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Euronews: DT Eyes T-Mobile/MetroPCS Merger

Deutsche Telekom AG (NYSE: DT), KPN Telecom NV (NYSE: KPN) and BT Group plc (NYSE: BT; London: BTA) are in the mix for today's pick of the EMEA telecom headlines.

  • Deutsche Telekom is in talks over a possible merger of its T-Mobile US Inc. subsidiary with MetroPCS Inc. (NYSE: PCS) through a stock-swap transaction, according to a report on Bloomberg. The unnamed source added that the German giant is also talking to other companies about the future its U.S. problem child. (See Euronews: Failed Merger Hits DT's Numbers and AT&T Drops Bid to Acquire T-Mobile.)

  • As the rumor mill churned, Deutsche Telekom announced first quarter revenues of €14.43 billion (US$18.67 billion), down 1.1 percent year-on-year, and a net profit of €238 million ($308 million), down by 50.4 percent. (See D Telekom Makes €238M Profit in Q1 .)

  • KPN will find it difficult to fend off the attentions of Carlos Slim's América Móvil S.A. de C.V. , which is seeking to acquire up to 28 percent of the ailing Dutch incumbent, an analysis on Reuters concludes. Since Slim made his move, it has emerged that Morgan Stanley has built up a 10.1 percent stake in KPN, so it's clear that the World's Richest Man is not the only one who sees a stake in the Dutch company as a way of getting even richer in the long term. (See Euronews: Slim Picking at KPN and KPN Lowers 2012 Profit Outlook.)

  • BT's fourth-quarter and full-year financials reveal a picture of falling revenues but rising profits as a clampdown on costs bears fruit. Full-year revenue was down 4 percent year-on-year to £19.3 billion ($31.0 billion) while pre-tax profits rose 16 percent to £2.42 billion ($3.89 billion). And just to add to the general joy, BT has also announced that its U.K. fiber rollout has now, er, rolled past 10 million premises several months ahead of schedule. (See BT Profit Hits £724M in Fiscal Q4, BT Boasts FTTX Milestone , Euronews: BT Speeds Up FTTX Rollout and BT Sees Results From Its Vertical Leap.)

  • ADVA Optical Networking has dipped its toe in the OpenFlow waters with the trial of a software-defined optical network. The vendor has been working with the U.K.'s University of Essex, which has a special testbed for software-defined networks as part of its "OpenFlow in Europe, Linking Infrastructure and Applications" (Ofelia) project. (See ADVA Mixes OpenFlow With Optical, ADVA Tries OpenFlow and ADVA Talks 100G.)

  • Telekom Austria AG (NYSE: TKA; Vienna: TKA) managed to generate a net profit of €47 million ($61 million) in the first quarter, despite taking a €39 million ($50.6 million) hit in Belarus due to hyperinflation there. The group now has 2.6 million fixed lines and 20 million mobile customers across its various territories. (See Telekom Austria Reports Q1 Profit of €47M and Euronews: Telekom Austria's Revenues Slide.)

  • An improvement in domestic performance helped Telecom Italia (TIM) increase revenues, up 4.5 percent year-on-year to €7.39 billion ($9.59 billion), and profits, up 10.4 percent year-on-year to €606 million ($786 million), in its first quarter. (See Euronews: Microsoft, Telecom Italia in Cloud Deal.)

  • Mobile revenues nearly doubled for Emirates Integrated Telecommunications Co. (du) in the first quarter, raising net profits (before royalty) by a mighty 61.8 percent year-on-year, reports Arabian Business. (See The UAE's Fiber-Filled Future.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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