& cplSiteName &

Eurobites: Colt Cuts Back on Carrier Voice Deals

Paul Rainford
4/22/2014
50%
50%

Also in today's EMEA regional roundup: SFR talks network-sharing with Vodafone; Liberty Global gets Carrier Ethernet 2.0 certification; the future's not Orange.

  • Pan-European operator Colt Technology Services Group Ltd (London: COLT) unveiled a critical strategic move Tuesday as it announced a slight year-on-year increase in first-quarter revenues to €399.8 million (US$552 million). The carrier, which provides voice, data, and IT services to enterprise and wholesale customers, announced that it plans to "withdraw from approximately 85% of our Carrier voice trading contracts over the next few months" in order to free up "five billion minutes per annum of voice network capacity to pursue more profitable enterprise voice business." As a result of this move, Colt expects its Carrier voice revenues to decline by €175 million ($241 million), equivalent to about 70% of its annual total, but expects the move to improve its profit margins, so it is clearly aiming to extract itself from deals that aren't delivering decent (or any) profits. The move, which will also result in some job losses, is expected to result in restructuring charges of about €30 million ($41 million) during the second half of this year. Investors didn't much like the news, as Colt's share price lost 12% of its value and was trading at 127 pence on the London Stock Exchange at noon Tuesday. (See Colt Reports Q1, Restructuring Plans.)

  • SFR , the French mobile company that is in the process of being swallowed by cable operator Numericable-SFR , is planning a network-sharing partnership with Vodafone, reports Reuters, citing Le Figaro. SFR's CEO, Jean-Yves Charlier, told Le Figaro that SFR's "professional clients will have access to the Vodafone network everywhere in the world." (See Eurobites: Numericable Wins SFR M&A Tussle.)

  • Meanwhile, in the pain-in-the-neck department, Vodafone is being sued by its former Greek distributor, Mobile Trade Stores, for €1.37 billion (US$1.89 billion), reports Bloomberg. According to MTS, Vodafone unexpectedly and unfairly terminated a maintenance services contract in 2008, leading to lost business.

  • Liberty Global Inc. (Nasdaq: LBTY)'s wholesale unit has earned the Carrier Ethernet 2.0 certification for its European Ethernet services, courtesy of the MEF . The cable operator says it is the first to receive this certification on a pan-European level. (See Liberty Global Wholesale Gains CE 2.0 Certification .)

  • Russian operator VimpelCom Ltd. (NYSE: VIP) has sold its 51% stake in Orascom Telecom Algérie (also known as Djezzy GSM ) to the Algerian National Investment Fund for US$2.64 billion. A VimpelCom statement regarding the deal says that it will continue to exercise operational control over OTA.

  • Brits were once told, repeatedly, "the future's bright, the future's Orange." Well, apparently it's not any more. According to a report in The Guardian, Orange (NYSE: FTE) has stopped signing up new customers via its UK online channel, and this is being interpreted, by The Guardian at least, as the first phase of the dismantling of the once hip-as-hell brand by its parent, EE .

    — Paul Rainford, Assistant Editor, Europe, Light Reading

    (1)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Ray@LR
    50%
    50%
    Ray@LR,
    User Rank: Blogger
    4/22/2014 | 10:34:53 AM
    Will this be a new trend among SPs?
    We've already seen this -- the extraction from contracts that deliver little profit or generate aloss -- in the managed services sector, with NSN and ALU.

    Now Colt is getting out of carrier voice contracts so it can sell the voice capacity to enterprise customers that deliver higher margins. It's going to be painful, as the numbers show, but Colt obviously thinks it'll be worth it.

    I wonder if we'll see a spate of such deals, and not just in the wholesale sector... 
    From The Founder
    Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Custom TV
    The Overall Objective Is to Win the Game

    6|26|17   |     |   (0) comments


    SCTE•ISBE's Chris Bastian discusses Energy 2020's success to date and the importance of a flexible approach that allows for changes in specific strategies in order to reach significant milestones.
    LRTV Interviews
    CenturyLink: Let's Get Past SD-WAN Hype

    6|23|17   |   04:02   |   (0) comments


    Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
    Women in Comms Introduction Videos
    Infinera's Sales Director Paints Tech's Big Picture

    6|21|17   |   4:14   |   (1) comment


    Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
    LRTV Custom TV
    SD-WAN Innovation & Trends

    6|20|17   |     |   (0) comments


    Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
    LRTV Interviews
    Ovum's Dario Talmesio on 5G in Europe

    6|20|17   |   02:16   |   (0) comments


    At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
    LRTV Custom TV
    Putting Power on a Pedestal

    6|19|17   |     |   (0) comments


    ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
    LRTV Custom TV
    Gigabit Access: The Last-Mile Pipe for All Future Services

    6|19|17   |     |   (0) comments


    A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
    LRTV Custom TV
    Key Factors to Successfully Deploy an SD-WAN Service

    6|19|17   |     |   (0) comments


    As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
    LRTV Custom TV
    IoT Solutions: Rational Exuberance

    6|19|17   |     |   (0) comments


    IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
    LRTV Custom TV
    Realizing ICN as a Network Slice for Mobile Data Distribution

    6|19|17   |     |   (1) comment


    Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
    LRTV Interviews
    Ovum's Mike Roberts on 5G Uptake

    6|19|17   |   04:08   |   (0) comments


    Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
    LRTV Interviews
    AT&T's Hubbard on Intersection of SD-WAN & MPLS

    6|15|17   |     |   (0) comments


    Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
    Upcoming Live Events
    October 18, 2017, Colorado Convention Center - Denver, CO
    November 1, 2017, The Montcalm Marble Arch
    November 1, 2017, The Montcalm Marble Arch
    November 30, 2017, The Westin Times Square
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    No Imagination: UK Chip Biz Goes Up for Sale
    Iain Morris, News Editor, 6/22/2017
    Does AT&T Deserve Time Warner?
    Mari Silbey, Senior Editor, Cable/Video, 6/23/2017
    Netflix's Lesson in Culture Expectation Settings
    Sarah Thomas, Director, Women in Comms, 6/21/2017
    Kalanick Steps Down as Uber CEO
    Sarah Thomas, Director, Women in Comms, 6/21/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
    One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
    Animals with Phones
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.