Deutsche Telekom net profit drops to EUR 475 mln

Deutsche Telekom net profit drops to EUR 475 mln
(Telecompaper) Deutsche Telekom reported a 4.4 percent drop in revenues for the second quarter to EUR 15.53 billion, compared with EUR 16.24 billion in the second quarter of 2009. Domestic revenues decreased by 0.8 percent to EUR 6.76 billion, and international revenues fell 6.9 percent to EUR 8.77 billion. The international revenue drop was mostly caused by T-Mobile UK being no longer fully consolidated from 1 April, due to the creation of the joint venture with Orange in the UK. Excluding this effect, revenues grew 0.9 percent year-on-year. The quarterly adjusted EBITDA decreased by 4.7 percent to EUR 5.012 billion, and the adjusted EBITDA margin fell by 0.1 percentage point to 32.3 percent. Excluding the T-Mobile UK effect, adjusted EBITDA was down 1.9 percent year-on-year. Deutsche Telekom’s net profit dropped by 8.8 percent to EUR 475 million for the second quarter, but was up 20.5 percent year-on-year to EUR 722 million when excluding the UK effect. Deutsche Telekom confirmed its guidance for the full year. Excluding the effects of the joint venture between T-Mobile and Orange in the UK, Deutsche Telekom expects to generate adjusted EBITDA of approximately EUR 20 billion and free cash flow of around EUR 6.2 billion in the full year.[Lees verder]

Clearwire announces plans for LTE trials
(Telecompaper) US Wimax operator Clearwire announced plans to test a LTE network. The tests will be run with Huawei Technologies, which has already deployed a commercial LTE network in Europe using the same frequency band as Clearwire, 2.5-2.6GHz. Clearwire will use Samsung’s base station platform, already in use for its Wimax network, and work with suppliers such as Beceem on end-user devices for a multi-mode Wimax/LTE network. Other participating vendors for Clearwire’s technical trials are expected to be named at a later date, as well as a number large wireless operators. The tests will be conducted in the autumn and throughout early 2011 in Phoenix, Arizona. Clearwire plans three types of tests. A trial of FDD LTE using 2×20 MHz of its 2.5 GHz spectrum is expected to confirm real-world download speeds of 20-70 Mbps, well ahead of the 5-12 Mbps in Verizon’s trials using smaller pairs of 10Mhz channels. Clearwire will also test TDD LTE, in a 20 MHz configuration, which is twice the channel size currently used in its Wimax deployments. Finally, Clearwire will test Wimax co-existence with both FDD LTE and TDD LTE to confirm the flexibility of its network and spectrum strength to simultaneously support a wide-range of devices. The company also restated its commitment to use Wimax technology for its current network build plan.[Lees verder]

Telefonica confirms Tuenti stake acquisition
(Telecompaper) Telefonica has acquired a stake in Spanish social networking company Tuenti. Via the Tuenti acquisition, Telefonica plans to expand its reach into internet-based communication technologies. Tuenti’s management structure would remain unchanged, and Zaryn Dentzel will maintain his position as Tuenti CEO, Telefonica said. Telefonica did not release any financial details related to the transaction. Earlier media reports suggested the company paid around EUR 70 million for a 90 percent stake in Tuenti.[Lees verder]

AOL hit by USD 1.4 bln impairment charge
(Telecompaper) AOL reported second-quarter revenues of USD 584.1 million, down 26 percent from a year earlier. Advertising revenues dropped 27 percent to USD 296.9 million, and subscription revenues fell 27 percent to USD 260.2 million. The internet susbcriber base was down 25 percent from a year ago to 4.362 million at the end of June, with ARPU down 1 percent to USD 18.10. AOL attributed the decline in ad revenues to a move away from lower margin business, particularly in Europe, as well as the sale of Bebo. Search advertising was also down sharply due to the lower number of internet susbcribers. Adjusted OIBDA tumbled 37 percent to USD 166.6 million. Net profit was hit by a USD 1.414 billion impairment charge on goodwill, prompted by the sales of Bebo and ICQ and the recent fall in AOL’s share price. The resulting net loss was USD 1.055 billion, versus a profit of USD 90.7 million a year ago. The result also included a one-time tax benefit of USD 302.7 million from Bebo. Looking forward, AOL said it expects to record a one-time gain of USD 120-130 million from ICQ and USD 17.5 million from selling its stake in Kayak Software.[Lees verder]

Infineon Technologies CFO resigns
(Telecompaper) Germany-based semiconductor manufacturer Infineon Technologies promoted former spokesperson of the management board Peter Bauer to chairman of the board, effective immediately. The appointment comes after CFO and labor director Marco Schroter left the management board due to differences in opinion over the future company policy. Bauer will transitionally take over the role of CFO until Schroter’s successor is appointed. The role of the labor director with responsibility for Human Resources will be assumed on an interim basis by board member Reinhard Ploss. The news comes two days after Infineon confirmed the company is in advanced talks on a possible sale of its Wireless Solutions business.[Lees verder]

Google relaxes trademarks policy for AdWords
(Telecompaper) Google has relaxed its trademark policy for its AdWords service in Europe, allowing the purchase of search keywords that include trademarked brand names. Under the Adwords system, advertisers pay Google so that their ads are displayed alongisde search results when users type in certain keywords. The company had previously been under pressure to allow only the trademark holder to use the names for keyword searches. Companies such as luxury goods group LVMH alleged that allowing third parties to use the names led to ads for counterfeit goods appearing on Google. The change in policy follows a ruling by the European Court of Justice in March that found Google had not infringed trademark law by allowing advertisers to bid for keywords corresponding to trademarks other than their own. Starting 14 September, Google will no longer restrict third-party access to keywords containing trademarked names. Advertisers will be able to complain about the selection of their trademark by a third party if they feel that it leads to a specific ad text which confuses users about the origin of the advertised goods and services. Google will then conduct a limited investigation and if it finds that the ad text does confuse users as to the origin of the advertised goods and services, it will remove the ad. In addition, Google will allow from the same date third parties in the UK, Ireland and Canada to use trademarked names in their ads, even if they don’t own that trademark or have explicit approval from the trademark owner to use it. This applies to advertisers such as resellers, sellers of component, replacement or compatible parts corresponding to the trademark and informational sites.[Lees verder]

RCom inks deal with Universal Music for music services
(Telecompaper) Indian operator Reliance Communications has signed a contract with Universal Music to offer music-related services and content across RCom’s GSM, CDMA, 3G mobile and wireless broadband platforms. The agreement between RCom and Universal Music includes a commitment of substantial investments to be made by both the parties to offer music to customers across all platforms including voice, WAP, web, IVR, blogs and on-ground events. The agreement with Universal is a prelude to RCom’s 3G launch. Universal will offer its entire catalogue of international and Indian music to RCom. Universal’s music catalogue feature Indian and western billboard artists such as Shaan, Sunidhi Chauhan, Bon Jovi, Bryan Adams, The Black Eyed Peas, Enrique Iglesias, Eminem and Lady Gaga, amongst others. RCom and Universal Music will also arrange Indian concerts with Shaan, Sunidhi Chauhan, Mohit Chauhan and others. The partners will also line-up international concerts with contemporary pop singers. RCom will use the Universal partnership to launch its Simply Music Initiative for its customers across multiple channels and extend this to 3G customers at launch. Simply Music Initiative is a music pack offering services like caller tunes, ring tones, mobile radio web streaming and full tracks for all Reliance customers across GSM and CDMA networks. Simply Music comprises two packs, Gold and Platinum. The Simply Music Gold Pack will comprise three full-length tracks, three ringtones, four caller tunes and 30 minutes of mobile radio web streaming. This pack will be available for a monthly subscription of INR 25. The Simply Music Platinum Pack will comprise of ten full-length tracks, ten ringtones, ten caller tunes and 100 minutes of mobile radio web streaming. The Platinum pack will be available for a monthly subscription of INR 99.[Lees verder]

Motorola, Verizon partner on Android TV tablet – report
(Telecompaper) Motorola is developing a tablet device that will allow users to watch TV on it. The device, which will have a 10-inch screen and operate on Google’s Android software, could launch as early as this autumn in the US, the Financial Times reports, citing people familiar with the project. The device is expected to tie closely to Verizon’s Fios digital pay-TV, people briefed on the plans said. Motorola also manufactures the set-top boxes for the Fios service. Motorola co-CEO Sanjay Jha said in May the company was exploring tablet options using Google’s Android smartphone software. “We’re very focused on participating in this convergence between mobility and home, and I actually think you will see some products from us in a very short period of time,” he said, without providing details.[Lees verder]

Burkina Faso launches fixed/mobile licence tender
(Telecompaper) Burkina Faso’s telecommunications regulator, ARCE, has launched a tender for the award of a 10-year fixed and wireless licence, including 3G, covering the whole country. Interested parties can consult the tender document free of charge or obtain a copy from the regulator for XOF 300,000 (about EUR 460). Submissions must be made before 19 October. Burkina Faso currently has three telecommunications operators, Celtel, Telecel and Onatel.[Lees verder]

Deutsche Telekom net profit drops to EUR 475 mln
(Telecompaper) Deutsche Telekom reported a 4.4 percent drop in revenues for the second quarter to EUR 15.53 billion, compared with EUR 16.24 billion in the second quarter of 2009. Domestic revenues decreased by 0.8 percent to EUR 6.76 billion, and international revenues fell 6.9 percent to EUR 8.77 billion. The international revenue drop was mostly caused by T-Mobile UK being no longer fully consolidated from 1 April, due to the creation of the joint venture with Orange in the UK. Excluding this effect, revenues grew 0.9 percent year-on-year. The quarterly adjusted EBITDA decreased by 4.7 percent to EUR 5.012 billion, and the adjusted EBITDA margin fell by 0.1 percentage point to 32.3 percent. Excluding the T-Mobile UK effect, adjusted EBITDA was down 1.9 percent year-on-year. Deutsche Telekom’s net profit dropped by 8.8 percent to EUR 475 million for the second quarter, but was up 20.5 percent year-on-year to EUR 722 million when excluding the UK effect. Deutsche Telekom confirmed its guidance for the full year. Excluding the effects of the joint venture between T-Mobile and Orange in the UK, Deutsche Telekom expects to generate adjusted EBITDA of approximately EUR 20 billion and free cash flow of around EUR 6.2 billion in the full year.[Lees verder]

Clearwire announces plans for LTE trials
(Telecompaper) US Wimax operator Clearwire announced plans to test a LTE network. The tests will be run with Huawei Technologies, which has already deployed a commercial LTE network in Europe using the same frequency band as Clearwire, 2.5-2.6GHz. Clearwire will use Samsung’s base station platform, already in use for its Wimax network, and work with suppliers such as Beceem on end-user devices for a multi-mode Wimax/LTE network. Other participating vendors for Clearwire’s technical trials are expected to be named at a later date, as well as a number large wireless operators. The tests will be conducted in the autumn and throughout early 2011 in Phoenix, Arizona. Clearwire plans three types of tests. A trial of FDD LTE using 2×20 MHz of its 2.5 GHz spectrum is expected to confirm real-world download speeds of 20-70 Mbps, well ahead of the 5-12 Mbps in Verizon’s trials using smaller pairs of 10Mhz channels. Clearwire will also test TDD LTE, in a 20 MHz configuration, which is twice the channel size currently used in its Wimax deployments. Finally, Clearwire will test Wimax co-existence with both FDD LTE and TDD LTE to confirm the flexibility of its network and spectrum strength to simultaneously support a wide-range of devices. The company also restated its commitment to use Wimax technology for its current network build plan.[Lees verder]

Telefonica confirms Tuenti stake acquisition
(Telecompaper) Telefonica has acquired a stake in Spanish social networking company Tuenti. Via the Tuenti acquisition, Telefonica plans to expand its reach into internet-based communication technologies. Tuenti’s management structure would remain unchanged, and Zaryn Dentzel will maintain his position as Tuenti CEO, Telefonica said. Telefonica did not release any financial details related to the transaction. Earlier media reports suggested the company paid around EUR 70 million for a 90 percent stake in Tuenti.[Lees verder]

AOL hit by USD 1.4 bln impairment charge
(Telecompaper) AOL reported second-quarter revenues of USD 584.1 million, down 26 percent from a year earlier. Advertising revenues dropped 27 percent to USD 296.9 million, and subscription revenues fell 27 percent to USD 260.2 million. The internet susbcriber base was down 25 percent from a year ago to 4.362 million at the end of June, with ARPU down 1 percent to USD 18.10. AOL attributed the decline in ad revenues to a move away from lower margin business, particularly in Europe, as well as the sale of Bebo. Search advertising was also down sharply due to the lower number of internet susbcribers. Adjusted OIBDA tumbled 37 percent to USD 166.6 million. Net profit was hit by a USD 1.414 billion impairment charge on goodwill, prompted by the sales of Bebo and ICQ and the recent fall in AOL’s share price. The resulting net loss was USD 1.055 billion, versus a profit of USD 90.7 million a year ago. The result also included a one-time tax benefit of USD 302.7 million from Bebo. Looking forward, AOL said it expects to record a one-time gain of USD 120-130 million from ICQ and USD 17.5 million from selling its stake in Kayak Software.[Lees verder]

Infineon Technologies CFO resigns
(Telecompaper) Germany-based semiconductor manufacturer Infineon Technologies promoted former spokesperson of the management board Peter Bauer to chairman of the board, effective immediately. The appointment comes after CFO and labor director Marco Schroter left the management board due to differences in opinion over the future company policy. Bauer will transitionally take over the role of CFO until Schroter’s successor is appointed. The role of the labor director with responsibility for Human Resources will be assumed on an interim basis by board member Reinhard Ploss. The news comes two days after Infineon confirmed the company is in advanced talks on a possible sale of its Wireless Solutions business.[Lees verder]

Google relaxes trademarks policy for AdWords
(Telecompaper) Google has relaxed its trademark policy for its AdWords service in Europe, allowing the purchase of search keywords that include trademarked brand names. Under the Adwords system, advertisers pay Google so that their ads are displayed alongisde search results when users type in certain keywords. The company had previously been under pressure to allow only the trademark holder to use the names for keyword searches. Companies such as luxury goods group LVMH alleged that allowing third parties to use the names led to ads for counterfeit goods appearing on Google. The change in policy follows a ruling by the European Court of Justice in March that found Google had not infringed trademark law by allowing advertisers to bid for keywords corresponding to trademarks other than their own. Starting 14 September, Google will no longer restrict third-party access to keywords containing trademarked names. Advertisers will be able to complain about the selection of their trademark by a third party if they feel that it leads to a specific ad text which confuses users about the origin of the advertised goods and services. Google will then conduct a limited investigation and if it finds that the ad text does confuse users as to the origin of the advertised goods and services, it will remove the ad. In addition, Google will allow from the same date third parties in the UK, Ireland and Canada to use trademarked names in their ads, even if they don’t own that trademark or have explicit approval from the trademark owner to use it. This applies to advertisers such as resellers, sellers of component, replacement or compatible parts corresponding to the trademark and informational sites.[Lees verder]

RCom inks deal with Universal Music for music services
(Telecompaper) Indian operator Reliance Communications has signed a contract with Universal Music to offer music-related services and content across RCom’s GSM, CDMA, 3G mobile and wireless broadband platforms. The agreement between RCom and Universal Music includes a commitment of substantial investments to be made by both the parties to offer music to customers across all platforms including voice, WAP, web, IVR, blogs and on-ground events. The agreement with Universal is a prelude to RCom’s 3G launch. Universal will offer its entire catalogue of international and Indian music to RCom. Universal’s music catalogue feature Indian and western billboard artists such as Shaan, Sunidhi Chauhan, Bon Jovi, Bryan Adams, The Black Eyed Peas, Enrique Iglesias, Eminem and Lady Gaga, amongst others. RCom and Universal Music will also arrange Indian concerts with Shaan, Sunidhi Chauhan, Mohit Chauhan and others. The partners will also line-up international concerts with contemporary pop singers. RCom will use the Universal partnership to launch its Simply Music Initiative for its customers across multiple channels and extend this to 3G customers at launch. Simply Music Initiative is a music pack offering services like caller tunes, ring tones, mobile radio web streaming and full tracks for all Reliance customers across GSM and CDMA networks. Simply Music comprises two packs, Gold and Platinum. The Simply Music Gold Pack will comprise three full-length tracks, three ringtones, four caller tunes and 30 minutes of mobile radio web streaming. This pack will be available for a monthly subscription of INR 25. The Simply Music Platinum Pack will comprise of ten full-length tracks, ten ringtones, ten caller tunes and 100 minutes of mobile radio web streaming. The Platinum pack will be available for a monthly subscription of INR 99.[Lees verder]

Motorola, Verizon partner on Android TV tablet – report
(Telecompaper) Motorola is developing a tablet device that will allow users to watch TV on it. The device, which will have a 10-inch screen and operate on Google’s Android software, could launch as early as this autumn in the US, the Financial Times reports, citing people familiar with the project. The device is expected to tie closely to Verizon’s Fios digital pay-TV, people briefed on the plans said. Motorola also manufactures the set-top boxes for the Fios service. Motorola co-CEO Sanjay Jha said in May the company was exploring tablet options using Google’s Android smartphone software. “We’re very focused on participating in this convergence between mobility and home, and I actually think you will see some products from us in a very short period of time,” he said, without providing details.[Lees verder]

Burkina Faso launches fixed/mobile licence tender
(Telecompaper) Burkina Faso’s telecommunications regulator, ARCE, has launched a tender for the award of a 10-year fixed and wireless licence, including 3G, covering the whole country. Interested parties can consult the tender document free of charge or obtain a copy from the regulator for XOF 300,000 (about EUR 460). Submissions must be made before 19 October. Burkina Faso currently has three telecommunications operators, Celtel, Telecel and Onatel.[Lees verder]

Comments are closed.