Telecompaper Headlines

Telefonica plans asset sales, stock div to boost cash

Thu, 31 May 2012 09:02:00 +0200

(Telecompaper) Telefonica has announced plans to conserve and boost its cash position, through asset sales and moving to a stock dividend. The management board announced that it will pursue an IPO of Telefonica Germany as well as look at possible listings of some Latin American businesses. It will also consider "selective asset monetisations", with the accelerated sale of non-core activities. In addition, the Spanish operator proposed to switch to a final dividend for 2012 all in shares. The company said over 60 percent of shareholders opted for the stock dividend last year. It reiterated the dividend for 2012 will total EUR 1.30 (plus EUR 0.20 per share in share buybacks) and proposed paying an interim dividend in cash of EUR 0.40 per share and the remainder in stock next spring. It also maintained a forecast for shareholder remuneration of at least EUR 1.50 per share in 2013, but said the make-up of this will be decided later, based on market conditions. The company said the measures are aimed at keeping its net debt below 2.35 times OIBDA this year.

Verizon to raise top broadband speed to 300Mbps

Wed, 30 May 2012 16:43:00 +0200

(Telecompaper) Verizon announced an increase in speeds for its Fios fibre broadband service, with the top speed growing to 300Mbps. The US operator will continue to offer a basic service at 15Mbps, while from next month, the 25Mbps plan increases to 50Mbps, the 35Mbps offer goes to 75Mbps, the 50Mbps offer triples to 150Mbps, and the current top speed of 150Mbps double to 300Mbps download and 65Mbps upload. The new speeds will be offered on a standalone basis and in bundles, with prices to be unveiled next month. Verizon said the majority of customers will be able to order the two top-tier speeds, delivered over GPON terminals. The Fios network currently covers over 13.7 million households, and Verizon last reported just over 5 million customers for the broadband service at the end of March. The operator said the higher speeds respond to the growing number of internet-connected devices in the average home, which currently number seven and are expected to grow to between nine and 15 connected devices by 2015.

Internet traffic to grow four-fold to 2016 - Cisco

Wed, 30 May 2012 15:28:00 +0200

(Telecompaper) Annual global internet traffic will reach 1.3 trillion GB in 2016, according to the latest forecast from Cisco. Monthly traffic will increase nearly four-fold from 2011, to an estimated 110 exabytes in 2016, while hourly traffic is expected to reach 150 petabytes by the same date. The increase in IP traffic is driven by the growing number of connected devices. Cisco expects that by 2016, there will be nearly 18.9 billion networked devices ― equal to almost 2.5 connections per person ― compared with 10.3 billion in 2011. There will also be more people accessing the internet (3.4 billion in 2016), faster bandwidth (average 34Mbps vs 9Mbps in 2011) and more people watching online video (traffic of 1.2 million video minutes per second in 2016). Cisco also expects that by 2016, over half of the world's internet traffic will come from Wi-Fi connections. These will increasingly be over mobile devices and TVs, as the percentage of consumer internet traffic coming from PCs is expected to drop to 81 percent in 2016, from 94 percent last year. Global mobile internet traffic is forecast to grow ten-fold from 2011 to 2016, to 10.8 exabytes per month, or 130 exabytes annually.

Dutch mobile market decline slows to 2.7% in Q1

Wed, 30 May 2012 15:20:00 +0200

(Telecompaper) The Dutch mobile industry generated EUR 1.45 billion in revenue in the first quarter of 2012, down 2.7 percent compared to the same quarter last year and a decline of 4.5 percent compared to the fourth quarter of 2011, according to Telecompaper's quarterly market monitor. The annual decline slowed to 2.7 percent, from 4.2 percent in the same period last year, due to a smaller impact from cuts to termination rates, the market researcher said. Nevertheless, voice revenue was still lower, and the growth in non-voice revenues, from services such as SMS and data, was not able to compensate. For the full year 2012, Telecompaper expects the Dutch market to show a decline of around 2 percent to EUR 5.9 billion in service revenue. In terms of customer numbers, the Dutch market (including MVNOs) saw an increase of 3.3 percent annually to 20.9 million at the end of March. KPN's market lead weakened to 47 percent of all subscribers, while Vodafone saw its market share increase to 29 percent, and T-Mobile was stable at 25 percent.

Kroes plans net neutrality recommendations

Wed, 30 May 2012 09:42:00 +0200

(Telecompaper) EU Commission vice-president Neelie Kroes has announced plans to create new recommendations on net neutrality for ISPs, requiring they provide more details to consumers on the quality of internet services. The announcement comes alongside the release of the EU telecom regulator Berec's survey of over 400 fixed and mobile internet providers on net neutrality issues. It found that at least 20 percent and potentially up to half of EU mobile broadband users have contracts that allow their provider to restrict services like VoIP or peer-to-peer file sharing. Around 20 percent of fixed operators (across virtually all EU member states) apply restrictions such as limiting P2P at peak times. The EU commissioner said she wants to provide consumers with more transparency and choice in their internet services. She plans three recommendations: for ISPs to require clear information on actual, 'real-life' broadband speeds, more detailed information on limits to the service, such as quantified data ceilings rather than 'vague' fair-use policies, and restrictions on marketing 'internet' service that gives access to less than the full internet.

RIM forecasts Q1 operating loss

Wed, 30 May 2012 08:56:00 +0200

(Telecompaper) Research In Motion expects to report an operating loss for its fiscal first quarter to 02 June, hurt by weak demand for its BlackBerry smartphones. CEO Thorsten Heins said in a letter to shareholders that the company continues to suffer from lower volumes and "highly competitive pricing dynamics in the market". The company is competing "aggressively" on both the consumer and enterprise market and is pushing ahead with planned cost reductions of USD 1 billion by the end of fiscal 2013, Heins said. It also expects an increase in its cash position in Q1 from the USD 2.1 billion reported at the end of February. The CEO also confirmed that headcount reductions will continue throughout the fiscal year, while at the same time RIM will hire new staff to support the launch of BlackBerry 10, still planned for "later this year". Heins confirmed that the company hired JP Morgan and RBC to look at strategic options for the group, including licensing deals for the BlackBerry platform, but did not provide any further details. More information will be announced with the quarterly results on 28 June, he said.

Samsung, Google unveil new Chromebooks

Wed, 30 May 2012 08:24:00 +0200

(Telecompaper) Samsung Electronics and Google announced two new computers based on Google's Chrome operating system. The Samsung Series 5 Chromebook laptop and Series 3 Chromebox desktop will launch in the US and UK on 30 May, just under a year after Google's first Chromebook hit the market. The 3-pound laptop features a full-size keyboard and 12.1-inch, SuperBright LCD screen and runs an Intel Celeron 867 dual-core (1.3 GHz) processor with 16GB SSD and 4GB of RAM. The makers claim it boots up in just seven seconds. The compact Chromebox comes with the same storage and RAM and an Intel Celeron B840 dual-core (1.9 GHz) processor, plus built-in 2x2 WLAN to extend Wi-Fi coverage. Users can connect peripherals over Bluetooth, a Display port or six USB ports. Both devices come with a new version of the Chrome OS, automatic software updates and access to a range of apps, cloud storage and cloud print to Samsung printers. The Chromebook Wi-Fi model will retail at USD 449.99, while the 3G model, including 1GB data per month for two years from Verizon, will cost USD 549.99. The Chromebox Wi-Fi model will retail at USD 329.99. The computers will be available at Amazon.com, Tiger.com, NewEgg.com, BestBuy.com and BHPhoto.com in the US, and Curry's, PC World and certain online retailers in the UK.

Sprint to shut down iDen network in 2013

Wed, 30 May 2012 08:15:00 +0200

(Telecompaper) Sprint announced it will shut down its iDen network by the end of June 2013, moving customers to its Sprint Direct Connect PTT service on its CDMA network. The mobile operator will start informing customers next month, providing offers for switching to the CDMA network. Sales of iDen devices are also being halted across channels. Sprint Direct Connect was launched last October and features push-to-talk, broadband and rugged handset options. Its coverage will be expanded in the course of 2012. The iDen shutdown is part of Sprint's Network Vision plan, which will consolidate its range of network technologies, expand coverage and prepare for the launch of LTE.

Samsung launches Music Hub mobile music service

Tue, 29 May 2012 11:31:00 +0200

(Telecompaper) Samsung has announced the launch of the Music Hub cloud-based mobile music service, available in European markets from 29 May. The service will initially be available on the new Samsung Galaxy S III smartphone in France, Germany, the UK, Spain and Italy, and will be extended to a wider range of devices and countries soon. It is based on technology from subsidiary and mobile content service provider mSpot, with tracks provided by digital music service 7digital. The service will be offered free, allowing customers to preview and download paid music and store it in a digital locker accessible across devices. A Premium Version for GBP/EUR 9.99 a month will also allow users to upload their own music collection to the digital locker and access unlimited streaming and personalised radio stations.

Dutch broadband market grows 0.8% to 6.4 mln lines in Q1

Tue, 29 May 2012 09:12:00 +0200

(Telecompaper) The Dutch broadband market grew by almost 48,500 connections or 0.8 percent during the first quarter of 2012, to a total 6.43 million lines, according to the latest research from Telecompaper. A 2.1 percent quarterly decrease in DSL connections to 3.21 million was offset by 2.8 percent growth in cable broadband connections during the quarter, to 2.86 million. The number of FTTH/B connections also grew by almost 13 percent during Q1, giving the technology a 5.5 percent market share. KPN was still the largest broadband provider in the Netherlands with a 39.1 percent market share at the end of March 2012, after losing 0.8 percentage points over the previous 12 months. Ziggo was number two with a market share of 26.4 percent, and UPC came third with 15.3 percent. Telecompaper forecasts growth of 2.9 percent in the broadband market over the full year 2012, led by continued growth in cable and fibre. Fibre is expected to grow more than 35 percent, and cable growth should reach more than 6 percent. Growth in 2012 will be driven by more operators offering triple-play packages via multiple networks, the market researcher expects.