By Nir Halachmi, Product Line Manager, Telco Systems
With mobility and an increased level of high bandwidth content, mobile operators are facing a challenge, as they cannot convert the increased demand for broadband into an increased profit.
Wyless (London, England) and Wireless Maingate (Stockholm, Sweden), two M2M MVNO's, announced a strategic partnership that will provide both companies will access to the others networks.
Telefonica (Madrid, Spain) last Monday announced that it has signed a strategic partnership with Quantenna Communications (Fremont, Calif., U.S.A.), a provider of Wi-Fi networking for home entertainment, including connected devices. Through the partnership, Telefonica looks to make a strategic equity investment in Quantenna, which will give it access to the latest Quantenna technology for the deployment of high performance video services to the home.
Telefonica will invest roughly $3 million in Quantenna, which brings the total investment up to $90 million to date, says Quantenna.
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.
The Current Wireless Network Landscape
As the popularity of smartphones, tablets and other intelligent mobile devices increases, and as consumer’s leverage these devices for increasingly high-bandwidth applications and services, today’s 3G wireless networks, and associated backhaul networks, are frequently overwhelmed. In fact, the amount of bandwidth currently consumed is reaching levels equal to that of wired broadband connections.
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.