Euronews: Failed Merger Hits DT's Numbers
Deutsche Telekom AG (NYSE: DT), Telekom Austria AG (NYSE: TKA; Vienna: TKA) and Transmode Systems AB get things moving in today's truck-roll of EMEA telecom headlines.
The ultimately fruitless T-Mobile US Inc. / AT&T Inc. (NYSE: T) saga took its toll on Deutsche Telekom's fourth-quarter 2011 figures, as the German incumbent recorded a net loss of €1.3 billion ($1.7 billion). DT was still in the black for the year as a whole, though full-year net profits were down 67.1 percent to €557 million ($742.8 million). (See Deutsche Telekom Makes €1.3B Loss in Q4, Deutsche Telekom CTO Quits, Euronews: Deutsche Telekom to Bail Out of UK? and AT&T Drops Bid to Acquire T-Mobile.)
Just across the border, Telekom Austria is also languishing in the doldrums, recording a loss of €252.8 million ($336.8 million) for the full year. The unholy trinity of usual suspects -- unfavorable economic conditions, increased competition and an upswing in regulatory measures -- once again got the blame. (See Telekom Austria Reports Full-Year Loss and Euronews: Telekom Austria's Revenues Slide.)
Things are perkier at Swedish metro optical vendor Transmode, which saw its 2011 net profits rise 42 percent year-on-year to 116.3 million Swedish Kroner ($17.5 million). Transmode has also just been chosen by Virgin Media Inc. (Nasdaq: VMED), the U.K. cable operator, as its preferred supplier for metro optical WDM deployments, the latest in a series of deals between the two. (See Virgin Media Picks Transmode for Metro WDM, Transmode Reports Q4 Profit of SEK34.2M, Transmode Sticks to Growth Path and Transmode Unveils IPO.)
Look out for small cells on lamp posts in London's Oxford Street because Virgin Media plans to extend its trial of Long Term Evolution (LTE) picocells in the city. The cable operator is using trial 2.6GHz spectrum and Airspan Networks Inc. (Nasdaq: AIRN)'s pico eNodeB base stations, which are powered by Picochip silicon (now part of Mindspeed Technologies Inc. (Nasdaq: MSPD)). Virgin started the trial in December last year and plans to try out the small base stations in other U.K. cities. (See Virgin Tests LTE Small Cells and Euronews: Virgin Eyes 4G Femto Spectrum.)
And in other small-cell news, Three UK now offers a 3G femtocell in the U.K., called the Home Signal, with a handy how-to video here. The device is based on femto technology from Ubiquisys Ltd. .
Meanwhile, back at the results trough, Germany's ADVA Optical Networking saw its full-year net income more than double year-on-year to €16.9 million ($22.4 million), though a reduced income tax bill played a significant part in this. (See ADVA Reports Q4 Profit of €8.7M, ADVA Offers a Cheaper 100G and ADVA in for the Long Haul With 100G.)
— Paul Rainford, Assistant Editor, Europe, Light Reading