Cloud Services

Euronews: AlcaLu Tackles Its Debt Pile

Alcatel-Lucent, Vivendi, Telefónica SA and Deutsche Telekom AG loom large in today's trawl of the EMEA headlines.
  • Alcatel-Lucent has offered to buy bonds and credit notes worth up to €750 million (US$990 million) in an effort to reduce its debt interest repayments. The company is using part of the €2 billion ($2.64 billion) credit line it secured in January to fund the offer. The move comes as the vendor looks for numerous ways to reduce its operating costs and return to profitability under new CEO Michel Combes. (See Alcatel-Lucent CEO Preps Kill List and Euronews: AlcaLu Gains on Credit Boost.)
  • Back in the real world, AlcaLu has been signed up by a number of operators, Vodafone Group plc and Etisalat among them, to build a subsea cable system linking the Middle East with the Indian subcontinent and the Far East. The Bay of Bengal Gateway, as it is to be called, will begin commercial operations by the end of 2014 and will be "lit as 100Gbit/s on day 1." (See AlcaLu Wins Subsea Deal.)
  • The chairman of Vivendi has mooted the possibility of an IPO for its SFR mobile subsidiary, reports Reuters. SFR has been under the cosh since the arrival of low-cost rival Free Mobile on the French scene. (See Euronews: SFR Drags Vivendi Down and Iliad Disrupts the French Mobile Scene.)
  • Telefónica has launched the first phase of its Alcalá Data Centre project, which has sucked in an investment of €120 million ($158 million) to date. The size of eight soccer pitches, the facility will operate as Telefónica's cloud services base for Europe and will house platforms for customers in Spain, the U.K., Germany and the Czech Republic.
  • Deutsche Telekom has teamed up with Kontron AG to address potential M2M (machine-to-machine) markets. Fleet management, video surveillance and digital signage are some of the applications being targeted. (See Kontron Teams With DT on M2M.)
  • Ooredoo, formerly known as Qatar Telecom QSC (Qtel), has increased first-quarter net profits by 13.6 percent year-on-year, to 808 million riyals ($222 million), reports Reuters. Revenue growth in Qatar, Iraq and Indonesia has more than compensated for disappointing results from its operations in Kuwait and Oman. — Paul Rainford, Assistant Editor, Europe, Light Reading

  • COMMENTS Add Comment
    hyperunner 5/1/2013 | 11:57:18 AM
    re: Euronews: AlcaLu Tackles Its Debt Pile OK...ALU is using new long term debt to buy old long term debt that's now coming due, is that right? I mean...the debt isn't going down, and maybe even the interest repayments are the same as they were, but they are buying themselves time.
    Maybe a bean counter would like this deal, but as a former Lucent customer I'm not reassured.
    Seriously - these guys are sitting on a mountain of valuable intellectual property from Bell Labs, and yet they don't seem to have a clue how to monetize it.
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