Financial

Japan's NTT Comm to buy two US cloud computing firms for $880 million

Reuters

NTT Communications Corp said it will gain control of two U.S. cloud computing firms in takeover deals worth a combined 85.5 billion yen ($880 million), as Japanese firms ramp up efforts to improve overseas networks through acquisitions.

The unlisted long-distance and overseas calling unit of Nippon Telegraph and Telephone Corp (Tokyo, Japan) will buy Virtela Technology Services Inc (Greenwood Village, CO, USA), which provides communications services to corporations, and acquire an 80 percent stake in RagingWire Data Centers (Sacramento, CA, USA).

Orange earnings fall 7% on competition, regulation

French telecoms incumbent Orange has reported a slump in earnings and revenues for the three months ending September, with regulation and competition weighing heavily on the operator in its economically challenged European heartlands.

The operator witnessed a 4% drop in revenues, to €10.16 billion ($14 billion), and saw restated earnings before interest, taxation, depreciation and amortization (EBITDA) fall by 7%, to €3.37 billion, in its third quarter.

Juniper Networks flags six-fold rise in profits

Network equipment maker Juniper Networks has flagged a nearly six-fold increase in profits for the three months ending September on signs of improving demand for its products.

The company – which competes against Cisco in the market for internet routers and switches – said net income for its third quarter rose to $99.1 million, from just $16.8 million in the same period last year, with revenues up by 6%, to $1.19 billion.

Telekom Austria risks credit rating for auction cost

Reuters

Telekom Austria may have to risk its credit rating, which it said earlier this year was its top priority, to raise debt for a costly frequency auction, its chief executive said.

The company said late on Monday it would pay 1.03 billion euros ($1.41 billion) to buy half the spectrum on offer in an auction for Austrian fourth-generation frequencies, almost three times as much as most analysts had expected.

Altera forecasts tepid demand for telecom products

Reuters

Programmable-chip maker Altera Corp forecast current-quarter revenue below Wall Street estimates, citing fewer orders for its telecom and wireless products, sending its shares down 5 percent after the bell.

Altera (San Jose, CA, USA), which also reported lower-than-expected sales for the quarter ended September 27, forecast current-quarter revenue to be down 3 percent to up 1 percent, compared with the third quarter.

That implies fourth-quarter revenue of between $432.5 million and $450.5 million.

Exclusive: HTC scales back production lines as cash flow worsens - sources

Reuters

Taiwanese smartphone maker HTC Corp has halted at least one of its four main manufacturing lines, accounting for at least a fifth of total capacity, and is outsourcing production as a sales slump puts pressure on its cash flow, according to sources with direct knowledge of the situation.

A Reuters reporter who visited an HTC (Taipei, Taiwan) factory at the company's former headquarters in Taoyuan, about an hour's drive from Taipei, saw loading docks shuttered and a sign on a locked lobby door that read: "Lobby is temporarily closed for use. Thank you for your cooperation."

EE reports revenue decline despite 4G gains

UK operator EE says it has now signed up nearly 1.2 million 4G customers less than a year after first launching services, while reporting a decline in revenues for the three months ending September.

The company’s 4G progress means it has easily beaten an end-of-year target of capturing one million customers and now covers about 60% of the UK’s population with the high-speed technology.

Rivals Telefonica (Slough, UK) and Vodafone (Newbury, UK) launched 4G services at the end of August but have yet to extend networks outside a handful of the country’s biggest cities.

Marlin Equity to acquire Tellabs for $891 million

Networking equipment maker Tellabs has agreed to be taken over by Marlin Equity Partners for a cash payment of $891 million.

The deal represents a premium of 4.3% over the closing share price of Tellabs on October 18, according to a statement from the companies, and will see Marlin (Hermosa Beach, CA, USA) offer to acquire all outstanding shares of Tellabs (Naperville, IL, USA) for the sum of $2.45 per share no later than November 1.

China Mobile profits hit by 4G investments, OTT competition

China Mobile has reported falling profits for the first nine months of the year, with investments in a 4G network and the cost of subsidizing smartphones taking a toll on the operator’s performance.

China’s biggest mobile operator by customer numbers flagged a 9.4% increase in revenue, to RMB463 billion ($76 billion), for the nine months ending September, but said profits slid by 1.9%, to RMB91.5 billion, over the same period.

AT&T agrees $4.85 billion towers deal with Crown Castle

AT&T has agreed a $4.85 billion deal with infrastructure company Crown Castle in a deal aimed at improving its financial flexibility and value to shareholders.

The US operator is to lease rights to approximately 9,100 of its towers to Crown Castle (Houston, TX, USA) –which will also buy another 600 towers outright – and then sublease capacity on those towers as and when required.

Syndicate content