Telecom equipment maker Alcatel-Lucent SA (Paris, France) reported weaker-than-forecasted results, magnifying concerns about a sector-wide slowdown and sending shares down more than 9%.
The companies weak second quarter results come after a strong start to the year as it rode a wave of operator spending in the United States. It also comes amid increasing investor worries about a possible second-half slowdown in the telecom equipment sector, especially in the United States.
Equipment makers Ericsson, Juniper and Cisco also reported weak Q2 results.
Telecom Italia (Rome, Italy), the country’s largest telecom operator, kept its forecasts intact in the face of a rapidly-deteriorating economic climate at home, which took the sting out of a $2.8 billion first-half loss due to a goodwill writedown.
The company blamed deteriorating markets and interest rate trends for its $4.5 billion goodwill writedown on its domestic operations. Still, the company said the writedown would have no impact on its dividend or plans to cut debt and stuck to its forecasts for the year, promising trends at home were improving.
Wireless telecommunications network operator Clearwire Corp (Kirkland, Wash., U.S.A.) said it would post an operating profit a few quarters sooner than expected, but also said it needs as much as $900 million in new funding.
In after-hours trading, shares of Clearwire almost completely wiped out a 10% gain from the regular Nasdaq session after the company said it needs up to $300 million more to tide it over until it reports positive cash flow sometime next year, and that it needs another $600 million for a network upgrade.
On Tuesday, a new study by Informa Telecoms & Media (London, England), a telecom research firm, revealed the degree to which spectrum policy and availability is causing the market for LTE to become regionally fragmented. The emergence of distinct regional and national bands and band combinations will pose difficult choices for equipment and device vendors in terms of which bands they choose to support, according to Informa.
Google's (Mountain View, Calif., U.S.A.) Android platform has taken almost 50% of the global smartphone market, dominating in the Asia-Pacific region, research firm Canalys (Reading, Singapore) said on Monday.
Android, which Google acquired in 2005 and launched on phones in 2008, is used by almost all the major phone makers including HTC, LG, Motorola and Samsung. It was the number one platform in 35 of the 56 countries, resulting in a market share of 48%, the research firm said.
Last Tuesday InterDigital Inc (King of Prussia, Penn., U.S.A.), a wireless technology manufacturer, filed a complaint with the U.S. International Trade Commission (ITC) against Nokia Corp, Huawei Technologies Co Ltd and ZTE Corp accusing the cellphone makers of infringing seven InterDigital technology patents.
The wireless technology patent holder, which is considering selling itself, said it has asked the ITC to bar these companies from U.S. sales of any infringing products, including phones or tablet computers.
LightSquared (Reston, Va., U.S.A.), a wholesale-only integrated 4G-LTE wireless broadband and satellite network, and mobile operator Sprint Nextel (Overland Park, Kan., U.S.A.) announced on Thursday they have entered into a 15-year agreement that includes spectrum hosting and network services, 4G wholesale, and 3G roaming.
Mobile operator France Telecom (Paris, France) is putting its Swiss, Austrian and Portuguese units up for sale, which analysts say could raise as much as $2.9 billion. The announcement came as France Telecom announced second-quarter results just short of analysts' forecasts but stuck to its full-year targets.
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