Telecommunications

Nigeria bank reform offers olive branch for MTN

19 October 2018

The continent’s most populous nation has invited telecom groups to launch mobile payment services. South African operator MTN could be a big winner. The prospect of a lucrative new market gives it a good reason to end its $10 billion dividend and tax feud with the government.

Telecom Italia’s discount is only partly deserved

17 October 2018

A costly spectrum auction and woes in Brazil have driven the telco’s stock near historic lows. Squabbling investors and Italian political worries are also a concern. But if TIM can contain rival Iliad’s assault at home, its discount to European peers looks too steep.

Altice financial invention is born of necessity

4 October 2018

Patrick Drahi may sell part of his telecom group’s fibre broadband business, having recently offloaded some mobile towers. The cash could reduce debt and increase capex. But ceding control over investment decisions to private equity could undermine the business model over time.

M&A bankers better off hunting pheasant than elk

3 October 2018

The value of deals above $10 bln popped by 150 pct in the first nine months of the year. Some, like Comcast’s purchase of Sky, come with chunky financing fees. Still, the glory is spread less thinly on smaller deals, which are also growing quickly, and are easier to close.

Italy’s 5G auction is an $8 billion smash-and-grab

3 October 2018

The cash-strapped country raised more money than expected thanks to the canny way it sold mobile spectrum. The consequences are for others. If operators raise prices, it’s effectively a stealth tax. If they can’t, there will be less cash to build new networks in Europe.

Buyout pass-the-parcel hands BC Partners a present

28 September 2018

The investment group is buying a stake in a $3 bln European cable company from KKR. It’s a good deal, thanks to the seller’s desire to cash out. Private equity funds’ limited investment terms mean managers can’t always choose when to sell. Longer-life funds are one solution.

Hulu is next front in Disney-Comcast battle

27 September 2018

Disney made the best call of the Fox-Comcast-Sky saga by consenting to Fox selling its Sky stake at Comcast’s eye-popping price. It plans to invest some of the $15 bln proceeds in Hulu. Comcast, which owns 30 pct of the online-video JV, would be wise to follow suit and let it go.

U.S. data privacy suffers from too many cooks

26 September 2018

Amazon, Apple and other tech executives said a single federal privacy law is needed to avoid fragmented state rules. Different standards also apply to the healthcare and financial industries, while data collection extends beyond tech. Europe has some ideas to offer.

Comcast $40 bln lunacy gives Disney shot at sanity

24 September 2018

The cable firm paid a crazy price for Sky. The Mouse House is piling on debt to buy Fox assets, including part of the UK pay-TV group. Selling it would allow CEO Bob Iger to reduce Disney’s leverage or add firepower to battle streaming rivals like Netflix. Either is a smart move.

Robocall infestation demands robot solution

20 September 2018

Scam calls may make up nearly half U.S. traffic next year, data suggests, up from under 4 pct last year. Society bears the costs in wasted time and swindles. The experience with email shows engineering will eventually provide more consistent relief than laws or fines.

Apple’s new innovation: tap fear as well as greed

12 September 2018

The $1 trillion firm’s new watches can detect falls and heart conditions, making them a useful gift for grandma, as well as hypochondriacs everywhere. Meanwhile, aesthetic appeal and better cameras should be enough to convince many users to pay up for an improved phone.

MTN can recover from its Nigerian nightmare

11 September 2018

A spat over its local subsidiary has knocked around $4 bln off the African phone giant’s market value. That implies MTN will lose the business that brings in a third of its EBITDA or pay a big chunk of the $10 bln the Nigerian government is demanding. Both outcomes seem unlikely.

Viacom has chance to pitch its own script

10 September 2018

The controlling Redstone family won’t be trying to reunite the media group with sister company CBS any time soon. New leadership, international expansion and an improved movie slate are aiding Viacom’s recovery. At $12 bln it’s cheap, too. It’s a tastier target than CBS.

Iliad buyout could be a lucrative odyssey for Niel

7 September 2018

The French telecom group’s stock leapt 6 percent on talk that its controlling shareholder is considering a buyout. A bargain-basement valuation and relatively low debt make that a plausible idea. Xavier Niel could triple his money in five years unless a push into Italy is a flop.

Vivendi gives Elliott a taste of activist medicine

6 September 2018

Telecom Italia is turning into the U.S. fund’s worst big investment in Europe. Vivendi, which used to run the telco and is its biggest investor, blames Elliott’s boardroom overhaul for the share price slump. Such squabbles distract from the problem of competition from new rivals.

Vodafone’s new CEO has sticks to repel activists

5 September 2018

The $57 bln telecom group’s sagging shares may have attracted Elliott’s attention. Newly-promoted Nick Read needs to show he can afford the pricey Liberty Global deal and still pay a fat dividend. Cost cuts and mobile-towers sales would soothe investors’ worries.

China 5G ambitions cross wires with M&A logic

5 September 2018

Beijing might merge wireless carriers China Unicom and China Telecom, creating a $70 bln-plus telco giant - and a market duopoly. As with T-Mobile and Sprint, consolidation could accelerate development of ultra-fast networks. But industrial policy will limit financial benefits.

Huawei’s hang-ups open 5G line for Samsung

31 August 2018

Japan may soon echo U.S. and Australian restrictions on the Chinese telecom equipment maker and peer ZTE. That should help South Korea’s $280 bln titan make a move in the markets. Nokia and Ericsson will challenge for share, too, but Samsung’s heft and stamina give it an edge.

Nigerian problems cast doubt over MTN payout

30 August 2018

The country’s central bank says the mobile phone group’s local unit illegally paid $8.1 bln to its South African parent. Though MTN denies wrongdoing, its shares are down more than a fifth. Blocked payments from its most lucrative market would threaten MTN’s punchy dividend plan.

Australia’s $11 bln telco deal dials up high hopes

30 August 2018

TPG Telecom and the Vodafone Hutchison joint venture are coming together. The merger reduces chances of a price war and the market is implying hefty synergies can be achieved. It should ease Vodafone’s exit and even rival Telstra may come out ahead.