& cplSiteName &

Eurobites: BT-EE Deal Clears Another Hurdle

Paul Rainford
10/28/2015
50%
50%

Also in today's EMEA regional roundup: Ericsson completes Envivio acquisition; Numericable-SFR sees revenues slip in Q3; Deutsche Telekom and Huawei get friendly on IoT, cloud.

  • BT Group plc (NYSE: BT; London: BTA) and EE have received provisional approval of their proposed merger from the Competition and Markets Authority. In its statement, the CMA said: "As BT is a smaller operator in mobile, it is unlikely that the merger will have a significant effect on competition. By the same token, it is unlikely that the merger will have a significant effect on competition in the retail broadband market, where EE is only a minor player." The final report will be published on January 18 and anyone wanting to respond to the provisional findings has until November 19 to do so -- one suspects BT and EE's rivals will be scribbling furiously even as you read this. (See BT, EE Defend $19.9B Merger Plans, BT Locks Down £12.5B EE Takeover Deal and BT Offers $19.5B to Buy EE.)

  • Ericsson AB (Nasdaq: ERIC) has completed its acquisition of Envivio Inc. (NASDAQ: ENVI), the video compression specialist, for $125 million. Envivio, based in San Francisco, has around 180 staff and claims about 300 customers globally. (See Ericsson Beefs Up TV Biz With Envivio Buy, AT&T Deal.)

  • French operator Numericable-SFR saw third-quarter sales fall 3.5% year-on-year to €2.77 billion ($3.06 billion), though EBITDA (earnings before interest, tax, depreciation and amortization) rose 15% to €1.03 billion ($1.14 billion), reports Reuters. The operator has been spending more on marketing in a bid to stem customer losses in what is an intensively competitive domestic market.

  • Telenor Group (Nasdaq: TELN)'s decision to divest all its shares in Russia's VimpelCom Ltd. (NYSE: VIP) dented its third-quarter figures, with the associated impairment charge of 5.4 billion Norwegian kroner ($634 million) pushing Telenor to a loss of NOK1.77 billion ($208 million) after tax. Revenues were actually up year-on-year, from NOK27.68 billion ($3.25 billion) a year ago, to NOK 31.83 billion ($3.74) this time round. Telenor has adjusted its guidance for the full year, to organic revenue growth of around 5% and an EBITDA margin of 34%-35%, largely as a result of the planned merger of its Danish operation with Telia Company 's equivalent unit failing to fly. (See For Sale: Telenor's $2.4B Stake in VimpelCom.)

  • The UAE's Etisalat , one of the Middle East's biggest operators, has blamed rising expenses and a fall in revenues outside its domestic market for an 8.6% year-on-year decline in net profit, to 1.95 billion Emirati dirhams ($530 million), in its third quarter, according to a report from Reuters. Although domestic revenues grew by 6%, to AED7.2 billion ($1.96 billion), those generated in other countries fell by 9%, to AED5.7 billion ($1.55 billion). The total number of customers served by Etisalat shrank by 6%, to 170 million, between September 2014 and September 2015.

  • Ooredoo Kuwait, the Kuwaiti mobile arm of the Qatari telecom incumbent, was reported to have seen a 69% year-on-year increase in third-quarter net profit, to about 13.3 million Kuwaiti dinars ($43.9 million), bringing to an end a long sequence of earnings declines. The operator's third-quarter revenues grew by just 1.5%, to 188.8 million ($623.8 million), which suggests that profits were boosted by cost-cutting activities. Ooredoo competes against incumbent Zain Group and Saudi Telecom Co. (STC) -owned Viva in the Kuwaiti mobile market.

  • Deutsche Telekom AG (NYSE: DT) and Huawei Technologies Co. Ltd. are getting it on. For starters, the pair have conducted what they claim is the first ever trial of Narrow Band IoT (NB-IoT) technology on a commercial network. NB-IoT, says the German giant, allows for network deployment with only 20KHz spectrum and a 20dB coverage gain compared with existing cellular-based offerings. For the main course, the pair have signed a cooperation agreement that will see them collaborate on the delivery of computing services from the public cloud, a platform they are calling the Open Telekom Cloud. Huawei will contribute the hardware and associated technology, while T-Systems International GmbH will deal with the customer interface end of things. (See DT Takes Cloud Fight to Google, Amazon.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

    (0)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Featured Video
    Flash Poll
    Upcoming Live Events
    September 17-19, 2019, Dallas, Texas
    October 1-2, 2019, New Orleans, Louisiana
    October 10, 2019, New York, New York
    October 22, 2019, Los Angeles, CA
    November 5, 2019, London, England
    November 7, 2019, London, UK
    December 3, 2019, New York, New York
    December 3-5, 2019, Vienna, Austria
    March 16-18, 2020, Embassy Suites, Denver, Colorado
    May 18-20, 2020, Irving Convention Center, Dallas, TX
    All Upcoming Live Events