Wednesday, August 22, 2007

Telco Daily 22-Aug-2007

SK TELECOM TO TAKE UNICOM STAKE
According to FT South Korea's SK Telecom said it would convert USD1billion worth of bonds in China Unicom into a 6.6 percent stake to solidify its position in China. SK Telecom expects the deal will help it expand co-operation with China Unicom in 3G services once licences are issued.

Speculation of a restructuring in China's telecom sector - which could see the number of large operators cut from four to three - includes talk of a proposal for Unicom to be divided in two, with one of its national wireless networks going to China Telecom and the other to China Netcom. (Financial Times)



APPLE SECURES EUROPE IPHONE REVENUE DEALS
Apple has signed contracts with three European mobile operators which want exclusively to sell the new iPhone. The contract was signed by T-Mobile of Germany, Orange of France and O2 in the UK, writes FT Deutschland. In the US, AT&T has negotiated a two-year contract with Apple. Mobile operators are said to be hoping for a significant boost in their image from the exclusive deal with Apple, writes FT. (Financial Times)



SPRINT NEXTEL BETS ON WIMAX
Besides selling wireless service to subscribers, Sprint Nextel is seeking to embed access to its WiMax network in novel products, such as digital cameras and billboards. Sprint CEO Gary Forsee said demand for WiMax services won't grow without a large number of products that use the network. As a result, the company has teamed with Intel, Motorola, Samsung Electronics and Nokia to release 50 million WiMax devices over the next three years. Mr. West said Sprint was in discussions with other makers of consumer-electronic products. (The Wall Street Journal)



PARTNERSHIP KEEPS BEATING ALL THE ODDS
Alliances within the telecommunications sector do not have a very good track record. But Microsoft and Nortel are betting their strategic partnership, called the Innovative Communications Alliance, will beat the odds. Both of them sense a business opportunity as companies combine voice and data networks into a single IP-based system. The alliance was created one year ago and the two partners now claim the partnership, which combines Nortel's network equipment expertise and Microsoft's software, is on track.

To help convince their customers, Nortel and Microsoft have set up more than 100 demonstration facilities across the globe. (Financial Times)



HUTCHISON TELECOMMUNICATIONS: EARNINGS SOAR ON UNIT SALE
Hutchison Telecommunications International said its first-half revenue increased 12 percent to HKD9.64billion. A gain from the sale of its stake in India's Hutchison Essar to Vodafone boosted earnings. The company said revenue from mobile-data increased and that the number of subscribers increased 15 percent to 6.8million. (The Wall Street Journal)

Friday, August 3, 2007

Alcatel-Lucent Reports Second Consecutive Quarterly Loss

Telecom equipment giant, Alcatel-Lucent, reported a notable decline in second-quarter profit margins yesterday, amid a second consecutive quarterly loss during the three-month period ending on June 30.

The transatlantic company, formed last year by the merger of France’s Alcatel and America’s Lucent, reported a net loss of €586 million ($800.4 million) for Q2, compared to a combined profit of €128 million in the second quarter of 2006. The loss included a €250 million merger-related amortization payment.

Gross profit margins also slid significantly to 33.4%, from 38% in the year-ago period.

“2007 is clearly a transition year for the company as we continue to execute on our integration plans in a rapidly changing industry,” commented CEO, Patricia Russo, in a statement. “We believe the gross margin level this quarter is not indicative of the business going forward.”

Market analysts were concerned about the company’s poor performance, however, even questioning its ability to compete. As results continue on a downward spiral, the “merger integration” excuse seems to be wearing thin.

“Things look very bad,” said Nomura analyst, Richard Windsor. “Ericsson margins in the mobile infrastructure business are excellent. Alcatel-Lucent margins are so weak it shows there is no way they can compete with Ericsson.”

Source: http://www.teleclick.ca

Wednesday, August 1, 2007

Helius Completes Acquisition of the PointeCast Corporation

Helius to Combine IP Video Solutions with Rapid-Authoring and Learning Management Technologies LINDON,

Utah--(BUSINESS WIRE)--Helius Inc., the worldwide leader in IPTV solutions for business, completed the previously announced acquisition of the PointeCast corporation, a leading provider of rapid-communication and online training solutions.

The acquisition expands the Helius application offering to include rapid-authoring software and learning management tools. Helius will continue to provide solutions for the digital signage, business television and training and learning markets.

“The PointeCast rapid-authoring technology is a key component to the expansion of our existing product offerings,” said Mike Tippets, President and CEO, Helius, Inc. “We will announce new products based on the integration of these technologies and deliver new applications in the third quarter.”

With the close of the acquisition, PointeCast becomes a wholly owned subsidiary of Helius and will continue to develop applications under the PointeCast brand. The financial terms of the transaction were not disclosed.

About Helius Inc.

Helius provides IPTV solutions for business. Our patented expertise helps organizations implement applications like digital signage, distance learning, and corporate communications. For more information, visit www.helius.com or call Jeffrey Curtis at 801-764-9020.