KPN Q1 results progressing in line with 2012 outlook (Netherlands)
KPN, the leading telecommunications and ICT service provider in The Netherlands, revealed its financial results for Q1 2012, with results progressing in line with the expected results for the transitional year of 2012.
As per the company report, the operator claimed that financial results were according to plan in first quarter of transition year and the EBITDA and FCF were impacted by phasing and accelerated investments in The Netherlands. Revenue growth was good with a good EBITDA margin in Germany, while operations in Belgium showed strong underlying growth.
KPN CEO, Eelco Blok said that the overall performance of the KPN Group in the first quarter of the 2012 transition year was according to plan. The implementation of the accelerated investment strategy for The Netherlands is on track, and they have made several key management appointments that will help them achieve their strategic ambitions.
In Consumer Mobile, they have made substantial improvements to their propositions and have expanded their distribution footprint. In Consumer Residential, their TV market share increased further and the implementation of the regionalization approach is starting. Results in Germany reflected revenue growth at a good EBITDA margin, while Belgium showed another strong quarter. They continued to invest in the high speed data network roll-out in Germany and Belgium and in new propositions to support growth. The roll-out of the high speed data network in Germany is on track to reach the target of 80 percent population coverage by the end of this year.
On the cost side, they continued to make progress with their FTE reduction program in The Netherlands of 4,000-5,000 FTE which they now intend to complete by the end of 2013, two years earlier than originally planned. Included in this, KPN has set a tough but achievable target for Group headquarters to reduce costs by 30-40 percent by 2013.
The current financial performance of the company is not in line with their medium to longer term ambition. The accelerated investment strategy in this transition year, combined with a focus on quality and simplification to drive customer satisfaction and reputation, will support a sustainable level of profit for The Netherlands from end-2012. Group profits and cash flow are planned to improve in the second half of 2012, driven by a better performance in their Dutch businesses. Therefore, he confirmed the 2012 outlook.
Vodafone launches first German carrier communications service (Germany)
Vodafone will offer the first network operator in Germany as the new communications service, RCS-e. RCS-e, which stands for “Rich Communication Suite enhanced” by the industry association GSMA is a standard developed for easy and secure communications that will be launched globally by many mobile network operators.
Soon Vodafone first smartphones with software installed for the use of RCS-e will offer in trade. With many smartphones already available RCS-e can be used in the next few months, this is possible through free updates. To introduce the use of RCS-e in the Superflat Internet tariffs will be included.
With RCS-e-phone users can now easier than ever to send and receive messages, share files such as documents, pictures and videos with each other and also take part in an ongoing voice call, a video-link and see as their interlocutor. All functions can easily be started directly via the contacts stored in the address, the service is integrated seamlessly in this smartphone. Customers benefit from entirely new possibilities for communication, for RCS-e is a by operators globally supported service. For example, the network speed between transmitter and receiver is detected automatically, so for example, video calls, or photos and videos in the highest quality possible in each case by the fastest means to be transmitted securely.
Erik Friemuth, head of retail banking at Vodafone Germany, said that they introduced the first LTE network operators introduced in this country and are now underscoring their role as an innovative pioneer as the first provider of RCS-e in Germany. He added that their customers can now easily over any other than chat ever with each other to stay on video telephony in touch, share photos and videos live and share files. In communication is their core competency and they emphasize the rapid introduction of RCS-e.
To ensure that customers of different network operators communicate with each other messages and files, and video phone calls to the GSMA has developed so-called extensive interoperability testing. Everyone wants to offer network operators, the RCS-e, it must go through to ensure high quality and safety requirements and the availability of RCS-e these tests and are certified for this purpose.
The mobile network operators that will support the service in Germany, are next to the German telecom Vodafone and O2. Smart phones with preinstalled software RCS-e will come for example from equipment manufacturers such as HTC, Huawei, LG, Nokia, Samsung and Sony Ericsson. More details to RCS e timely given the launch of the service, Vodafone announced.
Vodafone partners with BMW for Breakthrough Wireless Connectivity Technology (Germany)
Telecom operator Vodafone Germany will fit its SIM in BMW ConnectedDrive cars to enhance safety, traffic avoidance and motoring efficiency. According to a company report, Vodafone’s new SIM chip will be used by BMW in Germany to connect its cars and give customers access to its innovative in-car-services such as BMW online services, a personal concierge service as well as the emergency function.
The new BMW series vehicles will be fitted with a specially adapted mobile SIM chip supplied by Vodafone Germany. The Vodafone SIM, which will link BMW up to its vehicles, will provide customers with access to innovative in-car services such as the BMW Online Services, a 24/7 personal concierge service for BMW drivers and an emergency call function.
The five-year agreement between Vodafone Germany and the BMW Group involves fitting SIM cards within the vehicles at the assembly plant. The service being provided by Vodafone is based on machine-to-machine technology, which allows different devices to communicate with each other. The Vodafone SIM has a lifespan of more than ten years, can withstand temperatures from minus 40 to heat of 85 degrees centigrade and is coated with anti-corrosive protection.
In the future, this technology will become even more crucial for the automotive sector with the introduction of ‘eCall’ – the automatic vehicle emergency call system in that is being planned by the European Union. From 2015 onwards, all new cars will be fitted with latest mobile data connection and SIM card that automatically calls the emergency services in the event of an accident.
Apple overturns German online sales ban by Motorola (USA, Germany)
iPhone maker Apple Inc. has managed to overturn a ruling by the German court which imposed a ban on the sale of some of its products in the country. According to reports, Motorola Mobility had won the legal case and forced Apple to remove some of its iPhone and iPad models from the online store in Germany.
As per sources, a statement by Apple claims that all iPad and iPhone models will be back on sale through Apple’s online store in Germany shortly. Further, Apple appealed this ruling because Motorola repeatedly refuses to license this patent to Apple on reasonable terms, despite having declared it an industry standard patent seven years ago.
In response to this Motorola issued a statement saying that they are pleased that the Mannheim court has recognized the importance of their intellectual property and granted an enforceable injunction in Germany against Apple Sales International. However, although the enforcement of the injunction has been temporarily suspended, Motorola Mobility will continue to pursue its claims against Apple.
German court says Apple did not violate Samsung’s patents (Germany, USA, South Korea)
Samsung Electronics has announced that a German court has ruled in favour of Apple Inc, claiming that the USA firm had not violated Samsung’s technology patents. As per sources, Samsung had filed a lawsuit against Apple last year claiming that the iPhone maker had infringed on its technology patents.
According to reports, Samsung has responded to the ruling saying that they are disappointed that the court did not share their views regarding the infringement by Apple of this specific patent in Germany. Further, they will wait for the written grounds of the judgment, and after thorough review make a decision about a possible appeal to the Higher Regional Court Karlsruhe.
The company also said that the ruling relates to only one of several patents asserted by Samsung in the Mannheim court. A ruling on an additional Samsung patent relating to telecommunications standards is due to be handed down by the Mannheim court in the next several weeks.
Reports reveal that the German court had ruled in favour of Apple last week, in another infringement case filed by Samsung against Apple.
Telefonica and Deutsche Telekom ink network sharing agreement (Germany)
Telefonica Germany and Deutsche Telekom have entered into a long term network sharing agreement with one another. According to company reports, Telefonica Germany will use Deutsche Telekom’s network infrastructure in the future to set up 2,000 Telefonica’s fiber aggregation points so as to transmit data faster and with greater capacity.
René Schuster, CEO, Telefónica Germany, has said that the agreement with Deutsche Telekom gives them the opportunity to be cost efficient, fast and flexible in a rapidly growing market. Schuster added that they offer the best quality in one of the most advanced mobile networks in Europe.
Further, with this agreement, Telefonica Germany hopes to increase the data speed at the UMTS and LTE stations in the future.
Vodafone to launch ‘Vodafone Guardian’ app (UK)
Mobile phone operator Vodafone has come out with a new parental control service allowing parents to monitor and restrict unwanted content and misuse of the mobile phone by children. According to reports, the new service to be titled ‘Vodafone Guardian’ will enable parents to blacklist certain numbers, transfer unwanted texts to a secured folder as well as set up an approved list for outgoing calls.
Further, sources claim that the new application would also enable parents to restrict internet use as well as manage access to the phone’s camera. With a large number of children owning a smartphone and spending a lot of time surfing the internet, parents have often raised concerns regarding the content being viewed.
The app will reportedly be free of charge and will be made available in a week’s time in the UK along with Egypt, Germany, Ireland, the Netherlands and New Zealand. Further, Vodafone also plans to launch the app in Italy and Spain under the name ‘Smart Tutor’.
Telefonica signs network sharing agreement with China Unicom (Spain, China)
Spanish telecom operator Telefonica has reportedly entered into a strategic partnership with China Unicom, wherein both operators will use each other’s networks to expand their coverage. According to reports, the deal will provide Telefonica access to China Unicom’s network in the regions of Hong Kong, Japan, Singapore, Australia, France and Sweden.
In return, China Unicom can reportedly increase its presence through Telefonica’s network in Argentina, Brazil, Chile, Colombia, Ecuador, Guatemala, Panama, Peru, Venezuela, Mexico, USA, Puerto Rico, Germany, Austria, Belgium, Bulgaria Denmark, Slovenia, Slovakia, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Morocco, Norway, Poland, Portugal, Netherlands, Czech Republic, Romania, Sweden and Switzerland.
Reports suggest that Telefonica believes this agreement will help both operators expand their capabilities to provide telecom services to various customers in different geographic areas.
Samsung redesigns the Galaxy Tab following ban on sales in Germany (South Korea)
South Korean mobile phone maker Samsung has reportedly changed the design of one its tablet computers following a court order to ban sales in Germany. As reported by Wireless Federation earlier, Apple had filed a lawsuit against Samsung citing design similarities of the Galaxy Tab to the iPad.
As per sources, the new Galaxy Tab 10.1N is expected to be made available by the end of this month. The firm has changed the design of the metal frame to include the sides as well as moved the speakers.
However, industry analysts say that Apple could apply for a new injunction on the grounds that the new device infringes the current court order.
Apple and Samsung have been involved in a number of legal battles across the world. While Apple has accused Samsung of imitating its touch screen and violating the gesture intellectual rights, Samsung has counter claimed that Apple has infringed its 3G wireless technologies.
Telefonica may sell assets to reduce debt (Europe)
Europe’s largest telecom operator, Telefonica, may reportedly sell off its underperforming assets in an attempt to reduce its debt and regain investors confidence after the revenue loss in Spain. According to reports, the operator has no intention of selling its operations in Germany, Mexico and the Czech Republic, or its 9.7 percent stake in China Unicom (Hong Kong) Ltd.
However, sources claim that the operator has been assessing its business to identify the underperforming assets which can be sold off to reduce their debt amount. As per reports, Cesar Alierta, CEO, Telefonica has been actively cutting down on the size of the workforce along with putting a stop to any merger or amalgamation activity to make up for the losses faced in the year. Further, it has been reported that the operator has been relying heavily on the Latin American economy which accounts for 47 percent of its sales.
