Almost half the workers in Verizon Communications' (New York) wireline telecommunications business went on strike on Sunday as negotiations for a new labor contract failed.
The strike, involving 45,000 workers, is the first walk-out that Verizon, one of the two big U.S. telephone network operators, has faced since 2000, when about 80,000 workers went on strike for about three weeks.
Telecom equipment maker Alcatel-Lucent SA (Paris, France) reported weaker-than-forecasted results, magnifying concerns about a sector-wide slowdown and sending shares down more than 9%.
The companies weak second quarter results come after a strong start to the year as it rode a wave of operator spending in the United States. It also comes amid increasing investor worries about a possible second-half slowdown in the telecom equipment sector, especially in the United States.
Equipment makers Ericsson, Juniper and Cisco also reported weak Q2 results.
Last week, OnStar, a subsidiary of General Motors (Detroit, Mich., U.S.A.) that provides in-vehicle communication, announced it has launched a pilot program for Family Link, a new optional service that allows subscribers to stay connected when driving an OnStar-equipped vehicle. Pilot services include vehicle location and vehicle location alert.
Telecom Italia (Rome, Italy), the country’s largest telecom operator, kept its forecasts intact in the face of a rapidly-deteriorating economic climate at home, which took the sting out of a $2.8 billion first-half loss due to a goodwill writedown.
The company blamed deteriorating markets and interest rate trends for its $4.5 billion goodwill writedown on its domestic operations. Still, the company said the writedown would have no impact on its dividend or plans to cut debt and stuck to its forecasts for the year, promising trends at home were improving.
Inmarsat (London, England), a provider of satellite communications services, and SkyWave Mobile Communications (Ontario, Canada), a provider of communication services for machine-to-machine (M2M) applications, on Thursday announced the launch of a new low data rate service for managing and communicating with remote assets around the world.
Wireless telecommunications network operator Clearwire Corp (Kirkland, Wash., U.S.A.) said it would post an operating profit a few quarters sooner than expected, but also said it needs as much as $900 million in new funding.
In after-hours trading, shares of Clearwire almost completely wiped out a 10% gain from the regular Nasdaq session after the company said it needs up to $300 million more to tide it over until it reports positive cash flow sometime next year, and that it needs another $600 million for a network upgrade.
In a new study by research firm Juniper Research (Hampshire, England), it was reported that mobile network operators (MNOs) must explore means of addressing data delivery costs and inefficiencies in base station operations if their networks are to remain economically viable. According to the report, even with the increased deployment and utilization of LTE networks, global MNO data delivery costs could surpass $370 billion annually by 2016, a seven fold increase on their 2010 level of $53 billion.
On Tuesday, a new study by Informa Telecoms & Media (London, England), a telecom research firm, revealed the degree to which spectrum policy and availability is causing the market for LTE to become regionally fragmented. The emergence of distinct regional and national bands and band combinations will pose difficult choices for equipment and device vendors in terms of which bands they choose to support, according to Informa.
Itron, Inc. (Liberty Lake, Wash., U.S.A.), a smart meter provider, announced on Tuesday that it has been selected by Larsen & Toubro, the largest construction company in India, to supply residential water meters as part of an infrastructure upgrade project in Delhi. Over the course of the 18-month project, Itron will provide 250,000 water meters to accurately measure water usage in the metropolitan area--the largest contract for Itron in India to date, according to the company.
Sierra Wireless (Richmond, British Columbia, Canada), a wireless equipment manufacturer, on Tuesday announced that its embedded wireless modules have received technical approval for both AT&T and Verizon’s 4G LTE networks.
The Sierra Wireless AirPrime MC7700 embedded wireless module has received approval for the AT&T 4G LTE network, while the Sierra Wireless AirPrime MC7750 module received approval for the Verizon Wireless 4G LTE network.