Telecoms equipment maker Ericsson reported a 42 percent drop in core profit and promised more cost cuts to protect itself from tough competition and slowing orders.
Telecom gear makers are under stress from price pressures and slower spending by the operators that are their clients, factors that Ericsson (Stockholm, Sweden) - the world's number one mobile network equipment maker - said would continue in the short term.
Attended by strategic and financial leadership of publicly quoted and private companies engaged in the sector, the Finance and Investment forum for datacenters is the premier conference for financiers, investors, private equity, venture capital, property specialists, technology owners and professional intermediaries and will take place in London 6 December. The programme will address the financials, business models, demand, trends, market prospects and forecasts for 2013 and beyond and ROI for private and publicly quoted datacentre and cloud service providers and operators, with investor focus on gaining access to ‘growing tech stocks’ with high revenue growth and relatively stable fixed costs.
Mobile operator EE said Britain's first 4G service will cost from 36 pounds ($57.72) a month under a pricing strategy designed to lure smartphone customers to its superfast network before rivals are able to launch competing products.
Chief Executive Olaf Swantee said the company's tariffs, which range from 36 pounds for 500MB of data to 56 pounds for 8GB, were about 10-20 percent more than for equivalent 3G plans. He said it was a small premium to pay for up to five times faster connections.
Norwegian telecoms firm Telenor
Telenor (Fornebu, Norway), which has over 150 million subscribers across Europe and Asia, said earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6.1 percent to 8.796 billion crowns ($1.53 billion), beating the average of forecasts for 8.54 billion crowns.
Dutch incumbent KPN reported declining profits and revenues for the third quarter, with tough competition in Germany’s mobile-phone market largely blamed for the slump.
The operator’s net income fell by 38%, to €250 million ($324 million), compared with the third quarter of 2011, while revenues dropped 3.6% to about €3.1 billion.
M2M technology is finding some novel applications. A new service available from Deutsche Telekom’s M2M Marketplace is designed to provide automatic notifications to livestock farmers when calving begins or when a cow is in heat and ready for insemination.
The system works by means of M2M data-collection devices, equipped with Deutsche Telekom (Bonn, Germany) SIM cards, installed in stables or the field. Sensors measure the cow’s vital data and then relay it to the data collection device, which, in turn, sends a text-message notification to the farmer.
Qtel, Qatar’s state-controlled operator, is interested in purchasing Vivendi’s stake in Maroc Telecom, the largest telecoms business in Morocco, reports the Financial Times.
Thought to be interested in concentrating on its media business henceforth, the French conglomerate is reviewing its ownership of various telecoms businesses, including Maroc Telecom (Rabat, Morocco), in which it holds a 53% stake, and SFR (Paris, France), a French mobile-phone operator.
Egypt-based Orascom Telecom Holding is planning to exploit a change in legislation that will allow it to take full control of Wind Mobile, its Canadian mobile-phone subsidiary.
The company has asked shareholders to approve a proposal that would let it convert non-voting shares in Globalive (Toronto, Canada), the holding company that owns Wind, into voting shares.
Telecoms equipment maker Alcatel-Lucent plans to axe 5,490 jobs worldwide as part of a cost-saving program unveiled in July, with more than a quarter of the cuts coming in France.
Union representatives in France on Thursday pledged to fight the 1,430 job cuts in France and called on the government to intervene, creating another headache for the new Socialist government as it tries to tackle unemployment which is at a 13-year high.
"We are in shock," Isabelle Guillemot, of the CFDT union, said, calling on workers to hold protests on Friday.
Telefonica hopes to raise around 1.5 billion euros ($2 billion) by selling part of its O2-branded German subsidiary on the stock market.
Europe's largest telecoms company by revenue has said it could also sell businesses in Latin America as it tries to cut its 58 billion euro debt pile and hang on to its prized investment-grade rating, under pressure from the euro crisis in its Spanish home market.