Telecommunications

Vincent Bolloré shores up Vivendi activist defence

15 February 2019

The French billionaire treats the media group like a family hedge fund. The latest instance is a new share buyback that allows the tycoon to boost his control without personally coughing up a penny. Any activist that wants to improve governance will have to move quickly.

New Vivendi band member requires artistic vision

14 February 2019

Vincent Bolloré’s group may sell half of music label Universal. The returns are low at a mooted $40 bln price tag. That favours buyers with a strategic interest in controlling music rights over financial investors. Tencent, Apple and Liberty Media are the most likely auditionees.

China could pay dearly for winning the 5G race

12 February 2019

The U.S. Secretary of State is in Europe lobbying politicians to ditch Huawei network products. Beijing is spending $400 bln trying to gain an edge in the next- generation telecoms, benefitting local champions. But if exports get stymied, China could be stuck with a hefty bill.

The Exchange: Huawei’s U.S. security chief

11 February 2019

Andy Purdy, who previously worked in academia and for the U.S. government, talks about the geopolitical edge to allegations about Beijing’s influence at Chinese tech group Huawei, and how communications equipment needs global standards and better testing across the board.

China may help T-Mobile and Sprint win over D.C.

11 February 2019

The proposed $26 billion merger of the U.S. telecom firms is rooted in the promise of a 5G buildout. The deal will reduce competition. Yet America’s race with the PRC to take the lead in the next generation of mobile technology could overcome any domestic competition concerns.

Nokia valuation lacks Huawei boost

31 January 2019

Like Sweden’s Ericsson, the Finnish telecom-kit maker will gain if the Chinese rival is shut out of more markets. Yet Nokia’s valuation is lower than for much of last year and CEO Rajeev Suri expects a so-so 2019. A European ban on Huawei would change that.

Europe’s telcos have 20 bln reasons to love Huawei

29 January 2019

Ditching the Chinese supplier could push up costs for the region’s carriers, and knock 7 pct off their market value. Politicians may deem that a price worth paying to ensure the security of mobile networks. Yet slow-growing, debt-heavy telcos hardly need another cash flow hit.

U.S. Huawei charges test trade deal appetite

28 January 2019

The Justice Department indicted the Chinese telecom firm for fraud just before crucial U.S.-Chinese talks on tariffs. Presidents Trump and Xi are already facing choppy markets and a slowing economy. Their reaction to Huawei will show if they truly want to avert a trade war.

Vodafone’s good signals are jammed by interference

25 January 2019

The $50 billion telco’s revenue is shrinking in Europe and slowing elsewhere. On top of that, 5G spectrum looks pricey, while its acquisition of Liberty Global assets faces regulatory risks. CEO Nick Read can only expect credit for cost cuts after some of these worries disperse.

Telecom Italia’s new boss needs some quick wins

18 January 2019

The Italian telco’s shares have dived after a profit warning. New CEO Luigi Gubitosi can stop the rot by listing its fixed network, but that path is slow and uncertain. A quicker route to credibility lies in selling stakes in choice assets like Inwit and the Brazil business.

Breakdown: Clipping Huawei’s global 5G ambitions

18 January 2019

China's telecoms-equipment giant is in crisis. Its CFO has been arrested over alleged sanctions violations, and a security backlash has intensified in Europe. As the race to dominate next-generation wireless technology speeds up, Huawei's woes will have costly ramifications.

Big Tech may face another front in D.C. battle

16 January 2019

William Barr, set to become U.S. attorney general, wonders how Silicon Valley “behemoths” like Amazon got so big. That hasn’t been a DOJ focus. Facebook’s clout was one reason for AT&T’s purchase of Time Warner, on whose board Barr sat. It could make him a new antitrust threat.

Huawei hits limits of China’s transparency toolkit

16 January 2019

The embattled tech giant’s founder Ren Zhengfei gave a rare interview to distance itself from the state. But as HNA found, traditional means to demonstrate an innocent agenda are no longer effective for China Inc. New solutions are needed to allay Western suspicions of Beijing.

M&A defence is least of new BT CEO’s worries

7 January 2019

Major shareholder Deutsche Telekom is free to lift its stake in the UK telco from the end of January. But takeover chat seems premature. Broadband price regulation and Brexit are more pressing concerns for new boss Philip Jansen, and probably make a bid unlikely for a few years.

MTN’s Nigeria fix promises longer-term headaches

2 January 2019

The African phone giant has paid $53 mln to settle an $8 bln dispute with Abuja. That looks like a cheap way of maintaining good relations in its most important market. But the speed of the resolution, and modest size of the penalty may encourage further interference.

Overleveraged AT&T is a magnet for activists

26 December 2018

Boss Randall Stephenson has piled on over $180 bln of debt to add entertainment to the U.S. telco’s core business. It’s a risky strategy, and any missteps could make AT&T look a bit like fallen icon General Electric. Breakingviews imagines a missive from a restive shareholder.

SoftBank’s downward debut damns Japan’s IPO market

19 December 2018

Shares in the group’s mobile unit fell sharply on their first day of trading. It’s been a poor year for Tokyo issues, but this $24 bln float might have revived enthusiasm. Unfortunately, boss Masayoshi Son overplayed his hand. Now he’s made it harder for the rest of the queue.

China’s three mobile carriers will become two

19 December 2018

As 5G investments ramp up next year, the country’s carriers will face mounting bills. That might make 2019 the year that the two smaller players, China Unicom and China Telecom, finally join forces. It would mean less competition, but officials have bigger prizes in mind.

Vincent Bolloré will break up Vivendi

12 December 2018

The 66-year-old tycoon is smarting from a drubbing by Elliott in Italy, and his media group suffers from a huge conglomerate discount. A partial sale of Universal Music may help. But dismantling the whole group would release $10 bln in value, and keep potential activists at bay.

Activism anxiety will grip French establishment

12 December 2018

Between the state and raiders like Vincent Bolloré, France is no stranger to meddling investors. But this year some blue-chips will face cage rattling. Pernod is just the start. The likes of Saint-Gobain, Danone, Renault - and even Bolloré’s Vivendi - are no longer off-limits.