D.Tel’s U.S. exit turns nightmare into bad dream 21 Mar 2011 Despite a high price and fat break fee, the sale of TMobile USA to AT&T for $39 bln does not redeem Deutsche Telekom's original $51 bln acquisition a decade ago. This foray into the U.S. will always be remembered for its overpriced entry, rather than its graceful exit.
Merged Sprint and T-Mobile threaten only in theory 9 Mar 2011 AT&T and Verizon dominate U.S. mobile with nearly twothirds of the market and counting. Combining the third and fourth biggest networks should on paper create a formidable rival. But integrating Sprint and TMobile's technologies probably would make for a harsher reality.
Nokia’s new CEO fluffs his big moment 11 Feb 2011 Stephen Elop has won Microsoft as an ally in the Finnish handsetmaker's battle to regain ground in smartphones. The tieup is Nokia's least bad option. But there's no management shakeup, and Elop's targets are vague. No wonder he's struggling to convince.
It’s feeding time for Nokia’s rivals 11 Feb 2011 Whether Windows can help the Finnish giant get its smartphone groove back is debatable. Either way, the switch will take two years to happen. By then, Apple and Android devices will have had ample time to take bigger bites out of the market.
Alcatel-Lucent takes itself off the sick list 10 Feb 2011 Former BT boss Ben Verwaayen has shown he can turn around the maker of fixedline networking equipment that he inherited following a difficult 2006 merger. But the way things worked out for the UK firm after he left, suggests investors should temper their enthusiasm.
Thrifty satellite billionaire spots a real bargain 9 Feb 2011 Charles Ergen, the payTV mogul renowned for his pennypinching ways, is trying to win control of two bankrupt satellite companies. They would give him a cheap seat in the booming mobile data market or a tool to fight rivals. But others may yet prevent this steal of a deal.
Technology is a two-edged political sword 3 Feb 2011 Egyptian authorities' commandeering of mobile networks to send mass SMS messages challenges the idea that texting and tweeting are emancipatory forces. It's an unsettling reminder that states have ultimate control of infrastructure. Still, theirs is the blunter side of the blade.
Techies need plan to deal with despots 2 Feb 2011 Vodafone suspended its Egyptian service after demands from the authorities. Google, on the other hand, chose to pull back in China. There are no easy answers on how to deal with autocratic regimes. But being transparent about the reasons for complying or exiting helps everybody.
ARM is good, but not as good as the shares suggest 2 Feb 2011 The company's business designing lowpower chips for mobile devices is going full tilt. ARM is using its position to capture large chunks of the markets for chips in everything from servers to autos. But an awful lot of rosy future is already baked in the stock's valuation.
Vodafone strength is mixed blessing for new chair 2 Feb 2011 Gerard Kleisterlee, outgoing boss of Dutch conglomerate Philips, takes the chair as the telco's shares near highs last seen in 2007 and as concerns about its sprawling portfolio are being addressed. The question is how Kleisterlee can drive even more value for shareholders.
Vodafone wins first round in Essar war 31 Jan 2011 The UK group's partner in its Indian venture is downplaying a plan to inject its stake into an illiquid shell a move which could have artificially inflated its value. Though the saga could have more twists, Vodafone will probably eventually pay $5 bln to buy Essar out.
Vodafone right to oppose Essar telecom listing 19 Jan 2011 The teleco giant has fallen out with its Indian partner over plans to back part of the Vodafone Essar joint venture into a closelyheld investment firm. The move appears aimed at inflating the stake's value ahead of the expiry of Essar's option to sell it back to Vodafone.
Singapore lands one on HK in $6 bln Hutchison IPO 18 Jan 2011 Hong Kong conglomerate Hutchison Whampoa is to take advantage of Singapore's taxefficient trust law to list its port operations there. The deal is payback for the city state's longstanding efforts to be a competitive financial centre. For Hong Kong, it's a wakeup call.
Vimpelcom trick puts Telenor on the back foot 17 Jan 2011 The Norwegian telco faces another foreign disaster after the Russian group resurrected old tricks to force through its $6 blnplus purchase of Wind from Egypt's Naguib Sawiris. Telenor is right that the terms look poor for Vimpelcom, but its chance of thwarting the deal are slim.
Apple needs more formal delegation of Jobs’ power 17 Jan 2011 Steve Jobs is handing daytoday control of Apple to chief operating officer Tim Cook due to health issues. Yet he retains the CEO title. It's the third such move, and this time it is indefinite. However painful, a more formal transfer to an acting CEO would have been better.
Apple still looks a bargain after $100 bln run 30 Dec 2010 Large companies rarely grow quickly. Nonetheless, Apple increased sales by more than 50 percent in 2010. That sent the company's value up by an astonishing $100 billion. Yet the stock's valuation still looks oddly subdued once adjusted for the company's cash pile.
Vimpelcom has tactical advantage in Weather talks 22 Dec 2010 The Russian telco's agreed takeover of emerging market rival Weather hit a snag when one of its top shareholders, Norway's Telenor, voiced concern. It's easy to see how Vimpelcom can use Telenor's reservations as leverage to get better terms. And Weather has reasons to budge.
TDC backers conjure up clever exit strategy 25 Nov 2010 Not only are the Danish telco's private equity owners selling $2 bln of stock on the market; the company itself is buying back another $1.6 bln of shares, with the LBO houses again the main sellers. It's a neat way of getting a partial exit while releveraging the balance sheet.
Motorola split should finally unlock value 19 Nov 2010 The mobile tech group promised in early 2008 to break itself up under pressure from activists. It will finally happen in January. That sounds like plenty of time for investors to ferret out hidden treasure. Yet there s still a gap between Motorola s current and potential worth.
Ugly duckling TDC on its way to becoming a swan 12 Nov 2010 The telecom group's private equity owners are selling shares worth around $2.9 bln. Recent Danish IPO successes and buoyant equity markets bode well for the move, which will increase TDC's free float. For the buyout groups, it may provide a fairytale end to a tough investment.