With data traffic from video downloads and on-the-go web surfers clogging up telecoms networks, mobile equipment makers such as Alcatel-Lucent and Nokia Siemens Networks should be booming. But while iPhone-maker Apple Inc's shareholders are waxing rich on a communications revolution driven by smartphones and tablet computers, those who make the infrastructure for the information superhighway are being squeezed.
By 2016, 40% of enterprises will require prospective cloud providers to submit proof of independent security testing before they’ll sign up for service, Gartner predicts.
Network equipment makers have been facing slowing demand for their products as telecom carrier customers cut spending amid a sluggish U.S. economy and weakness in Europe. This hold true for both Acme Packet and Adtran, who reported shares at their lowest in two years, while Calix reported that shares have dived to their lowest ever.
Shares of ZTE Corp, the world's fifth-biggest telecommunications equipment maker, logged the steepest fall in more than three years in Hong Kong as a profit warning and a probe by the U.S. government cast a gloom over the company's near-term fortunes.
ZTE's (Shenzhen, P.R.C.) stock slumped 16.3% to close at HK$10.46 on Monday in the largest decline since October 27, 2008. Trading volume was nearly seven times that of its 30-day average.
Teliasonera is selling its Spanish mobile operator Yoigo, four people familiar with the matter said, in a $1.2 billion plus deal that could attract tycoon Carlos Slim, Vodafone and France Telecom as bidders.
The Nordic telecoms group has hired Deutsche Bank to manage the disposal of its 76% stake in Yoigo (Madrid, Spain), the sources said, as it exits non-core markets in favor of its Scandinavian heartland and higher-growth central Asia.
The telecoms regulator is prepared to approve Verizon Wireless' plan to buy airwaves from cable companies, according to people with knowledge of the situation, though the company still has to convince the Justice Department that the deal will not lead to higher prices for consumers.
Calix, Inc. on Thursday released excerpts for its latest U.S. Rural Broadband Report, based on Internet traffic information drawn from over 50 U.S. communications service provider networks from the first quarter (January through March) of 2012.
Shares of ZTE Corp, the world's fifth largest telecommunications equipment maker, hit a three-year low on Tuesday on worries about earnings and concerns over a subsidies dispute between the European Union and China, analysts said.
ZTE's (Shenzhen, P.R.C.) Hong Kong-listed shares fell by as much as 8% to HK$13.00 in morning trade, the weakest level since late March 2009. The stock has fallen about 45% so far this year.
Last week both Visa and MasterCard announced European mobile payments partnerships. On Monday, MasterCard announced that it has entered into a mobile payments partnership with Deutsche Telekom, while Visa announced on Friday that it had joined forces with Telefonica Digital to offer a similar service.
China's Huawei Technologies is in talks with Gulf telcos Etisalat and Saudi Telecom to manage their fixed-line networks, an executive said, potentially cementing its leadership of a $1 billion regional industry.
Huawei (Shenzhen, P.R.C.), the world's second largest telecom gear maker, is in similar negotiations with several other Middle East operators, the executive said in emailed comments, but declined to name them, citing confidentiality agreements.