China Mobile Ltd (Hong Kong, China), the world's largest mobile operator, said on Friday it will use $780 million to set up a finance unit in a move that could disappoint shareholders hoping for a dividend hike.
The new unit would be called China Mobile Finance and would engage in financial services such as insurance agency business and inter-bank lending, China Mobile said in a statement posted on the Hong Kong stock exchange.
Iraq's parliament has ruled that three mobile operators must pay $2.85 billion in license fees and fines within a month, overturning a deal allowing them to pay over five years, lawmakers and officials said on Thursday.
The ruling could reinforce investor worries about unclear regulations over who controls the telecommunications sector, one of the fastest growing industries in a country pulling back from years of war.
The GPS industry’s failure to comply with the Department of Defense’s (DoD) filtering standards is the root cause of potential interference issues involving LightSquared’s proposed broadband wireless network, according to a letter filed to the U.S. Federal Communications Commision (FCC) Thursday by Jeffery Carlisle, executive vice president for regulatory affairs and public policy at LightSquared (Reston, Va., U.S.A.).
Vodafone (London, England) announced on Wednesday a deal in which Piramal Healthcare will buy 5.5% of its mobile business in India for $640 million, to keep the British company within the foreign ownership rules. A spokesman for Vodafone said the healthcare company had recently made a host of disposals and was looking for an investment.
Deutsche Telekom (Bonn, Germany) holding company T-Mobile USA released its second quarter results last week and reports losing 50,000 customers in the second quarter. The company reported a loss of 99,000 customers the first quarter, and 93,000 in the year-ago quarter.
T-Mobile USA served 33.6 million customers at the end of this quarter, according to the company.
Telefonica SA (Madrid, Spain), one of Europe’s largest telecoms company, suffered a decline in first-half profit as consumers switched to cheaper providers and regulators pushed tariffs lower.
While lucrative smartphone growth drove a continued boom in Brazil, the business turned in a lackluster performance in its home market of Spain, and also in Britain, Mexico and Venezuela. Some analysts noted a risk to Telefonica's A- credit rating.
The market for security software to protect mobile devices including tablets, smartphones and feature phones will reach almost $3.7 billion by 2016 according to a new report by research firm Juniper Research (Hampshire, England). By that date enterprise and business sales will account for almost 69% of the market, according to the report.
Telecommunication companies Deutsche Telekom (Bonn, Germany) and France Telecom (Paris, France) have to pay a total $126 million for a 10-year license extension of their Slovak units, the Slovak telecommunication regulator said on Wednesday.
France Telecom, running Slovensko Orange -- Slovakia's largest mobile and internet services provider in terms of number of clients -- will pay $57.7 million.
Deutsche Telekom will pay $67.9 million for its T-Mobile Slovensko unit's licence.
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.
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.