European telecom operators are planning to charge customers more for faster new fourth-generation (4G) mobile services in the hope of recouping massive network investments and clawing back lost pricing power.
It's a risky approach since it could put off recession-weary customers and slow the adoption of a technology that benefits telcos by lowering operating costs and helping reduce network overload.
The global 2G, 3G, and 4G equipment market decreased 14% to just under $10 billion in the first quarter of 2012 following an 8% increase the previous quarter, reports market research firm Infonetics Research in its new report.
Sprint Nextel Corp has arranged a $1 billion credit facility to buy network equipment from Ericsson for a high-speed wireless project that will involve the shuttering of its Nextel network next year.
Google Inc's Android mobile platform has not infringed Oracle Corp's patents, a California jury decided, putting an indefinite hold on Oracle's quest for damages in a fight between the two Silicon Valley giants over smartphone technology.
In a case that examined whether computer language that connects programs and operating systems can be copyrighted, Oracle (Redwood, Calif., USA) claimed Google's (Mountain View, Calif., USA) Android tramples on its intellectual property rights to the Java programming language.
Mobile operator Vodafone made a writedown of $6.3 billion and cut its medium-term sales target as the debt crisis squeezed customers in southern Europe, forcing them to save money on phone calls.
Consumers in Europe will pay less for mobile phone calls, texts and Internet access when travelling abroad following a ruling on Thursday that could also prompt telecom companies to introduce cross-border deals to offset lost revenue.
On Thursday, The National Retail Federation urged the U.S.
A slowdown in spending by telecom operators globally is hurting all vendors of telecom equipment, just as they were recovering from the last downturn and intense price wars.
Analysts predict slower growth of 3-4% in the overall market for telecom network equipment, down from 7-8% last year.
The market recovered strongly in 2011 as operators invested to catch up with a surge in traffic from smartphones and tablets, but the final quarter saw renewed concern about global growth, especially in Europe.
The top three U.S. telecom carriers, Verizon Communications, AT&T Inc and Sprint Nextel Inc, recently released financial results for the first quarter of 2012. All three carriers reported higher-than-expected financial results for 1Q2012.
On Tuesday, AT&T Inc reported a higher-than-expected quarterly profit as iPhone sales declined, reducing the amount of cash it had to pay Apple Inc and boosting its margins.