Internet inches away from utility status 6 Apr 2010 A landmark court ruling means broadband operators won t need to treat all traffic on their networks equally. The blow to net neutrality gives the Internet a longer leash than its telco or electricity cousins. But it could spur an even more ambitious Washington power grab.
BSkyB dominance may survive regulator’s crackdown 24 Mar 2010 Britain s media watchdog is expected to order the broadcaster to cut wholesale prices for its sport and film channels. That could help rivals which have tried for years to loosen Sky s grip. But while the curbs may cut prices for viewers, Sky could hold onto its market share.
Russian 4G tenders aid unwelcome state expansion 22 Mar 2010 All but one of 40 licences just awarded for 4G telephony in Russia have gone to Svyazinvest, the inefficient state telecoms dinosaur. Svyazinvest's expansion is part of a deliberate policy that bodes ill for a sector that had been benefiting from the injection of competition.
Palm says Achtung Baby to Bono’s big bet 19 Mar 2010 Elevation Partners has poured money into a few concentrated bets but is struggling to find what it's looking for profits. The fund where U2 s frontman is a cofounder is now seeing its biggest gamble the turnaround of handset maker Palm starting to unravel.
Bharti can defer share issue for Zain only so long 18 Mar 2010 The Indian telco is close to securing debt financing for its $10.7 bln offer to buy African assets from Kuwait's Zain. But this will leave Bharti highly geared when it has big investment requirements. If the deal happens, investors should expect an equity issue soon afterwards.
Skype looks like Silicon Valley’s best IPO hope 15 Mar 2010 With Facebook not on the IPO launch pad, the former eBay orphan could steal the scene with a quick flip. After clarifying copyright issues and rewriting its code to attack the business market, the Internet telephony group may be worth twice the $2.75 bln it sold for last year.
Providence’s Kabel IPO puts just enough on table 11 Mar 2010 The U.S. private equity firm has set a reasonable, but hardly generous, price range for the German cable operator's float. After flirting with a flaky secondary buyout, Providence needs investors back on side. And the rest of the industry will be crying out for a successful exit.
TI investors have bigger concerns than Sparkle 25 Feb 2010 Telecom Italia is set to delay its results after tax authorities seized 300 mln euros at its wholesale unit. The sum, equivalent to 10 pct of forecast pretax profit, is significant. But investors will be more focused on M&A chatter and worries about TI's turnaround plan.
France Telecom gets new boss for same strategy 25 Feb 2010 France Telecom's new CEO Stephane Richard has reiterated the group's cash flow targets in spite of the challenging environment. A political appointee, he should smooth the group's strained relations with French authorities. But he's unlikely to engineer a strategic turnaround.
Verizon Wireless can’t deny dividends much longer 18 Feb 2010 The U.S. phone company has used the prodigious cash flow of its mobile subsidiary for growth rather than share the largesse with minority owner Vodafone. Yet size rules out further deals and Verizon needs cash. Something has to give.
BT should bite bullet on 9 bln pound pension hole 17 Feb 2010 The UK telco's 17year plan to plug its pension deficit is weighing on the shares after the regulator voiced unease. BT could fill the gap faster by increasing topup payments or issuing a bond. Neither option is cost free. But reduced uncertainty may be worth the pain.
Bharti Airtel offers $10.7 bln to pursue dream 15 Feb 2010 The Indian telco has long wanted to expand in emerging markets. It is offering to pay around 8 times EBITDA for the African assets of Kuwait's Zain. This is in line with recent transactions, but Zain's businesses need major investments. Bharti is taking risks to do a big deal.
European state telco stakes ripe for sell-down 9 Feb 2010 Debtburdened governments are sitting on about 56.1 billion euros of partprivatised telecoms groups. The rationale for secondary offerings is strong. Sizeable issuance could be digestible should governments decide to let go.
IPO no quick fix for Deutsche’s T-Mobile USA 5 Feb 2010 The German operator is under pressure from shareholders to fix its US unit. But none of the solutions an IPO, a spinoff or merging it with a rival looks likely to deliver immediate value. TMobile USA has been a dog for Deutsche; and Deutsche has been a dog for Blackstone.
Politics still Telefonica’s big hurdle in Italy 29 Jan 2010 Speculation that the Spanish telecoms group might acquire Telecom Italia has flared up again. Some of TI's shareholders seem amenable to the idea. But most Italian politicians are resistant. Without their blessing, the prospect of a tieup looks highly unlikely.
Apple’s iPad beauty spells trouble for operators 27 Jan 2010 Unsurprisingly, the tech supremo's new tablet is a gorgeous device that does everything but make your breakfast. Over time, more apps will be added and its price will drop, making it even more desirable. And that's a problem for already strained carriers like AT&T.
Private equity springs to life in Europe 27 Jan 2010 Banks appear to be lining up to back the biggest buyout in two years a 5 bln euro bid for Kabel Deutschland. It's a great business: little competition, good growth and hefty margins. Plus bond investors are hungry for utilitystyle assets, so refinancing loans should be easy.
Egypt plays fast and loose in telecom battle 14 Jan 2010 The fight over the ownership of the country's largest mobile operator has reached a new low. Locallybased Orascom can't afford to make an offer but doesn't want its partner France Telecom to do so either. Egypt appears to be protecting its own; minorities are the big losers.
Telefonica can still hope for Latin America 12 Jan 2010 The Spanish phone company is the biggest foreign investor in the region. It has had its ups and downs. The 50 percent devaluation of the Venezuelan bolivar is a big down in its second largest market in the region. But overall, the Latin American bet remains a good one.
Seidenberg plays tough on Verizon Wireless 8 Jan 2010 Verizon Communications' boss is saying dividends from the U.S. mobile joint venture with Vodafone might be delayed again and is downplaying any other solution to the troubled structure. But that's unsurprising. Saying otherwise would weaken his negotiating position.