Ports-to-telecoms conglomerate Hutchison Whampoa Ltd, owned by Asia's richest man Li Ka-shing, reported on Thursday better-than-expected first-half profits, buoyed by a solid performance in European infrastructure and telecoms investments.
Li, nicknamed "Superman" by local media for his deal-making savvy, plans to exit the mature Hong Kong supermarket business to focus on investing in European infrastructure and telecom assets as global economic woes drive down prices, analysts said.
Two new telecom licences have just been awarded in Myanmar. The new Telecom Law is now being treated in its final stage in Parliament and is expected to be passed soon. Foreign investments in both the telecom and ICT sectors are welcome, and more new market openings are expected. Beyond the two new telco licences awarded, more new licences for foreign joint ventures or foreign entities are in the pipeline. Amongst the wide array of services permitted, the two new operators will be allowed to offer mobile connections, fixed line services, IT and Internet offerings.
Middle Eastern operator Ooredoo has reported a 44% rise in net profit for the three months ending June 2013, to QAR923 million ($253 million), with earnings boosted by a rise in revenue and gains from overseas interests.
The Qatari operator – formerly known as Qtel – saw revenues grow by 4.2% over the period, to QAR8.7 billion, fuelled by a strong performance in its domestic market as well as in the important markets of Algeria, Indonesia and Iraq.
UK telecoms incumbent BT Group is to split its Retail unit into separate consumer- and business-facing organizations when Gavin Patterson takes over from Ian Livingston as chief executive in September this year.
Called simply BT Consumer and BT Business, the new divisions are being created to help BT (London, UK) focus on its strategic priorities of “driving broadband-based consumer services” and “being the brand for business for UK SMEs”, said the operator in a statement.
Sprint Corp, the No. 3 U.S. mobile service provider, posted a wider quarterly loss due to hefty costs from shutting down its older Nextel network and it warned that customer defections would continue to hurt it in coming quarters.
Shares in Sprint (Overland Park, KS, USA), which recently sold 78 percent of its shares to Japan's SoftBank Corp (Tokyo), rose 1 percent on Tuesday morning as its revenue was better than expected.
America Movil has terminated a “relationship agreement” with KPN that will now allow it to increase its stake in the Dutch operator to 30% or more.
The Latin American telecoms giant currently owns just less than 30% of KPN (The Hague, Netherlands) and until now was prohibited from increasing its stake in the operator under the agreement.
According to a clause in that agreement, however, the ownership restriction would cease to apply if KPN or a KPN subsidiary agreed to a takeover offer from another party.
Kuwait-based Zain has reported a 20% drop in net income for the first half of the year, to KWD113 million ($397.4 million), with adverse currency movements in Sudan largely to blame for the setback.
The company, which owns telecoms businesses across the Middle East and parts of Africa, also reported an 8% fall in revenue, to KWD612 million.
Egyptian fixed-line incumbent Telecom Egypt has signed a deal to provide transmission services to Etisalat Misr, the country’s number-three mobile operator and a subsidiary of United Arab Emirates giant Etisalat.
In a statement, Telecom Egypt (Cairo, Egypt) says the “long-term” agreement gives Etisalat (Cairo, Egypt) the right to use transmission services across its network immediately, citing the value of the contract as EGP200 million ($28.6 million) annually.
Orange chief executive Stephane Richard has lashed out at European regulators, claiming their opposition to consolidation is weakening the sector, in an interview with French newspaper Le Figaro.
The boss of France’s biggest telecoms operator believes there are too many operators and that mergers and acquisitions should be allowed, while also arguing for a single European regulator instead of numerous national regulatory authorities.
Vodafone said it did not expect any let-up in the pressures weighing on its business, as the world's second-largest mobile operator reported first-quarter results hit by regulation and recession across Europe.
The British group, which has been battling regulator-ordered price cuts, economic pressures and competition throughout its European markets, said on Friday it expected the next three months to follow broadly the same trends after reporting yet another sharp drop in its key revenue measurement.