Telecommunications

Viewsroom: ‘Game of Thrones’-style war heads to TV

18 April 2019

HBO’s hit series is ending as parent AT&T, Amazon, Apple and Walt Disney launch their claims to the streaming-video crown. Netflix, though, will be hard to usurp. Elsewhere, India’s weeks-long election gets underway. And global economic growth collides with nationalism’s rise.

T-Mobile and Sprint can bear antitrust pain

16 April 2019

The telecom firms have yet to convince U.S. officials over their $88 bln merger. They may have to make cuts, like selling T-Mobile’s prepaid unit or spectrum. Bigger rivals Verizon and AT&T are already diversifying. Unless trustbusters get draconian, combining is the best bet.

Buyback plan gives Bolloré a Vivendi backstop

16 April 2019

The French media giant’s shareholders have approved plans to buy back a quarter of its stock at 25 euros a share. That’s a handy insurance policy for billionaire Vincent Bolloré. If the stock drops, he has scope to gain greater control of the company at no personal cost.

‘Game of Thrones’ will end with an HBO cliffhanger

15 April 2019

The fantasy TV series entered its final season on Sunday, meaning its broadcaster will soon have a dragon-shaped hole to fill. HBO has weathered successful finales before. This time it’s under new ownership, and cash-rich rivals are paying up to claim the industry’s iron throne.

Africa phone king is China’s tech star in waiting

15 April 2019

Little-known Transsion stands out among those waiting to IPO on Shanghai's new board. The Chinese handset maker has strong Belt and Road credentials as the top brand in the last frontier. With striking similarities to Xiaomi’s early years, there’s plenty to get excited about.

Nordic $3.2 bln telco deal makes little sense

9 April 2019

Norway’s Telenor is buying a majority stake in Finland’s DNA and will offer to buy the rest for a total price tag of 2.8 bln euros. The financial returns of this odd move into a mature market will be so slim that CEO Sigve Brekke may do better by handing more cash to investors.

Boeing risks becoming an American Huawei

5 April 2019

The largest U.S. exporter, just like the Chinese telecom giant, is a national champion with hard-to-avoid products and a big image problem. Their respective governments have made things worse in different ways. Of the two, the airplane maker has a better route out of ignominy.

Vincent Bolloré eyes honourable surrender in Italy

29 March 2019

Vivendi, controlled by the French tycoon, is withdrawing its plan to throw five directors appointed by Elliott off the board of Telecom Italia. The move spares Bolloré a messy defeat, but still leaves him stuck with rival Paul Singer. State investor CDP could act as a peacemaker.

Altice share price surge sets investor trap

29 March 2019

The stock market value of Patrick Drahi’s European telco jumped by a quarter on rosy 2019 cash-flow forecasts. That represents only a minor tweak to the company’s total worth, though: about 90 pct of its capital structure is debt. Bad news could reverse the bounce in a flash.

Viewsroom: Who will drive off with Fiat Chrysler?

28 March 2019

Peugeot and Renault both seem keen to merge with the Italo-American carmaker. Either deal could improve earnings from smaller cars, but couldn’t plug all Fiat Chrysler’s gaps in Asia and new tech. Plus: Apple’s underwhelming new services. And can Huawei’s charm offensive succeed?

Huawei will survive in Europe, but not thrive

28 March 2019

The Chinese telecom-kit maker avoided an EU-wide ban, despite U.S. pressure for one. Yet a UK security report has found serious flaws in its gear. The slapdown means higher costs for Huawei, and could put off clients who will worry about future government censure.

China’s 5G noise scrambles ZTE’s positive signals

28 March 2019

A ban on U.S. suppliers selling parts to the $16 bln telecom company dragged it into the red in 2018. Its Hong Kong shares are up 50 pct this year anyway, on the promise of 5G networks. Signs that Chinese carriers may delay a rollout, however, suggest such hopes are premature.

Huawei’s charm offensive scores only half-points

27 March 2019

The Chinese telecom champion is engaging in an unprecedented public relations push, battling U.S. allegations of spying, IP theft and opacity. Its arguments about security have some merit, but the campaign might convince more sceptics if Beijing wasn't trying so hard to help.

Naspers relocates its Tencent discount to Europe

25 March 2019

The Johannesburg group is shifting internet investments, including a $134 bln stake in the Chinese web giant, to an Amsterdam-listed unit. That might tempt investors wary of South African risks. But it does little to address fears that Naspers will squander its Tencent windfall.

China’s carriers dig deep for world-beating 5G

21 March 2019

The mobile giants have hinted at how much they will spend on the initial buildout of next-generation technology, outlining the first real plans for a potential $140 bln project. Costs look manageable for now, but expensive calls from Beijing remain a worry.

Iliad’s dividend delivery looks precarious

19 March 2019

Xavier Niel’s embattled 5 bln euro telco slashed its closely-watched 2020 cash-flow target. Even the new, lower figure will be hard to hit if price wars persist in France. The takeaway is that Niel and his fellow investors will have to wait much longer for any hefty payouts.

Carlos Slim has upper hand in Spain property fight

14 March 2019

Hedge fund Polygon reckons Realia, controlled by the Mexican tycoon, uses lowball land valuations and raised capital it doesn’t need. The 800 mln euro company’s response is unconvincing. Yet unless regulators force it to change, Slim could increase his stake at a lowball price.

TIM shareholders should reject Bolloré board slate

12 March 2019

The Vivendi boss wants to replace five directors of the Italian telco’s board with his own. They don’t deserve to win, and the French mogul is already well represented. But the infighting needs to end. After the vote, TIM needs to appoint a new chairman who can unite both fronts.

Vodafone’s financial juggle papers over risks

8 March 2019

The telco is funding its 18 bln euro Liberty Global deal with a mixture of debt, derivatives, convertibles and hybrid bonds. It’s a neat way to avoid diluting shareholders when Vodafone’s shares are cheap. But the trick needs rating firms, and markets to play ball.

Viewsroom: Hostile gold diggers

7 March 2019

The three-way takeover fight involving Newmont, Barrick Gold and Goldcorp is full of aggression and big egos. Breakingviews columnists unpick the gold-mining M&A frenzy and debate whether cooler heads can prevail. Plus: China telecom giant Huawei has a public-relations challenge.