Verizon Communications Inc said strength in its wireless business was tempered by weakness in its traditional wireline unit, producing softer-than-expected revenue growth for the quarter and sending its shares down nearly 2 percent.
The telecommunications company said on Thursday that corporate and government customers were cutting costs, partly offsetting better-than-estimated wireless customer growth. Also, wireless profit margins were hurt by higher costs.
Liberty Global has given up efforts to acquire Kabel Deutschland, recently the target of a €7.7 billion ($10.1 billion) offer from Vodafone, and will instead focus takeover efforts on the southern Europe region, reports Bloomberg.
Liberty’s (Meridian, CO, USA) interest had forced Vodafone (Newbury, UK) to raise the price of its original offer but the UK operator now looks free to complete its move for Germany’s biggest cable company later this year.
Sweden’s TeliaSonera said it will prioritize investment in 4G coverage expansion after reporting a return to organic revenue growth for the three months to June 2013.
The operator said revenue for the second quarter fell by 3.9%, to SEK25.3 billion ($3.85 billion), but blamed the impact of regulatory cuts to interconnection rates as well as exchange rate fluctuations for the decline.
Net income for the group dropped by 16.9%, to SEK4 billion, due largely to the effect of non-recurring items related to efficiency measures.
US operator Sprint has announced a series of price cuts and provided a “guarantee” that customers will be able to continue enjoying unlimited data usage for the lifetime of a service.
The announcement comes shortly after Japan’s SoftBank (Tokyo) completed its takeover of the number-three player and quashes speculation that Sprint (Overland Park, KS, USA) would be forced to abandon its unlimited-usage offers and follow bigger rivals AT&T (Dallas, TX, USA) and Verizon Wireless (New York City, NY, USA) into imposing monthly caps on subscribers.
Telefonica O2 preparations for the summer launch of 4G have received a boost from a deal to use Virgin Media’s high-speed fiber-optic network to support the service.
The two operators have concluded a ten-year agreement that will see Virgin Media Business connect O2’s base stations to its fiber network using a high-capacity Ethernet service.
Virgin Media (Hook, UK) claims each link will provide a 1Gbps connection between cell site and the aggregation network.
Nokia Siemens Networks has signed a memorandum of understanding with CDNetworks, a provider of web services, that will see the two companies collaborate on the development of a new content delivery service for mobile broadband operators.
The two companies are to work on improving an existing service from Nokia Siemens Networks (Helsinki, Finland) called Liquid Applications, which allows operators to tailor content and applications depending on a customer’s service preferences and usage profile.
Fiber optic network provider Level 3 Communications Inc said a 2003 network security agreement signed by its unit Global Crossing did not include any provision for unauthorized surveillance by U.S. government agencies.
The Washington Post reported last week that the deal allowed Team Telecom, a collection of U.S. government agencies, to access data transferred through Global Crossing's (Hamilton, Bermuda) fiber-optic backbone that connects several countries.
European Union (EU) commissioner Neelie Kroes has said a single European telecoms market could provide the region’s economy by as much as €110 billion ($140 billion) annually.
In a speech delivered this week to the European Parliament in Brussels, Kroes said that Europe’s telecoms industry is lagging those in other parts of the world because of “border checkpoints” that discourage investment and weaken competitiveness.
Moroccan authorities have said that Etisalat must partner with a local business as a condition of its deal to acquire a majority stake in incumbent operator Maroc Telecom, according to sources cited by Reuters.
Etisalat (Abu Dhabi, United Arab Emirates) is currently in negotiations with Vivendi (Paris, France) about acquiring the French media conglomerate’s majority stake in Maroc Telecom (Rabat, Morocco), but the deal requires the assent of Moroccan regulatory authorities.
Italian phone incumbent Telecom Italia has won support from Italy’s regulator for its plans to spin off its fixed-line business, reports Reuters.
In a speech to the Italian parliament, Angelo Marcello Cardani, the president of regulatory authority AGCOM, is reported to have praised the plans, saying that a broad and deep separation would pay regulatory dividends.
Telecom Italia’s board approved the separation scheme in May and will hope the move helps the operator to slash its substantial debt of more than €28 billion ($35.8 billion).