Light Reading

Euronews: Telcos Must Get Radical on Cuts, Finds Study

Paul Rainford
2/11/2014
50%
50%

Also in today's EMEA regional roundup: Vodafone gets together with MoneyGram; Lenovo looks to Africa; Nokia goes Android?

  • European operators need to cut as much as €100 billion (US$136.6 billion) from their costs if the sector is to become sustainable, according to a study by AlixPartners, a business consultancy. A report (subscription required) in the Financial Times says the study found that around 60% of executives asked admitted that they would like to adopt "radical" approaches to cost-cutting but that their companies' strategy on trimming expenditure had changed little over the last five years: They have, in effect, become "paralyzed" by the challenges facing them, concludes the study. (See Euronews: No Respite for Europe's Telcos .)

  • Vodafone Group plc (NYSE: VOD) has entered into an agreement with MoneyGram, the money transfer company, to allow MoneyGram customers to transfer funds directly to M-Pesa, Vodafone's mobile payment service that is used widely in Africa and India. As well as carrying out the transfers via MoneyGram agents, MoneyGram customers will also be able to transers to M-Pesa users online, through the MoneyGram website or an app that is available on iPhone, Android, and Windows 8 phones. For more details, see this press release.

  • Speaking of Vodafone, the group's CEO, Vittorio Colao, has been warning US operators that making money in Europe might not as easy as they think. "I don't think there is a huge amount of teaching that can be done to the Europeans," the Daily Telegraph reports him as saying. According to Colao, it is only the number of regulatory hoops that European operators have to jump through that has them lagging behind on the rollout of 4G. Vodafone's sale of its 45% stake in Verizon Wireless is expected to make it a more attractive takeover target for US operators casting a covetous eye across the Atlantic. (See Euronews: Vodafone in M&A Rumor Frenzy.)

  • Lenovo Group Ltd. (Hong Kong: 992), which last month agreed to buy Google (Nasdaq: GOOG)'s Motorola Mobility handsets unit, is planning to expand its smartphone business in West Africa with product launches lined up for Nigeria, Ghana, and Ivory Coast, reports Bloomberg. As PC sales dwindle worldwide, Lenovo is shifting its focus away from its traditional business and towards smartphones. (See Asia Strengthens Its Grip on Smartphone Market.)

  • Is Nokia Corp. (NYSE: NOK) about to unveil a new Android phone? That is what's being reported on Reuters, citing the Wall Street Journal. According to those in the know, the phone will be aimed at emerging markets and will feature a stripped-down version of the all-conquering operating system.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

    (5)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Kruz
    50%
    50%
    Kruz,
    User Rank: Light Sabre
    2/11/2014 | 2:06:03 PM
    Re: Nokia
    Project normandy or nokia x started back in the time when nokia was experimenting android and deciding on which way to go. If I were Nokia, with the hw quality it can produce, and I could go with 2 oses, I wouldn't go with an entry level phone without play store as a first approach. It is giving the phone no weapons to compete. At least start with a flagship Hw. A lot of people wanted a Nokia with Android on it, but now it is too late. And msft can't afford diverging the attention on its OS.
    SarahReedy
    50%
    50%
    SarahReedy,
    User Rank: Blogger
    2/11/2014 | 11:31:19 AM
    Re: Nokia
    Not only that, but I'd be surprised to see it now given the Microsoft tie-up. Isn't it better to go big on Windows Phone versus try to do both?
    DOShea
    50%
    50%
    DOShea,
    User Rank: Blogger
    2/11/2014 | 10:38:08 AM
    Operator cuts
    Avoiding radical changes when you already understand they need to be made? It sounds like the first cuts needed at these operators need to come at the top of the org chart.
    Kruz
    50%
    50%
    Kruz,
    User Rank: Light Sabre
    2/11/2014 | 9:03:36 AM
    Nokia
    Nokia(or MSFT i'd say), you are years late!
    kq4ym
    50%
    50%
    kq4ym,
    User Rank: Light Sabre
    2/11/2014 | 8:13:58 AM
    Chasing Away Competitors?
    Vodaphone's warning to U.S. operators of the stiff learning curve in Europe seems more of a bluff than anything. It would only serve their interests to keep the market as least competitive as possible. On the other hand, Nokia tries to enter the bare bones device market, seemingly a brave move to compete in a market that might not support another competitor even if they try near loss-leading pricing levels.
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
    Live Streaming Video
    BTE 2015 Sponsor Keynote: HP
    Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
    LRTV Custom TV
    Red Hat Demo

    7|2|15   |   10:53   |   (0) comments


    Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
    LRTV Custom TV
    Red Hat's Approach to OpenStack Adoption

    7|2|15   |   5:17   |   (0) comments


    Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
    LRTV Custom TV
    The New IP Goes Mobile With vEPC

    7|2|15   |   1:12   |   (0) comments


    Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
    LRTV Custom TV
    Making Business Sense of SDN

    7|2|15   |   1:42   |   (0) comments


    Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
    LRTV Custom TV
    NFV Will Be Here Sooner Than You Think

    7|2|15   |   2:22   |   (0) comments


    Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
    LRTV Custom TV
    The New IP Gains Traction With CSPs

    7|2|15   |   1:42   |   (0) comments


    Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
    LRTV Custom TV
    It's (Real) Time for Analytics

    7|2|15   |   1:42   |   (0) comments


    Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
    LRTV Documentaries
    IoT in Action

    6|30|15   |   1:39   |   (8) comments


    Two co-workers discuss the benefits of IoT technology.
    LRTV Interviews
    Ericsson Opens Up on OPNFV

    6|30|15   |   14:16   |   (1) comment


    Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
    LRTV Custom TV
    NetNumber Founder Discusses NFV/SDN Impact on SP Networks

    6|26|15   |   4:15   |   (0) comments


    NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
    LRTV Custom TV
    Orchestrating NFV vCPE Services Across Multivendor Networks

    6|26|15   |   5:46   |   (0) comments


    Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
    LRTV Custom TV
    ZTE at LTE Summit Amsterdam 2015

    6|26|15   |     |   (0) comments


    As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    All Upcoming Live Events
    Infographics
    Hot Topics
    Who's Feeding Fiber to LinkNYC Hotspots?
    Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
    Colt to Jettison Ailing IT Business
    Iain Morris, News Editor, 6/30/2015
    What's a Gigabit Good For?
    Carol Wilson, Editor-at-large, 7/1/2015
    Eurobites: Activist Investor Takes Stake in AlcaLu
    Paul Rainford, Assistant Editor, Europe, 6/30/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
    Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
    Cats with Phones