Communications

It’s feeding time for Nokia’s rivals

11 Feb 2011

Whether Windows can help the Finnish giant get its smartphone groove back is debatable. Either way, the switch will take two years to happen. By then, Apple and Android devices will have had ample time to take bigger bites out of the market.

Thrifty satellite billionaire spots a real bargain

9 Feb 2011

Charles Ergen, the payTV mogul renowned for his pennypinching ways, is trying to win control of two bankrupt satellite companies. They would give him a cheap seat in the booming mobile data market or a tool to fight rivals. But others may yet prevent this steal of a deal.

Techies need plan to deal with despots

2 Feb 2011

Vodafone suspended its Egyptian service after demands from the authorities. Google, on the other hand, chose to pull back in China. There are no easy answers on how to deal with autocratic regimes. But being transparent about the reasons for complying or exiting helps everybody.

Apple needs more formal delegation of Jobs’ power

17 Jan 2011

Steve Jobs is handing daytoday control of Apple to chief operating officer Tim Cook due to health issues. Yet he retains the CEO title. It's the third such move, and this time it is indefinite. However painful, a more formal transfer to an acting CEO would have been better.

Apple again turns iPhone buzz into gold

11 Jan 2011

Despite all the talk of possible bells and whistles, Verizon looks to be offering the iconic smartphone on roughly the same terms as AT&T. So rather than giving one of the U.S. carriers an obvious edge, the only clear winners will be Apple's masters of hype.

Net neutrality compromise won’t calm new Congress

21 Dec 2010

The FCC's ruling will give telecom operators a reason to keep investing in their networks, while also protecting consumers. But that balance won't please purists who either deny government's regulatory role or want to make the Internet a utility. So expect a political pushback.

Vodafone’s runaway shares have more to gain

9 Nov 2010

The UK telco's shares have outperformed, rising 24 pct in six months as Vodafone has responded to investor criticism by streamlining its portfolio. The sale of its interests in Japan's SoftBank for 3.1 bln pounds is more good housekeeping. But there are bigger prizes to come.

iPad’s destructive reach extends further faster

7 Oct 2010

Apple s tablet is taking off at a breakneck rate. Analysts now predict up to 40 mln will be sold in 2011. With income and spending stagnant, it s looking like a zerosum game in consumer electronics. Forget PCs and netbooks. The iPad will eat into camera and GPS device sales too.

Apple to score more than Verizon in iPhone deal

6 Oct 2010

The U.S. carrier finally looks like it will get to sell a new version of the hot handset early next year. While Verizon will snatch dissatisfied customers from rival AT&T, it may find good returns harder to find. Apple, on the other hand, won t face this problem.

Nokia changes direction with bold CEO choice

10 Sep 2010

Appointing Microsoft executive Stephen Elop added 1.5 bln euros to the handset maker's market value. The Canadian may not be a household name, and his plans are unclear. But choosing its first nonFinnish CEO is evidence of Nokia's desire to recover ground it has lost to rivals.

Infineon deal sticks closer to Intel’s knitting

30 Aug 2010

The $1.4 bln purchase of Infineon's mobile unit is a far cry from Intel's expensive gamble on security software maker McAfee. The business hews closely to Intel's core competencies in semiconductors, and gives the company a better shot at catching up to rivals in mobile devices.

Net neutrality is really just a fight over money

12 Aug 2010

Set aside ideology and consider the math. The top four US telecom firms the Pipes have about $140 bln of debt. The biggest beneficiaries of Web access the Swipes have that much cash. But they depend on the Pipes. Symbiotically growing the profit pie looks unavoidable.

BlackBerry ban looks like tactical move by Gulf

2 Aug 2010

Research In Motion's smartphone is the first choice for the global banking community. The UAE restrictions on it are a big negative for business. Both sides have plenty to lose, and Apple's rival iPhone is gaining ground. UAE's move looks ballsy. But a compromise seems likely.

Vivo battle ends with both sides bruised but happy

28 Jul 2010

Portugal Telecom has surrendered to Telefónica in the battle over their Brazilian mobile JV, after the Spanish telco upped its offer to 7.5 bln euros. Telefónica gets its way while PT is well paid for making a strategic retreat. The clear winners are PT's shareholders.

Vodafone can’t brush off shareholder criticism

22 Jul 2010

The Ontario Teachers' Pension Plan has attacked the UK telco for its poor M&A record and is to vote against chairman's reelection. That sounds a bit extreme give the relatively good performance of Vodafone's shares. But Vodafone must heed some of the OTPP's concerns.

C&W caught napping by UK public spending cuts

20 Jul 2010

Cable & Wireless Worldwide has warned that government spending cuts will dent earnings, knocking the telecom group's shares by 15 pct. The news will erase doubts that austerity measures are real. Outsourcing may benefit in the long run, but companies should expect nearterm pain.

Nokia could do with management shake-up

20 Jul 2010

The world's largest handset maker has fallen behind highend rivals Apple and Google, and failed to manage investor expectations. The board is reportedly looking for a replacement for CEO OlliPekka Kallasvuo. That makes sense. Nokia needs an outsider and innovator at the helm.

Telefónica could still agree a deal for Vivo

19 Jul 2010

The Spanish telco refused Portugal Telecom's request to extend its 7.15 bln euro offer to buy out PT's stake in their Brazilian mobile JV. Arbitration might be Telefónica's next tactic. But an agreed deal is still possible in this extremely messy and unpredictable standoff.

Telefonica edges closer to Vivo deal

8 Jul 2010

The Portuguese state's golden share in Portugal Telecom has been ruled illegal. That makes it harder for the government to thwart Telefonica's attempt to buy PT's share of their Brazilian Vivo venture. A deal looks likely. But the market reaction reflects lingering uncertainties.

BT’s costly pay-TV push unlikely to hurt rivals

7 Jul 2010

The UK telecom provider, suffering from customer losses, is betting it can regain some lost ground by offering BSkyB's premium TV sports content at knockdown prices. BT has to do something, but neither BSkyB nor Virgin Media will be too frightened by this expensive tactic.