Light Reading

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 , 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 Metro Ethernet Forum (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
    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... 
    Flash Poll
    From The Founder
    The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
    LRTV Documentaries
    The 3GPP's Road to 5G Standardization

    4|17|15   |   4:43   |   (0) comments


    Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
    LRTV Documentaries
    AlcaLu CTO Makes the Case for a New 5G Air Interface

    4|16|15   |   3:54   |   (0) comments


    Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
    LRTV Documentaries
    AlcaLu + Nokia: The New Uber-Vendor

    4|15|15   |   2:42   |   (4) comments


    Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
    LRTV Huawei Video Resource Center
    Huawei's Data Center Power Play

    4|15|15   |   6:22   |   (0) comments


    Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
    LRTV Huawei Video Resource Center
    Huawei’s Routers, Switches Get the Green Mark

    4|15|15   |   2:02   |   (0) comments


    TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
    LRTV Documentaries
    A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

    4|15|15   |   3:17   |   (0) comments


    Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
    LRTV Huawei Video Resource Center
    Accounting for Better Solutions

    4|10|15   |   02:31   |   (1) comment


    Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
    LRTV Huawei Video Resource Center
    What's in Store for Huawei & DataCore?

    4|10|15   |   05:44   |   (0) comments


    At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
    LRTV Huawei Video Resource Center
    Du Puts Its Faith in Huawei's Routers

    4|9|15   |   3:42   |   (0) comments


    Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
    LRTV Huawei Video Resource Center
    Huawei Gets Active in the Data Center

    4|9|15   |   3:17   |   (0) comments


    With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
    LRTV Huawei Video Resource Center
    Blue Consult & Huawei for a Better Solution

    4|8|15   |   4:01   |   (0) comments


    Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
    LRTV Huawei Video Resource Center
    Beach Petroleum on eLTE & Mining

    4|8|15   |   3:09   |   (0) comments


    Network systems integrator Jeremy Hamlyn explains how Huawei's secure packet-based trunking communications system, eLTE, can help remote communities and companies in the mining, oil and gas sectors, deploy efficient communications networks that are perfect for video and data as well as voice.
    Upcoming Live Events
    May 5, 2015, Hyatt McCormick Place, Chicago, IL
    May 6, 2015, Georgia World Congress, Atlanta, GA
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
    Hot Topics
    Verizon Scores New OTT Content Deals
    Mari Silbey, Independent Technology Editor, 4/16/2015
    Can WiFi Calling Find Its Voice?
    Iain Morris, News Editor, 4/13/2015
    Senator Proposes New 'Title X' for Net Neutrality
    Carol Wilson, Editor-at-large, 4/13/2015
    Nokia, Alcatel-Lucent in Merger Talks
    Iain Morris, News Editor, 4/14/2015
    Nokia & Alcatel-Lucent: What's Going On?
    Ray Le Maistre, Editor-in-chief, 4/15/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
    LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
    Cats with Phones
    Steve's Phone Click Here
    Steve Saunders's personal phone.