Light Reading

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        ADD A COMMENT
    tojofay
    50%
    50%
    tojofay,
    User Rank: Light Sabre
    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
    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 Documentaries
    IoT in Action

    6|30|15   |   1:39   |   (1) comment


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

    6|30|15   |   14:16   |   (0) comments


    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.
    LRTV Documentaries
    OPNFV Director Opens Up on Women in Tech

    6|25|15   |   3:25   |   (0) comments


    Heather Kirksey, the director of the OPNFV, gets real about the gender disparity in open source and standards and discusses how we can change both the conversation and the gender dynamics.
    LRTV Custom TV
    Symantec's Service Provider Security Strategy

    6|24|15   |   7:06   |   (0) comments


    Didi Dayton explores Symantec's emerging enterprise security strategies for service providers. Highlights include 'killing the password,' self-defense, advanced analytics and adaptive response in a service provider architecture.
    Between the CEOs
    Debating Network Evolution With Cisco's Cedrik Neike

    6|23|15   |   12:54   |   (2) comments


    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.
    LRTV Documentaries
    Vodafone: What's Good for Moms Is Good for Business

    6|23|15   |   3:04   |   (3) comments


    Megan Doberneck, the general counsel for Vodafone Americas, discusses her company's progressive maternity policy, explains why promoting women in tech is good business and offers some some good advice for any women in the industry.
    LRTV Interviews
    NFV: Ready for Prime Time

    6|23|15   |   05:09   |   (1) comment


    At BTE 2015, Vip mobile CTO Dejan Kastelic talks about how NFV is ready for the real world and how Telekom Austria is introducing centralized resources for its group operations.
    LRTV Documentaries
    Tykes Talk Tech

    6|22|15   |   02:30   |   (9) comments


    What does optical fiber look like? When will 5G arrive? What's the WiFi password at Ikea? Light Reading sat down with three 8-year-olds to answer some of the communications industry's most burning questions...
    LRTV Huawei Video Resource Center
    Huawei Partners With TDC for World's First Early DOCSIS 3.1 Field Test

    6|22|15   |   3:06   |   (0) comments


    In a move to enhance user experience, Denmark's TDC aims to become an early adopter of DOCSIS 3.1. In partnership with Huawei, TDC recently ran the world's first field tests on its coax network that reached speeds nearing 1 Gbit/s.
    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
    All Upcoming Live Events
    Infographics
    Hot Topics
    Staying Productive With My Office-in-a-Bag
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 6/25/2015
    WiFi Calling Catches on Globally
    Sarah Thomas, Editorial Operations Director, 6/23/2015
    Who's Feeding Fiber to LinkNYC Hotspots?
    Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
    Verizon Closes AOL, Hints at Summer Launch
    Mari Silbey, Senior Editor, Cable/Video, 6/23/2015
    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