Telefonica SA (Madrid, Spain), one of Europe’s largest telecoms company, suffered a decline in first-half profit as consumers switched to cheaper providers and regulators pushed tariffs lower.
While lucrative smartphone growth drove a continued boom in Brazil, the business turned in a lackluster performance in its home market of Spain, and also in Britain, Mexico and Venezuela. Some analysts noted a risk to Telefonica's A- credit rating.
Telecommunication companies Deutsche Telekom (Bonn, Germany) and France Telecom (Paris, France) have to pay a total $126 million for a 10-year license extension of their Slovak units, the Slovak telecommunication regulator said on Wednesday.
France Telecom, running Slovensko Orange -- Slovakia's largest mobile and internet services provider in terms of number of clients -- will pay $57.7 million.
Deutsche Telekom will pay $67.9 million for its T-Mobile Slovensko unit's licence.
Earlier this month, T-Mobile announced that it will soon launch a new service that will enable customers to purchase digital content using their smartphone, PC, or tablet and bill it to their phone accounts. According to Consumer Union (New York), a testing and information organization, T-Mobile's announcement is the latest development in emerging mobile payment services that raises concerns about whether consumers will be protected from fraud or merchant mistakes.
Almost half the workers in Verizon Communications' (New York) wireline telecommunications business went on strike on Sunday as negotiations for a new labor contract failed.
The strike, involving 45,000 workers, is the first walk-out that Verizon, one of the two big U.S. telephone network operators, has faced since 2000, when about 80,000 workers went on strike for about three weeks.
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.