Today, Three Ireland has announced the switching on of its 5G networkacross the nation.

Around 315 base stations have been deployed so far, giving a totalcoverage of around 35% of the Irish population. Around 500 more are expected tobe deployed by the end of 2020, with Three having invested around ?100 millionin the rollout over the last year and expecting to spend the same again for thenext few years to enhance coverage. Naturally, major areas initially coveredinclude urban hubs, like Dublin and Cork, but some rural areas are alsoincluded.

?What we expect is by the end of next year we will be well in excess of50 per cent population coverage and growing,” said Three Ireland’s CTO DavidHennessy. ?This is about actually having a very substantive proposition outthere for our customers and very substantive service.”

Three is the last of Ireland’s three major mobile operators to launch5G, with Vodafone Ireland doing so in September 2019 and Eir following suitjust one month later. Three’s 5G launch was initially scheduled for a similardate but was delayed, primarily due to a switch from Huawei to Ericssonequipment at a late stage in the technology’s deployment.

Lagging behind by around one year, one would think that Three will havemuch catching up to do when it comes to the next-generation mobile technology,but the company in fact claims that its initial launch is larger than itsrivals’ current deployments.

Three’s 5G uptake should also receive something of a boost from therelease of the new 5G Apple iPhone, expected to hit the market in a few weekstime.

When it comes to accessibility, Three’s customers on more expensiveplans will have access to 5G for free ? assuming they have a compatible device.However, lower-priced plans, including pre-paid, will also be able to access 5Gfor a ?5 supplementary charge.

?Connectivity is vital to our everyday lives, so we wanted to be thefirst in the country to offer prepay customers as well as bill pay customers a5G experience. 5G is transforming how we connect, work, are entertained and howwe live our lives,” said CEO Robert Finnegan. ?Having seen what 5G can do and the latency it provides, I am excited tosee the economic developments and opportunities this brings to Ireland as westrive to compete in a global environment where connectivity is crucial.”

SUNNYVALE, Calif. (GLOBE NEWSWIRE) — Infinera(NASDAQ: INFN) announced today that G?ANT, Europe’s leading collaboration onnetwork and related infrastructure and services for research and education,selected Infinera’s industry-leading 600G transmission technology for itsnext-generation pan-European network.

UsingInfinera’s Groove (GX) Series Compact Modular Platform, FlexILS Open OpticalLine System, and professional services, G?ANT is undertaking the mostsignificant refresh of its network in a decade as part of a major EU-fundedproject designed to support the needs of Europe’s research and educationcommunity for the next 15 years.

The amount ofvital data generated by scientists and researchers from areas such asbioinformatics, medicine, physics, astronomy, and climate change is growingexponentially, and G?ANT and its NREN partners must stay well ahead ofrequirements. While G?ANT’s current terabit-ready network is the most advancedand well-connected regional research and education network in the world, theneed to stay ahead of requirements for years to come is vitally important toscientific collaboration and discovery.

With Infinera’snetworking solutions, G?ANT can effectively provide high-speed services to itscustomers using efficient, high-capacity 600G per wavelength transmission.Additionally, the scalable network is designed to enable G?ANT to scalecapacity to multiple terabits seamlessly, meeting rapidly growing bandwidthdemand. Leveraging advanced features from the GX G30 and FlexILS, G?ANT canprovide a high level of security, service reliability, and disaster recovery.

?The success ofthe G?ANT (GN4-3N) project is essential for Europe’s research and educationcommunities and will ensure G?ANT and our NREN partners continue to enablescientific discoveries, remote learning for millions of students, and therealization of open science,” said Erik Huizer, Chief Executive Officer, G?ANT.?Infinera continues to be one of our trusted technology partners and we valuetheir expertise in deploying optical networks and providing the best solutionsto meet and exceed our extremely demanding requirements.”

?We are excitedto partner with G?ANT to meet some of the most stringent network requirementsfor high-capacity research and education networks,” said Nick Walden, SeniorVice President, Worldwide Sales at Infinera. ?G?ANT provides network andcollaboration services that facilitate important international cooperationbetween researchers and educators, and we are proud to support their effortswith cutting-edge optical technology that delivers what they need and providespeace of mind.”

SSE Enterprise Telecoms is collaborating with long-term providerpartner, NYnet to support the infrastructure development of an NHS ExtendedAccess Hub in North Shields, Tyne and Wear in the UK.

The hub was established to help medical staff support Covid-19patients that were not deemed as requiring urgent hospital care, but stillneeded treatment in a secure facility. For this, robust, resilient and reliableconnectivity was essential. It was agreed that Ethernet would be the bestsolution.

Having worked with SSE Enterprise Telecoms for a number ofyears, NYnet contacted its provisioning team to acquire the technology, highlightingthe importance of quick delivery of this service to support the Covid-19response. Given the project?s critical importance, timings as much as possible,and delivery of the circuit was completed in eight working days. To put it intocontext, a typical timeline can be between 40 and 60 days. Once the circuit wasdeployed, NYnet was able to quickly install a router and connect the site tothe Health & Social Care Network (HSCN).

Zoe Oxley, senior project and deployment manager at NYnet said:?The Extended Access Hub is a critical component in the North East?s fightagainst Covid-19. As soon as the medical team reached out to us forconnectivity support, we understood the importance of procuring and deliveringa reliable connectivity solution as quickly as possible. This well managed,smooth process is a great display of how the industry can support ourfront-line key workers, should we all pull together.?

Added Simon Willmott, sector director for service provider atSSE Enterprise Telecoms: ?We are living in challenging times, where thereliance on our blue light services has never been so great. The successfulcompletion of this deployment has been a real team effort and is a testament tothe commitment of businesses across the sector in coming together during thepandemic to make sure the lives of those on the front line, and their patients,are a little bit easier.?

Technology research institute, CEA-Leti has demonstrated a fullypackaged CWDM optical transceiver module with data transfer of 100Gb/s perfibre, with a low-power-consumption electronic chip co-integrated on thephotonic chip.

The silicon-photonics-based transceiver multiplexes twowavelengths at 50Gb/s. It is designed to meet the increasing data-communicationdemands and energy use of data centres and supercomputers. The institute is part of the COSMICC consortium of key industrialand research partners in silicon photonics, CMOS electronics, packaging,optical transceivers and data centres. Its vision is the mass commercialisationof silicon photonics based transceivers.

EU H2020 project, COSMICC further developed all the requiredbuilding blocks for a transmission rate of 200Gb/s and beyond withouttemperature control with four 50Gb/s wavelengths and by aggregating a largenumber of fibres. The key breakthroughs are the development of broadband andtemperature-insensitive silicon nitride (SiN) multiplexing components onsilicon (Si), the integration of hybrid III-V/Si lasers on the Si/SiN chips anda new high-count adiabatic fiber-coupling technique via SiN and polymerwaveguides.

The researchers say that their demonstration opens the way totechnology that allows a reduction in the cost, the power consumption and thepackaging complexity, allowing a way to reach a very high aggregated data ratebeyond terabits per second.

Using STMicroelectronics? silicon photonics integrationplatform, the COSMICC project developed a coarse wavelength divisionmultiplexing (CWDM) silicon-photonics transceiver in a packaged module at100Gb/s per fibre. This is scalable to 400Gb/s and includes 3D assembly of asilicon photonic chip and its electronic control chip. The silicon photonicchip integrated high-performance 50Gb/s NRZ optical modulators andphotodetectors, and a two-channel CWDM multiplexer and demultiplexer.

Separately, a library of enabling building blocks for higherdata-rate data centre interconnects was built on a SiN-enhanced siliconphotonics platform, including new broadband and athermal SiN components andhybrid III-V/Si lasers. CEA-Leti scientist S?gol?ne Olivier, who coordinatedthe EU project, said development of modulators and photodetectors at 50Gb/s andtheir co-integration with their control electronics was a breakthrough that ledto the low-power consumption 100Gb/s transceiver module. ?In addition,? shesaid, ?the new building blocks are essential for addressing the need for Tb/stransceivers at low cost and low energy consumption to sustain the exponentialgrowth of data traffic in datacenters and in high performance computingsystems. COSMICC?s technology will answer tremendous market needs with a targetcost per bit that traditional WDM transceivers cannot meet.?

SUNNYVALE, Calif. & LITTLE ROCK, Ark.–(BUSINESS WIRE)–Infinera(NASDAQ: INFN) and Windstream, a leading provider of advanced networkcommunications, today announced the completion of a live network trial thatsuccessfully achieved 800 gigabits per second (800G) single-wavelengthtransmission over 730 kilometers (km) across Windstream?s long-haul networkbetween San Diego and Phoenix. In addition to the industry-leading real-worldperformance at 800G, Windstream and Infinera set another industry record bylooping back the signal to achieve a 700G transmission over 1,460 km. The trialwas performed using Infinera?s fifth-generationcoherent optical technology, ICE6 (Infinite Capacity Engine), equipped in aGroove (GX) Series platform over industry-standard G.652-compliant SMF-28fiber, with both signal rates achieving a performance level that metWindstream?s production network deployment standards.

The results of the trial mark a major milestone in optical networking bydemonstrating that ultra-high-speed optical transmissions, such as 700G and800G, powered by Infinera?s ICE6 optical engine and Windstream?shigh-performance fiber network, can be deployed in real-world networkapplications over significant distances. This will enable emerging 400 GigabitEthernet (400 GbE) services to be supported over longer distances within theWindstream national network. High-performance, high-speed transmission willalso enable network operators like Windstream to realize increased efficiencyin cost per bit and power per bit, as well as increased capacity per fiber byas much as 70 percent compared to third-generation (400G) coherent technologyand by as much as 35 percent compared to fourth-generation (600G) coherenttechnology.

?Windstream remains committed to staying at the forefront oftechnological innovation and the superior performance of ICE6 brings real-worldvalue to our network and enables us to meet the explosive growth in bandwidthdemands of our customers,? said Buddy Bayer, chief network officer atWindstream. ?The flexibility of ICE6 coupled with the easily deployable compactmodular form factor of the GX Series will enable Windstream to quickly andeasily introduce this new technology across our entire network from edge tocore.?

The industry-leading 700G and 800G transmission performance was enabledby advances in Nyquist subcarriers, a pioneering innovation developed byInfinera?s Optical Innovation Center (OIC). Unlike competing technologies,Nyquist subcarrier-based solutions enable superior performance by mapping thetraffic into tightly packed, lower-baud-rate digital subcarriers within asingle optical carrier. In addition to providing significant performancebenefits on their own, subcarriers also amplify the benefits of otherinnovations from Infinera?s OIC such as 64QAM long-codeword probabilisticconstellation shaping and dynamic bandwidth allocation that now can be appliedto each subcarrier independently.

?Infinera is delighted to set this new industry benchmark and partnerwith Windstream, a network operator that continually pushes the boundaries ofoptical networking,? said Parthiban Kandappan, chief technology officer atInfinera. ?As proven by the superior performance of this network trial, webelieve our unique expertise with Nyquist subcarriers coupled with thegroundbreaking innovations introduced by ICE6 will represent the standard forhigh-speed optical engines going forward.?

About Windstream

Windstream Holdings, Inc. is a leading provider of advanced networkcommunications and technology solutions. Windstream provides data networking,core transport, security, unified communications and managed services tomid-market, enterprise and wholesale customers across the U.S. The company alsooffers broadband, entertainment and security services for consumers and smalland medium-sized businesses primarily in rural areas in 18 states. Services aredelivered over multiple network platforms including a nationwide IP network,our proprietary cloud core architecture and on a local and long-haul fibernetwork spanning approximately 164,000 miles. Additional information isavailable at windstream.com or www.windstreamwholesale.com.Please visit our newsroom at news.windstream.com or follow us on Twitter at@Windstream.

About Infinera

Infinera is a global supplier of innovative networking solutions thatenable carriers, cloud operators, governments, and enterprises to scale networkbandwidth, accelerate service innovation, and automate network operations. TheInfinera end-to-end packet optical portfolio delivers industry-leadingeconomics and performance in long-haul, submarine, data center interconnect,and metro transport applications. To learn more about Infinera, visit www.infinera.com, followus on Twitter @Infinera, and read ourlatest blog posts at www.infinera.com/blog.

Infinera and the Infinera logo are registered trademarks of InfineraCorporation.

This press release contains forward-looking statements including, butnot limited to the potential technical, operational and economic benefitsprovided to network operators using Infinera?s ICE6 equipped in a GX Seriesplatform. These statements are not guarantees of results and should not beconsidered as an indication of future activity or future performance. Actualresults may vary materially from these expectations as a result of variousrisks and uncertainties. Information about these risks and uncertainties, andother risks and uncertainties that affect Infinera?s business, is contained inthe risk factors section and other sections of Infinera?s Annual Report on Form10-K for the Fiscal Year ended December 28, 2019 as filed with the SEC on March4, 2020, as well as any subsequent reports filed with or furnished to the SEC.These reports are available on Infinera?s website at www.infinera.com andthe SEC?s website at www.sec.gov. Infineraassumes no obligation to, and does not currently intend to, update any suchforward-looking statements.

Openreach has selected Adtran’s SDX Series of optical line terminals (OLT)s and Mosaic Cloud Platform to help ramp up its full fibre deployment in line with the goals outlined in its Fibre First programme. Launched in early 2018, the programme sees the access network division of BT Group working towards the target of bringing high-speedbroadband to three million UK premises by the end of 2020, and overall, 20 million UK homes by the mid-to-late 2020s.

Peter Bell, network technologies director at Openreach explained: ‘We’re already making our new broadband network available to around 32,000 UK homes and businesses every week ? and we’re on track to reach our target of reaching four and a half million premises with full-fibre’ by the end of March 2021. But we don’t want to stop there. Our new network will support the UK’s economy for decades to come and help it bounce back from the Covid-19 pandemic, so we’ll be accelerating our full-fibre build throughout the year.’

The use of Adtran’s SDX platform will enable Openreach to economically scale its GPON and XGS-PON network with a higher level of flexibility. Its disaggregated, flexible design provides the framework to support a large number of customers by delivering the granularity of interconnect speeds required to meet the needs of retail service providers of all sizes. Capable of supporting gigabit and multi-gigabit access links on the same OLT port, Openreach’s retail customers can deliver the right mix of enterprise, business and residential services based on their own demographics,industry type and residential interests.

Dan Whalen, Adtran’s chief product officer said: ‘Given the breadth of Openreach’s full-fibre network, having the ability to deliver GPON and XGS-PON services from the same OLT port streamlines service delivery and reduces the complexity of network design. We make it possible for any service provider, based anywhere in the country, to have the service options they require to fit their customers’ needs.’

Eight companies have come together to build 2Africa, a subsea cabledesigned to serve the African continent and Middle East region. The cable willalso connect via east Africa with other subsea cables for expanded connectivityto Asia.

The big-name parties involved are China Mobile International,Facebook, MTN GlobalConnect, Orange, stc, Telecom Egypt, Vodafone and WIOCC.The cable will be some 37,000km long, making it one of the world’s largestsubsea cable projects. It will interconnect Europe (eastward via Egypt), theMiddle East (via Saudi Arabia), and 21 landings in 16 countries in Africa. Theconsortium has chosen Alcatel Submarine Networks to build the cable in a fullyfunded project.

2Africa will have a design capacity of up to 180Tb/s on keyparts of the system, and the expected ‘go live’ date will be in 2023/4. Incountries where the cable will land, service providers will obtain capacity incarrier-neutral data centres or open-access cable landing stations on a fairand equitable basis. This will support healthy internet ecosystem developmentby facilitating greatly improved accessibility for businesses and consumersalike.

The 2Africa parties and Airtel have signed an agreement withTelecom Egypt to provide a completely new crossing linking the Red Sea and theMediterranean, the first in over a decade. This includes new cable landingstations and deployment of next-generation fibre on two new, diverseterrestrial routes parallel to the Suez Canal from Ras Ghareb to Port Said, anda new subsea link that will provide a third path between Ras Ghareb and Suez.

From a technology standpoint, 2Africa will be using freshtechnology in the form of SDM1 from Alcatel, allowing deployment of up to 16fibre pairs, bringing much greater and more cost-effective capacity. The cablewill incorporate optical switching technology to enable flexible management ofbandwidth. Cable burial depth has also been increased, and routing will avoidlocations of known subsea disturbance.

Jessica Gu, director and chief technology officer oat ChinaMobile International said: ‘The launch of 2Africa enables us to offer ourcustomers seamless connection between Africa and Europe, together with ourSEA-ME-WE 5 and AAE-1 subsea cable resources to further extend to Asia, whichis an important milestone of our global development strategy,’

Najam Ahmad, vice president, network infrastructure at Facebookstated: ‘2Africa is a major element of our ongoing investment in Africa tobring more people online to a faster internet. We’ve seen first-hand thepositive impact that increased connectivity has on communities, from educationto healthcare.’

According to Fr?d?ric Schepens, CEO of MTN Group’s wholesaleoperation, MTN GlobalConnect: ‘MTN GlobalConnect is delighted to participate inthis bold 2Africa subsea cable project. We are proud to be playing a key rolein providing the benefits of a modern connected life ? a core MTN belief.’

Alioune Ndiaye, CEO of Orange Middle East and Africa said: ‘Thismajor investment will complete our existing submarine and pan-Africanterrestrial infrastructures to provide access to international connectivity ina redundant fashion throughout the west coast of Africa.’

Mohammed A. Alabbadi, wholesale VP in stc added: ‘The 2Africacable will be integrated into stc’s MENA Gateway (MG1) data centre in Jeddah,enabling customers to access our extensive international content and extendtheir regional connectivity through stc terrestrial geo-mesh network thatextends to all neighboring countries. The partnership demonstrates stc’scommitment, in line with Saudi Vision 2030, to deliver meaningful digitaltransformation and build a digital society for all.’

Adel Hamed, Telecom Egypt’s managing director and chiefexecutive officer said: ‘Telecom Egypt’s contribution to 2Africa marks animportant milestone in our endeavor to contribute to digital transformation inAfrica. We are honored to be part of such a revolutionary project alongsiderenowned global and African partners.’

Vinod Kumar, CEO at Vodafone Business stated: ‘Improvingconnectivity for Africa is a significant step which lays the groundwork forincreased digitalisation across the continent. 2Africa will give localbusinesses and consumers a better online experience while more connectivitybetween Africa, Europe and the Middle East will help to build a wider, moreinclusive digital society across the globe.’

WIOCC CEO, Chris Wood added: ‘For over a decade WIOCC has beenthe hyperscale capacity provider for Africa, based upon a strategy of ongoingstrategic investment in key subsea and terrestrial infrastructure. Ourinvestment both future-proofs our network capabilities and provides additionalresilience to maximise uptime for our critical infrastructure.’

Alain Biston, president of Alcatel Submarine Networks concluded:’We are honored by the trust of our partners and proud to have been selectedfor this project. With this state-of-the-art subsea system, Africa will take agiant leap to the digital age thanks to the best-in-class technologies.’

Africa is of particular interest as a market, when it comes tosubmarine cables. Last year saw Google announce its investment inthis market, with a private subsea cable that connects Africa with Europe.

A private and public co-operative group is working to roll out a multimillion pound fibre broadband upgrade which will see Blackpool become one of the UK’s best connected towns.

The technology will see the town’s old copper lines replaced with a ‘hyperfast’ fibre alternative, giving residents and businesses the opportunity to access gigabit speeds.

The launch of the Fibre Blackpool initiative is a result of ?3.1m of funding that was secured in Spring 2018 through the Department for Digital, Culture, Media and Sport (DCMS).

The grant has been used to expand a shared fibre infrastructure into Blackpool town centre and along the length of the coast’s tramline, from Squires Gate Lane and Blackpool Airport Enterprise Zone all the way to Fleetwood and Hillhouse Technology Enterprise Zone, thus future-proofing the town with a full ‘fibre to the premises’ (FTTP) connection.

SMEs and residents will be able to claim one-off vouchers to put towards the cost of connecting to the project.

Shaun Fensom,secretary of the Cooperative Network Infrastructure (CNI), said: ?Over the next two years we’ll be working with Blackpool to unlock a state-of-the-art fibre network for the benefit of both residents and businesses.

“The network will enable Internet service providers – members of our cooperative -to deliver some of the fastest internet connections available in the UK.They’ll be investing to connect businesses and residents along the Fylde Coast and in the two Enterprise Zones. That will mean faster, better connections, and bring yet more investment to Blackpool.”

Author? Tim Aldred

The owners of Virgin Media and O2 have confirmed a ?31bn mergerdeal to create a new ?national champion” to challenge BT and Sky in the UK

Liberty Global, which owns the UK’s largestcable company Virgin, and Telef?nica, which owns Britain’s biggest mobileoperator O2, are to merge their UK operations in a new 50-50 joint venture.

Liberty Globalis also ITV’s biggest shareholder, with a 10% stake, and owns half ofAll3Media, the production group that makes shows including Liar, Fleabag andHollyoaks.

The newcompany, which will challenge BT and Sky by offering consumers competitivebundles of TV, mobile and broadband packages, will have 46 million customersand ?11bn in revenue.

Mike Fries, the chief executive of Liberty Global, said it hadbeen only ?a matter of time” until there was more convergence in the highlycompetitive UK media and telecoms market.

?BT and EEtogether are a powerful combination in our minds,” he said, referring to BT’s ?12.5bn deal to buy the mobile company in 2016.?Our rationale was that it was just a matter of time, convergence has beenslower in this market. With Virgin Media and O2 together, the future ofconvergence is here today.”

The new companywill invest ?10bn in areas including gigabit-speed broadband and 5G networks.

?The UK is one of the most attractive markets on Earth,” saidJos? Mar?a Alvarez-Pallete, the chief executive of Telef?nica. ?Evenconsidering Brexit, we have been investing heavily in the UK. It is the righttime to commit to the future of the UK by building this value proposition.”

Under the deal,which is expected to complete in the middle of next year, there is an option toperhaps float the venture on the UK stock market in three years.

?We are bothcoming to the joint venture with the expectation we will remain partners,”Alvarez-Pallete said. ?We don’t come into this with the expectation that wewill turn right or left at a certain point of time. If a listing were to come downthe road, it can provide a transparency of value and give people the chance toown part of a national champion.”

Philip Jansen,the chief executive of BT, said the emergence of a new power player in the UKmarket would not make BT speed up its own investment plans.

?We are not going to go any faster,” he said. ?We have acomprehensive five-year plan. This deal is not a surprise, I think the industryneeds consolidation. It follows our strategy four years ago [buying EE].Competition is good, it drives innovation.”

The new jointventure will be overseen by an eight-strong board of directors, four each fromLiberty Global and Telef?nica, with the chairman rotating every two yearsbetween the two companies. Liberty Global’s Fries will be the first chairman.

The deal willinclude recapitalisations under which Telefonica will receive ?5.7bn inproceeds and Liberty Global ?1.4bn. The new venture will be laden with ?18bn inlong-term debt.

Vodafone, whichhas previously held talks with Liberty Global about a similar UK tie-up, couldyet look to make a counter offer.

When consummated, an event the two parties expect will take place by the middle of next year, the joint venture will serve more than 46 million video, broadband, and mobile subscribers and boast ?11 billion of revenue.

Author – Stephen Hardy May 2020

Liberty Global plc (NASDAQ: LBTYA, LBTYB and LBTYK) and Telefonica SA (Madrid stock exchange: TEF) have reached an agreement to merge their operations in the UK into a joint venture. The merger, valued at ?31.4 billion ($38 billion) will see the combination of Liberty’s Virgin Media cable MSO with Telefonica’s O2 mobile services provider. When consummated, an event the two parties expect will take place by the middle of next year, the joint venture will serve more than 46 million video, broadband, and mobile subscribers and boast ?11 billion ($13.6 billion) of revenue. The joint venture does not include Liberty Global’s operations in Ireland.

The joint venture, which doesn’t yet have a name, would pose a significant rival to British Telecom in the UK residential and business services markets. Liberty Global and Telefonica say the new entity will invest ?10 billion ($12.36 billion) in the UK over five years.

?Combining O2’s number one mobile business with Virgin Media’s superfast broadband network and entertainment services will be a game-changer in the U.K., at a time when demand for connectivity has never been greater or more critical,” commented Jose Maria Alvarez-Pallette, CEO of Telefonica. ?We are creating a strong competitor with significant scale and financial strength to invest in UK digital infrastructure and give millions of consumer, business, and public sector customers more choice and value. This is a proud and exciting moment for our organizations, as we create a leading integrated communications provider in the UK.”

?We couldn’t be more excited about this combination,” added Mike Fries, CEO of Liberty Global. ?Virgin Media has redefined broadband and entertainment in the U.K. with lightning fast speeds and the most innovative video platform. And O2 is widely recognized as the most reliable and admired mobile operator in the U.K., always putting the customer first. With Virgin Media and O2 together, the future of convergence is here today. We’ve seen the benefit of FMC first-hand in Belgium and the Netherlands. When the power of 5G meets 1 gig broadband, U.K. consumers and businesses will never look back. We’re committed to this market and are right behind the Government’s digital and connectivity goals.”

The board of the joint venture will have eight members, four from each of the two participating companies. Fries and Alvarez-Pallette will be among the board members. The post of board chairman will be held for alternating two-year periods by someone from each company, with a Liberty Global executive holding the position first.

The deal involves a somewhat complicated recapitalization scheme involving multiple financings that will leave the joint venture a target closing net leverage ratio of 5.0X, or approximately ?18 billion ($22.25 billion) of long-term debt. Net new proceeds from the recapitalizations are expected to be approximately ?6 billion. With the recapitalizations, Telefonica expects to receive ?5.7 billion in total proceeds and Liberty Global ?1.4 billion ($1.73 billion), including approximately ?800 million from the recapitalization of its Virgin Media Ireland business. As part of the deal, a syndicate of banks has underwritten a ?4 billion standalone undrawn financing on the O2 business.

The transaction also includes equalization payments, based upon the enterprise value of each business involved in the joint venture. Within this context Liberty Global will make a cash payment to Telefonica of ?2.5 billion ($3.1 billion). Liberty Global expects this payment will be offset by funds from the recapitalizations, which will result in the Liberty Global netting cash from the deal.

The two parties expect the joint venture generate estimated run-rate cost, capex, and revenue synergies of ?540 million ($667.63 million) on an annual basis by the fifth full year after closing. Approximately ?430 million ($531.63 million) of this total would come from cost and capex synergies, say Liberty Global and Telefonica.

The transaction is subject to regulatory approval and the completion of the recapitalizations, but not shareholder approval.