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Europe

Euronews: August 24

8:45 AM -- Telecom Italia (TIM) , Nokia Corp. (NYSE: NOK), and Intel Corp. (Nasdaq: INTC) are the heavy-hitters in today's roundup of European telecom news nuggets.

  • It's more of a howling gale than a summer breeze at Greek mobile operator Wind Hellas Telecommunications S.A. , reports Reuters. Second-quarter results showed total revenues dropped to €202.3 million (US$257.3 million) from €216.9 million ($273.5 million) in the first quarter, while comparable EBITDA (earnings before interest, tax, dolmades, and amortization) dropped 25 percent from the previous quarter and 52 percent from the previous year to €39.1 million ($49.3 million).

  • It's a happier picture in the UK mobile handset market, reports market research firm GfK Retail and Technology: Its figures say that the market has posted three consecutive months of year-on year-growth, the first time it has done this for nearly two years. Can good times be just around the corner? (See Report: UK Mobile Market Continues Recovery.)

  • Over in Italy, Telecom Italia is teaming up with Nokia Networks to embark on a Long Term Evolution (LTE) trial in Turin. (See Telecom Italia, NSN Trial LTE in Turin and Telecom Italia Reports Q2.)

  • One of NSN's parent companies, Nokia, is teaming up with chip behemoth Intel to create the Joint Innovation Center at Finland's University of Oulu. The first research project on the slate will look at the use of graphical 3D technology to create "immersive mobile interfaces." Yikes! (See Intel, Nokia Team on Research Lab.)
  • A controversial tax levied on French telcos (well, it was controversial as far as the telcos were concerned) has not raised as much as it was supposed to, reports Tax-News.com. The tax was supposed to raise €380 million ($480 million) in 2009 to help finance a ban on advertising on public television, but it only mustered €186 million ($235 million).

  • ONO , it's them again... TeleGeography reports that Spanish cable operator ONO has completed the first phase of deployment of Docsis 3.0 technology across its infrastructure, bringing speeds of up to 50 Mbit/s to its lucky customers.

    — Paul Rainford, freelance editor, special to Light Reading

  • shygye75 12/5/2012 | 4:25:52 PM
    re: Euronews: August 24

    Paul -- Regarding the Wind Hellas results, is there any indication that this downturn is affecting only that one operator?

    shygye75 12/5/2012 | 4:25:49 PM
    re: Euronews: August 24

    Wind Hellas revenues fell by 6-7% for 2Q10, and the national GDP fell by 1.5% for that period. As the No. 3 mobile operator in the country, Wind probably is the most vulnerable to the overall downturn and austerity program -- but it's a good bet that the other two operators (Cosmote and Vodafone) will feel some pain as well.

    pfloyd33 12/5/2012 | 4:25:49 PM
    re: Euronews: August 24

    Not sure, to be honest, but the Reuters report did say that the whole of the Greek mobile phone market was shrinking so I'd be surprised if others weren't in the same boat. I'll keep my eyes open for other Greek news and let you know if I spot anything.

    Larry, Monkey 12/5/2012 | 4:25:48 PM
    re: Euronews: August 24

    This could break Wind.

    pfloyd33 12/5/2012 | 4:25:48 PM
    re: Euronews: August 24

    or it might blow over.

    stelabokun 12/5/2012 | 4:25:43 PM
    re: Euronews: August 24

    Dennis, that would have been a very good bet indeed. While all Greek operators report their data using different fiscal years, bundling countries in a weird way etc. (with the ultimate objective being to make us analysts miserable), the data are still comparable and are suggesting significant declines across all market sub-segments and all operators in Greece. OTE’s 2Q2010 Greek revenue (mobile operations) plummeted by 10.1% yoy, and the first 6 months mobile revenue was 4.5% down y-o-y. OTE’s fixed 2Q2010 revenue went down by 7.2% y-o-y, and the first 6 months revenue fell by 7.3% yoy. As per Vodafone, they report that in the segment they designated as “Other Europe” evenue declined by 2.1% with declines in all countries except the NL “as all markets, in particular Greece, were impacted by the challenging economic environment and intense competitive factors.”

    shygye75 12/5/2012 | 4:25:41 PM
    re: Euronews: August 24

    Thanks, Stela -- I can always count on Pyramid to fill in those annoying numbers gaps. So OTE (aka Cosmote) looks like its having just as hard a time as Wind Hellas, which indicates that the problem lies in the national economy rather than the operator itself. Of course, Wind's financial underpinnings are not especially strong compared with its rivals, which means it will have a much tougher time weathering this storm.

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