring the need for network hardening as severe weather events become more frequent.

The UK and Ireland are in recovery mode after Storm Éowyn wreaked havoc on electricity and telecoms infrastructure in recent days. With record wind gusts exceeding 180 km/h recorded in Ireland and a ‘major incident’ declared on the Isle of Man, the storm has been historic in both its strength and the extent of the damage caused across the islands.

Key Takeaways:

  • Storm Éowyn triggered a rapid, severe and sustained decline in mobile performance across all operators in Ireland and parts of the UK, particularly Northern Ireland and Scotland, on a scale not seen before. On the day the storm made landfall (24th January), median mobile download speeds in Ireland (10.04 Mbps) were 78% lower than the preceding 7-day average of 47.43 Mbps, while median latency was 23% higher at 47.6 ms. In Scotland and Northern Ireland, mobile download speeds at the 10th percentile—a critical metric reflecting the poorest network performance—dropped significantly on the same day, falling by 63% to 2.19 Mbps and by 74% to 1.31 Mbps, respectively, compared to the 7-day average. 
  • Network disruptions drove a dramatic deterioration in quality of experience (QoE) in bread-and-butter consumer applications. Consistency—an important metric indicating the proportion of Speedtest samples meeting minimum download and upload speed thresholds—dropped sharply on the day of the storm, falling by over 20 percentage points to 60.3% in Northern Ireland and by nearly 40 percentage points to 52.3% in Ireland compared to the preceding 7-day average. On the day following the storm (25th January), as power restoration efforts were still in their early stages, Video Score—a key indicator of QoE in gaming activities—remained significantly suppressed, falling by over 23 points compared to the preceding 7-day average in Northern Ireland.
  • The unprecedented scale of impact on telecoms infrastructure serves as the latest and most high-profile call to action for hardening networks against increasingly frequent and severe storms in the UK and Ireland. Record daily consumer-initiated Speedtest volumes and a 62% surge in Speedtests conducted on Starlink connections in Ireland on the storm day, compared to the preceding 7-day average, highlight the severity of the telecoms infrastructure disruptions as consumers scrambled to troubleshoot issues and turned to alternative connectivity solutions like satellite.

Ireland’s state electricity supplier, ESB Networks, reported “unprecedented” power outages affecting over 725,000 premises (equivalent to as much as one-third of all homes in the country), with restoration times expected to exceed a week in the hardest-hit areas. The extensive damage to the electricity grid has had severe knock-on effects on both fixed and mobile network infrastructure, with well over a thousand mobile sites taken offline due to disruptions to mains power and downed trees causing damage to overhead fibre cabling along roads.

The impacts have been significant across operators. In Ireland, Eir reported that fixed broadband faults were affecting 160,000 premises, with more than 900 mobile sites knocked offline, while Vodafone said more than 10% of its mobile site footprint was affected. Similarly, in the UK, there were elevated reports of network outages across telecoms operators on Downdetector, with the largest concentration of disruptions in the worst hit areas in Scotland and Northern Ireland.

This storm, the most severe to date, follows a series of disruptive weather events across the UK and Ireland during recent winter months. In December, Ookla published detailed research on the impact of Storm Darragh, highlighting the unique challenges posed by widespread, prolonged power outages on mobile networks. These challenges included a dual strain: increased network load as fixed broadband outages shifted traffic to mobile infrastructure and a diminished mobile site grid due to power outages at mobile sites. Together, these factors significantly degrade mobile network performance, reducing overall network availability and pushing more subscribers into the cell edge.

Mobile users in Ireland see marked declines across all performance metrics, with network impacts continuing

Analysis of Speedtest Intelligence® data highlights the significant impact of Storm Éowyn on mobile network performance in Ireland. Download and upload speeds saw sharp and sustained declines, accompanied by increased latency and jitter across all operators nationwide. The deterioration started early on Friday morning, 24th January, as the storm made landfall. While some recovery was observed the following day (25th January), all performance metrics remain materially below pre-storm levels nationally.

Despite the absence of active network sharing in Ireland—limited to cooperation on passive infrastructure, which relies on a common mains power supply at shared sites—the storm’s impacts were felt similarly across operators. Notably, the performance profile across operators during the storm closely mirrored pre-storm trends. For instance, Three maintained its lead in download speed and demonstrated a faster recovery on this metric compared to other operators.

Storm Éowyn Blows Down Mobile Performance in Ireland Across All Metrics and Operators
Speedtest Intelligence® | January 2025

In addition to a decline in metrics like Consistency—designed to measure the proportion of Speedtest samples reflecting a consistent quality of experience (QoE)—the storm-induced network disruptions led to a substantial increase in failed or partially completed Speedtest sessions across all operators on the day of the storm. Similarly, the severe decline in 10th percentile performance—where aggregate download speeds plummeted by over 87%, from a 7-day average of 3.97 Mbps to just 0.51 Mbps—highlights the extent of performance degradation experienced by Irish mobile users at the bottom end.

Storm Éowyn Triggers Sharp Deterioration in Consistency Across All Operators
Speedtest Intelligence® | January 2025

On the day of the storm, Consistency dropped to a low of 38% at 09:00 on Friday nationally and remained below 55% in the evening. While there was an improvement the following day (25th January), reaching a high of 66% at 16:00, the overall profile remains significantly below the pre-storm baseline.

Storm Éowyn Triggers Sharp, Sustained Decline in Consistency Across Ireland
Speedtest Intelligence® | January 2025

It is notable that the limited penetration of battery backup solutions in Ireland’s mobile site grid—typically providing only four to eight hours of power where available—stands in sharp contrast to regions like the Nordics and Australia, which have implemented comprehensive policy measures to harden telecoms infrastructure, as highlighted in a recent Ookla article. This shortfall has resulted in a disproportionate reliance on stationary and mobile generators in the Irish context.

While mobile generators have high operating costs, which limit their feasibility for prolonged or widespread deployment across the mobile site grid in Ireland, they offer operators valuable deployment flexibility. Mobile operators can proactively position generators at key sites based on forecasted storm tracks and leverage distributed fuel dumps across the country to enable rapid refueling during post-storm operations.

Analysis of Speedtest Intelligence data underlines the impact of these efforts on service continuity and restoration. On the morning of the storm, Eir publicly reported deploying mobile generators to key sites in County Cork—one of the worst-affected areas—to restore mobile services ahead of mains power being restored. This proactive approach (which all operators adopted) is reflected in a sharp recovery of Eir’s Consistency score in Cork, which rebounded from as low as 59% on the day of the storm to as high as 95% the following day. This rate of recovery outpaced other operators in the county for this metric, highlighting the important role of rapid power restoration using generator solutions.

Mobile network disruptions extend to Scotland and Northern Ireland

While Ireland experienced some of the most severe and widespread impacts of Storm Éowyn, it was not alone. In Northern Ireland, power outages affecting 30% of premises at their peak were reported by NIE Networks, the primary energy provider in the region. Similarly, in Scotland, over 100,000 homes were left without power, with restoration efforts expected to continue for several days. These widespread power outages have impacted mobile site uptime in both regions.

Storm Éowyn's Impact on Consistency was more pronounced in Northern Ireland than Scotland
Speedtest Intelligence® | January 2025

Speedtest Intelligence data indicates a decline in mobile performance across multiple metrics among operators in Northern Ireland and Scotland, with Northern Ireland experiencing the greatest impact. Mobile download speeds at the 10th percentile plummeted on the day of the storm, falling 63% to 2.19 Mbps in Scotland and 74% to 1.31 Mbps in Northern Ireland relative to the seven-day average before the storm.

Storm Éowyn Pulls Down Mobile Performance Across Several Metrics in Scotland and Northern Ireland
Speedtest Intelligence® | January 2025

Similar to Ireland, the penetration of battery backup solutions installed at mobile sites in the UK remains limited. In its latest annual ‘Connected Nations‘ report, Ofcom noted that only around 20% of all mobile sites in the UK have some backup functionality at the RAN for more than 15 minutes, while only around 5% of sites are able to withstand a six-hour power loss (excluding battery backup for transmission traffic). It has consulted on revised ‘Resilience Guidance’ for the UK’s telecoms operators, published a call for input (CFI) on power backup for mobile networks and is now working with the government to determine if additional resilience measures are needed. 

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

Network Resilience

About the Author

Luke Kehoe

Ookla Research™ Articles
| January 20, 2025

The Envy of Europe: Nordics Lead in 5G Availability and Network Sunsets

5G

Nordic countries have consolidated their lead in 5G Availability and network sunsets, underscoring the emergence of a two-speed Europe in 5G deployment  

Home to two of the world’s largest radio vendors, Ericsson and Nokia, and characterised by markedly higher operator profitability than much of the rest of Europe,  the Nordic region remains a key bright spot in Europe’s struggle for competitiveness against the Middle East, North America and Asia in 5G. Nordic countries have distinguished themselves in the 5G cycle through the timely release of mid-band spectrum assets, the development of innovative government policies to enable widespread rollout beyond core urban centres and a unique appetite for network sharing.

Combined with other favourable factors—such as some of the highest urbanisation rates in Europe (resulting in a smaller-than-average share of the population living in rural areas), flat topography (particularly in Denmark and Finland) and high average revenue per user (ARPU)—the Nordic countries have positioned themselves as European leaders in 5G Availability, rivaling global frontrunners like the United States, Qatar and South Korea.

Such is the importance of network quality to consumer sentiment in the Nordics that recent months have seen a flurry of operators eager to highlight major 5G coverage milestones as they complete their multi-year nationwide network refresh and expansion programmes.

At the end of 2024, Telia in Norway announced it was the first in the country to reach “close to 99% of the population” with 5G, while DNA in Finland declared that its 5G network had “reached all municipalities in mainland Finland with population coverage close to 100%“. Similar announcements came from Sweden, where Tele2 and Telenor, collaborating through the Net4Mobility joint venture, reported covering “over 90% of Sweden’s population with 5G”.

Intensive low-band deployment makes the Nordic 5G strategy the envy of Europe

Analysis of Speedtest Intelligence® data confirms that Nordic operators have much to celebrate. In Q4 2024, Nordic countries claimed three of the top five positions in Europe for 5G Availability—the percentage of users with 5G-capable devices spending most of their time connected to 5G networks. Furthermore, all four Nordic countries ranked within the top ten. Denmark retained its position as Europe’s leader, achieving an impressive 5G Availability of 83.4%, narrowly surpassing Switzerland, which remains the only other European country to exceed the 80% milestone to date. 

Two-Speed Europe: Nordic Countries Take the Lead in 5G Availability
Speedtest Intelligence® | 5G Availability (%) in Q4 2024

Spectrum configuration decisions are a critical pillar of mobile network design and play a direct role in shaping coverage outcomes. Many European countries, including Ireland (61.9%) and the Netherlands (60.5%), have achieved high levels of 5G Availability by extensively utilising Dynamic Spectrum Sharing (DSS)—a technology that allows 4G and 5G networks to share the same frequency bands simultaneously (most commonly in the 1800 MHz and 2100 MHz bands)—to rapidly and cost-effectively expand 5G coverage atop the existing site footprint.

However, this reliance on DSS to fill coverage maps can negatively impact 5G performance and is intended as a temporary measure until more traffic transitions to newer 5G networks. This helps explain why the level of 5G coverage available is not always a reliable predictor of overall performance outcomes across Europe—for example, Ireland boasts above-average 5G Availability but has consistently ranked last in Europe for median mobile download speed.

The Nordic 5G Model: Early Low-Band Spectrum Access at Competitive Prices
Source: EU4Digital


The Nordic countries stand out for achieving high levels of 5G Availability without relying disproportionately on DSS technology. Operators in all four Nordic countries benefited from the early allocation of dedicated low-band spectrum for 5G in the 700 MHz band (first assigned in Finland in 2016 and most recently in Norway in 2019) and relatively low spectrum acquisition costs (e.g., €0.218 MHz/pop in Finland versus €0.701 MHz/pop in France). This combination has enabled extensive 5G deployments across the region, delivering deeper indoor and rural 5G access compared to much of Europe, thanks to the favourable propagation characteristics of the 700 MHz band.

Higher levels of 5G Availability in the Nordics have facilitated a greater shift of traffic from 4G to 5G networks compared to other parts of Europe. For example, Finnish regulator Traficom reported that nearly a quarter of all smartphone traffic in Finland originated on 5G networks during the first half of 2024, significantly surpassing other countries that track similar metrics, such as Spain and Portugal, where the 5G traffic share (even including FWA) remained well below 20% during the same period.

Innovative ‘carrot-and-stick’ policies drive Nordic 5G rollout  

Nordic countries have consistently prioritised 5G access as a cornerstone of ambitious national digital transformation strategies. For example, the Norwegian government has introduced a range of policy measures aimed at achieving its goal of becoming the “world’s most digitalised country by 2030”. Recognising the critical role of high-speed mobile networks in driving economic competitiveness, the Nordic prime ministers signed a Letter of Intent (LOI) in 2018, declaring that the region should become the “first and most integrated 5G region in the world” and establish a “common Nordic 5G space”.

Sweden has closed the 5G Availability Gap with its Nordic Peers after a Slow Start
Speedtest Intelligence® | Q4 2023 – Q4 2024

To achieve this vision, Nordic countries adopted a whole-of-government approach, introducing a suite of financial and policy tools aimed at supporting the 5G rollout. In particular, Nordic telecoms regulators have been European leaders in the development of progressive ‘carrot-and-stick’ policies to accelerate 5G deployments and have leveraged spectrum assignments to steer operator behaviour:

  • Denmark incentivised 5G rollout through multi-band auctions in 2019 by attaching regional coverage obligations to low-band spectrum (700 MHz), requiring Danish operators to serve specific underserved addresses with minimum download speeds of 30 Mbps and upload speeds of 3 Mbps by April 2022. To encourage participation, these spectrum lots were auctioned under conditions of limited competition and without a minimum price, meaning operators could bid for additional coverage commitments in exchange for reductions in their licence costs. This innovative approach rewarded Danish operators for expanding 5G access in targeted areas with limited network access.
  • Finland implemented similar coverage obligations in its 2016 auction of the 700 MHz band, requiring operators to provide coverage to 99% of the population within four years. However, it allowed coverage from other frequency bands already in use at the time (800 MHz, 1800 MHz, and 2.6 GHz) to be included in meeting the target.
  • Sweden assigned two lots of 10 MHz in its 2018 auction of the 700 MHz band with coverage obligations, requiring operators to address prioritised areas with insufficient mobile coverage, ensuring minimum download speeds of 10 Mbps. Licence holders were required to deploy new mobile sites and invest up to €30 million to meet phased coverage targets, including 25% of the prioritised areas by the end of 2021 and 100% by the end of 2024.

Favourable Demographics and Topography Enable High 5G Availability Across Every Region in Denmark
Speedtest Intelligence® | 5G Availability (%) in Q4 2024

Denmark’s coverage obligations have delivered tangible results. Helped by the highest urbanisation rate, smallest rural population and flattest terrain among the Nordic countries, Denmark’s four operators have collectively achieved 5G Availability of at least 70% in each of the country’s regions (regioner), despite lower-than-average ARPU, according to Speedtest Intelligence data for Q4 2024.

Despite Lower Urbanisation Rates than its Nordic Peers, Norway Excels in 5G Availability
Speedtest Intelligence® | 5G Availability (%) in Q4 2024

Similarly, the most rural regions of northern Sweden (e.g., Norrbotten) and Norway (e.g., Finnmark), characterised by sparse populations, vast forests and a challenging Arctic climate, exhibit higher levels of 5G Availability than many more densely populated areas in Europe. Financial support of €140 million from the European Investment Bank (EIB) to Tele2, which also benefits Telenor through their Net4Mobility joint venture, has been instrumental in supporting 5G deployments in these rural areas of Sweden.

Rural Sweden Exhibits Higher Levels of 5G Availability than typical in Europe
Speedtest Intelligence® | 5G Availability (%) in Q4 2024

Similar financial instruments are aiding 5G deployments in rural Norway. In the first half of 2024, the Nordic Investment Bank (NIB) provided a 15-year €85 million loan to Lyse AS, the owner of Norway’s third mobile operator, Ice, to finance the upgrade of over 2,800 mobile sites and the development of more than 3,500 new ones, aiming to extend Ice’s 5G coverage to 99.5% of the population over the next three years.

Network sharing accelerates Nordic 5G rollouts in rural areas  

Higher levels of inter-operator collaboration on mobile infrastructure buildouts in the Nordics compared to other European countries have been key to improving the economics of delivering 5G coverage in rural areas. Extensive network sharing agreements between at least two operators exist in Denmark (e.g., the TT Network joint venture between Telia and Telenor), Finland (e.g., the Finnish Shared Network joint venture between DNA and Telia in Northern and Eastern Finland) and Sweden (e.g., the Net4Mobility joint venture between Tele2 and Telenor).

Deep Network Sharing among Nordic Operators Drives Symmetry in 5G Availability
Speedtest Intelligence® | 5G Availability (%) in Q4 2024

The extensive depth of network sharing has contributed to balanced 5G coverage outcomes among operators in the Nordics, resulting in a greater-than-usual symmetry in 5G Availability within these countries. Sweden exemplifies this, with nearly identical 5G Availability levels (72.5%) observed for Tele2 and Telenor, according to Speedtest Intelligence data for Q4 2024. In contrast, smaller operators that have historically relied on national roaming agreements (e.g., Ice in Norway) or are not part of major sharing arrangements (e.g., 3 in Sweden) continue to exhibit lower 5G Availability, leading to greater coverage imbalances with market leaders.

Alongside a strong appetite for network sharing, Nordic operators have also embraced the shutdown of legacy networks more rapidly than other parts of Europe. Speedtest Intelligence data for Q4 2024 shows that operators in Finland and Norway have already completed the full sunset of 3G, with Denmark expected to follow suit once 3 finalises its 3G sunset in the coming months.

Low-Band Deployment and Early Network Sunsets Minimise Nordic Subscriber Time on 2G and 3G
Speedtest Intelligence® | Q4 2024

The proportion of Nordic mobile subscribers spending the majority of their time without network access was highest in Finland (1.9%) in Q4 2024, significantly above Norway (0.8%), the regional leader. Despite progress in phasing out 3G networks, several Nordic operators are postponing their 2G shutdowns to facilitate smoother migration for legacy users. Telia in Sweden, for example, recently announced a two-year delay to its 2G switch-off, now planned for 2025, to minimise disruptions in sectors like agriculture, which rely on 2G for essential equipment such as milking robots and irrigation systems.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

5G
Europe
Nordics

About the Author

Luke Kehoe

Ookla Research™ Articles
| January 12, 2025

How consolidation is reshaping Spain’s telecoms market in 2025 | La consolidación cambia las telecomunicaciones españolas en 2025

5G
Spanish/Español

Spain continues to lead Europe in fiber rollout, but lagging mobile performance undermines country’s overall telecoms competitiveness

The dynamism of Spain’s telecoms market stood out among its European peers last year, with a flurry of mergers reshaping the market’s structure and strong investment in next-generation networks, supported by targeted government initiatives, improving outcomes for Spanish consumers. However, while increased fiber and 5G penetration have driven notable year-on-year improvements in overall network performance, Spain’s international competitiveness in telecoms remains highly imbalanced between its fixed and mobile infrastructure.

The country’s credentials as Europe’s preeminent fiber leader remain intact. In 2024, Spain ranked among the top three in the EU for fiber-to-the-premises (FTTP) coverage (95.2%) and the share of fixed broadband subscriptions providing download speeds above 100 Mbps (93.5%), according to the latest edition of the European Commission’s ‘State of the Digital Decade’ report. This continues to position the country significantly ahead of some of the bloc’s largest economies, most notably Germany, which still lags in FTTP coverage (28.8%) due to a slow shift away from cable networks.

Analysis of Speedtest Intelligence® data reveals that median fixed download speeds in Spain increased from 173.32 Mbps to 210.46 Mbps between 2023 and 2024. This trend of improvement was mirrored across other fixed network performance metrics, with upload speeds increasing in the same period from 129.62 Mbps to 155.53 Mbps. In Q3 2024, DIGI achieved a median fixed download speed of 321.21 Mbps in the Spanish market, followed by Jazztel (273.18 Mbps), Orange (262.78 Mbps), Yoigo (255.74 Mbps) and Movistar (180.30 Mbps).

Spain Leads Europe in Fiber Deployment and Adoption, Boasting the Highest Coverage Among the EU's Top 10 Economies
European Commission | DESI 2018 – 2024

Having achieved exceptionally high levels of FTTP penetration across urban, suburban and rural areas—placing Spain among the top three in the European Commission’s DESI 2024 Index for FTTP coverage in sparsely populated rural areas—the focus in Spain is shifting toward enhancing quality of experience (QoE) in core use cases such as gaming and video streaming. Despite boasting higher FTTP coverage and take-up rates, Spain ranks below countries like France in Ookla’s Speedtest Global Index™. This disparity highlights the influence of factors such as Wi-Fi technology—France has a higher penetration of Wi-Fi 6 and 7 in ISP-provided CPE—and tariff provisioned speeds, with a larger share of fiber customers in France subscribing to multi-gigabit plans, on fixed broadband performance.

DIGI’s strong fixed download speed performance in Spain, detailed in Ookla’s Speedtest Connectivity Report for 1H 2024, is underpinned by similar favourable factors. Notably, it was first to market in Spain with a 10 Gbps service, fully leveraging its XGS-PON fiber infrastructure. With highly competitive pricing—starting at just €20 per month for 1 Gbps and €25 per month for 10 Gbps, including Wi-Fi 6 CPE as standard—DIGI has quickly secured a significant share of multi-gigabit capable connections in the Spanish market. 

Autonomous Communities in Northern Spain Lead in Fixed Download Speed Performance
Speedtest Intelligence® | 2024

In addition to highlighting the importance of modern CPE and higher tariff-provisioned speeds, DIGI’s business last year exemplified the accelerating consolidation trends in Spain’s highly overbuilt and fragmented fiber market. The acquisition of DIGI’s fiber infrastructure by a Macquarie-led consortium, which solidified wholesale specialist Onivia’s status as the largest of the ‘neutral’ FTTP networks in Spain, dovetailed with developments such as Telefónica’s BlueVia wholesale spin-off, the emergence of MásOrange and Zegona-controlled Vodafone’s ‘FiberCo’ tie-ups with both Telefónica and MásOrange.

As observed in other European markets with significant fiber overbuild, such as the alt-net model in the UK, consolidation is a slow and challenging process. However, Spanish operators continue to pursue it to enhance the economics of their fiber investments in highly overbuilt urban areas, unlocking scale and resources to capture future growth in rural areas where overlapping infrastructure is less common. This begins with small local operators—of which there are hundreds—being absorbed by ‘local consolidators’. These are then integrated into the infrastructure portfolios of regional consolidators, ultimately leading to acquisition by one of the largest traditional players. 

Fiber Overbuild from Smaller Players like DIGI Drives Market Share Shift from Incumbents
Analysis of CNMC Market Data | 2022 – 2024

This gradual process of consolidation is reshaping the fiber business model in Spain, as traditional operators separate their infrastructure and service units to support the growth of wholesale offerings. The coming year will provide some insight into whether a consolidated third player can successfully compete and coexist alongside the vertically integrated Telefónica and MásOrange in the long-term.

MásOrange is vying for network leadership in Spain, founded on a significant spectrum advantage

The winds of consolidation have swept through the Spanish mobile market too, culminating last year in the European Commission’s approval of a 50:50 joint venture between MásMóvil and Orange. The merger has pole-vaulted the newly formed ‘MásOrange’ into a leading position in the market, both in subscription and spectrum share. To secure regulatory approval from Brussels, the merging entity committed to divesting 60 MHz of spectrum, including 20 MHz in the 3.5 GHz band, to facilitate the entry of DIGI as a fully-fledged independent mobile operator, effectively restoring the Spanish market to a four-player structure and ‘exerting a strong competitive constraint on the joint venture’.

In addition to diversifying its portfolio of brands through the merger—with Orange and Yoigo catering to the premium segment, Jazztel and MásMóvil focusing on value for money and regional brands like Euskaltel and Telecable serving local needs—MásOrange hopes its consolidated spectrum assets will enable it to achieve network leadership in the Spanish mobile market. 

Movistar Revenues Stable YoY in Q3 2024 while Vodafone and MásOrange Face Declines
Analysis of CNMC Market Data | 2022 – 2024

The merged entity’s consolidated network will be primarily based on Orange’s infrastructure, complemented by MásMóvil’s existing site portfolio and the deployment of new greenfield sites. The integration of MásMóvil’s network, which relies entirely on mid- and high-band spectrum and has historically depended on a national roaming agreement with Orange, creates a natural synergy for the merged entity. It enables the integrated network to leverage MásMóvil’s capacity and density in urban areas alongside Orange’s extensive coverage and nationwide reach.

MásOrange is particularly focused on vying to unseat Movistar’s dominance in the premium segment, a position it has long upheld thanks to its emphasis on superior network quality. Movistar emerged as the fastest mobile operator in the Spanish market in Ookla’s Speedtest Connectivity Report for 1H 2024, delivering the highest median download speeds of 82.68 Mbps.  This placed Movistar significantly ahead of Orange (56.42 Mbps) and Yoigo (36.73 Mbps).

The merged entity’s spectrum advantage is heavily weighted toward mid- and high-bands, which are typically utilised for 5G deployments in urban and suburban areas. According to data published by MásOrange, it holds 37% of all mid- and high-band assets in the Spanish market—compared to 28% and 26% for its closest competitor, Telefónica—giving it a unique opportunity to enhance 5G speed performance and gain a competitive edge.

Movistar has maintained its strong 5G speed performance with a 100 MHz allocation in the 3.5 GHz band, but this is now overshadowed by MasOrange’s expanded allocation of 170 MHz. Capital investment by the merged entity in upgrading the 5G RAN to support advanced carrier aggregation (CA) capabilities and the standalone (SA) architecture will enable it to fully realise the performance benefits of wider channel bandwidth through the extensive deployment of its 3.5 GHz spectrum across its consolidated mobile site grid. 

Seville Leads in 5G Download Speed Among Spain's Largest Cities, but Operator Performance Varies Widely
Speedtest Intelligence® | Q3 2024

To establish network leadership in coverage, however, MásOrange will need to move beyond its spectrum advantage and focus on increasing the number of physical sites in rural areas within its integrated network. In Q3 2024, Vodafone and Movistar recorded 4G Availability of 95.1% and 93.4% respectively in the Spanish market, followed by Orange at 92.7% and Yoigo at 91.5%.

In parallel to MásOrange’s network consolidation journey, DIGI is building out its own infrastructure to gradually wean itself off dependence on a national roaming and RAN sharing agreement with Telefónica (which DIGI selected over MásOrange, despite both being options under the merger conditions), starting with urban and suburban areas. The European Commission designed the spectrum divestment remedies to position DIGI to replicate the competitive pressure previously exerted by MásMóvil. The goal is for DIGI to carry a similar share of its total mobile data traffic on its own network in the coming years, at least matching the 40-60% on-net share that MásMóvil achieved pre-merger. 

Spain's Rural Provinces Trail in 5G Availability, Highlighting the Importance of Government Support through UNICO
Speedtest Intelligence® | Overall 5G Availability (%) in 2024

More broadly, it is hoped that the substantial long-term investment commitments from DIGI and MásOrange, driven by the consolidation activity, combined with government support through programmes such as Unico, will bolster Spain’s international competitiveness in mobile performance in the coming years. The country has significant catching up to do, ranking 57th in the Speedtest Global Index at the end of 2024 and trailing most of its European peers across a suite of network performance metrics, including download speed, consistency and coverage. 

La consolidación cambia las telecomunicaciones españolas en 2025

España sigue a la cabeza en despliegue de fibra en Europa, pero el rezagado desempeño móvil reduce la competitividad del país

El dinamismo del mercado español de telecomunicaciones destacó el año pasado frente al de otros mercados europeos, por fusiones que modificaron la estructura del sector y una fuerte inversión en redes de próxima generación, respaldadas por iniciativas gubernamentales, que supusieron mejoras para los consumidores españoles. Si bien la mayor penetración de la fibra y el 5G han impulsado año tras año notables avances en el rendimiento general de la red, la competitividad internacional de España en telecomunicaciones sigue estando muy desequilibrada entre su infraestructura fija y móvil.

Las credenciales del país como líder europeo en fibra permanecen intactas. En 2024, según la última edición del informe ‘Estado de la Década Digital’ de la Comisión Europea, España se situó entre los tres primeros países de la UE en cobertura de fibra hasta las instalaciones (FTTP), con un 95,21%, y en porcentaje de suscripciones de banda ancha fija con velocidades de descarga superiores a 100 Mbps (93,54%). Esto posicionó al país significativamente por delante de algunas de las economías más grandes del bloque, en particular Alemania, todavía rezagada en cobertura FTTP (28,80%).

Según Speedtest Intelligence la velocidad mediana de descarga fija en España aumentó de 173,32 Mbps a 210,46 Mbps entre 2023 y 2024. Esta tendencia de mejora se reflejó en otras métricas de rendimiento de la red fija, con velocidades medianas de carga que se incrementaron de 129.62 Mbps a 155.53 Mbps en el mismo período. En el tercer trimestre de 2024, DIGI alcanzó una velocidad mediana de descarga fija de 321,21 Mbps, por delante de Jazztel (273,18 Mbps), Orange (262,78 Mbps), Yoigo (255,74 Mbps) y Movistar (180,30 Mbps).

España lidera Europa en despliegue y adopción de fibra, con la mayor cobertura entre las 10 principales economías de la UE
Comisión Europea | DESI 2018-2024

Habiendo alcanzado niveles excepcionalmente altos de penetración de FTTP en áreas urbanas, suburbanas y rurales (que posicionan a España entre los tres primeros del índice DESI 2024 de la Comisión Europea  sobre cobertura FTTP en zonas rurales escasamente pobladas), España está cambiando el foco hacia la mejora de la calidad de la experiencia (QoE) para casos de uso como los vídeojuegos y el streaming. A pesar de contar con más cobertura y tasas de aceptación FTTP, España está por debajo de países como Francia en el Índice Global de Speedtest de Ookla.

Este desequilibrio pone de relieve la influencia en el rendimiento de la banda ancha fija de factores como la tecnología Wi-Fi (Francia tiene una mayor penetración de Wi-Fi 6 y 7 en los router proporcionados por los operadores) y las velocidades ofrecidas en la tarifa (con una mayor proporción de clientes de fibra suscritos a planes multi-gigabit en Francia).

El sólido rendimiento de la velocidad de descarga fija de DIGI en España, detallado en Informe de Conectividad de Speedtest, está respaldado por factores favorables similares. Fue el primero en comercializar en España un servicio de 10 Gbps, aprovechando al máximo su infraestructura de fibra XGS-PON. Con precios altamente competitivos (desde sólo 20€ al mes por 1 Gbps y 25€ por 10 Gbps y router Wi-Fi 6 incluido), DIGI se ha asegurado rápidamente una cuota importante de conexiones con capacidad multigigabit en el mercado español. 

Las comunidades autónomas del norte de España, líderes en rendimiento de velocidad de descarga fija
Speedtest Intelligence® | 2024

Además de evidenciar la importancia de un router moderno y velocidades más altas, el negocio de DIGI ejemplificó el año pasado la acelerada tendencia de consolidación en el fragmentado y sobredimensionado mercado español de fibra. La adquisición de la infraestructura de fibra de DIGI por parte de un consorcio liderado por Macquarie, que consolidó el estatus de Onivia como la mayor red FTTP ‘neutra’ en España, coincidió con otros acontecimientos como la escisión de BlueVia de Telefónica, la aparición de MásOrange y las alianzas de ‘FibreCo’ de Vodafone con Telefónica y MásOrange.

Como se observa en otros mercados europeos con un importante despliegue de fibra (como Reino Unido), la consolidación es un proceso lento y desafiante. Sin embargo, los operadores españoles continúan persiguiéndola para mejorar la rentabilidad de sus inversiones en fibra en áreas urbanas altamente edificadas, liberando recursos para aprovechar el crecimiento futuro en áreas rurales donde la superposición de infraestructura es menos común. Esto comienza con la absorción de pequeños operadores locales (de los que hay cientos) por “consolidadores locales”. Luego, éstos se integran en las carteras de infraestructura de los consolidadores regionales, lo que en última instancia conduce a la adquisición por parte de uno de los actores tradicionales más grandes.

El despliegue de fibra por parte de actores más pequeños como DIGI impulsa el cambio en la cuota de mercado de los operadores tradicionales
Análisis de datos de CNMC | 2022-2024

Esta consolidación gradual está modificando el negocio de la fibra en España, mientras que los operadores tradicionales separan sus unidades de infraestructura y servicios para apoyar el crecimiento de la oferta mayorista. Este año se podrá saber si un tercer actor consolidado puede competir y coexistir con éxito a largo plazo con Telefónica y MásOrange.

MásOrange compite por el liderazgo de la red en España, apoyándose en una importante ventaja de espectro

La consolidación también ha afectado al mercado móvil español. A finales del año pasado, la Comisión Europea aprobó la creación de una empresa conjunta entre MásMóvil y Orange. La fusión ha llevado a la recién formada MásOrange a una posición de liderazgo, tanto en suscripción como en cuota de espectro. Para obtener la aprobación de Bruselas, la entidad se comprometió a vender 60 MHz de espectro, incluidos 20 MHz en la banda de 3,5 GHz, para facilitar la entrada de DIGI como un operador móvil independiente de pleno derecho, convirtiendo así el mercado español en una estructura de cuatro actores. 

Además de diversificar su cartera de marcas a través de la fusión (con Orange y Yoigo en el segmento premium, Jazztel y MásMóvil centrándose en la relación calidad-precio y Euskaltel y Telecable atendiendo las necesidades locales), MásOrange espera que sus activos de espectro le permitan alcanzar el liderazgo en el mercado móvil español.

Los ingresos de Movistar se mantienen estables interanualmente en el 3T de 2024 mientras que Vodafone y MásOrange afrontan caídas
Análisis de datos de mercado de CNMC | 2022-2024

La red de la entidad se basará principalmente en la infraestructura de Orange, complementada con la cartera de sites existentes de MásMóvil y el despliegue de nuevos. La integración de la red de MásMóvil, que depende íntegramente del espectro de banda media y alta e históricamente ha dependido de un acuerdo de roaming nacional con Orange, crea una sinergia para la entidad: aprovechar la capacidad y densidad de MásMóvil en áreas urbanas junto con la amplia cobertura y alcance nacional de Orange.

MásOrange está centrado en desbancar a Movistar en el segmento premium, que ha liderado durante mucho tiempo gracias a su foco en la calidad superior de la red. Movistar emergió como el operador móvil más rápido del mercado español en el Informe de Conectividad Speedtest de Ookla para el primer semestre de 2024, al ofrecer la velocidad de descarga media más alta de 82,68 Mbps.  Esto sitúa a Movistar muy por delante de Orange (56,42 Mbps) y Yoigo (36,73 Mbps).

La ventaja espectral de MásOrange se inclina hacia las bandas medias y altas, normalmente utilizadas para implementaciones 5G en áreas urbanas y suburbanas. De acuerdo con los datos publicados por la compañía, MásOrange cuenta con el 37% de todos los activos de banda media y alta de España (en comparación con el 28% y el 26% de su competidor más cercano, Telefónica), lo que le da una oportunidad única de mejorar el rendimiento de la velocidad 5G y adelantarse a sus competidores.

Movistar ha mantenido su liderazgo en velocidad 5G con una asignación de 100 MHz en la banda de 3,5 GHz, pero esto se ve ahora eclipsado por la asignación de MásOrange de 170 MHz. La inversión de ésta para actualizar la RAN 5G para que cuente con capacidades avanzadas de agregación de operadores y arquitectura independiente (SA), le permitirá aprovechar los beneficios de rendimiento de un ancho de banda mayor a través del amplio despliegue de su espectro de 3,5 GHz en toda su red móvil consolidada. 

Sevilla lidera en velocidad de descarga 5G entre las principales ciudades de España, pero el rendimiento de los operadores varía ampliamente
Speedtest Intelligence® | Q3 2024

Sin embargo, para liderar en cobertura de red, MásOrange necesitará ir más allá de su ventaja de espectro y centrarse en incrementar el número de sites físicos en áreas rurales. En el tercer trimestre de 2024, Vodafone y Movistar registraron en el mercado español una disponibilidad 4G del 95,1% y 93,4% respectivamente, seguidas de Orange con un 92,7% y Yoigo con un 91,5%.

Paralelamente a la consolidación de la red de MásOrange, DIGI está construyendo su propia infraestructura para dejar de depender gradualmente de un acuerdo de roaming y del uso compartido de RAN con Telefónica, comenzando con zonas urbanas y suburbanas. La Comisión Europea diseñó los remedies de desinversión de espectro para que DIGI replique la presión competitiva ejercida anteriormente por MásMóvil. El objetivo es que DIGI transporte una proporción similar de su tráfico total de datos móviles en su propia red en los próximos años, al menos igualando la cuota on-net del 40-60% que MásMóvil lograba antes de la fusión. 

Provincias rurales de España, a la zaga en disponibilidad de 5G, lo que destaca la importancia del apoyo gubernamental a través de UNICO.
Speedtest Intelligence® | Disponibilidad general 5G (%) en 2024

En términos generales, se espera que los compromisos de inversión a largo plazo de DIGI y MásOrange, impulsados ​​por la consolidación, unidos al apoyo gubernamental con programas como Único, impulsen la competitividad internacional de España en rendimiento móvil en los próximos años. El país tiene mucho por hacer, ya que a finales de 2024 ocupa el puesto 57 en Índice Global de Speedtest, situándose por detrás de la mayoría de sus colegas europeos en rendimiento de red, incluidas velocidad de descarga, coherencia y cobertura.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

5G
Europe
FTTH

About the Author

Luke Kehoe

Ookla Research™ Articles
| December 16, 2024

DIGI makes a splash as fourth MNO in Belgium, leans on convergence

5G

Belgium’s new entrant jolts the market with aggressive pricing, eyes Wi-Fi 7 in bid for QoE advantage

Romania’s DIGI has taken another bold step in its ambitious multi-country expansion strategy—the largest in Europe in over a decade—by launching fixed and mobile services in Belgium. It is replicating its signature disruptor strategy to swiftly capture market share, introducing a cut-price mobile tariff priced at €5 per month for 15 GB of data, alongside a fixed broadband offering at €10 per month for a 500 Mbps full-fibre connection.

The long-anticipated commercial launch is founded on a rebranded joint venture between Citymesh (51%), a subsidiary of IT services group Cegeka specialising in the B2B segment, and RCS & RDS, a subsidiary of the DIGI group. A five-year national roaming agreement with Proximus, Belgium’s largest mobile operator, has enabled DIGI’s market entry while it works to deploy its own greenfield radio infrastructure. DIGI aims to achieve 30% 5G population coverage by the end of 2025 and establish a network of 4,500 sites by the end of this decade.

As part of this roaming agreement, Proximus proposed to decommission and transfer around 400 of its own mobile sites to InSky, the company responsible for deploying the infrastructure for DIGI and Citymesh. With extensive spectrum holdings, including assets in the 700, 900, 1800 and 2100 MHz bands, along with a valuable 50 MHz of unpaired 3.6 GHz spectrum and 2.6 GHz frequencies it secured from neutral host operator Dense Air, it is fully equipped to execute its mobile network rollout. 

DIGI subscribers rely on Proximus’ 4G network as it races to deploy its own 5G Standalone (SA) infrastructure

Subscribers to the new operator may initially be surprised by the limited availability of 5G services. DIGI’s roaming agreement with Proximus is restricted to its 4G network, with 5G access reliant on the progress of DIGI’s own greenfield site deployment. Whether this rollout will enhance Belgium’s international standing in 5G coverage remains to be seen, as the country continues to lag behind most of its developed peers due to delays in network deployment caused by conflicts between regional governments at the start of the 5G cycle. 

Belgium continues to lag its neighbours in 5G Availability
Speedtest Intelligence® | Q3 2023 – Q3 2024

Analysis of Speedtest Intelligence® data from Q3 2024 reveals that Proximus, DIGI’s roaming partner, led the market in 4G download speed performance. Proximus’ subscribers enjoyed median 4G download speeds of 55.68 Mbps in the period, outperforming Telenet (47.91 Mbps) and Orange (36.22 Mbps). 

DIGI subscribers will roam on Proximus' 4G network, which leads the Belgian market in 4G download speed performance
Speedtest Intelligence® | Q3 2023 – Q3 2024

However, this performance advantage does not extend to network reach. In Q3 2024, Proximus lagged behind its competitors in 4G Availability. Telenet led the market with 93.74% 4G Availability, followed by Orange at 86.02% and Proximus at 81.07%. Proximus’ comparatively lower 4G Availability has also contributed to its subscribers spending more time on 3G than those of other operators. On Proximus’ network, 11.21% of devices spent the majority of their time on 3G, compared to 7.92% on Orange’s network and just 3.41% on Telenet’s network. 

Proximus' subscribers spend more time on 2G and 3G compared to competitors, primarily due to lower 4G Availability
Speedtest Intelligence® | Q3 2024

Fibre ambitions put convergence and Wi-Fi 7 in the spotlight

DIGI’s ambitions in Belgium extend beyond disrupting the mobile market—it is taking aim at fixed broadband too. The operator has introduced ‘DIGI Fiber’, bringing its signature aggressive pricing to the FTTH market. Launching with a limited footprint in select Brussels suburbs, DIGI Fiber offers download speeds of up to 10 Gbps for as little as €20 per month. It plans to scale this fibre footprint rapidly, as it has done in Spain, targeting 2 million households within two years.

DIGI’s fibre offering is highly competitive in the Belgian market context, promising speeds that are many multiples of the country-wide median of 101.97 Mbps observed across fixed networks in Belgium in Q3 2024. While Proximus’ fibre service led the market during this period with median download speeds of 303.25 Mbps, DIGI’s entry may disrupt the market order. 

Proximus Fiber leads in fixed download speed performance across Belgium's largest cities
Speedtest Intelligence® | Q3 2024

The operator is placing significant emphasis on Wi-Fi performance as part of its foray into the home, providing Wi-Fi 6-capable CPE as standard and preparing to introduce Wi-Fi 7 solutions “soon” for customers subscribing to its 10 Gbps service. This follows the playbook of other leading fixed operators seeking to differentiate fibre services through an enhanced focus on quality of experience (QoE) in the home, with BT’s EE in the UK and Iliad’s Free in France also debuting Wi-Fi 7 solutions in a bid to sell premium fibre experiences.

DIGI aims to leverage converged bundling of fixed and mobile tariffs to maximise customer retention and minimise churn, as it seeks to position itself as a leader in both price and network quality in Belgium. However, this convergence strategy is far from novel in the Belgian market, where competitors have successfully offered triple- and quad-play bundles for years. Notably, DIGI has yet to introduce a TV service in Belgium, leaving a gap in its bundling proposition at launch. 

Has DIGI precipitated a race to the bottom in Belgium?

DIGI’s arrival disrupts a market long known for generating some of the highest average revenue per user (ARPU) levels in Western and Central Europe, coupled with a higher degree of market concentration compared to other countries in the region, based on analysis of GSMA Intelligence data. In Q3 2024, Belgian operators reported a monthly ARPU of €18.26, significantly outpacing neighbouring markets such as the Netherlands (€13.15) and Germany (€11.03).

Belgian operators maintain higher ARPU levels compared to many other European markets
Analysis of GSMA Intelligence data | Q3 2024

Market incumbents have been bracing for an intense price war for some time. Earlier this year, Proximus cut its dividend, increased debt and struck agreements with alt-nets to accelerate its fibre rollout in Flanders. In a strategic counter move, Orange responded to DIGI’s aggressive mobile pricing by launching an equivalently priced tariff through its budget-focused ‘Hey!’ sub-brand, setting the stage for a race to the bottom in Belgium’s telecoms market.

This development shifts the Belgian market from a three- to four-player structure, marking a notable countertrend at a time when regulators in Brussels are signalling a softer stance on merger reviews and competition policy. It also follows closely on the heels of the Vodafone-Three merger approval in the UK, highlighting the increasingly diverse regulatory dynamics at play across Europe. 

DIGI's success in Spain has been a cornerstone of its revenue growth, fueling its expansion ambitions in Belgium
Analysis of DIGI Group financial accounts | 2018 – 2024

Regardless of the outcome in the Belgian market, this marks a critical litmus test for DIGI’s growth ambition in Western Europe. Over the past decade, the Bucharest-based group has nearly tripled its annual revenues, growing from €624 million in 2013 to over €1.69 billion in 2023. It continues to distinguish itself through an obsessive strategic focus on operational efficiency—a model that has been similarly instrumental to Iliad’s success in Europe and its ability to achieve economies of scale. 

This emphasis on a lean organisational structure has not dampened its long-term investment commitments. Last year alone, DIGI splurged €729.7 million on network spending and sold part of its fixed network in Spain to unlock additional funds for reinvestment, as it navigates a period of record capital intensity across its markets. 

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

5G
Europe
Convergence
Wi-Fi 7
DIGI

About the Author

Luke Kehoe

Ookla Research™ Articles
| December 11, 2024

Mobile Network Resilience Under the Spotlight in Ireland During Storm Darragh

Europe

Climate change is placing new demands on operators and regulators to harden telecoms infrastructure against severe weather events

Storm Darragh caused widespread mobile network outages across Ireland in recent days, impacting all operators. The storm resulted in the most extensive damage to the country’s electricity infrastructure in a decade, leaving nearly 400,000 premises without power at its peak.

This led to significant disruptions to mobile site uptime, prompting the swift deployment of mobile generators across affected areas and a seismic shift in mobile network usage patterns, with increased demand in locations where power cuts or other disruptions rendered fixed broadband unusable.

Mobile networks came under strain during Storm Darragh, pulling down performance nationwide

Analysis of Speedtest Intelligence® data reveals the substantial impact of the storm on mobile network performance in Ireland. A marked and sustained decline in download and upload speeds, as well as increased latency and jitter, was observed across all operators nationally. The deterioration escalated rapidly on Friday night (6th December) as the storm made landfall, peaking on Saturday (7th December) and is only slowly returning to the pre-storm performance baseline as power outages persist through this week in the worst-affected areas.

Consistency Deteriorated Across All Mobile Operators in Ireland During Storm Darragh
Speedtest Intelligence® | December 2024

Median download speeds on Saturday were nearly 70% lower than the 7-day average preceding the storm across all operators and technologies, while median latency increased by nearly 17%. Consistency—a measure of the percentage of an operator’s samples meeting or exceeding minimum download and upload thresholds—dropped to some of its lowest one-day levels recorded in Ireland in recent years. Around 40% of all samples failed to meet the minimum thresholds across 4G (5 Mbps download, 1 Mbps upload) and 5G (25 Mbps download, 3 Mbps upload) on Saturday.

This performance analysis is based on the national picture, highlighting that the impact was significant enough to lower the overall country-wide performance profile. A closer examination of the worst-affected areas along the western seaboard revealed even more pronounced declines in performance outcomes in the aftermath of the storm.

Latency Performance Deteriorated Across All Mobile Operators in Ireland During Storm Darragh
Speedtest Intelligence® | December 2024


The volume of Speedtests initiated by Irish users increased significantly above typical levels over the weekend, serving as a proxy for the connectivity challenges. This surge also reflects the impact of a shift in usage patterns, with households resorting to tethering mobile connections when fixed broadband became unavailable and thereby increasing further the strain on a depleted mobile site grid.

Download Speed Performance Deteriorated Across All Operators in Ireland During Storm Darragh

Upload Speed Performance Deteriorated Across All Mobile Operators in Ireland During Storm Darragh
Speedtest Intelligence® | December 2024

10th Percentile Download Speed Performance is Recovering As Power Outages Recede and Network Load Normalises
Speedtest Intelligence® | December 2024

Battery backup is needed for future resilience but costs remain a barrier

Lead-acid and lithium-ion batteries are widely deployed across mobile sites in Ireland and other countries, providing short-term resilience in the event of power outages. The fact that only a small proportion of deployed backup batteries provide sufficient capacity to last for multiple hours means that operators rely heavily on stationary and mobile generators during prolonged power outages.

Ireland is no exception to this trend. The UK’s Ofcom reported recently that “around 20% of all mobile sites have some backup functionality at the RAN [in the UK] for more than 15 minutes, with around 5% of sites able to withstand a six-hour power loss (excluding battery backup for transmission traffic)”. It has consulted on revised ‘Resilience Guidance’ for the UK’s telecoms operators, published a call for input (CFI) on power backup for mobile networks and is now working with the government to determine if additional resilience measures are needed. 

Mobile operators in Ireland and elsewhere proactively ensure that generators are refuelled in advance of adverse weather events like Storm Darragh and leverage strategic fuel dumps across the country to enable rapid refuelling where needed. The high upfront cost of battery backup and the high operating cost of generators, however, prohibits universal deployment in the current capital environment, with dedicated solutions needed for each operator, even at shared sites—necessitating targeted policy support and new solutions to improve network resilience as the frequency and severity of these weather events increases.

Network resilience lessons from around the world

The policy success of Nordic countries such as Norway and Finland, where local regulators NKOM and Traficom have intervened with legislative instruments to stipulate a minimum number of hours of continuity of mobile service post-power outage, demonstrates that there are viable solutions to harden mobile network infrastructure. Similar efforts have been observed in Australia, where the government subsidised a ‘Mobile Network Hardening’ programme to retrofit 467 cell sites with 12 hours power backup capability.

Ofcom’s aforementioned consultations have not yet led to the proposal of any specific measures relating to the provision of battery backup solutions in the UK. The regulator’s preliminary assessment of the feasibility of any such measures concluded that the exorbitant costs involved in providing a minimum of one hour of power resilience at every cell site in the country would not be proportionate to the potential economic benefit accrued—with cost projections in the region of £0.9-1.8 billion.

Nonetheless, Ofcom has expressed hope that the continued reduction in the cost of battery backup solutions will make interventions viable in the future. Progress in developing new business models to monetise battery backup solutions is also likely to improve their allure over time for operators, with new use cases emerging in grid frequency restoration.

Finland’s Elisa has been a global leader in this space through the success of its ‘Distributed Energy Storage’ solution, which provides energy to the grid at peak times and charges from the grid in off-peak times. The operator claims to have reduced the payback period of its mobile site battery installations to 3-5 years.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

Europe
Network Resilience

About the Author

Luke Kehoe

Ookla Research™ Articles
| December 9, 2024

UK Telecoms at a Crossroads: Consolidation, Convergence, and Looking Ahead to 2025

Global Speeds

After years of decline in international rankings, can the UK’s largest telecoms merger in decades revive competition in network quality?

In this special year-end article, we examine the past year in UK telecoms, assessing the country’s global competitiveness, evaluating 5G SA rollouts and monetisation strategies, highlighting the growing trend of convergence and looking ahead to what the market may bring in 2025.

The State of the UK’s Mobile Networks

The UK continued to trail its developed peers in mobile performance in 2024

Reports of mobile not-spots, outages and peak-time congestion dominated discussions around the UK’s mobile networks this year, with high-profile publications highlighting their underperformance compared to developed peers elsewhere in Europe and North America. Particular attention has been drawn to indoor coverage deficits—where over 80% of mobile traffic originates today—and lingering blackspots along key rail corridors nationwide.

Consumer research published by Ookla earlier this year, based on a survey of over 2,000 smartphone users in the UK and US, revealed significantly higher dissatisfaction among UK mobile users. Quality of experience (QoE) issues, such as slow-loading web pages (37%) and interrupted video streams (19%), were prominent, with over a quarter of UK respondents also reporting service interruptions or outages at least once a month. These experiences are likely driving a higher propensity to churn, with 27% of users planning to switch operators within the next twelve months citing coverage as their primary reason. 

Analysis of Speedtest Intelligence® data underscores UK consumers’ concerns, revealing the country’s stark international underperformance. Over the past eight years, the UK has shifted from being a G7 leader to a laggard in mobile download speeds at the 10th percentile—a key measure of baseline network performance, as it reflects the experience of users with the slowest connections. These speeds are now lower in the UK than in all but one other G7 country (Japan), with the gap to the leader (France) now widening rapidly on a year-on-year basis.

Outside the G7, the UK recorded the lowest Consistency score in Europe (82.56%) during Q2-Q3 2024, ahead of only Ireland. This metric reflects the percentage of consumer-initiated Speedtest samples meeting minimum speed thresholds: 5 Mbps download and 1 Mbps upload on 4G, and 25 Mbps download and 3 Mbps upload on 5G. Market-wide Consistency in the UK saw only slight increases over the year, primarily driven by improvements in the performance of 4G networks. 

Investments in RAN upgrades and site expansion are driving progress in coverage and QoE moving into 2025

Notwithstanding the challenges, there is evidence that the performance of the UK’s mobile networks improved notably during the year, as reflected in other key indicators. Speedtest Intelligence data revealed a reduction in market-wide latency to 51.83 ms, reflecting progress across three of the four operators. Moreover, the observed quality of experience for bread-and-butter activities such as gaming and video streaming moved in the right direction again after a decline last year.

Significant investments in RAN upgrades and site expansions, bolstered in part by the government’s 4G-focused Shared Rural Network (SRN) initiative, contributed to substantial improvements in network coverage across all operators over the year. Overall 5G Availability in the UK rose by nearly 10 percentage points to 36.25% between 2023 and 2024, while 4G Availability increased from 93.8% to 95.7% during the same period. 

Ofcom noted, however, that there remains a substantial rural-urban divide in terms of 5G deployment progress in the UK, with 5G deployed on 42% of sites in urban areas, compared with just 16% of sites in rural areas, at the end of 2024.

Progress in the 3G sunset underlines the importance of supporting new measures to improve indoor connectivity outcomes

The shutdown of 3G networks, which reportedly accounted for less than 1% of traffic but over a quarter of operators’ RAN electricity consumption in some cases, has played an important role in freeing up spectrum for 4G and 5G. EE, for instance, has expanded its refarmed 2100 MHz spectrum deployments (n1) for 5G, increasing channel bandwidth from 15 MHz to 20 MHz during the year.

Speedtest Intelligence data reveals a decrease in overall 3G General Availability in the UK from 3.43% last year to 1.60% in 2024, indicating the percentage of users falling back to and mainly using 3G networks more than halved in the period. A potential consequence of the 3G sunset, however, is an increased reliance on 2G networks, particularly in deep indoor environments—the percentage of overall users that spend the majority of their time on 2G increased from 0.37% in 2023 to 0.76% this year.

By the end of 2025, all four of the UK’s mobile operators are expected to have completed their 3G sunsets. Reducing the propensity to fall back to 2G and enhancing the handover experience to 4G and 5G networks are likely to remain key priorities for operators’ RAN strategies. Progress in enhancing the indoor mobile network experience in the UK, enabled by deployment models such as Boldyn Networks’ small cell rollout on the London Underground and new in-building neutral host solutions from companies like Freshwave and Proptivity, will be key and may benefit from policy support.

Merger approval transforms spectrum landscape and provides certainty moving into 2025

The successful approval of the merger between Three and Vodafone by the Competition and Markets Authority (CMA) brings much-needed certainty to the market heading into 2025. This decision is expected to encourage long-term commitments to capital spending on network upgrades across all operators in the UK market, not just required by the merged entity for integrating its networks and complying with the CMA’s behavioural remedies. With the consolidation and redistribution of spectrum benefiting both the merged entity and Virgin Media O2 (VMO2), two of the three in-market operators will have more headroom to expand network capacity where needed.

Research published by Ookla earlier this year examined the impact of operator consolidation on network quality outcomes across Europe and a sample of other high-income countries. It found that a three-player market structure—now set to define the UK market following the merger—tends to be associated with higher median download speeds, improved network consistency and more positive consumer sentiment in the markets where it is present over time. 

The UK leads Europe in the commercialisation of 5G SA

While the UK lags behind its developed peers in mobile network performance, it has emerged as a global leader in the commercial rollout of the standalone (SA) 5G architecture. It remains the only European country with three commercially available 5G SA networks at the end of 2024, as VMO2 and EE joined Vodafone this year in launching the technology, primarily targeting dense urban areas in cities and towns. Ofcom reported that there were 3,300 5G SA-capable sites by the end of 2024, representing 15% of all reported 5G sites and carrying 3% of the UK’s overall monthly mobile traffic.

Controlled network testing by RootMetrics®, an Ookla company, on EE’s 5G network in Birmingham in October confirmed the significant latency improvements unlocked by the SA architecture. With 115 MHz of channel bandwidth observed across much of EE’s SA deployments along the test route, the operator stands out as the closest European equivalent to T-Mobile in the US which, like EE, has distinguished itself through extensive SA spectrum allocation spanning multiple carriers from low-band to mid- and high-bands.

In addition to upgrading traditional rooftop and monopole sites for 5G SA, operators like VMO2 are deploying street-level 5G SA small cells in increasing numbers to boost network capacity in high-footfall areas. This approach to network densification is expected to accelerate next year as macro site grid upgrades mature and operators collaborate with local authorities to streamline deployment processes for street-level mobile infrastructure. 

Stimulating consumer demand for 5G SA proves a challenge, with bundling emerging as a key sales strategy

On a business level, each operator has adopted a distinct strategy to market 5G SA in the UK, highlighting the persistent challenges of monetising 5G investments as far as mid-way through the technology cycle. Vodafone led the charge with a consumer-focused launch in 2023, branding its SA service as ‘5G Ultra’. In an effort to upsell its base, the offering was limited to postpay subscribers, with ‘improved phone battery life’ promoted as a key selling point.

In contrast, VMO2 launched its 5G SA network this year, following the playbook of operators like Iliad’s Free in the French market, by offering access to its existing subscribers at no additional cost. While the operator touted improvements in latency and uplink performance unlocked by the new 5G SA core and enhanced carrier aggregation, the aggressive pricing strategy reinforces the increasing industry consensus in Europe that consumers are unwilling to pay a premium for 5G SA alone.

Recognising this challenge in marketing the technology as a worthy consumer upgrade from the NSA architecture, and aligning with its strategy to transition from a traditional telecoms operator to a dynamic, service-led household brand, EE has taken a more ambitious approach. The operator has bundled its 5G SA offerings, restricted to its most expensive tariffs, with content packages, securing a partnership with Google to provide access to its premium Gemini Advanced AI model as part of the deal.

Bundling has proven effective for upselling in other advanced markets, particularly in Asia, where operators have successfully boosted ARPU by introducing differentiated services early in the 5G cycle. In addition to bundling Google’s AI services, EE introduced a ‘Network Boost’ subscription add-on with its 5G SA launch, offering premium subscribers the option to pay for prioritised network access during times of congestion.

This bundling strategy is expected to expand further in the UK next year, aligning with converged fixed and mobile offerings from operators like BT and VMO2. As the rollout of 5G SA matures and is afforded greater strategic priority under the government’s Wireless Infrastructure Strategy (WIS), and the device and solution ecosystem continues to mature, operators are likely to shift their focus to the enterprise segment—arguably the only market where SA-specific features, such as network slicing, hold any substantive monetisation potential.

The State of the UK’s Fixed Broadband Networks

Fibre land grab boosts the UK’s international ranking in fixed broadband performance

The recent groundswell of investment in fibre infrastructure across the UK is paying off, with median download speeds on fixed networks increasing by nearly 40% between 2023 and 2024 to 107.07 Mbps, according to Speedtest Intelligence data. This improvement trend also extended to other key metrics, including a 6% reduction in latency to 20.47 ms and enhanced QoE for gaming and video streaming across major ISPs. Ofcom reported that FTTH reached nearly 7 in 10 homes at the end of 2024, putting the UK on track to reach the government’s target of 85% full-fibre coverage by the end of 2025.

UK leads Germany and Italy in Fixed Download Speeds, but Trails G7 Leaders
Source: Speedtest Intelligence® | 2018 – 2024
Spline plot comparison of median fixed download speeds among the G7 countries between 2018 and 2024 based on Speedtest Intelligence® data.

Notably, in the context of Ookla’s Speedtest Global Index™, the UK continues to rank relatively higher in fixed network performance compared to mobile performance. The significant gains in median fixed download, upload and latency performance over the last year have propelled the UK up twelve places in the index, positioning it ahead of other G7 countries like Germany and Italy. However, it remains in the lower half of Western European countries. 

Wi-Fi 7 poised to become the default standard for ISPs targeting premium experiences in 2025

The growing adoption of advanced Wi-Fi solutions, including mesh routers for enhanced whole-home coverage and Wi-Fi 6E-capable access points for higher throughput on multi-gigabit FTTH connections, continues to play an important role in enhancing fixed performance outcomes in the UK. In the year gone by, fixed ISPs have increasingly relied on ‘Wi-Fi guarantees’ as a cornerstone of their marketing strategies, offering promises of minimum download speeds in every room—backed by money-back assurances.

Building on this momentum, Wi-Fi 7 is expected to become the default standard for CPE provided by UK ISPs on premium FTTH tariffs from next year. BT was among the first ISPs globally to launch a next-generation Wi-Fi 7 router earlier this year, partnering with Qualcomm to introduce its new ‘Smart Hub Pro’ and ‘Smart Wi-Fi Pro’ CPE solutions to EE Home Broadband customers. 

Merger approval ups the ante on convergence moving into 2025

The merger between Three and Vodafone paves the way for the UK to have three converged operators for the first time. The merged entity, following in the footsteps of previous tie-ups between BT and EE in 2016 and Virgin Media and O2 in 2021, will aim to fully integrate its fixed and combined mobile networks to deliver a differentiated experience that is better than the sum of its individual parts.

This trend is expected to drive operators to move beyond basic cross-selling of mobile and fixed services, instead positioning converged solutions as premium tariff bundles that deliver seamless, best-in-class experiences across fixed, mobile and Wi-Fi—on any device, anywhere. BT’s ‘EE One’ converged solution, unveiled alongside its 5G SA and Wi-Fi 7 launches earlier this year, offers a preview of the kinds of solutions likely to emerge from all converged operators in 2025.

Operator investments in bringing their fixed and mobile networks closer together will play a key role in ensuring subscribers enjoy an improved experience across all access paths. VMO2, for example, recently announced the activation of its ‘Converged Interconnected Network’ architecture, which it touted as improving the operator’s ability to manage traffic flows across its fixed and mobile services by aggregating data closer to the end user before routing it back to the core network. 

Key Trends to Watch in 2025

Mobile Data Traffic Growth Plateau

The UK, like other advanced mobile markets in Europe and North America, is entering a phase of declining mobile data traffic growth, following an S-curve trajectory. Ofcom reported an 18% increase in total monthly traffic in 2024, marking a slowdown from the 25% growth observed in both 2022 and 2023.  This trend of moderated growth is expected to continue next year and warrants close attention, as it could significantly impact mobile operators’ capital cycles, spectrum demand and equipment vendors’ business models over the long term in the UK and further afield. 

Private Network Proliferation

The removal of the requirement to individually register end-user devices for low-power use in shared bands, increased availability of medium-power licenses and the launch of a comprehensive spectrum mapping tool for the 3.8-4.2 GHz band were key milestones in Ofcom’s support for private networks in 2024. These measures contributed to the provision of 113 new shared access licenses between July and November, including 45 in the 1800 MHz band and 68 in the 3.8-4.2 GHz band. Further growth in the UK’s private network ecosystem is expected in 2025, with Ofcom set to enable low-power indoor access in the 2.3 GHz band.

Direct-to-Device (D2D) Arrival

Ofcom is developing a framework to authorise and facilitate D2D services in the UK, with a consultation scheduled for the first half of 2025. It will also review its approach to the mobile satellite service (MSS) licences in the 2 GHz band, as the current EU-wide licences are set to expire in 2027, allowing the UK to independently determine their future use. EE and O2 are the most likely potential candidates for a Direct-to-Cell (D2C) partnership with SpaceX’s Starlink, while Vodafone has been flirting with AST SpaceMobile.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

Global Speeds
5G
Europe
Convergence
FTTH

About the Author

Luke Kehoe

Ookla Research™ Articles
| November 25, 2024

Is Telecoms Consolidation the Panacea for Europe’s Digital Competitiveness?

Europe

Mario Draghi has flirted with a radical restructuring of Europe’s telecoms market, seeking to cultivate pan-European scale and reinvigorate innovation and investment in telecoms. But is consolidation the answer?

Europe’s telecoms sector is at an inflection point. After a decade of stagnant revenues, lacklustre innovation and fierce competition, policymakers in Brussels are scrutinising the fundamental structure of the market. Earlier this year, a landmark report by Mario Draghi reignited discussions on consolidation, championing the creation of pan-European operators and calling for a decisive regulatory shift from proactive competition oversight (ex ante) to a reactive focus on enforcement after issues arise (ex post).

The proposed shift in policy comes as concerns over Europe’s telecoms sector’s ability to compete on a global stage reach a crescendo. A central tenet of the Draghi report is that the bloc’s fragmented telecoms market—a morass of dozens of small operators compared to just a handful in similarly sized regions elsewhere—has triggered a race to the bottom in pricing, eroding profitability and leaving Europe ill-equipped to compete with the more unified and dynamic markets of North America, the Middle East and Asia.

Timeline graphic: European Telecoms Consolidation Timeline: Key Mergers & New Entrants

Mobile network quality is a key factor in the European telecoms competitiveness equation, shaping both consumer satisfaction and the bloc’s attractiveness for investment. Proponents of consolidation argue that fewer, larger operators could enhance network performance and better position the bloc to achieve the European Commission’s ambitious Digital Decade 2030 goals. The simple argument is that by cultivating market dynamics that prioritise service quality over price wars, consolidation would create stronger incentives for investment in capital-intensive mobile networks.

Critics, however, challenge this narrative that favours consolidation. Instead, they argue that network quality is not solely a function of market concentration or structure and emphasise that other factors such as pricing also play an important role in shaping Europe’s overall telecoms competitiveness. In contrast to Draghi’s position, they propose that similar outcomes could be achieved without reducing competition by deploying other policy tools, such as providing targeted funding for infrastructure rollouts or incentivising network sharing initiatives.

This white paper aims to provide independent, informed insights to support the ongoing policy discourse in Europe. It explores whether empirical evidence supports the arguments for and against consolidation in the bloc’s telecoms sector, analysing network quality, investment and pricing outcomes across the EU and a sample of other high-income countries to assess the impact of varying market structures (e.g., three or four players) and levels of market concentration.

telecoms consolidation europe white paper download button

Key takeaways

Three-player mobile markets in the EU and other high-income countries exhibit better network performance and consumer sentiment outcomes.

This trend is consistent across all technologies and at similar levels of market concentration. Among the top ten European countries ranked by median download speed in Q2-Q3 2024, seven are three-player markets. The other three — Denmark, Sweden, and France — are four-player markets where operators engage in network sharing, whether in spectrum, site infrastructure or multi-operator core networks. This suggests that the level of network sharing in these countries is more extensive than in most other four-player markets. Overall, the studied three-player markets in the EU delivered median download speeds that were 56% higher than those in four-player markets during Q2-Q3, according to Speedtest Intelligence® data.

Market concentration is not a robust predictor of 5G coverage outcomes.

Socio-economic factors such as population distribution and economic development impart a greater impact on metrics relating to overall network reach, with wealthier, more urbanised countries enjoying investment conditions that are more conducive to the attainment of very high levels of service coverage and network availability. In four-player markets, however, disparities in overall 4G availability between the best- and worst-performing operators tend to be more pronounced than their three-player counterparts.

Intense price-based competition leads to markedly lower mobile data pricing outcomes in four-player markets over time.

The median consumer cost per gigabyte in highly concentrated markets — often seen in countries with the three-player structure — is nearly five times higher than in low-concentration markets. In four-player, lower-concentration markets, depressed ARPU and higher median capital intensity may result more from limited absolute revenues constraining reinvestment than from increased competition spurring greater investment. Conversely, in some highly concentrated non-EU high-income countries, greater market concentration is associated with lower capital intensity per operator, as larger players may face reduced incentives to invest.

There is no one-size-fits-all concentration profile that uniformly optimises network quality and consumer pricing outcomes in every country.

Exceptional outcomes in countries such as Denmark — a four-player market with low concentration but very high median download speed — and the Netherlands — a three-player market with high concentration and also high median download speed — suggest a targeted policy toolkit, rather than the blunt instrument of consolidation, is needed to achieve balanced outcomes across a bloc with highly diverse market contexts.

Download the full white paper

For a detailed analysis of how market structure (e.g., three vs. four operators) and market concentration (measured by the Herfindahl-Hirschman Index) impact network quality and consumer prices in the EU and a sample of other high-income countries, download our full white paper, “A Reality Check on Telecoms Consolidation in Europe: Can it Boost the Bloc’s Digital Competitiveness?“

Download .pdf

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

Europe

About the Author

Luke Kehoe