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Euronews: Huawei, ZTE Share $1.6B Deal

Ray Le Maistre
7/26/2013

Huawei Technologies Co. Ltd., ZTE Corp., BSkyB Ltd., Belgacom SA and Technicolor SA close out the week's regional news agenda.

  • Chinese vendors Huawei and ZTE are sharing a mobile broadband rollout deal valued at US$1.6 billion in the African nation of Ethiopia, reports Reuters. State-owned carrier Ethio Telecom has signed vendor finance deals with the suppliers, with Huawei's share of the deal valued at $700 million. The deal could once again raise questions about the competitive advantage the Chinese vendors hold over their European rivals by having access to cheap capital from China's banks, capital that is then used to finance large vendor finance deals. But will they care in Ethiopia? Probably not.

  • U.K. satellite TV and broadband giant BSkyB has reported a 7 percent increase in revenues to £7.24 billion ($11.1 billion) and a 9 percent increase in operating profit to £1.33 billion for its full fiscal year. The company, which has 10.4 million TV service customers and 4.9 billion broadband customers, is about to have its dominance of Britain's sports pay TV market challenged by BT Group plc. For the full details of BSkyB's annual results, read this press release. BSkyB also announced the availability of its NOW TV box, which connects TV sets to OTT video services and certain online services (including Facebook and Spotify) via a Wi-Fi connection. (See BT's Got Balls.)

  • Belgacom reported only a slight year-on-year dip in second quarter revenues to €1.58 billion ($2.1 billion) despite the negative impact of regulatory measures in the mobile services market. Net income was €155 million ($206 million), slightly lower than a year ago but better than expected. For more, see this Marketwatch report.

  • French set-top box and home gateway specialist Technicolor has reported a 3.1 percent year-on-year increase in first half revenues to €1.6 billion ($2.13 billion) and a net profit of €6 million ($8 million). That's only a small profit, but a welcome figure given the losses the company has incurred during the past few years. The company also recently completed a successful debt refinancing transaction that allowed it to borrow new funds at a lower interest rate. (See Technicolor Wins India Cable Deal, Set-Top Shipments Will Keep Soaring and Technicolor Refinances.)

  • The Digital Agenda team at the European Commission is not happy that the continent's digerati will not have access to 4G services at their holiday villas this summer. In fact, the Commission is "very worried about the state of 4G mobile access in Europe." Check out this video to see what Digital Agenda spokesman Ryan Heath has to say about it.

    — Ray Le Maistre, Editor-in-Chief, Light Reading

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    MarjanHoxha
    MarjanHoxha
    7/29/2013 | 5:16:00 PM
    re: Euronews: Huawei, ZTE Share $1.6B Deal
    Dear all
    Is not Huawei or ZTE doing this think. Do you forgot what Alcatel was doing some years ago in Africa?
    Auswar3ft
    Auswar3ft
    7/28/2013 | 8:51:59 PM
    re: Euronews: Huawei, ZTE Share $1.6B Deal
    @ the first point: Not only Huawei or ZTE have access to such relaxed financing.i work in a politically unstable/fragile country which Chinese banks have a problem giving out long term loans to.

    On the other hand, ALU has secured several longer term financing offers for several big projects in that country and has been using that advantage to win projects where operators prefer a more relaxed financing deal.

    Stop focusing on Chinese vendors and look at what the other big three are doing. Zooming in on Chinese vendors while other vendors have a better advantage is unfair.

    Disclaimer: i work for one of them. But I am telling the truth.
    Sarah Thomas
    Sarah Thomas
    7/26/2013 | 5:06:06 PM
    re: Euronews: Huawei, ZTE Share $1.6B Deal
    Especially when a lot of regions have NO options, 3G, 4G or fixed broadband, or no affordable options.
    Stuart Cox
    Stuart Cox
    7/26/2013 | 3:14:31 PM
    re: Euronews: Huawei, ZTE Share $1.6B Deal
    Wow BSkyB provide broadband to 65% of the global population! or was that a typo???
    Ray Le Maistre
    Ray Le Maistre
    7/26/2013 | 2:28:59 PM
    re: Euronews: Huawei, ZTE Share $1.6B Deal
    Re the EC's annoyance at 4G coverage.... Is LTE coverage the real issue at this point? Did anyone expect all markets to adopt and roll out LTE at the same time and same pace? What people want is mobile broadband access that is easy to use and affordable. If that's 3G, then currently that would be just fine for most people. Going into the mountains on holiday and not having 4G shouldn't be anything to lose any sleep over at this point....
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