Telcos stronger financially than strategically 29 Jul 2010 Operators are showing improving trends with Telefonica, France Telecom and BT all beating expectations. The sector is showing welcome discipline, with an increasing number of telcos making threeyear dividend commitments. But strategic uncertainties will continue to weigh.
No middle ground for Harbinger’s huge network bet 26 Jul 2010 Philip Falcone s hedge fund is taking a multibillion dollar punt on a new U.S. wireless network. History suggests one of two outcomes: spectacular success or abject failure. Buying precious spectrum on the cheap was a coup. Developing it will be harder.
iPhone subtraction could be addition for AT&T 16 Jul 2010 The U.S. operator's days as sole carrier for Apple's iconic handset appear to be winding down. Customer growth may slow. Yet if Verizon lands the iPhone, it should push the industry toward more rational pricing for carrying data increasing returns on AT&T's iPhone customers.
Antennagate galvanizes Apple PR machine 16 Jul 2010 Steve Jobs showed the likes of BP and Goldman how spindoctoring works. Of course the comparison is unfair: the iPhone 4 problem is minor and easy to address. Still, the rumor mill was getting out of hand, and the usually aloof Apple has made a decent fist of a response.
iPhone subtraction could be addition for AT&T 12 Jul 2010 The U.S. operator's days as sole carrier for Apple's iconic handset appear to be winding down. Customer growth may slow. Yet if Verizon lands the iPhone, it should push the industry toward more rational pricing for carrying data increasing returns on AT&T's iPhone customers.
Microsoft learning hardware lesson the hard way 1 Jul 2010 The odd Kin semismartphone is being killed off less than three months after it was unveiled. The software giant should have figured out long ago it doesn t much get consumer gadgets. New management at its phone and game division may have seen the light. If so, it s about time.
BT right to stand firm in pay dispute 1 Jul 2010 Workers want a bigger slice of the telco s recovery. Yet at a time of pay freezes elsewhere, demands for a 5 pct pay rise against BT s offer of 2 pct plus benefits look punchy. BT s revenues remain in decline and its pension deficit huge. A strike may not even be so harmful.
Telefonica shows PT it means business 24 Jun 2010 The Spanish operator's sale of an 8 pct stake in Portugal Telecom via equity swaps was driven by the fear it wouldn't be allowed to vote the shares in a ballot on its 6.5 bln euro bid to buy out PT's of the Brazilian mobile JV. Telefonica's move is clever, but a little risky.
Apple takes another bite out of Nokia 16 Jun 2010 As customers stampeded for the new iPhone, the Finnish cellphone giant warned of disappointing sales and lost another 10 percent of its market cap. If Nokia can t find a way to fend off Apple, it risks turning Japanese a commoditized, lowmargin manufacturer.
Free ride ending for U.S. wireless bandwidth hogs 2 Jun 2010 Though it may hit sales at first, AT&T's move to tiered pricing for mobile data users could improve longrun profitability and end nightmarish network problems. Customers look the winners at the start, but conditioning them to pay for usage would be a victory for carriers.
Telefonica puts Portugal Telecom on the spot 2 Jun 2010 The Spanish group has long wanted to buy out its Brazilian mobile partner. The latest 6.5 bln euro offer, with sweeteners, wasn't high enough to get an endorsement from the PT board. But resistance may be weakening. The board has agreed to let shareholders vote on the new offer.
Emerging market telco M&A in a frenzy 2 Jun 2010 Abu Dhabi's Etisalat is eyeing a stake in an Indian rival, while South Africa's MTN is hoping to seal a deal with Egypt's Orascom. The dash is on as operators scramble to secure a broader footprint in Africa and Asia. With decent targets scarce, it looks like a sellers' market.
Microsoft needs to be smarter about smart phones 26 May 2010 The software giant is shaking up its games, music and gadget unit after a disappointing fiveyear run. Microsoft has to kick its troubled handset effort into gear and decide soon if it can realistically compete with Android and the iPhone. If not, bigger changes may be in order.
IBM machine grinds on with Sterling purchase 24 May 2010 Big Blue has a long tradition of morphing to survive technological shift. Its latest acquisition, Sterling Commerce for $1.4 bln, continues its push into higher margin software and online businesses. It s classic IBM not particularly flashy, but sensibly methodical.
Vodafone divi is small consolation for India woes 18 May 2010 The telco giant has softened a 2.3 bln pounds writedown in India with a pledge to lift the annual dividend by 7 pct for three years. But the raised payout isn't that impressive against peers. And it is poor compensation for the mounting problems in Vodafone's key growth market.
BT’s return to form should ease pension concerns 13 May 2010 After years of pain, the UK telecoms giant is fully delivering on its targets. Claims that revenue growth will return by 2013 look credible, and stronger operational performance should offset concerns about BT's 8 bln pound pension deficit. The shares' 9 pct jump is justified.
Telefonica puts pressure on Portugal Telecom board 11 May 2010 The Portuguese group has surprisingly rejected its Spanish rival's 5.7 billion euro offer to buy out their Brazilian mobile JV. Sure, Telefonica needs to shore up its business in Brazil, but the valuation is punchy. PT shareholders should encourage the board to think again.
HP crashes another tech barrier with Palm swoop 28 Apr 2010 The oncefragmented tech landscape is unifying as category leaders snaffle up small fry and invade the turf of other former monoliths. As HP's $1.2 bln purchase of Palm shows, mobility is the newest front line.
Nokia stress-tests investors’ patience 22 Apr 2010 The Finnish handset maker's shares fell 15 pct after it slashed guidance and warned of delays to new smartphone technology. Nokia has failed to adapt to the way Apple's iPhone and RIM's BlackBerry have changed its market. Investors may not hang on for the promised fightback.
$11 bln U.S. telco deal is merger of necessity 22 Apr 2010 CenturyTel s deal to buy the similarlysized Qwest looks cheap. But the two telecom groups are suffering from shrinking businesses and, on Qwest s side, too much debt. Combining to prop each other up will at least keep reality at bay for a while longer.