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Euronews: UK Mad for Slow Mobile Broadband

Paul Rainford
5/26/2011

Telefónica SA (NYSE: TEF), Portugal Telecom SGPS SA (NYSE: PT) and KPN Telecom NV (NYSE: KPN) make the running in today's regional roundup.

  • It's getting quite popular, but it's blimmin' slow. These, in essence, are the findings of U.K. regulator Ofcom 's research into the performance of mobile broadband in Britain. The study found that 17 percent of U.K. homes use mobile broadband, while 7 percent use it as their sole source of Internet access. Average download speed, however, was 1.5 Mbit/s, equating, says Ofcom, to an 8-second wait for a standard Web page to dribble itself into view. (See Ofcom Studies UK Mobile Broadband.)

  • The number of job cuts at Spanish giant Telefónica could rise to 8,500 over the next five years, according to Reuters. The redundancies program, currently being discussed with the labor unions, would represent a 25 percent reduction in the operator's Spanish staff numbers if it were to go through. (See Euronews: April 14.)

  • Portugal Telecom's first-quarter figures received a boost from the sale of UOL, a Brazilian ISP, delivering a net income of €130 million (US$184 million), up 29.3 percent year-on-year, despite revenues slumping by 3.9 percent over the same period. (See Portugal Telecom Reports Q1, PT Completes Oi Stake Purchase, Vivo's Value and Viva La Vivo Deal.)

  • Dutch incumbent KPN is planning to introduce extra charges for those of its mobile subscribers who want to use certain revenue-nibbling Internet services such as Skype Ltd. , reports the DutchNews.nl website, despite the Dutch government's apparent intention to make such charges illegal. (See Mgmt World: KPN Would Like the Lasagna, Please and KPN Cuts 2011 Forecast, Plans Job Losses.)

  • Nokia Corp. (NYSE: NOK) may have been getting a bit of rough press of late but, hey, here's some good-ish news: Two of its handsets -- namely the C6-01 and E7-00 -- have come top in an eco-ratings scheme devised by mobile operator Telefónica UK Ltd. Under the scheme, O2 awards virtually every handset it sells a score (on a scale from one to five) based on the environmental impact of the device, how it "helps people lead more sustainable lives," (yeah, right) and the "ethical performance" of the manufacturer. (See Nokia Handsets Top Eco Rankings and Mobile Handset Makers Struggle to Go Green.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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