Video services

Euronews: AlcaLu's Enterprise Biz Back on the Block

Also in today's EMEA roundup: BT bags Euro soccer rights; Deutsche Telekom buys GTS Central Europe; Swisscom intros 1-Gig service.

  • A familiar nugget of speculation has resurfaced with the Reuters report that Alcatel-Lucent (NYSE: ALU) is once again actively seeking a buyer for its enterprise unit as part of its ongoing restructuring program. According to the report, CEO Michel Combes has brought in Lazard to help find a buyer for the division, which AlcaLu first tried to sell in 2011. The vendor has stated that, as part of its Shift Plan, certain assets will be sold and the enterprise unit is surplus to requirements as AlcaLu focuses its efforts on "IP Networking and Ultra-Broadband Access." (See Alcatel-Lucent Builds Future Around IP and AlcaLu's Spare Limb.)

  • Shares in satellite broadcaster Sky fell 8.7 percent Monday morning following the news that it had been outbid by BT Group plc (NYSE: BT; London: BTA) for exclusive rights to broadcast live Champions League and Europa League soccer matches for three seasons from 2015. BT, which is banking on premium sports content to boost uptake of its broadband TV offer, splashed out nearly €1.08 billion (US$1.44 billion) for the rights. (See BT Pays €1B+ for Euro Soccer Rights , Confirmed: BT's Got Euroballs, and BT's Got Balls.)

  • Deutsche Telekom AG (NYSE: DT) has made a significant acquisition, taking control of GTS Central Europe for €546 million ($731 million) in a move that will be important for its mobile and enterprise services businesses and also strengthen its software-defined networking (SDN) efforts. In 2012, the GTS operations that Deutsche Telekom is buying generated revenues of €347 million ($464 million). (See Deutsche Telekom to Buy GTS CE, DT Boosts Datacenter, SDN Strategy With Acquisition, and Deutsche Telekom: A Software-Defined Operator.)

  • Swisscom AG (NYSE: SCM) is seeking to capitalize on its fiber-to-the-home (FTTH) rollout, and stick to the promises it made in September, by offering a 1Gbit/s broadband service for 100 Swiss francs ($108.66) per month and a 300Mbit/s service for just CHF20 ($21.73). (See Swisscom Launches 1G Broadband and Euronews: Swisscom Unveils 1Gig Plan .)

  • A new MVNO is entering the fray in Austria, taking advantage of the cheap wholesale access that Hutchison Whampoa Ltd. (Hong Kong: 0013; Pink Sheets: HUWHY) was forced to make available as a condition of its takeover of Orange Austria, reports Reuters. The new entrant, Mass Response, is a former unit of Telekom Austria AG (NYSE: TKA; Vienna: TKA). (See Li Ka-shing in the Hunt for EU Telcos.)

  • The latest Ericsson Mobility Report predicts that mobile subscriptions will reach 9.3 billion worldwide by 2019, 5.6 billion of which will be for smartphones. Around 65 percent of the world's population will be covered by LTE by that time, Ericsson AB (Nasdaq: ERIC) reckons.

  • Good news for go-ahead sheep farmers and lost ramblers: UK mobile joint venture EE has switched on a 24 Mbit/s (on average) 4G broadband service in a remote corner of the northern English county of Cumbria. The network covers more than 100 square miles, from Wigton in the north to Threlkeld in the south. (See Q&A: EE Evolves Its 4G LTE Strategy.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

  • [email protected] 11/12/2013 | 3:53:45 AM
    Re: ALU enterprise What might change now, though, is the kind of deal ALU is prepared to strike. It really needs to offload such non-core assets if it's new strategy is to play out. NSN had to cut some pretty grim deals to get where it is today - ALU may need to do the same.
    Kruz 11/12/2013 | 2:52:10 AM
    Re: ALU enterprise What didn't succeed in 2011 won't succeed now as the unit hasn't changed much since. The corporate telephony entity, part of the unit, still needs to undergo restructuring in order to make the unit more appealing.

    This will mean paying high exit packages for its European based workers where labor union is strong.
    DOShea 11/11/2013 | 9:13:02 PM
    ALU enterprise Predictable move, given it was in play before and seemed destined for the "kill list" when the Shift Plan was announced. I would be more surprised if they decided to sell the subsea cable unit. Maybe it doesn't necessarily fit with other optical products, but a lot of subsea market activity happening right now.
    ^ip4g^ 11/11/2013 | 9:03:01 AM
    its Enterprise sans Genesys now I guess it's one of the biggest mistake of AlcaLu till date to have offloaded Genesys without tying the Enterprise to it..... they must have tried hard then though .... genesys never seriously got integrated with AlcaLu though ... Enterprise is also not a spectacularly integrated story within AlcaLu and so is Submarine fiber and so are their Strategic Industries ... though they have credits on their own .... Dell can do some good, by getting the AlcaLu Enterprise for a pittance ....
    Sign In