Financial

Spain's Telefonica bets on price hikes to end six-year slump

Higher rates to take effect on May 5, should add up to 300 million euros

Reuters

MADRID (Reuters) - Telefonica's move to hike prices in Spain is a bold bet that could finally draw a line under a six-year slump, cut the firm's reliance on Latin America and give it a leg up over rivals on the lucrative premium telecoms market, sources and analysts say.

The telecoms giant, whose revenues have dropped 13 percent worldwide and 42 percent in Spain since 2008, has focused on fewer markets, cut debt and invested in new high-speed networks and exclusive television contents to try and regain its mojo.

TMT Finance and Investment Africa 2015

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Start Date: 
Tuesday, June 23, 2015
End Date: 
Tuesday, June 23, 2015

London:

Join the key industry and finance leaders investing in telecommunications in Africa

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The 6th TMT Finance & Investment Africa 2015 Conference takes place at the Millennium Hotel Mayfair, London on June 23, 2015.

Nokia's network profits drop, raise concerns over Alcatel deal

Ranks of investors betting against Alcatel-Lucent appear to be growing

Reuters

HELSINKI/PARIS (Reuters) - Finland's Nokia reported quarterly profits well below market forecasts at its telecom network equipment business, sending its stock tumbling 10 percent and raising concerns over its planned takeover of smaller rival Alcatel-Lucent.

First-quarter revenue was ahead of expectations, but operating profit dropped 61 percent, which Nokia blamed largely on the need to cut prices to secure major mobile contracts in China and on weaker software sales.

Nokia bets software revolution will help avoid past merger errors

Getting the transition right is essential to achieving the synergies and avoiding alienating major customers

Reuters

PARIS/HELSINKI/STOCKHOLM (Reuters) - Nokia's acquisition of smaller rival Alcatel-Lucent may avoid the pitfalls that befell earlier telecom network equipment marriages, thanks to a revolution over the past decade in how products are launched and developed.

The brains and brawn of telecom networks today lie in software, which is programmable and flexible, and not in customized hardware as in the past. Products are more modular with open interfaces that allow equipment from different manufacturers to talk to each other.

Arris to buy British set-top box maker Pace in $2.1 billion deal

Deal comes as OTT disrupts traditional video service industry

Reuters

(Reuters) - Network gear maker Arris Group Inc said it would buy British set-top box maker Pace Plc in a $2.1 billion cash-and-stock deal to expand its operations outside North America.

The deal, which involves the creation of a new company that will be incorporated in the UK, will help Arris reduce corporate taxes.

Arris said the deal will reduce its non-GAAP tax rate to about 26-28 percent. The company's tax rate was 36.8 percent in 2014.

Metroweb's state owner rejects Telecom Italia proposal: sources

Battle is politically sensitive as PM Renzi considers it a building block for a plan to roll out faster networks

Reuters

MILAN/ROME (Reuters) - The state owner of Italy's Metroweb has rejected a proposal by Telecom Italia to take a stake in the broadband company and gradually reach full ownership, according to two people close to the matter and an email seen by Reuters.

The latest twist in long-running talks between Telecom Italia and state lender Cassa Depositi e Presititi (CDP) could favor Vodafone, which has also set its sight on the broadband firm.

Nokia buys Alcatel to take on Ericsson in telecom equipment

The deal will redefine a sector suffering weak growth prospects

Reuters

HELSINKI/PARIS (Reuters) - Nokia will buy Alcatel-Lucent in an all-share deal that values its smaller French rival at 15.6 billion euros ($16.6 billion), building up its telecom equipment business to compete with market leader Ericsson.

The deal will redefine a sector suffering weak growth prospects and pressure from low-cost Chinese players Huawei and ZTE.

Raytheon to buy cybersecurity firm Websense in $1.9 billion deal

Deal will add more than 20,000 commercial customers to predominantly government portfolio

Reuters

(Reuters) - U.S. arms maker Raytheon Co is buying network security provider Websense Inc from private equity firm Vista Equity Partners LLC in a $1.9 billion deal, the latest in the fast-growing cybersecurity market.

Several companies, including Sony Corp, Staples Inc, Home Depot Inc and Target Corp, have been targets of high-profile data thefts over the past two years.

Nokia close to buying Alcatel's mobile networks unit: Les Echos

The French business daily said an announcement could come 'quickly'

Reuters

PARIS (Reuters) - Finland's Nokia Oyj is close to a deal to buy Alcatel-Lucent's mobile networks unit to boost its core business especially in the United States and China, Les Echos newspaper reported on Monday.


The French business daily said an announcement could come "quickly," citing a source close to the matter. The paper said meetings between managers at the two companies had increased since January.


Alcatel and Nokia declined to comment.

Singtel buying U.S. cyber security firm Trustwave for $810 million

Moving away from being a pure-play telecoms company, pursues areas such as 'digital life'

Reuters

SINGAPORE (Reuters) - Singapore Telecommunications, Southeast Asia's largest telecommunications operator by revenue, is buying U.S.-based cyber-security firm Trustwave for $810 million, marking its biggest acquisition outside the main telecoms sector.


The deal comes as Singtel is moving away from being a pure-play telecoms company and pursues expansion in areas such as "digital life", which includes mobile video and digital advertising, and cyber security through partnerships with FireEye Inc and Akamai, among others.

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