Spanish telecom giant Telefonica (Madrid, Spain) stuck to ambitious shareholder return targets on Friday even while nine-month profit fell a more-than-expected 69% in what the group described as a "challenging" operating environment.
The euro zone's biggest telecom in terms of market capitalization announced a 69% fall in net profit to $3.71 billion on a 5.4% rise in revenues to $63.7 billion in the January to September period, with net profit around $410 million below average expectations.
SK Telecom (Seoul, South Korea) has agreed to buy 21% of Hynix Semiconductor (Icheon, South Korea) for $3 billion in its biggest ever acquisition that will help the creditors-turned-shareholders find a new owner for the chipmaker after years of failure.
The $3 billion deal comprises of SK Telecom paying $2 billion to Hynix and the remaining $1 billion to nine shareholders of the world's second largest computer memory chipmaker.
Britain's biggest mobile operator, Everything Everywhere (London, England), is planning to pay back $1.4 billion of loans to its two parent companies -France Telecom (Paris, France) and Deutsche Telekom (Bonn, Germany)- in a step towards making itself a wholly independent operation, the Financial Times reported on Monday.
On Monday, the Shareholders Foundation, Inc. (San Diego, Calif., U.S.A.) announced that a lawsuit was filed in State Court for current investors of Tekelec (Morrisville, N.C., U.S.A.) in an effort to block the proposed going private offer of Tekelec.
As smartphone usage grows and consumers start using their phones for more than just voice, the concept of a mobile service provider is changing. According to two surveys, including one performed by Oracle (Redwood Shores, Calif., U.S.A.), a person’s mobile phone is replacing other devices, and in the future will be used for everything from banking to a GPS system.
Oracle surveyed more than 3,000 mobile users around the world and found that mobile devices are becoming more valuable to consumers.
China Telecom Corp Ltd (Beijing, P.R.C.), the smallest of the country's three carriers, is considering entering the U.S. wireless market by offering services to handset consumers who frequent both countries, a company executive said on Wednesday.
China Telecom plans to work out a scheme using MVNO (mobile virtual network operator), aiming to use the network infrastructure of a U.S. operator to provide such services, the executive said.
He said he did not expect significant regulatory hurdles for the MVNO plan, although some analysts are skeptical.
On Friday, DragonWave, Inc. (Ottawa, Canada) announced plans to acquire Nokia Siemens Networks' (Espoo, Finland) microwave transport business, including its associated operational support systems (OSS) and related support functions. Under the deal, Nokia Siemens Networks (NSN) will retain responsibility for its existing sales and associated services for microwave transport, while DragonWave will be responsible for the product line, including R&D, product management and operations functions.
Market research firm Infonetics Research (Campbell, Calif., U.S.A.) on Tuesday released excerpts from its Service Provider Capex, Opex, ARPU, and Subscribers report, which reported that telecom capital expenditures (CAPEX) were up 6% to $311 billion in 2011, while revenue was up 8% to $1.86 trillion.
France Telecom-Orange (Paris, France) and Publicis Groupe (Paris, France), an advertising and communications company, announced on Monday plans to launch a new venture capital fund. The fund will finance and develop digital start-up, particularly in France and the European Union, says Orange.
Iridium Communications Inc. (McLean, Va., U.S.A.) on Tuesday reported financial results for the third quarter of 2011 and raised its outlook for 2011. Iridium reported third-quarter total revenue of $102.1 million, which consisted of $69.4 million of service revenue and $32.8 million of equipment, engineering and support revenue. Total revenue grew 8% versus the comparable period of 2010, while service revenue increased 11% from the year-ago period.