AT&T revenues up 2.8% in Q3 on record smartphone adds

AT&T revenues up 2.8% in Q3 on record smartphone adds
(Telecompaper) AT&T reported a solid rise in third-quarter sales and profit, supported by continued strong growth in mobile broadband and a return to growth at its consumer wireline activities. Revenues rose 2.8 percent from a year earlier to USD 31.6 billion, while the operating margin dipped slightly to 17.3 percent from 17.5 percent. Net profit surged to USD 12.3 billion, or USD 2.08 per diluted share, including USD 1.53 per share in one-time gains from a previously disclosed tax settlement and the sale of Sterling Commerce. That compares to USD 3.2 billion, or USD 0.54 per share, in the third quarter of 2009. Excluding one-time gains, earnings grew 3.8 percent to 55 cents a share. In the first nine months of 2010, AT&T saw cash from operating activities stable year-on-year at USD 25.4 billion, while capex rose to USD 13.7 billion from USD 11.6 billion, led by wireless spending. AT&T Wireless added a net 2.6 million new customers, a record for a third quarter, for a total 92.76 million at the end of September. AT&T also activated a record 8 million smartphones during Q3, including a new record for iPhone activations of 5.2 million. Data revenues, including SMS, rose 30.5 percent from a year earlier to USD 4.8 billion. Total mobile revenues rose 11.4 percent to USD 15.2 billion, while the OIBDA service margin fell to 37.6 percent from 40.3 a year ago due to the extra costs of adding smartphone users. At the wireline activities, AT&T reported its first growth in residential revenues in two years, up 0.2 percent to USD 5.3 billion, while business wireline revenues were USD 9.5 billion, a decline of 3.9 percent versus the year-earlier quarter. Wireline operating income totaled USD 1.8 billion, unchanged from a year earlier. Consumer growth was helped by the addition of 236,000 U-verse TV customers to reach 2.74 million and 148,000 new broadband subscribers for a total 14.09 million.[Lees verder]

NTT Data in talks to buy Keane for JPY 100 bln – report
(Telecompaper) NTT Data, the network-services unit of Japanese operator NTT, is in advanced talks to buy Keane for more than JPY 100 billion (USD 1.2 billion) to expand in the US, the Nikkei reported without naming its source. The two companies are in the final stages of negotiations, working toward reaching an agreement by the end of the month. A Citigroug investment unit owns a 50 percent stake in Keane, with the remainder held by the Boston-based firm’s executives and employees. NTT Data will purchase all outstanding shares and take control of the company, marking its biggest acquisition to date. The purchase will provide NTT Data access to blue chip clients in the US, including manufacturers and financial institutions, as well as Keane’s R&D bases in India and elsewhere. NTT Data has set a goal of lifting its overseas sales to JPY 300 billion in the year through March 2013, up from roughly JPY 70 billion in fiscal 2009.[Lees verder]

Nokia raises market outlook, but sees drop in market share
(Telecompaper) Nokia said it expects the mobile phone market to grow more than previously expected this year, but its own market share will be lower than in 2009. The world’s largest mobile phone maker now expects the global handset market to grow over 10 percent in volume this year, versus a previous outlook for around 10 percent growth. While the company previously aimed to maintain its own market share in volume terms, it now expects a lower share of the market in 2010 in volume as well as value terms. In the third quarter, Nokia reported shipments of 110.4 million phones, up 2 percent year-on-year and down 1 percent from Q2. This was well below estimated market growth of 14 percent year-on-year and 8 percent sequentially, resulting in a drop in Nokia’s market share to 30 percent from 34 a year ago and 33 in Q2. Nokia said sales were hurt by industry-wide shortages of certain components, particularly in the low end of the market where Nokia’s position is strong. The company expects this situation to continue through the fourth quarter and into 2011. Nokia’s smartphone sales rose 61 percent year-on-year and 10 percent sequentially to 26.5 million units in Q3, giving it an estimated 38 percent market share. The higher smartphone sales and positive currency effects helped Nokia’s average selling price increase to EUR 65 per phone including related services, from EUR 64 in Q3 2009 and EUR 61 in Q2 2010. Total sales were up just 5 percent year-on-year to EUR 10.3 billion, and were down 2 percent when excluding positive currency effects. Sales at the core devices and services division rose 4 percent from a year ago to EUR 7.2 billion, but fell 5 percent on a constant currency basis. Operating profit, excluding one-time items, fell 14 percent to EUR 634 million, and net profit on the same basis was down 18 percent to EUR 0.14 per share. Nokia maintained its outlook for an adjusted operating margin from devices and services of 10-11 percent over the full year, after a result of 10.5 percent in Q3. The margin for Q4 is forecast at 10-12 percent, on revenues of EUR 8.2-8.7 billion. Nokia’s new CEO Stephen Elop said Nokia was facing a “remarkably disruptive time in the industry”, and the recent results show that the company “must reassess our role in and our approach to this industry”.[Lees verder]

Verizon to launch Samsung Galaxy Tab in November
(Telecompaper) Verizon Wireless and Samsung Telecommunications America announced that the Samsung Galaxy Tab will be available from 11 November for USD 599.99. Running on Android 2.2, the Samsung Galaxy Tab features a 7-inch touch screen, robust HTML web browsing experience with full support for Adobe Flash 10.1 for video and mobile gaming, and a 1GHz Cortex A8 Hummingbird Application processor. Verizon Wireless customers will be able to add a monthly access plan beginning at USD 20 a month for 1 GB on their Samsung Galaxy Tab.[Lees verder]

Australian govt re-introduces Telstra split bill
(Telecompaper) The Australian government has re-introduced the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2009 into Parliament. The legislation will allow for the structural separation of Telstra’s retail wing from the rest of the company and strengthen the powers of the regulator. The Bill has been amended following a heads of agreement reached between NBN Co and Telstra in June this year. Following the introduction of the bill, Telstra issued a statement saying it supports the prompt passage of the legislation.[Lees verder]

AT&T revenues up 2.8% in Q3 on record smartphone adds
(Telecompaper) AT&T reported a solid rise in third-quarter sales and profit, supported by continued strong growth in mobile broadband and a return to growth at its consumer wireline activities. Revenues rose 2.8 percent from a year earlier to USD 31.6 billion, while the operating margin dipped slightly to 17.3 percent from 17.5 percent. Net profit surged to USD 12.3 billion, or USD 2.08 per diluted share, including USD 1.53 per share in one-time gains from a previously disclosed tax settlement and the sale of Sterling Commerce. That compares to USD 3.2 billion, or USD 0.54 per share, in the third quarter of 2009. Excluding one-time gains, earnings grew 3.8 percent to 55 cents a share. In the first nine months of 2010, AT&T saw cash from operating activities stable year-on-year at USD 25.4 billion, while capex rose to USD 13.7 billion from USD 11.6 billion, led by wireless spending. AT&T Wireless added a net 2.6 million new customers, a record for a third quarter, for a total 92.76 million at the end of September. AT&T also activated a record 8 million smartphones during Q3, including a new record for iPhone activations of 5.2 million. Data revenues, including SMS, rose 30.5 percent from a year earlier to USD 4.8 billion. Total mobile revenues rose 11.4 percent to USD 15.2 billion, while the OIBDA service margin fell to 37.6 percent from 40.3 a year ago due to the extra costs of adding smartphone users. At the wireline activities, AT&T reported its first growth in residential revenues in two years, up 0.2 percent to USD 5.3 billion, while business wireline revenues were USD 9.5 billion, a decline of 3.9 percent versus the year-earlier quarter. Wireline operating income totaled USD 1.8 billion, unchanged from a year earlier. Consumer growth was helped by the addition of 236,000 U-verse TV customers to reach 2.74 million and 148,000 new broadband subscribers for a total 14.09 million.[Lees verder]

NTT Data in talks to buy Keane for JPY 100 bln – report
(Telecompaper) NTT Data, the network-services unit of Japanese operator NTT, is in advanced talks to buy Keane for more than JPY 100 billion (USD 1.2 billion) to expand in the US, the Nikkei reported without naming its source. The two companies are in the final stages of negotiations, working toward reaching an agreement by the end of the month. A Citigroug investment unit owns a 50 percent stake in Keane, with the remainder held by the Boston-based firm’s executives and employees. NTT Data will purchase all outstanding shares and take control of the company, marking its biggest acquisition to date. The purchase will provide NTT Data access to blue chip clients in the US, including manufacturers and financial institutions, as well as Keane’s R&D bases in India and elsewhere. NTT Data has set a goal of lifting its overseas sales to JPY 300 billion in the year through March 2013, up from roughly JPY 70 billion in fiscal 2009.[Lees verder]

Nokia raises market outlook, but sees drop in market share
(Telecompaper) Nokia said it expects the mobile phone market to grow more than previously expected this year, but its own market share will be lower than in 2009. The world’s largest mobile phone maker now expects the global handset market to grow over 10 percent in volume this year, versus a previous outlook for around 10 percent growth. While the company previously aimed to maintain its own market share in volume terms, it now expects a lower share of the market in 2010 in volume as well as value terms. In the third quarter, Nokia reported shipments of 110.4 million phones, up 2 percent year-on-year and down 1 percent from Q2. This was well below estimated market growth of 14 percent year-on-year and 8 percent sequentially, resulting in a drop in Nokia’s market share to 30 percent from 34 a year ago and 33 in Q2. Nokia said sales were hurt by industry-wide shortages of certain components, particularly in the low end of the market where Nokia’s position is strong. The company expects this situation to continue through the fourth quarter and into 2011. Nokia’s smartphone sales rose 61 percent year-on-year and 10 percent sequentially to 26.5 million units in Q3, giving it an estimated 38 percent market share. The higher smartphone sales and positive currency effects helped Nokia’s average selling price increase to EUR 65 per phone including related services, from EUR 64 in Q3 2009 and EUR 61 in Q2 2010. Total sales were up just 5 percent year-on-year to EUR 10.3 billion, and were down 2 percent when excluding positive currency effects. Sales at the core devices and services division rose 4 percent from a year ago to EUR 7.2 billion, but fell 5 percent on a constant currency basis. Operating profit, excluding one-time items, fell 14 percent to EUR 634 million, and net profit on the same basis was down 18 percent to EUR 0.14 per share. Nokia maintained its outlook for an adjusted operating margin from devices and services of 10-11 percent over the full year, after a result of 10.5 percent in Q3. The margin for Q4 is forecast at 10-12 percent, on revenues of EUR 8.2-8.7 billion. Nokia’s new CEO Stephen Elop said Nokia was facing a “remarkably disruptive time in the industry”, and the recent results show that the company “must reassess our role in and our approach to this industry”.[Lees verder]

Verizon to launch Samsung Galaxy Tab in November
(Telecompaper) Verizon Wireless and Samsung Telecommunications America announced that the Samsung Galaxy Tab will be available from 11 November for USD 599.99. Running on Android 2.2, the Samsung Galaxy Tab features a 7-inch touch screen, robust HTML web browsing experience with full support for Adobe Flash 10.1 for video and mobile gaming, and a 1GHz Cortex A8 Hummingbird Application processor. Verizon Wireless customers will be able to add a monthly access plan beginning at USD 20 a month for 1 GB on their Samsung Galaxy Tab.[Lees verder]

Australian govt re-introduces Telstra split bill
(Telecompaper) The Australian government has re-introduced the Telecommunications Legislation Amendment (Competition and Consumer Safeguards) Bill 2009 into Parliament. The legislation will allow for the structural separation of Telstra’s retail wing from the rest of the company and strengthen the powers of the regulator. The Bill has been amended following a heads of agreement reached between NBN Co and Telstra in June this year. Following the introduction of the bill, Telstra issued a statement saying it supports the prompt passage of the legislation.[Lees verder]