Euronews: Ericsson Sees Network Gear Market Growth

Also in today's EMEA roundup: Liberty Global numbers hit by Euro ambitions; VimpelCom earnings down; 4G rap for French operators.

  • Ericsson AB (Nasdaq: ERIC) is predicting that the network equipment market will continue to grow at 3 to 5 percent annually through 2016, while telecom services will grow by 5 to 7 percent, and "support solutions" by 9 to 11 percent. The figures were released as a prelude to Ericsson's annual Investor Day, which takes place today (Wednesday). Last month Ericsson announced third-quarter revenues that were down 3 percent year-on-year and down 4 percent sequentially. For more details on Ericsson's long-term view, see this press release. (See Ericsson Suffers Sales Pressure.)

  • Liberty Global Inc. (Nasdaq: LBTY)'s investments and the pursuit of its European ambitions is taking a toll on its bottom line, as it reported a widening of third-quarter losses to $830.1 million, from $22.4 million a year earlier. Earlier this year Liberty Global successfully swallowed the UK's Virgin Media Inc. (Nasdaq: VMED), though it failed to get its hands on Ziggo B.V. and Kabel Deutschland GmbH . Last month it sold its Chellomedia content unit to help fund the acquisition of further assets in Europe. (See Liberty Global Reports Q3 Loss of $830M, Liberty Spies Greater Virgin Synergies, and Ziggo Rejects Liberty Takeover Bid .)

  • Also paying the price of expansion is Russia's VimpelCom Ltd. (NYSE: VIP), which, sitting atop its $20 billion debt mountain, saw third-quarter earnings fall 53 percent year-on-year to $255 million, reports Reuters. The twin pressures of regulatory changes and intense competition depressed the numbers.

  • Orange France and SFR are in a spot of trouble for the way they have been marketing their 4G services, reports Reuters, with tests in Paris showing that said services were not all they were cracked up to be in terms of 4G coverage. France's consumer watchdog, UFC Que Choisir, has filed a legal complaint about the pair.

  • In the UK, there's a new handsets kid on the block. The name is Kazam, founded by former High Tech Computer Corp. (HTC) (Taiwan: 2498) execs, and it now has its first Android smartphones to sell, both with manly names: Trooper and Thunder. Bet they don't come in pink. More details in this Guardian report.

  • Aria Networks Ltd. , a UK Service Provider Information Technology (SPIT) startup, has bagged $4 million of funding in a round led by Seraphim Capital. Aria's particular niche is what it calls "capacity management" software. (See Aria Raises $4M for Capacity Management.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

  • Sarah Thomas 11/6/2013 | 10:52:45 AM
    4G marketing Interesting that SFR and Orange are now feeling the 4G blowback that the US operators faced when the first started marketing their networks. Although, in the US, they didn't get in trouble, they just chnaged the definition of "4G" to make it meaningless!
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