Euronews: Feb. 17

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), KPN Telecom NV (NYSE: KPN), VimpelCom Ltd. (NYSE: VIP) and Deutsche Telekom AG (NYSE: DT) are the big cheeses on today's deli counter of Euro telecom news nibbles.

  • Dutch carrier KPN has struck an agreement with ZTE to deploy the Chinese vendor's radio access network (RAN) equipment in its networks in Belgium and Germany. As part of a broad relationship between the two companies, KPN's German operation, E-Plus Service GmbH & Co. KG , will undertake a field trial of the vendor's Long Term Evolution Time Division Duplex (LTE TDD) equipment during the first quarter of 2011. (See E-Plus to Trial LTE With ZTE .)

  • Russian giant VimpelCom is looking to get shareholders on its side for the proposed acquisition of Orascom Telecom and Wind Telecomunicazioni SpA by offering an extra US$250 million in interim dividends, reports Reuters. The takeover is being opposed by Norwegian carrier Telenor Group (Nasdaq: TELN), which owns a substantial stake in VimpelCom.

  • Net income at Swisscom AG (NYSE: SCM) is down 7.1 percent year-on-year in full-year results that were hit by a provision of €70 million ($95 million) set aside in the first quarter of 2010 for VAT proceedings against its Italian subsidiary, Fastweb SpA (Milan: FWB). (See Swisscom Posts Full-Year Results and Euronews: Nov. 3.)

  • By contrast, British cable operator Virgin Media Inc. (Nasdaq: VMED) has recorded what it is calling its "best ever" financial year, with annual operating income up 144 percent year-on-year to £322 million ($519 million). Virgin was one of the few companies to receive a favorable report in a review of U.K. broadband speeds carried out by the Ofcom in 2010. (See Virgin Media Posts Q4, Full-Year Results, ISPs Shamed by UK Broadband Speed Tests and Virgin's Business Broadband Broadside.)

  • Deutsche Telekom's pay raise offer of slightly more than 2 percent to its workforce has been rejected by the employees' union, Verdi, reports Reuters. Around 7,000 employees came out on a "warning strike" on Wednesday, and more industrial action looks likely as the union is seeking an ambitious 6.5 percent pay hike.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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