Light Reading
Also in today's EMEA regional roundup: Orange squeezed by domestic pressures; extra investment pays off for Deutsche Telekom; bids in for SFR.

Euronews: Huawei Has Project Spring In Its Step

Paul Rainford
3/6/2014
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Also in today's EMEA regional roundup: Orange squeezed by domestic pressures; extra investment pays off for Deutsche Telekom; bids in for SFR.

  • Huawei Technologies Co. Ltd. is the latest vendor -- after Ericsson AB (Nasdaq: ERIC) and Nokia Networks -- to benefit from Vodafone Group plc (NYSE: VOD)'s "Project Spring" investment program. It has been awarded a five-year contract to help expand the operator's radio access network (RAN), a task that will include upgrade projects in 15 countries in Europe and Africa. Huawei's SingleRAN technology and beam-forming Active Antenna System will be among the tools deployed to strengthen Vodafone's mobile coverage. It's worth noting that the 15 countries the deal encompasses are all territories in which Huawei already supplies gear to Vodafone, so in effect this represents an expansion of existing deals. No financial details of the latest contract were disclosed. (See Vodafone Ups 'Project Spring' Capex to $11B+, NSN Lands Project Spring Deal with Vodafone, and Euronews: Ericsson Lands 'Project Spring' Deal.)

  • Full-year revenues at Orange (NYSE: FTE) slipped 4.5% to €40.98 billion (US$56.33 billion), partly due the impact of regulatory measures but also because of problems in certain territories, not least on its home turf, where mobile revenues fell 11.5% and average revenue per user (ARPU) fell 8% in the face of fierce competition from Iliad (Euronext: ILD) and others.

  • Deutsche Telekom AG (NYSE: DT) reclaimed its spot as Europe's largest operator by revenues in 2013, racking up €60.1 billion ($82.6 billion) in sales. Adjusted for special factors, such as the merger of T-Mobile US Inc. and MetroPCS Inc. (NYSE: PCS), net profit increased 8.6% to €2.8 billion for the year. The operator says it invested €8.9 billion in 2013, a 10.5% increase on the previous year. (See Deutsche Telekom Works Toward One Network.)

  • As expected, French media conglomerate Vivendi has received bids from Bouygues Telecom and Altice -- the owner of cable operator Numericable -- for its SFR mobile unit. Both offers were binding, reports Reuters.

  • The ongoing turmoil in Ukraine is partly to blame for a $2.7 billion fourth-quarter net loss at Russian operator VimpelCom Ltd. (NYSE: VIP), reports Reuters. VimpelCom has 25.8 million customers in Ukraine.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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