Light Reading

Euronews: Telefónica Plans Capex Rise

Paul Rainford

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
    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.
    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?
    User Rank: Blogger
    2/27/2014 | 9:47:30 AM
    Aggressive NFV plans AND rising capex. Maybe the two can go hand in hand.
    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    From The Founder
    The comms industry is rallying to the cause of open, independent interoperability testing.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Interviews
    Top Tips for FTTH Operators

    10|8|15   |   02:26   |   (0) comments

    At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
    LRTV Interviews
    M-net Calls for FTTx Unity

    10|8|15   |   03:45   |   (0) comments

    At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
    LRTV Documentaries
    The Business Case Challenge for NFV

    10|7|15   |   03:47   |   (0) comments

    Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
    LRTV Interviews
    JT Offers Some Gigabit Lessons

    10|7|15   |   4:08   |   (1) comment

    Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
    LRTV Interviews
    AT&T's Chiosi on the Potential of Open Source

    10|6|15   |   06:27   |   (0) comments

    AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
    LRTV Interviews
    Network Security in a Gigabit World

    10|6|15   |   05:52   |   (0) comments

    Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
    LRTV Documentaries
    Telefónica: In Search of Virtual Simplicity

    10|5|15   |   07:30   |   (0) comments

    Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
    LRTV Interviews
    Gigabit Europe Takeaways

    10|5|15   |   03:47   |   (0) comments

    Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
    Women in Comms Introduction Videos
    Intel Urges Women to Take Advantage of Their Seat at the Table

    10|5|15   |   4:27   |   (1) comment

    Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
    LRTV Interviews
    BT Updates on Plans

    10|2|15   |   03:16   |   (2) comments

    Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
    Telecom Innovators Video Showcase
    Sonus Shakes Up SD-WAN

    10|2|15   |   7:22   |   (0) comments

    Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
    LRTV Interviews
    CityFibre's Gigabit Vision

    10|1|15   |   03:18   |   (1) comment

    Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
    Upcoming Live Events
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    December 2, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
    Hot Topics
    Eurobites: Dunroamin'
    Paul Rainford, Assistant Editor, Europe, 10/2/2015
    M&A Speculation Swirls Around Juniper
    Ray Le Maistre, Editor-in-chief, 10/6/2015
    Cisco's Chambers Rules Out Political Bid
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
    Infinera Fleshes Out Its Metro 100G Story
    Ray Le Maistre, Editor-in-chief, 10/7/2015
    AT&T Gets Green Light for VoWiFi
    Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/7/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
    Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
    Cats with Phones
    "What?! I'm on with Finisar about their stock price tanking" Click Here