Light Reading

Eurobites: BT Boasts Encryption Breakthrough

Paul Rainford
4/24/2014
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Also in today's EMEA regional roundup: ADVA revenues up; way cleared for Slim's Austrian takeover; Ericsson shuffles its units; Nokia hangs on to Indian plant.

  • BT Group plc (NYSE: BT; London: BTA), in partnership with Toshiba Corp. (Tokyo: 6502), ADVA Optical Networking (Frankfurt: ADV) , and the UK's National Physical Laboratory , is trumpeting what it says is the successful trial of Quantum Key Distribution (QKD) technology over a live, lit fiber network. The idea of QKD is that it provides another layer of data security by transmitting data encryption "keys" across a network in a quantum state, which means that any attempt to intercept the key can be identified, an increasingly important attribute in the post-Snowden era.

  • Talking of ADVA, it has just posted its first-quarter results, and revenues are up by 1.4% year-on-year to €78.1 million (US$107.9 million), though profits were halved at €0.4 million ($0.55 million) due to lower gross margins, higher amortization charges, and other factors.

  • Mexican moneybags Carlos Slim looks set to make his presence felt in the European market after the proposed shareholder agreement that gives him effective control of Telekom Austria AG (NYSE: TKA; Vienna: TKA) was approved by Austria's state holding company, reports the Financial Times (subscription required). Slim's América Móvil S.A. de C.V. already owns 27% of Telekom Austria, while ÖIAG, the holding company, owns a 28% stake. (See Euronews: Slim's Austrian Plan Hits Roadblock.)

  • Fresh off its southbound first-quarter results, Ericsson AB (Nasdaq: ERIC) has announced a restructuring, with its existing Networks business unit being split into two new units, namely Radio and Cloud & IP. And these two units combined shall henceforth be known as Segment Networks, just to complicate matters. Executive Vice President Johan Wibergh will assume the new role as head of Segment Networks while remaining a member of Ericsson's Executive Leadership Team. (See Ericsson Creates Cloud & IP Unit and Ericsson Looks to Future as Q1 Sales Slump.)

  • Nokia Corp. (NYSE: NOK) is to exclude its Chennai handsets factory in India from the sale of its devices business to Microsoft Corp. (Nasdaq: MSFT) to avoid tax complications, reports Bloomberg. (See Nokia Sale to Microsoft Expected to Close This Week.)

  • Belgian mobile operator Mobistar SA has had a disappointing first quarter, reports Reuters, with core profits down 36% year-on-year to €64.5 million ($89.1 million) in the face of stiff competition and business-damaging regulatory measures.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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    Ariella,
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    4/24/2014 | 3:05:02 PM
    tax
    "to avoid tax complications" sounds rather like a euphemism for "to avoid tax payments"
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