Light Reading
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.

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... 
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Interviews
    From 4G to 5G: Alcatel-Lucent's Dave Geary

    11|25|14   |   09:09   |   (1) comment


    Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
    LRTV Huawei Video Resource Center
    Building a Secure Telefonica Network With Huawei's High-End Firewall

    11|24|14   |   4:37   |   (0) comments


    Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
    LRTV Huawei Video Resource Center
    Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

    11|24|14   |   2:50   |   (0) comments


    Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
    LRTV Huawei Video Resource Center
    Saudi Airlines & Its ICT Transformation

    11|24|14   |   2:07   |   (0) comments


    In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
    LRTV Huawei Video Resource Center
    Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

    11|24|14   |   2:40   |   (0) comments


    Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
    LRTV Huawei Video Resource Center
    FanPlay & Huawei Build a Wireless Agile Smart Stadium

    11|24|14   |   2:13   |   (0) comments


    FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
    LRTV Huawei Video Resource Center
    Building an Agile Stadium

    11|24|14   |   3:54   |   (0) comments


    Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
    LRTV Huawei Video Resource Center
    Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

    11|24|14   |   3:09   |   (0) comments


    ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
    LRTV Huawei Video Resource Center
    Cefinity on Managed Security Services & Next-Generation Firewall

    11|24|14   |   7:05   |   (0) comments


    Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
    LRTV Huawei Video Resource Center
    Huawei's Agile Gateway in the Eyes of Cefinity

    11|24|14   |   2:11   |   (0) comments


    Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
    LRTV Huawei Video Resource Center
    CTO of Bus-Online Talks About Huawei's Agile Gateway

    11|24|14   |   2:53   |   (0) comments


    Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
    LRTV Huawei Video Resource Center
    Amsterdam ArenA as an Agile Campus

    11|24|14   |   3:31   |   (0) comments


    The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
    Upcoming Live Events
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 8-10, 2014, Reykjavik, Iceland
    February 10, 2015, Atlanta, GA
    April 14, 2015, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Infographics
    Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
    Hot Topics
    Bell Labs Chief Slams 'Toy' Networks
    Robert Clark, 11/19/2014
    $38.3M: Ain't That a Kik in the SMS
    Sarah Reedy, Senior Editor, 11/20/2014
    Do You Have a 2020 Vision?
    Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
    Operators Should Block Ads to Get Their Cut, Startup Says
    Sarah Reedy, Senior Editor, 11/24/2014
    $35B+ Spectrum Auction Dings Verizon, Shines Dish
    Dan Jones, Mobile Editor, 11/24/2014
    Like Us on Facebook
    Twitter Feed