Financial

KPN to record tax book loss of 3.7 billion euros on E-Plus sale

Dutch telecoms incumbent KPN says it has reached an agreement with tax authorities to record a tax book loss of €3.7 billion ($4.94 billion) after completing the sale of E-Plus to Telefonica.

The loss would offset KPN’s (The Hague, Netherlands) taxable income in the Netherlands in future, starting in 2014, and could make the operator more attractive to America Movil (Mexico City, Mexico), the Latin American telecoms giant that has offered €7.2 billion for the 70% of KPN it does not already own.

Telecom Italia board to discuss options at Oct 3 meeting: Reuters

Board members of Telecom Italia are set to meet on October 3 to discuss options for the Italian telecoms incumbent amid ongoing speculation about its future ownership structure, according to Reuters.

Telecom Italia (Milan, Italy) has already scheduled a board meeting for this week and reports suggest that Spain’s Telefonica (Madrid) will make an offer to buy out other members of Telco, a consortium of shareholders that owns 22% of Telecom Italia.

Hedge funds plan to sue Vodafone for better Kabel Deutschland terms: sources

Reuters

Three hedge funds who tendered shares enabling Vodafone to successfully bid for Germany's largest cable firm plan to sue for a better price for their outstanding holdings, three financial sources with knowledge of the matter said on Friday.

Vodafone (Newbury UK), which wants Kabel Deutschland (Unterfoehring, Germany) in order to offer more television and fixed-line services in its largest European market, said late on Thursday it had secured more than 75 percent of shares in the company, a condition for its 7.7 billion euro ($10 billion), 87 euro-per-share, offer.

Telecom Italia says board member probed for insider trading quits

Reuters

Telecom Italia's independent board member Elio Catania, who is being investigated for alleged insider trading, resigned on Friday, the company said.

In a statement, Telecom Italia (Milan, Italy) said Catania had told the company he had decided to quit so that the board's activities and the work of investigators could proceed "in an orderly manner."

In his resignation letter, Catania said he had always acted correctly.

AT&T completes $1.9 billion acquisition of Verizon airwaves

AT&T says it has completed the acquisition of spectrum from rival operator Verizon Wireless that will help it speed up the deployment of its high-speed 4G network.

The operator has paid $1.9 billion for a swathe of 700MHz licenses covering some 42 million people in 18 states.

Besides the cash payment, AT&T (Dallas, TX, USA) has also transferred to Verizon (New York City, NY, USA) several Advanced Wireless Services (AWS) licenses covering Phoenix (AZ), Los Angeles (CA), Fresno (CA), Albuquerque (NM) and Portland (OR).

EE wins MVNO deal with Virgin Mobile: Financial Times

UK operator EE has reportedly won a £300 million ($473 million) deal to provide mobile-phone services to Virgin Mobile over a five-year period.

According to a report from the UK’s Financial Times newspaper, the operator secured the agreement despite strong competition from other mobile network operators and is set to make an official announcement later this week.

TeliaSonera takes $61 million hit on Nepal Satellite disposal

Scandinavia’s TeliaSonera has taken a SEK0.4 billion ($61 million) hit on the sale of its 57% stake in Nepal Satellite to Zhodar Investment, blaming legal and regulatory challenges for its exit.

The operator had built up its stake in the Nepalese operator through a series of acquisitions in 2011 and 2012, hoping to strengthen its operations with a “complementary brand”.

TeliaSonera (Stockholm, Sweden) already owned a Nepalese mobile operator called Ncell, which it bought in 2008, and says it will be free to concentrate on that business following the Nepal Satellite sale.

Mexico's Senate OKs members of new telecoms regulator

Reuters

Mexico's Senate on Tuesday approved seven nominees to head a new telecommunications regulator created by a sweeping sector overhaul that seeks to boost competition and tame billionaire Carlos Slim.

The regulator, known as Ifetel, will replace a weaker regulatory agency and have new powers to police a telecommunications market dominated by Slim's America Movil (Mexico City, Mexico) and Televisa (Mexico City, Mexico).

Cisco enters data storage market with purchase of Whiptail

Reuters

Cisco Systems Inc on Tuesday announced its first foray into the data storage market, saying it would pay $415 million to acquire privately held storage system maker Whiptail.

Cisco (San Jose, CA, USA) said it will pay cash and incentives for the acquisition, expected to close in the first quarter of 2014.

Whiptail, founded in 2008 and based in Whippany, New Jersey, makes storage systems based on flash memory chips, which allow data to move through servers with greater speed and efficiency as well as higher volume.

M2M connectivity revenues to hit $88 billion in 2023: Analysys Mason

Telecoms operators are set to make a staggering $88 billion in revenue from the provision of M2M services in 2023, up from $10 billion this year, according to new research from Analysys Mason.

The market-research company reckons emerging economies will account for much of the revenue growth as applications are customized to suit local needs and technology costs fall.

It also predicts that small and medium-sized enterprises (SMEs) will grow their share of overall M2M device connections from 14.6% in 2013 to 24.6% in 2023.

Syndicate content