BT envisions in-sourcing Indian outsourcing 27 Aug 2008 The UK telecom operator is reportedly mulling a sale of its 31% stake in Tech Mahindra, a $2.2bn software services joint venture. BT sees India as a future crown jewel, and this venture is growing fast. So why think about selling? Maybe BT thinks it could do the job itself.
Sprint’s debt forces it to make unpleasant choices 12 Aug 2008 The phone company was forced to pull a $3bn convert after its shares took a dive. Unfortunately, it is still bleeding customers and its debt covenants are uncomfortably tight. The company needs more capital, and pronto.
India’s BSNL mooted $100bn valuation looks rich 8 Aug 2008 The potential privatisation of the subcontinent's largest telecoms operator is creating a buzz. Yet while BSNL has scale, it s in the wrong market. With half of its customers coming from a monopoly in India s declining fixedline market, BSNL is far from the pick of the crop.
Yet more confusion swirls around Telecom Italia 7 Aug 2008 The share price of the beleaguered and highly leveraged operator has reportedly fallen low enough to break a debt covenant. That could bring in the banks. Behind the share fall is a wrangle between shareholders and Bernabé, the boss. A crisis point can t be far off.
BT can’t cover its problems with fibre 31 Jul 2008 New boss Ian Livingston hasn t got off to a good start. The UK telecom s much touted services growth engine is falling short. In broadband, it s being hit by rivals BSkyB and Carphone. With cashflow weak, the planned rollout of a fibre optic network looks even riskier.
Alcatel-Lucent chooses lesser of two evils 29 Jul 2008 The founders of the FrenchUS telecom equipment maker are finally leaving the company created by the merger from hell. Their departure should help end the group s nationalist paralysis. But the timing is awful and without a succession plan AlcatelLucent looks as lost as ever.
Motorola’s handset spin-off gets shakier 28 Jul 2008 The tech group s handset business lost nearly half its market share in the past year. Second quarter results are likely to show further decline. If the meltdown isn t arrested soon, the spinoff of the division could be imperilled.
Harbinger could find Inmarsat hard to catch 25 Jul 2008 The activist hedge fund could need 18 months to get the regulatory OK to buy the 71% of the £2.1bn global satellite group it doesn't own. Potential rivals for Inmarsat's spectrum might be able to go faster. By showing its hand, Harbinger gives them an opportunity to pounce.
Nokia/Qualcomm deal clears decks 24 Jul 2008 The two sensibly settled their multibillion dollar royalty dispute. For Qualcomm, it could be a template for other deals. More important, both companies can turn to pressing threats such as a handset growth slowdown in developing markets and the rise of Apple.
Sarin leaves a mixed legacy at Vodafone 22 Jul 2008 The outgoing chief executive s valedictory results have suffered from the economic slowdown. Vodafone now expects sales at the low end of forecasts that were seen as conservative just eight weeks ago. Europe s mature telecoms industry faces a tough time.
MTN’s roaming Indian eye returns to Bharti 15 Jul 2008 The South African telecoms group s efforts to seal a deal with Indian rival Reliance look dead. Still keen to scale up, MTN s previously discussed $80bn tieup with India s largest operator may be back on the cards. If talks go public, MTN might finally get its Indian bride.
Harbinger points to spectrum price boom 8 Jul 2008 After making a fortune shorting subprime mortgages, the activist hedge fund is now circling Inmarsat. The synergies in combing the UK group with Harbinger s other satellite holdings don t look large. The hedge fund may be thinking the value of spectrum is heading skywards.
MTN prolongs Reliance embarrassment 7 Jul 2008 The South African telecom operator has extended talks with its Indian rival, despite looking no closer to overcoming the legal spat obstructing an $80bn tieup. After engaging publicly with two suitors in as many months, MTN won t save face if it all comes to nothing.
Reliance-MTN must give investors clarity 4 Jul 2008 The proposed $80bn IndianSouth African telecom tieup looks troubled. A legal spat at Reliance is creating uncertainty. Investors have no idea if a deal is possible, or what it might look like. Falling share prices will make it much trickier to agree terms.
Bad tech bets hurt, wrong debt assumptions kill 2 Jul 2008 Technology dealt yellow page publishers losing hands. Until recently, RH Donnelley, Yell and Seat Pagine Gialle assumed otherwise. Tech shifts are difficult to survive building lasting capital structures upon faulty assumptions is often fatal.
Feuding Ambani brothers need to settle on Reliance-MTN 1 Jul 2008 The exclusivity period for talks between the telecom operators expires Tuesday. MTN will extend the deadline only if the Reliance brothers show signs of settling the legal spat obstructing the $80bn tieup. As it stands, the family risks hurting India s investment reputation.
France Telecom finally finds wisdom on TeliaSonera 30 Jun 2008 Better later than never. The French operator has pulled out of an illconceived bid for the SwedishFinnish group. The target s shareholders may come to regret holding out for more, but France Telecom will be spared a costly deal that offered more problems than synergies.
Nokia’s Symbian purchase swats Microsoft and Google 24 Jun 2008 The Finnish mobile giant will take control of the biggest smart phone software maker and offer its programs for free on an open source basis. This could make it harder for rival software groups to carve out a profitable niche in mobile.
Canadian court’s ruling keeps BCE on life support 20 Jun 2008 The Supreme Court ruling will allow the buyout of the Canadian giant to stagger on. But in some ways, it still marks the end of an era. The $52bn buyout was announced near the bitter finale of the LBO boom. Deals that big won't be seen again for years.
Tiscali auction looks in trouble 19 Jun 2008 Hot favourite Vodafone is understood to have walked away from the overvalued Italian internet group. The withdrawal of the UKbased mobile operator leaves only a handful of tentative bidders. Amid signs of a broadband slowdown, Tiscali should be lowering its price expectations.