Silicon Valley, CA:
Our executive forum gathered last year to discuss the advances in the connected car, and we revealed that the connected car will not be a one-radio solution. There is a drive for a 2G radio in all vehicles for telematics and safety, connectivity to cellphones to extend that personal experience, Wi-Fi as a link to homes and also smart road infrastructure, and for 4G as an option for media and entertainment and as a local hotspot.
US mobile broadband operator Clearwire reported a narrower fourth-quarter loss of $187 million, compared with $237 million in the same period last year, but revenues slid 14%, to $311 million.
The company is currently the target of a $2.2 billion takeover attempt by Sprint (Overland Park, USA), which already owns 50% of the company, but has also attracted the interest of satellite operator Dish Networks (Meridian, USA), which has proposed to buy it at a higher price.
Latin American telecoms giant America Movil disappointed markets with the publication of fourth-quarter results that showed an 8.2% fall in net income, to MXN15 billion ($1.2 billion), compared with the same period last year.
The operator blamed the decline on a one-off financing charge of MXN10.5 billion, including a foreign exchange loss of MXN4.8 billion due to the appreciation of the euro against other currencies.
Analysts had been expecting net profits to increase by up to 50%.
UK operator Vodafone is considering an acquisition of German cable company Kabel Deutschland, according to German publication manager magazin.
Both companies refused to comment on the speculation, but manager magazin claims that Jens Schulte-Bockum, the chief executive of Vodafone Deutschland, and Warren Finegold, the group strategy and business development director for Vodafone (Newbury, UK), have already put a business plan for the takeover in front of Vittorio Colao, Vodafone’s chief executive.
They also suggest that Colao is in favour of the acquisition.
Mobile telecoms firm Telenor expects to accelerate investments in data and digital services this year as customers flock to its higher margin products, it said on Wednesday.
Telenor (Fornebu, Norway), which has around 150 million customers in Europe and Asia, will continue to roll out its third generation (3G) service in Thailand and fibre network in Norway to take advantage of "exploding" demand, and could also invest in 3G services elsewhere in Asia and in Denmark.
The increasing global demand for Wide Area Network processing power and speed means mobile wireless operators and bandwidth wholesalers are becoming overwhelmed by staggering volumes of Cloud & LTE traffic. Aggregate bandwidth usage is forecast to continue bringing a tidal surge of traffic behind waves of video and infotainment apps, Cloud data storage, social media, Location Based Services (LBS), Machine-to-Machine (M2M), smart homes, connected cars, and you name it.
Ericsson has struck a managed services deal valued at $1 billion with India’s Reliance Communications, covering the management of both fixed-line and mobile networks in the north and west of the country.
The contract is for an eight-year period and will see the Swedish vendor take over responsibility for the field maintenance, network operations and operational planning of Reliance Communications’ 2G, CDMA and 3G mobile networks.
MetroPCS shareholder P. Schoenfeld Asset Management has lashed out at the proposed merger between MetroPCS and T-Mobile USA and said it will vote against the deal unless substantial changes are made to the terms.
The hedge fund believes the combined entity would have unsustainable debts, a credit rating substantially below investment grade and have to pay a punitive rate of interest on financing provided by Deutsche Telekom (Bonn, Germany).
Telecom Italia said it will slash dividends in half and raise some €3 billion ($4 billion) in debt so that it can continue funding the rollout of next-generation networks, but the Italian incumbent is still aiming to lower its high overall level of net debt.
The dividend cut follows similar moves by other European incumbents, including Deutsche Telekom (Bonn, Germany) and KPN (The Hague, Netherlands), which are under pressure to invest in faster mobile and fixed-line networks during a period of economic retrenchment.
Thai operator DTAC reported a healthy 13% increase in full-year revenues, to THB89.5 billion ($3 billion), thanks to the take-up of mobile data services, but the operator largely blamed more onerous revenue-sharing arrangements for a 4.5% decline in net profits, to THB11.3 billion.