Telecom New Zealand has reported huge gains in profitability thanks to one-off adjustments related to the demerger of its infrastructure business in December last year.
New Zealand’s incumbent operator reported net profit of NZ$1.2 billion ($973 million) for 2012, compared with just NZ$166 million last year, several months after agreeing to spin off Chorus.
The company agreed to the separation under pressure from the New Zealand government, but Chorus was subsequently awarded the bulk of contracts to build a new fibre-optic broadband network across the country.
Regulators have temporarily suspended pricing flexibility rules for high-capacity broadband lines, raising hopes for companies that say Verizon Communications Inc and AT&T Inc have overcharged them billions of dollars for access to the lines in recent years.
China Telecom has announced plans to buy 3G infrastructure from China Telecommunications Corporation, its state-run parent, while reporting an 8.3% fall in net profit for the first half of the year, to 8.8 billion yuan ($1.4 billion), compared with the same period in 2011.
The operator, which competes against bigger rivals China Mobile and China Unicom in the mobile-phone market, says it will spend approximately 84.6 billion yuan on CDMA infrastructure currently owned by China Telecommunications Corporation.
Canada’s communications regulator has approved the C$1.32 billion ($1.34 billion) acquisition of a majority stake in Maple Leaf Sports and Entertainment (MLSE) by Rogers and BCE.
The deal gives two of the country’s biggest telecoms operators 75% of MLSE, which owns the Toronto Maple Leafs, the renowned ice hockey team, and the Toronto Raptors, of basketball fame.
VimpelCom has reported a surge in its quarterly profit despite unfavourable currency movements, continued conflict between its shareholders and a run-in with the Algerian government.
Facing challenges on numerous fronts, the huge Russian operator managed to increase second-quarter net income by 83% compared with the same period last year, to $488 million, thanks to cost reductions and the growth of some emerging-market operations.
Israel's two largest mobile phone operators Cellcom and Partner Communications are planning television-over-Internet services as weak earnings highlighted their need for profitable new earnings streams.
Haim Romano, Partner's chief executive, said on Tuesday the company was working to accelerate TV Internet services. "Once the conditions are ripe, Partner will offer an innovative, quality and attractive solution also in this area," he said.
Cellcom CEO Nir Sztern also said he was examining Internet TV as well as an entry to the cellular credit card business.
A former U.S. lawmaker who lobbied for China's second largest telecommunications-equipment maker, ZTE Corp, severed ties with the company last month after reports that the FBI is investigating ZTE for allegedly selling banned computer equipment to Iran, according to a lobbying disclosure report.
Former Representative Jon Christensen, a Nebraska Republican, filed a termination report to the U.S. Senate's lobbying disclosure database saying he stopped representing the company as of July 13, a day after news broke of the FBI investigation.
Mexican fixed-line operator Axtel is considering a sale of its wireless towers or fibre-optic lines to avoid defaulting on its debt, according to a report from Bloomberg.
The sale could reportedly raise as much as $300 million for Axtel, which would then rent the assets to continue operating as normal.
Bloomberg reckons that Axtel has to repay a total of $825 million of debt by 2019. In the meantime, it has been struggling to generate cash after slashing its prices in the face of tough competition from Telmex, owned by Carlos Slim’s America Movil.
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With overseas investors prepared to inject liquidity into ailing European operators, M&A is back on the menu.