Verizon sees revenue up 6.4%, net income down 8.4%
Telegeography writes…First quarter net income at Verizon Communications fell 8.4% after losses incurred from discontinued operations more than offset strong performance from its wireless arm and the growing popularity of its fibre-optic service, FiOS. The New york USD-based telco posted net income of USD1.50 billion for the first three months of 2007, compared with USD1.63 billion last year after incurring losses relating to the renationalisation of the telecoms industry in Venezuela, the sale of assets in Puerto Rico and an accounting change. Revenue, however, increased by 6.4% to USD22.58 billion, leading to Chairman and CEO Ivan Seidenberg to say that ‘Verizon is off to a strong start in 2007. Our results [show] that across the board we have accelerated organic growth in key markets: retail wireless, broadband, data, video and global IP.
Verizon Wireless, the 55%/45% joint venture between Verizon and Vodafone, enjoyed revenue growth of 17% year-on-year to USD10.30 billion and added 1.7 million net new subscribers to bring the total number of users to 60.3 million. Verizon’s traditional landline business deteriorated further with revenue slipping 3.5% to USD4.20 billion as the telco continued to lose residential phone users as well as long-distance customers acquired following the acquisition of MCI. This was partially offset by the addition of 416,000 net new high speed internet customers taking the total to 7.4 million. The FiOS subscriber base enjoyed similarly impressive growth, up 177,000 in the quarter to 864,
Strong first quarter at Chunghwa Telecom; NCC accepts ADSL price cut plan
Telegeography writes…Chunghwa Telecom (CHT) has reported that first quarter revenue increased year-on-year by 1.7% to TWD45.78 billion (USD1.38 billion) in the three months to 31 March, of which 32.3% was from fixed line services, 39.5% mobile, 26.6% internet and data and the remainder attributed to other revenues. Sales were given a boost by strong performance from the internet and data services unit in particular, which grew 8.9% to TWD12.18 billion on the back of strong subscriber growth and broadband speed upgrades.
Meanwhile, in a separate but related story, regulatory body the NCC has approved CHT’s proposed price cut of 5.4% in circuit leased charges for ADSL access. The NCC asked CHT to cut its prices by a minimum of 5.35% and has twice turned down the telco’s proposals. An estimated 3.72 million subscribers of CHT’s ADSL services will benefit from the price reduction, according to the NCC.
Government gives green light to industry-led termination rates plan
Telegeography writes…The government has rejected a Commerce Commission recommendation dating back to April 2006 to regulate mobile phone charges and has instead accepted proposals from the operators to gradually lower prices. Telecom NZ and Vodafone will be legally obliged to cut fixed to mobile call costs over the next five years. Economic Development Minister Trevor Mallard said the operators would be held to their offers by legally enforceable deeds. New Zealand is said to have among the highest termination rates in the world.
State announces CANTV expansion plan
Telegeography writes…The Venezuelan government has announced a plan to expand CANTV’s fixed line network coverage by 15% over the next 18 months, writes BNamericas quoting local newspaper El Universal. According to the paper, President Hugo Ch¡vez said the state aims to add around 1.2 million fixed lines and increase coverage of the residential sector to 60%, up from the current 45%, and boost its GSM subsidiary Movilnet’s total subscribers to 9.8 million, up from 7.9 million users at end-2006. ‘We will pay attention to fixed, mobile and satellite telephony in all cities with more than 500 inhabitants,’ President Ch¡vez said, adding that CANTV’s current coverage is ‘very limited and unfairly distributed.’ The government is expected to take majority control of the telco through a share offer on the Caracas and New York stock exchanges launched on 9 April and scheduled to finish by June. According to TeleGeography’s GlobalComms database, CANTV had 3.45 million fixed lines in service at the end of 2006; Venezuela had a fixed line teledensity of 13.7% at that date
Optima expands ADSL presence
Telegeography writes…Croatian alternative fixed line and broadband operator Optima Telekom has announced that it has recently expanded its ADSL network to Rijeka, Pula, Opatija, Rovinj, Porec, Buje, Pazin, Lovran, Umag and Novigrad. The company said that its ADSL network utilises colocation and its own DSL equipment and fibre-optic lines. According to TeleGeography’s GlobalComms database Optima launched ADSL services over unbundled lines in the eastern city of Osijek in October 2006, using the OptiDSL brand name. By March 2007 it provided unbundled DSL connections in thirteen cities; that month it launched ADSL2+ services in the capital, Zagreb. Optima had around 180,000 telephony and internet customers at the end of 2006
Qtel’s Q1 revenues up 53%, profits rise 15%
Telegeography writes…Qatar Telecom (Qtel) has posted its financial results for the three months ended 31 March 2007. The full-service telco reported a net profit of USD138.1 million, a 15% increase on the USD119.8 million achieved in the same period of last year. The group’s revenues reached USD415.3 million in the quarter, a year-on-year increase of 53%. Qtel’s Omani mobile subsidiary, Nawras, saw a 91% hike in its revenues to USD48.6 million
Bell Mobility rolls out Rev A for laptop users
Telegeography writes… Bell Mobility yesterday announced the commercial launch of CDMA2000 1xEV-DO Rev A technology, providing new speed enhancements to its EV-DO mobile broadband data services. Alongside the introduction of Rev A, Bell introduced three new Novatel Wireless mobile broadband devices two PC/laptop datacards and a wireless USB modem. Initially only available in selected regions of Ontario, Bell’s enhanced network offers peak upload speeds of 1.8Mbps and peak download speeds of 3.1Mbps. Bell plans to introduce further speed enhancements in selected markets across Canada throughout 2007.
C&W denies plans to cleave business in two
Telegeography writes…Cable & Wireless (C&W) has said it will maintain its current strategy and does not have any immediate plans to split into two. ‘Any discussion of spinning off our businesses is premature,’ the Bracknell-based company said today in an e-mailed statement. Shares in C&W rose after the company said it is focused on building its UK and international units and the strategy is `progressing well.’ British Sunday newspaper The Observer had reported that Cable & Wireless may split itself into British and international units and sell them to private-equity groups or competitors. `We are in the early stages in terms of both businesses and there is more work to do,’ the company said in the statement. Chairman Richard Lapthorne and managers John Pluthero and Harris Jones were reported to be in favour of a sp .
Reliance Communications’ profit doubles
Telegeography writes…Reliance Communications, India’s second-largest wireless network operator, has reported that its fourth-quarter profit more than doubled from INR4.03 billion (USD97.8 million) to INR10.2 billion (USD247 million). Sales in the three months ended 31 March 2007 rose 33% to INR39.4 billion, compared to the INR29.7 billion reported in the same period a year earlier.
Billionaire Chairman Anil Ambani revealed plans to spend USD2.5 billion this year extending Reliance’s GSM network, after losing out to Vodafone Group in a battle for control of India’s fourth-largest carrier Hutchison Essar. The company, which also operates an extensive CDMA-based network, is expected to spend about a USD1 billion to expand its GSM network to the 15 states in which it does not currently have coverage. Reliance Communications’ mobile subscriber base rose to about 28 million at the end of March; the company added 1.2 million new users in March alone, and its overall customer base, including fixed-line and broadband users, exceeded 30 million.
