Light Reading

Euronews: End of NSN in Sight?

Paul Rainford
2/8/2013
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Nokia Siemens Networks, Telecom Italia SpA and Telefónica SA proffer something for the weekend in Friday's trawl of the EMEA headlines.

  • Is the Nokia Siemens Networks joint venture about to finally fall apart? Bloomberg cites "three people familiar with the situation" who claim that talks between Nokia Corp. and Siemens AG about ending the venture are intensifying, and that one potential resolution could see Nokia teaming up with Alcatel-Lucent to buy out Siemens's half of the venture. (See Matchmaking NSN, Who's Going to Buy NSN? and Has NSN Turned a Corner?)
  • Following Vodafone Group plc's fiscal third-quarter results on Thursday, which highlighted the dire situation for telcos in southern Europe, Telecom Italia has underlined the problem with its full-year results for 2012, which saw EBITDA (earnings before interest, tax, depreciation and amortization) fall 4.2 percent year-on-year to €11.6 billion ($15.5 billion). CEO Franco Bernabè pointed to the tough domestic trading conditions, and also acknowledged a slowdown in growth in Brazil and Argentina.
  • And in what could be further bad news for Telecom Italia, the European Commission has called on the Italian telecom regulator to abandon its plans to set higher-than-the-European-average fixed termination rates for 2013-2014. The proposed rates range from €0.00206/minute to €0.00127/minute, which doesn't sound like much but it all adds up.
  • One of the U.K.'s top investors has sold his long-held stake in Vodafone, reports the Daily Telegraph. Neil Woodford, manager of the high-performing Invesco Perpetual High Income unit trust, has "completely sold down his position within Vodafone," according to an unnamed financial adviser. A fellow director of Invesco Perpetual confirmed that the "ongoing weakness in [Vodafone's] southern Europe markets and the cash flow cover of the dividend has fallen to what we view as uncomfortably low levels." (See Euronews: Europe Puts Brakes on Vodafone.)
  • Telefónica is claiming a world first with success in completing a VoLTE-to-3G call handover "seamlessly and without interruption." The feat was achieved in a test lab in Germany using the SRVCC (single radio voice call continuity) standard. (See Tuning Up 4G Voice Services.) — Paul Rainford, Assistant Editor, Europe, Light Reading

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    Ray Le Maistre
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    Ray Le Maistre,
    User Rank: Light Sabre
    2/8/2013 | 6:11:19 PM
    re: Euronews: End of NSN in Sight?
    Would anyone actually consider bringing ALU and NSN together, given that both are on shaky financial legs? That sounds like madness to me.... or a plan hatched by Huawei and Ericsson...-á
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