NTT’s H1 net income rises 12%

NTT’s H1 net income rises 12%
(Telecompaper) Japanese telecommunications firm NTT posted flat operating revenues for the half year ended 30 September but saw net income rise. Operating revenues were flat at JPY 4.99 trillion while operating income grew by 12.4 percent to JPY 727 billion from JPY 646.8 billion in the year-ago period as operating expenses fell 1.8 percent. NTT reported a net income of JPY 315.2 billion, up 11.7 percent from JPY 282.2 billion a year earlier. NTT has revised its full year forecast and now expects revenues of JPY 10.14 trillion versus an earlier forecast of JPY 10.16 trillion. Operating income is expected to come in at JPY 1.18 trillion, up from the earlier forecast of JPY 1.17 trillion, and NTT maintained its net profit forecast at JPY 500 billion. NTT added 401,000 customers for its Flets Hikari service in the three month-period, to bring its total to 14.24 million. The company also had 11.10 million Hikari Denwa customers, after it added 457,000 new customers in the quarter to the optical IP telephone service. The ADSL customer base continued to contract, losing 117,000 customers in the quarter for a total of 3.14 million. Traditional voice service subscribers fell by 719,000 lines in the quarter to 31.77 million. The company’s mobile unit, NTT Docomo, ended the six-month period with 56.89 million subscribers. The mobile unit saw its net income improve 22 percent to JPY 167.6 billion.[Lees verder]

EC finds little appetite for net neutrality rules
(Telecompaper) The European Commission has published the results of its public consultation on net neutrality, which suggest legislation on the issue is unlikely to be forthcoming in the near term. The commission said there was a “near consensus” among respondents to the consultation on the importance of preserving the openness of the internet. A total of 318 stakeholders at every level of the value chain provided input to the consultation. The consultation did not reveal a widespread call for further EU legislation, but there is an expectation that additional guidance may be needed in the future, the EC said. Industry players in particular did not see the need for additional regulations, and the large majority of respondents considered the current EU telecoms framework should be assessed first before implementing additional measures. Other respondents were more concerned about the use of certain traffic management techniques by operators and the development of new managed service business models. The commission was asked to provide clarity on the distinction between the “best-efforts” internet and “managed services”. BEREC, the body of EU telecoms regulators, warned of possible problems of discrimination leading to anti-competitive effects, the potential longer-term consequences for the internet economy in terms of innovation and freedom of expression, and uncertainties for consumers due to lack of transparency. Blocking of VoIP services and bandwidth throttling of sites also raised concerns for many respondents. The responses included few calls for minimum quality-of-service requirements at this stage, but clear support for industry-wide standards on transparency to enable consumers to make informed choices, the EC said. Many respondents consider that transparency by itself would not allay all net neutrality concerns, particularly where there are barriers to switching between ISPs. The EC will discuss the results further at the Net Neutrality summit starting 11 November, where it will also meet with the European Parliament to look at the EC’s upcoming report on net neutrality.[Lees verder]

Almost half Galaxy S shipments go to US
(Telecompaper) Samsung Electronics said that three million out of its seven million global Galaxy S smartphones shipments were made to the US since it launched the phone there in July. Sales were brisk at all four of the top U.S. operators who sell the phones, chief marketing officer Paul Golden said. “We’re in a situation where we wish we had more supply,” Golden told Reuters at the sidelines of an event where the phonemaker unveiled a new Galaxy S phone. Golden would not comment on how severe the supply shortage is or when it is expected to ease but said the main bottleneck was Samsung’s own Amoled display technology. Samsung has been working on boosting Amoled production to bolster supply, Golden said. Verizon Wireless announced that it would sell the latest Galaxy S device, the Continuum in time for the holiday shopping season. AT&T, Sprint Nextel and T-Mobile USA also sell the Samsung devices.[Lees verder]

Swisscom revenues grow, net profit down to CHF 1.41 bln
(Telecompaper) Swisscom’s revenue for the first nine months of this year, have grown by 0.6 percent year-on-year to CHF 8.925 billion. Revenue posted by the Italian subsidiary Fastweb rose in the local currency by 2.9 percent to EUR 1.4 billion and Swisscom’s revenue excluding Fastweb increased by 2.3 percent to CHF 7.03 billion. The increase is primarily attributable to the economic recovery, company acquisitions made by Swisscom IT Services as well as growth in mobile communications and bundled products. As a result of the provision of CHF 102 million recognised in the first quarter of this year for the proceedings against Fastweb relating to VAT, Swisscom’s nine months EBITDA fell by 1.3 percent to CHF 3.55 billion. The EBITDA, adjusted for provision and currency effects, increased by 2.8 percent and the net profit dropped by 8.2 percent year-on-year to CHF 1.41 billion, mainly as a result of the provision and an increase in depreciation. Operating free cash flow declined by 6.1 percent to CHF 2.023 billion, due primarily to an increase in net working capital. Net debt was reduced over the reporting period by CHF 780 million to CHF 8.807 billion. Across the Group, Swisscom now anticipates net revenue of around CHF 12 billion and EBITDA of around CHF 4.7 billion (incl. a provision for the VAT proceedings against Fastweb). Expectations concerning revenue and EBITDA have thus been stepped up by some CHF 100 million each. Excluding any special payments of provisions for ongoing legal proceedings, operating free cash flow will remain unchanged at around CHF 2.6 billion. The number of broadband access lines in Switzerland dropped by 0.6 percent year-on-year to 1.793 million including 1.553 million retail DSL lines (up 7.8%) and 240,000 wholesale lines (down 33.9%). The number of Swisscom TV subscribers almost doubled from 186,000 on 30 September 2009 to 358,000 on 30 September of this year of which 126,000 were won during this year. At the same time, Swisscom saw 157,000 customers signing up for its triple play service Casa Trio. The number of mobile customers rose year-on-year by 4 percent to 5.761 million.[Lees verder]

Bolivia to pay Telecom Italia USD 100 mln for Entel stake
(Telecompaper) The Bolivian government has agreed to pay Telecom Italia holding company Euro Telecom International (ETI) USD 100 million to compensate it for expropriating its 50 percent stake in national operator Entel. Bolivia increased its share in Entel from 47 percent to 97 percent in 2008 after trying to negotiate an amicable nationalisation for over a year. The country’s legal defence minister, Elizabeth Arismendi, said the payment marked the conclusion of the arbritration between the two parties. The agreement is based on a valuation of Entel made by French company Naulsen Prei, which found that the Entel stake was worth USD 104 million. It includes the debt ETI incurred when it was managing Entel. Telecom Italia confirmed the settelement and said all related legal action will be withdrawn. The company expects to book a one-time gain of EUR 30 million from the settlement, and said it has also agreed to continue to provide wholesale services to Entel in a multi-year deal worth USD 16 million.[Lees verder]

NTT’s H1 net income rises 12%
(Telecompaper) Japanese telecommunications firm NTT posted flat operating revenues for the half year ended 30 September but saw net income rise. Operating revenues were flat at JPY 4.99 trillion while operating income grew by 12.4 percent to JPY 727 billion from JPY 646.8 billion in the year-ago period as operating expenses fell 1.8 percent. NTT reported a net income of JPY 315.2 billion, up 11.7 percent from JPY 282.2 billion a year earlier. NTT has revised its full year forecast and now expects revenues of JPY 10.14 trillion versus an earlier forecast of JPY 10.16 trillion. Operating income is expected to come in at JPY 1.18 trillion, up from the earlier forecast of JPY 1.17 trillion, and NTT maintained its net profit forecast at JPY 500 billion. NTT added 401,000 customers for its Flets Hikari service in the three month-period, to bring its total to 14.24 million. The company also had 11.10 million Hikari Denwa customers, after it added 457,000 new customers in the quarter to the optical IP telephone service. The ADSL customer base continued to contract, losing 117,000 customers in the quarter for a total of 3.14 million. Traditional voice service subscribers fell by 719,000 lines in the quarter to 31.77 million. The company’s mobile unit, NTT Docomo, ended the six-month period with 56.89 million subscribers. The mobile unit saw its net income improve 22 percent to JPY 167.6 billion.[Lees verder]

EC finds little appetite for net neutrality rules
(Telecompaper) The European Commission has published the results of its public consultation on net neutrality, which suggest legislation on the issue is unlikely to be forthcoming in the near term. The commission said there was a “near consensus” among respondents to the consultation on the importance of preserving the openness of the internet. A total of 318 stakeholders at every level of the value chain provided input to the consultation. The consultation did not reveal a widespread call for further EU legislation, but there is an expectation that additional guidance may be needed in the future, the EC said. Industry players in particular did not see the need for additional regulations, and the large majority of respondents considered the current EU telecoms framework should be assessed first before implementing additional measures. Other respondents were more concerned about the use of certain traffic management techniques by operators and the development of new managed service business models. The commission was asked to provide clarity on the distinction between the “best-efforts” internet and “managed services”. BEREC, the body of EU telecoms regulators, warned of possible problems of discrimination leading to anti-competitive effects, the potential longer-term consequences for the internet economy in terms of innovation and freedom of expression, and uncertainties for consumers due to lack of transparency. Blocking of VoIP services and bandwidth throttling of sites also raised concerns for many respondents. The responses included few calls for minimum quality-of-service requirements at this stage, but clear support for industry-wide standards on transparency to enable consumers to make informed choices, the EC said. Many respondents consider that transparency by itself would not allay all net neutrality concerns, particularly where there are barriers to switching between ISPs. The EC will discuss the results further at the Net Neutrality summit starting 11 November, where it will also meet with the European Parliament to look at the EC’s upcoming report on net neutrality.[Lees verder]

Almost half Galaxy S shipments go to US
(Telecompaper) Samsung Electronics said that three million out of its seven million global Galaxy S smartphones shipments were made to the US since it launched the phone there in July. Sales were brisk at all four of the top U.S. operators who sell the phones, chief marketing officer Paul Golden said. “We’re in a situation where we wish we had more supply,” Golden told Reuters at the sidelines of an event where the phonemaker unveiled a new Galaxy S phone. Golden would not comment on how severe the supply shortage is or when it is expected to ease but said the main bottleneck was Samsung’s own Amoled display technology. Samsung has been working on boosting Amoled production to bolster supply, Golden said. Verizon Wireless announced that it would sell the latest Galaxy S device, the Continuum in time for the holiday shopping season. AT&T, Sprint Nextel and T-Mobile USA also sell the Samsung devices.[Lees verder]

Swisscom revenues grow, net profit down to CHF 1.41 bln
(Telecompaper) Swisscom’s revenue for the first nine months of this year, have grown by 0.6 percent year-on-year to CHF 8.925 billion. Revenue posted by the Italian subsidiary Fastweb rose in the local currency by 2.9 percent to EUR 1.4 billion and Swisscom’s revenue excluding Fastweb increased by 2.3 percent to CHF 7.03 billion. The increase is primarily attributable to the economic recovery, company acquisitions made by Swisscom IT Services as well as growth in mobile communications and bundled products. As a result of the provision of CHF 102 million recognised in the first quarter of this year for the proceedings against Fastweb relating to VAT, Swisscom’s nine months EBITDA fell by 1.3 percent to CHF 3.55 billion. The EBITDA, adjusted for provision and currency effects, increased by 2.8 percent and the net profit dropped by 8.2 percent year-on-year to CHF 1.41 billion, mainly as a result of the provision and an increase in depreciation. Operating free cash flow declined by 6.1 percent to CHF 2.023 billion, due primarily to an increase in net working capital. Net debt was reduced over the reporting period by CHF 780 million to CHF 8.807 billion. Across the Group, Swisscom now anticipates net revenue of around CHF 12 billion and EBITDA of around CHF 4.7 billion (incl. a provision for the VAT proceedings against Fastweb). Expectations concerning revenue and EBITDA have thus been stepped up by some CHF 100 million each. Excluding any special payments of provisions for ongoing legal proceedings, operating free cash flow will remain unchanged at around CHF 2.6 billion. The number of broadband access lines in Switzerland dropped by 0.6 percent year-on-year to 1.793 million including 1.553 million retail DSL lines (up 7.8%) and 240,000 wholesale lines (down 33.9%). The number of Swisscom TV subscribers almost doubled from 186,000 on 30 September 2009 to 358,000 on 30 September of this year of which 126,000 were won during this year. At the same time, Swisscom saw 157,000 customers signing up for its triple play service Casa Trio. The number of mobile customers rose year-on-year by 4 percent to 5.761 million.[Lees verder]

Bolivia to pay Telecom Italia USD 100 mln for Entel stake
(Telecompaper) The Bolivian government has agreed to pay Telecom Italia holding company Euro Telecom International (ETI) USD 100 million to compensate it for expropriating its 50 percent stake in national operator Entel. Bolivia increased its share in Entel from 47 percent to 97 percent in 2008 after trying to negotiate an amicable nationalisation for over a year. The country’s legal defence minister, Elizabeth Arismendi, said the payment marked the conclusion of the arbritration between the two parties. The agreement is based on a valuation of Entel made by French company Naulsen Prei, which found that the Entel stake was worth USD 104 million. It includes the debt ETI incurred when it was managing Entel. Telecom Italia confirmed the settelement and said all related legal action will be withdrawn. The company expects to book a one-time gain of EUR 30 million from the settlement, and said it has also agreed to continue to provide wholesale services to Entel in a multi-year deal worth USD 16 million.[Lees verder]

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