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.
Traditional operator business models are failing to keep pace with the “irreversible” shift to IP-based communications, according to the International Telecommunications Union (ITU).
Following debates held during the recent ITU Telecom World 2012 conference in Dubai, the international standards body has issued a statement to say that telecoms business models, regulatory frameworks, development cycles and infrastructure investments look “dangerously out of sync” with the ongoing adoption of IP-based communications.
Dutch incumbent KPN has announced plans for a €4 billion ($5.4 billion) rights issue as it strives to reduce spiralling debts with its profits and revenues in decline.
The company’s net debt soared to €12 billion for the fourth quarter of 2012 after it spent a whopping €1.4 billion on licenses to provide 4G services in a recent Dutch auction.
As a result, net debt now works out at more than three times earnings before interest, tax, depreciation and amortisation (EBITDA), up from a ratio of 2.3 in the fourth quarter of 2011.
Pan-European cable company Liberty Global has announced a $23.3 billion acquisition of the UK’s Virgin Media that looks set to shake up the country’s telecoms, broadband and pay-TV markets.
The transaction includes a mixture of cash and Liberty Global (Amsterdam, Netherlands) shares and values Virgin Media (Hook, UK) at $47.87 a share – 24% higher than its closing price on February 4.
The deal will increase Liberty Global’s customer base to 25 million and give the company a major presence in one of Europe’s biggest markets.
Latin American operator NII Holdings has said financial results for 2012 are likely to miss expectations and provided a disappointing outlook for 2013.
The company – which runs telecoms operations in Argentina, Brazil, Chile, Mexico and Peru – said fourth-quarter revenues were likely to be $1.5 billion, compared with $1.6 billion in the fourth quarter of 2011.
Sweden’s Tele2 reported a 57% fall in net profit for the fourth quarter, to SEK565 million ($89 million), as rising costs and higher taxes ate into sales.
Revenues at the company – which operates across a number of European markets – rose by 3.9% to SEK11.3 billion.
“Tele2 [Stockholm, Sweden] continued to show sustainable revenue and subscriber growth during the fourth quarter of 2012, although profitability was below our expectations,” said Mats Granryd, the company’s president and chief executive.
Sprint Nextel Corp, the No. 3 U.S. mobile service provider, said that it talked to four different companies about a potential deal before it announced its agreement to sell 70 percent of its shares to Japan's SoftBank Corp for $20 billion.
UK fixed-line incumbent BT reported a disappointing 6% fall in third-quarter sales, to £4.5 billion ($7.1 billion), as tough economic conditions, adverse regulation and dwindling revenues from line rentals and calls all took their toll.
Although pre-tax profit was 7% higher than a year earlier, at £675 million, the increase was partly attributed to “the reduced cost of sales due to the decline in revenue”, plus lower depreciation and amortisation charges as the company reins in capital expenditure.
Dutch telecoms group KPN is widely expected to announce steps to cut debt when announcing full-year results next week, with some analysts bracing for a share issue.
KPN (The Hague, Netherlands), which will report 2012 results on February 5, breached its own debt target of 2.0-2.5 times debt to core profit (EBITDA) in the second quarter. The ratio hit 2.7 in the third quarter.
First generation Carrier Ethernet already dominates WAN equipment revenue, and now Carrier Ethernet 2.0 is making it easier for Carriers to meet and exploit the demand that Carrier Ethernet has already fuelled
Ten years ago The Metro Ethernet Forum (MEF) was founded to develop and promote a new generation of Ethernet called Carrier Ethernet. Since then Carrier Ethernet has transformed WAN and enterprise connectivity as well as providing an infrastructure to fuel soaring user expectations for mobile applications.