Device operating systems

Euronews: Sony Buys Ericsson Out of Handsets

Sony Corp. (NYSE: SNE), Ericsson AB (Nasdaq: ERIC) and Orange (NYSE: FTE) lead us off in today's trip through the EMEA telecom news headlines.

  • As had been predicted in some prescient quarters, Sony has bought out Ericsson's share of the pair's Sony Ericsson Mobile Communications handsets joint venture. The Swedish vendor, which has shifted its focus to services in recent times, will receive a €1.05 billion (US$1.46 billion) cash payment for its troubles. For its part, Sony sees the move as a way of better exploiting its content-related assets in the smartphone arena and integrating its smartphones more closely into the respected Sony-branded family of consumer electronics devices. (See Sony Acquires Ericsson's Share of JV and Euronews: Ericsson Could Quit Handsets.)

  • France Telecom saw its revenues slip 2.1 percent to €11.28 billion ($15.7 billion) year-on-year in its third-quarter financials. Drilling down, one of the more surprising snippets was the 4.8 percent revenue growth in economically beleaguered Spain, contrasting with a 4.6 percent slide in France and a 1 percent drop in the "Rest of the World" column. (See France Telecom Reports Q3, Euronews: France Telecom Enters Congo, Euronews: France Telecom to Sell Euro Assets and France Telecom Presents Five-Year Plan.)

  • France Telecom's U.K. joint venture with Deutsche Telekom AG (NYSE: DT), which corrals the Orange UK and T-Mobile (UK) brands into a thing called EE , had a mixed picture to report in its third-quarter financials: Termination rate cuts contributed to a 4.3 percent year-on-year drop in its revenues, but there are encouraging signs of a shift away from pre-paid to post-paid for the operator, with 185,000 more customers opting to sign up to contracts in the quarter. (See Everything Everywhere Shrinks in Q2 and CEO Quits Everything Everywhere.)

  • Yet more third-quarter fun: Transmode Systems AB , the Swedish packet-optical networking vendor, is having a fine old time of it, with net profit more than doubling year-on-year to SEK53.5 million ($8.3 million). A major backhaul contract with U.K. operator Virgin Media Inc. (Nasdaq: VMED) helped boost the numbers. (See Transmode Wins Virgin Media Deal and Transmode Sticks to Growth Path.)

  • Shares in Nokia Corp. (NYSE: NOK) have been creeping up on the Helsinki exchange since the handset vendor's unveiling of its first Windows Phone smartphones and its Asha range of phones for emerging markets on Wednesday. They were up 4.31 percent at €5.01 Thursday morning. Perhaps Nokia's Kevin Shields can now calm down a little. (See Nokia Ships First Windows Phone to Europe , Hope for Nokia's Next Billion and Nokia Has to Rock Its World.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

  • Anne Morris 12/5/2012 | 4:50:23 PM
    re: Euronews: Sony Buys Ericsson Out of Handsets

    Definitely no surprise that this has finally happened from a financial perspective, but Ericsson has always cited the advantages of having access to handset development for its overall strategy, so is this really in its best interests?

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