Euronews: Nokia Cash Burn Freaks Analysts

Nokia Corp. (NYSE: NOK), Hutchison Whampoa Ltd. (Hong Kong: 0013; Pink Sheets: HUWHY) and the fair isle of Jersey takes Euronews into the weekend.

  • A Reuters poll of 30 banks and brokerages has found that, on average, financial analysts expect Nokia will burn through €2 billion (US$2.5 billion) of cash during the next three quarters, with some predicting the company will wipe out its cash reserves completely within a couple of years, raising the specter of potential defaults on its bond repayments. (See Euronews: Fitch Junks Nokia and Euronews: Nokia's Q1 Device Disaster.)

  • Hutchison Whampoa has failed in its attempt to have its bid for Ireland's eir reconsidered by the court-appointed examiner, reports the Irish Independent. A survival plan devised in consultation with eircom's main creditors now looks the most likely route for the debt-laden operator. (See Lenders to Lean on Eircom.)

  • Pre-tax full-year profits at U.K. broadband provider TalkTalk more than doubled year-on-year to £127 million ($200 million), though it still lost 13,000 customers in the fourth quarter as it tries to shake off a reputation for poor customer service. (See Ofcom Counts the Complaints (Again), Ofcom Counts the Complaints and TalkTalk Responds to Ofcom Fine.)

  • European Telecommunications Network Operators' Association (ETNO) and the GSM Association (GSMA) have joined forces to protest against a second "telecom tax" being introduced by the Hungarian government later this year. The first such tax, introduced in 2010, has been challenged by the European Commission at the European Court of Justice.

  • It's not all potatoes, cows and tax dodgers, you know... JT Group, of Jersey, the jewel in the crown of the U.K.'s Channel Islands, has chosen a network planning, engineering and design platform from Service Provider Information Technology (SPIT) giant Telcordia Technologies Inc. , now part of Ericsson AB (Nasdaq: ERIC), to support the rollout of the tiny island's fiber access network. (See Ericsson + Telcordia: What the Analysts Say.)

  • U.K. mobile operator Telefónica UK Ltd. (O2) has been buffing up its green credentials by getting its network's carbon footprint verified by the Carbon Trust, an independent body that deals with such matters. This exercise unearthed the factoid that making a five-minute call is the carbon-equivalent to boiling water to make one cup of tea. Given the choice, Euronews would take the tea every time.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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