Light Reading
Also in today's EMEA regional roundup: Testing times at Spirent; NSN provides vendor funding in Saudi; EE's on its way to Wembley.

Euronews: Telefónica Plans Capex Rise

Paul Rainford
2/27/2014
50%
50%

Also in today's EMEA regional roundup: Testing times at Spirent; NSN provides vendor funding in Saudi; EE's on its way to Wembley.

  • Telefónica SA (NYSE: TEF) announced a significant increase in its planned capital expenditure for 2014 today as it announced its full-year results for last year. In 2013, the Spanish giant, which has more than 323 million customers across Europe and Latin America, spent about 14.5% of its total sales on its network and system investments (excluding spectrum license costs). With 2013 revenues at €57 billion (US$78 billion), that puts last year's capex at just short of €8.2 billion ($11.1 billion). Now, though, the carrier says it is to increase its capex to 15.5-16% of revenues in 2014 to "stimulate growth, to [deliver] network differentiation and to improve market positioning, among other reasons." With its revenues likely to rise slightly this year, Telefónica looks set to pump almost €9.2 billion ($12.5 billion) into its networks and support infrastructures. In the company's earnings announcement, Telefónica Chairman, César Alierta, said: "Among our targets, we will continue accelerating revenue growth and, at the same time, we will increase investments to anticipate to the growing demand from the increasingly intensive data service usage, as well as the recovery of demand expected in some of our main markets… In 2014 Telefónica will double the fibre coverage in Spain to 7.1 million homes passed, reaching the highest coverage levels among the largest economies in Europe. In Brazil we will also increase fibre coverage to 2.5 million homes. In the mobile business, we will expand 4G usage in Europe reaching an average coverage of more than 50%, while we continue leading the mobile data market in Latin America with the progressive launch of 4G." (See Telefónica Reports 2013 Profit Growth.)

  • "Strong headwinds in certain market segments" and "spending caution by Chinese customers" were two of the reasons given for a substantial fall in earnings and profits at Spirent Communications plc (NYSE: SPM; London: SPT), the test and measurement technology vendor. In its full-year results for 2013, revenues slipped from $472.4 million to $413.5 million, while pre-tax profits plummeted from $108.4 million to $39.1 million. (See Spirent Reports Full-Year Results.)

  • Etihad Etisalat Co. (Mobily) , the Saudi Arabian mobile operator, is to benefit from an additional $280 million in vendor funding from Nokia Networks , taking the total funding to $605 million. The cash is to finance a major upgrade of the operator's 4G, 3G, and 2G networks over the next two years. For more details, see this press release. The operator has also struck a vendor financing deal, again valued at $280 million, with Ericsson AB (Nasdaq: ERIC) for equipment and services that will support the mobile infrastructure upgrade.

  • Colt Technology Services Group Ltd (London: COLT), the pan-European service provider, saw its full-year revenues decline 1.2% year-on-year in 2013 to €1.59 billion ($2.17 billion) and pre-tax profits fall 31.1% to €42.4 million ($57.8 million). Adverse currency movements and regulatory price pressures copped some of the blame.

  • UK mobile joint venture EE has signed a six-year deal with the company that runs London's iconic Wembley Stadium to provide, among other things, mobile ticketing solutions, enhanced mobile network access, and "super-fast" Wi-Fi. Financial details were not disclosed.

    EE CEO Olaf Swantee: A safer pair of hands than Joe Hart? (US readers: Google it.)
    EE CEO Olaf Swantee: A safer pair of hands than Joe Hart? (US readers: Google it.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

    (3)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View
    tojofay
    50%
    50%
    tojofay,
    User Rank: Moderator
    2/27/2014 | 2:02:49 PM
    Re: Telefonica
     

    Maybe they will shop in Sunnyvale at Infinera

    Telefonica I+D and Infinera First to Demonstrate 10Tb/s of Super-Channel Capacity

    Madrid, Spain and Sunnyvale, CA – Feb. 12, 2013 – Telefónica, a leading Tier-1 network operator, and Infinera, a leading provider of Digital Optical Network solutions, announced today the successful completion of a joint Terabit Technology Showcase. The Terabit Technology Showcase demonstrated pioneering implementations of advanced technologies expected to increase the capacity of future optical networks.
    DOShea
    50%
    50%
    DOShea,
    User Rank: Blogger
    2/27/2014 | 12:40:59 PM
    Re: Telefonica
    Also, Telefonica seems to be having a really busy week--earnings, capex ambitions, a big NFV strategy right before MWC and mobile security news at MWC. And I'm probably missing something. Do they always report earnings at the same time as MWC? I guess they've got home field advantage for the media's attention during MWC, so why not?
    DOShea
    50%
    50%
    DOShea,
    User Rank: Blogger
    2/27/2014 | 9:47:30 AM
    Telefonica
    Aggressive NFV plans AND rising capex. Maybe the two can go hand in hand.
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    Flash Poll
    From The Founder
    It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
    LRTV Interviews
    The New Wave of IP + Optical Integration

    11|21|14   |   04:29   |   (7) comments


    At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
    LRTV Huawei Video Resource Center
    Huawei Highlights at BBWF 2014

    11|20|14   |   3:40   |   (1) comment


    Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
    LRTV Huawei Video Resource Center
    How Will BCMS Stimulate Margin for Broadband Operators?

    11|19|14   |   6:52   |   (0) comments


    In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
    LRTV Huawei Video Resource Center
    SingleFAN3.0: Better Connected Experience

    11|19|14   |   3:06   |   (1) comment


    At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
    LRTV Interviews
    Basil Alwan Interview: The Road to Cloud

    11|19|14   |   09:09   |   (0) comments


    Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
    LRTV Documentaries
    FairPoint Makes a Fair Point About Analytics

    11|19|14   |   1:56   |   (1) comment


    The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
    LRTV Documentaries
    Analytics Lets C Spire Get to Know Subs

    11|19|14   |   3:01   |   (2) comments


    It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
    LRTV Interviews
    Nuage Branches Out With SDN: CEO Interview

    11|17|14   |   9:32   |   (0) comments


    Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
    Light Reedy
    Telecom Analytics Grows Up

    11|14|14   |   1:15   |   (4) comments


    The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
    LRTV Huawei Video Resource Center
    Huawei Compass

    11|14|14   |   3:17   |   (1) comment


    At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
    LRTV Huawei Video Resource Center
    Huawei's Cloud Strategy in European Region

    11|14|14   |   2:56   |   (1) comment


    At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
    LRTV Huawei Video Resource Center
    Huawei's Contribution on OpenStack

    11|14|14   |   5:58   |   (0) comments


    At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
    Upcoming Live Events
    December 2, 2014, New York City
    December 3, 2014, New York City
    December 8-10, 2014, Reykjavik, Iceland
    February 12, 2015, Atlanta, GA
    April 14, 2015, New York City, NY
    May 6, 2015, McCormick Convention Center, Chicago, IL
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 9-10, 2015, Chicago, IL
    Infographics
    Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
    Hot Topics
    Bell Labs Chief Slams 'Toy' Networks
    Robert Clark, 11/19/2014
    $38.3M: Ain't That a Kik in the SMS
    Sarah Reedy, Senior Editor, 11/20/2014
    Do You Have a 2020 Vision?
    Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
    The New Wave of IP + Optical Integration
    Ray Le Maistre, Editor-in-chief, 11/21/2014
    Google, AT&T, BT Unite on Network Data Models
    Carol Wilson, Editor-at-large, 11/20/2014
    Like Us on Facebook
    Twitter Feed