Deutsche Telekom posts net loss in Q4 (Germany)
Europe’s largest telecommunications company, Deutsche Telekom AG has reported a net loss in fourth-quarter, depressed by eastern and southern European operations and asset writedowns.
The company recorded a net loss of US$803 million, compared with a loss of US$4.12 million a year earlier while analysts had predicted a net income of US$750.47 million. Adjusted earnings before interest, taxes, depreciation and amortization dropped 10% to US$6.25 billion, trailing the US$6.46 billion average estimate of 19 analysts.
Profit was weighed down by US$1.78 billion in one-time costs including US$611.65 million to write down the value of assets in Romania and in Greece, where Deutsche Telekom owns 30% of Hellenic Telecommunications Organization SA.
According to the company, it needs until as late as early 2012 to solve U.S. structural†problems, whereas it struggled to keep AT&T Inc. and Verizon Wireless from winning over customers.
As per the analysts, while it was clear that there would be impairments in Greece given the situation there, the high amount came as a surprise.
SK Telecom to begin offering iPhone 4 (South Korea)
South Korea’s SK Telecom Co. has announced that it will start offering Apple Inc.’s iPhone 4, signaling the end of the exclusive distribution of the touchscreen device by rival mobile operator KT Corp.
The company will later disclose the date for offering the phone along with the other details later.
The move comes amid SK Telecom’s continued efforts to broaden its product lineup to address the growing demand for smartphones. South Korean mobile carriers are making a big push into the wireless data services market in order to make up for declining revenue from voice calls as the local telecom market has become highly saturated. Greater usage of smartphone devices like the iPhone would boost their efforts.
According to KT, it introduced the iPhone 3GS, the model preceding the iPhone 4, in the domestic market in November 2009. Combined sales of the iPhone 3GS and iPhone 4 have surpassed 2 million since then.
SK Telecom is diversifying its smartphone offerings even as it enjoys strong sales of Samsung Electronics Co.’s flagship smartphone Galaxy S, which the carrier launched in June 2010. The firm is also planning to introduce around 30 new smartphones this year–60% of the company’s new phone lineup for 2011–in an effort to meet varied customer tastes and boost its wireless services sales.
To better address fast increasing demand for wireless data services, SK Telecom also declared in earlier January that it will launch mobile services based on long-term evolution technology in July, joining the other global telecom operators such as Verizon Wireless, NTT DoCoMo Inc. and CSL, the Hong Kong unit of Telstra Corp. that have moved to launch services based on 4G technology.
Verizon Wireless launches Windows Phone 7 smartphone next month (USA)
Verizon Wireless is expected to launch its first Windows Phone 7 based smartphone later next month.
According to reports, Verizon will introduce the HTC 7 Trophy as its first Windows Phone 7 devices for US$200 on a two-year contract. Sales will start in late March, around the same time when CDMA rival operator Sprint is planning to start its first Microsoft smartphone sale.
Part of the delay in launching the phones could be due to the forthcoming OS upgrade which is expected early next month and will fix a large number of the underlying issues with the platform – especially the lack of a copy/paste option.
Reports added that the update has been delayed a number of times due to concerns from operators and device manufacturers.
Earlier this month, Verizon Communications Chief Technology Officer Tony Melone stated that it would take a really outstanding product from Nokia for the carrier to be interested in carrying a Windows Phone 7 based Nokia smartphone.
Motorola Solutions,Verizon Wireless to offer LTE services to public safety customers (US)
Motorola Solutions has announced that it has entered into an agreement with the USA based Verizon Wireless to bring all the advantages of an advanced wireless communication solution to public safety customers across the United States.
According to Motorola Solutions’ statement, the agreement offers public safety agencies access to real-time management and control, enhanced nationwide roaming and site sharing of existing mobile broadband sites for rapid deployment and economies of scale.
Beyond the fact that the agreement leverages Verizon’s LTE network, no technical or practical information about the agreement was offered.
Sprint, Falcone’s LightSquared in talks over network agreement
If sources are to be believed, Philip Falcone’s LightSquared Inc. wireless venture is in discussions to use Sprint Nextel Corp.’s cell sites and equipment to help build out its network.
LightSquared, backed by billionaire Falcone’s Harbinger Capital Partners hedge fund, is seeking to compete with AT&T Inc., Verizon Wireless and Clearwire Corp. in selling so-called fourth-generation wireless service that offers faster Internet browsing. Sprint buys 4G capacity from Clearwire. AT&T and Verizon are building out their own 4G networks this year.
Falcone has committed billions to challenge LightSquared’s larger and more established rivals and he is facing government deadlines for building out his network.
Falcone agreed last year to Federal Communications Commission conditions that he employs a combination satellite-terrestrial network for as many as 100 million Americans by the end of 2012 and 260 million by 2016.
Motorola gets 28% of revenue from just one mobile network operator (USA)
Motorola Mobility has revealed that over a quarter (28%) of its revenues come from sales of phones to just one mobile network operator – Verizon Wireless.
In a list of risks that could affect the company, it noted that it may be difficult to replace or find new large customers, especially with increasing concentration in the USA where there are a limited number of carriers.
The company warned that if any significant customer, particularly Verizon or Sprint Nextel considerably reduced the quantity of handsets or even stopped altogether – then its profitability would be seriously reduced.
That Verizon Wireless has just started selling Apple’s iPhone in the USA is bound to cause concern about Motorola’s long term sales expectations with that specific carrier.
The company added that it does not have long-term exclusivity arrangements with its customers or commitments by them to purchase guaranteed volumes. Moreover, the mobile networks could cancel orders or contracts with little, if any, notice.
Motorola also stated that it’s future profitability could be at risk if Android-based smartphones do not remain competitive in the marketplace – which puts a lot of the company risk reliant on an uncontrolled 3rd-party with which Motorola has limited leverage.
The company noted that as part of its ongoing effort to improve the product portfolio, they have also been rationalizing the hardware platforms to reduce the complexity of the product platforms and system architecture. This allows Motorola to lower the costs to develop and produce future mobile devices.
CenturyLink to resell Verizon Wireless services
USA based landline network CenturyLink has entered into a deal to resell Verizon Wireless phones and services to its customers.
The company is currently in the process of buying Qwest Communications – which is already a Verizon Wireless reseller.
Glen Post, CenturyLink CEO and President believe that this wireless agreement will benefit their customers by expanding the portfolio of communications products and services the company offers. With this addition, customers will soon have the convenience and advantage of one-stop shopping for their broadband, entertainment, voice and wireless services.
CenturyLink, will announce the effective date when its customers will be able to begin purchasing wireless handsets and services, later this spring.
Verizon Wireless updates V CAST Music app for Android smartphone customers (USA)
Verizon Wireless has updated its V CAST Music app, enabling Android smartphone customers to get and enjoy the music they want easily at lower prices.
For the first time, V CAST Music brings full-track songs, ringtones and ring-back tones together in one application.
The new V CAST Music version runs on Android 2.1 or higher platform, lets customers purchase full-track MP3 format songs without DRM.
According to Greg Haller, Vice president, Consumer Solutions for Verizon Wireless, the company is taking a leap forward with V CAST Music. They are bringing the different kinds of music people love to have on their phones together in one, easy-to-use application, making it easy for customers to get what they want at lower prices. The company has added features to V CAST Music that make it simple and more fun to enjoy your favorite music on your phone and with your friends and family.
Using the new V CAST Music, customers will be able to purchase multiple formats of the same song – full track, ringtone and ringback tone – at a discounted price in select bundles. Customers can also purchase and manage Jukeboxes of ringback tones that will rotate messages so that the callers hear different tones each time they call.
V CAST Music comes preloaded on select Android smartphones while the existing customers will be prompted to upgrade the next time they launch the app.
Verizon Wireless staff expecting annual bonuses (USA)
The staff working for Verizon Wireless is to receive bonuses worth between 8-10% of their salary, as part of the annual bonus for company performance, including the recent efforts during the launch of the CDMA variant of Apple’s iPhone.
Besides this, next month, Verizon Wireless is expected to send out its annual profit sharing contribution to eligible employees, which is usually worth around 2.5% of their salary.
According to reports, Verizon Wireless customer service employees have an average salary of US$27,000 per year.
Verizon Wireless operates more than 2,000 stores nationwide.
