& 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
    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
    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
    CommScope – Meeting the Demands of Tomorrow's Networks

    3|24|17   |     |   (0) comments


    Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
    LRTV Huawei Video Resource Center
    AMS-IX & Huawei's OSN 902

    3|24|17   |     |   (0) comments


    Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
    LRTV Huawei Video Resource Center
    Huawei's Smart Energy Innovation Center

    3|24|17   |     |   (0) comments


    In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
    Valley Wonk
    OFC & Hyperscale: A Good Mix?

    3|24|17   |   01:50   |   (0) comments


    Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
    LRTV Custom TV
    Etisalat on NFV Journey

    3|24|17   |   10:37   |   (0) comments


    Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
    LRTV Huawei Video Resource Center
    Huawei at CeBIT 2017: Day 3

    3|22|17   |     |   (0) comments


    Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
    LRTV Documentaries
    No Regrets: Cox's Finkelstein on Fiber & More

    3|22|17   |     |   (0) comments


    At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
    LRTV Documentaries
    Cable Next-Gen: The 'Mile High' View From Denver

    3|22|17   |   11:56   |   (0) comments


    Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
    LRTV Huawei Video Resource Center
    Huawei at CeBIT 2017: Day 2

    3|21|17   |   2:27   |   (0) comments


    Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
    LRTV Custom TV
    Driving Better Mobile Customer Experience While Transforming the Mobile Network

    3|21|17   |   7:47   |   (0) comments


    The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
    LRTV Custom TV
    Mastercard: What's Next for Mobile Payments?

    3|21|17   |   7:49   |   (0) comments


    2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
    LRTV Custom TV
    Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

    3|21|17   |   03:51   |   (1) comment


    Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
    Upcoming Live Events
    May 15-17, 2017, Austin Convention Center, Austin, TX
    May 15, 2017, Austin Convention Center - Austin, TX
    June 6, 2017, The Joule Hotel, Dallas, TX
    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
    High-Band 5G: Let's Address the Range Question, Shall We?
    Dan Jones, Mobile Editor, 3/21/2017
    Eurobites: A1, Nokia Turn It Up to 11
    Paul Rainford, Assistant Editor, Europe, 3/22/2017
    FTTH No Slam Dunk for Cable
    Carol Wilson, Editor-at-large, 3/23/2017
    Top Priorities for B/OSS Transformation
    James Crawshaw, Senior Analyst – OSS/BSS Transformation, Heavy Reading, 3/20/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
    At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
    Animals with Phones
    Neither Do We Click Here
    Is that a prerequisite?
    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.