Telecommunications

CK Hutch ports sale can be good for Beijing too

28 Apr 2025

Beijing has warned the Hong Kong firm against bypassing its antitrust probe on the $23 bln disposal to a BlackRock-led group. Officials may want to use the assets as leverage in US trade talks. Poor timing aside, China has multiple reasons to like this deal and the buyers.

US-China trade deal would be tricky and tenuous

24 Apr 2025

Investors hope that Presidents Donald Trump and Xi Jinping can cut their triple-digit levies. But a 2020 agreement between the two failed, complicating a repeat. The sheer size of the $295 bln US deficit, and fear of China’s tech ambitions, mean tariffs and sanctions may persist.

Tariffs will force supply chains out of black box

14 Apr 2025

The US is pressing pause on tariffs for electronics, but the reprieve may be brief. Its trade war and national security concerns will force greater transparency from companies like Lenovo, the world's biggest PC maker, and peers who disclose few details on where goods are made.

Telecom Italia’s latest twist dials down vital M&A

31 Mar 2025

Italy’s state-held Poste has bought most of Vivendi’s stake in the $7 bln domestic telco, making it the biggest shareholder. The deal clarifies Telecom Italia’s future direction. Unfortunately, it also probably makes value-creative M&A with foreign operators like Iliad harder.

Rivals could put a stopper in BT’s cash fountain

19 Mar 2025

The $21 bln telecom group’s shares are up over 50% over the last year. That reflects hopes that the end of a costly fibre rollout could mean a windfall for shareholders, including tycoon Sunil Bharti Mittal. Yet upstart challengers could steal market share and drive down prices.

Musk’s three-way India call is not a star link

18 Mar 2025

Bharti and Reliance will market the internet services of the US presidential advisor’s startup. The surprise alliances ease his entry into the country and strengthen New Delhi’s hand in trade talks with Washington. They also put Starlink’s ambitions at the mercy of its partners.

EU telcos face a long road to tech sovereignty

7 Mar 2025

Telecoms bosses gathering in Barcelona for their annual shindig talked up the use of AI and a European answer to Elon Musk’s Starlink. But the former depends on Silicon Valley tools, and the latter is tiny in comparison. Securing growth while developing EU champions looks tricky.

Verizon static overwhelms Trump trade signal

28 Feb 2025

The telecom giant’s $2 bln US aviation contract and $20 bln broadband merger suddenly confront questions, including over DEI. Such hangups exemplify the chaotic inscrutability CEOs now face. Past regulatory crackdowns may have been frustrating, but were at least predictable.

Altice’s Patrick Drahi limps on from debt disaster

26 Feb 2025

The tycoon struck a deal to slash his French telco’s 21 bln euro debt pile. While impairing bondholders, the agreement leaves Drahi in control and with some value, reversing the capital structure. The risk is that lenders demand even more to lend to the rest of his global empire.

Why Elon Musk is a headache for broadband bosses

11 Feb 2025

The SpaceX founder’s Starlink business has about 5 mln users of its satellite internet service. It’s a big risk for telecom firms in developing countries with few fixed-line connections, like India. But Western incumbents, particularly in the US, should also be concerned.

Ericsson’s recovery looks tough to maintain

24 Jan 2025

The $27 bln telecoms hardware group, and Finnish rival Nokia, have seen share price gains of over 40% in the past year. They have a rebound in US 5G spending to thank. But as this capex cycle winds down, investors may feel their companies lack a sufficiently compelling plan B.

Hong Kong broadband buyout has a lot on the line

22 Jan 2025

State-owned China Mobile is buying internet provider HKBN for $900 mln, the latest example of mainland firms expanding their presence in the city. But a US fund may lob in a higher offer. If and how a bidding war unfolds will show how open the financial hub is to Western capital.

Telefónica ouster flags need for a Spain discount

20 Jan 2025

Madrid has used its stake in the $22 bln telco to abruptly replace boss José María Álvarez-Pallete. Spain’s fast growth means it borrows more cheaply than France. But if the government keeps throwing its weight around, domestic companies may warrant a governance markdown.

Reliance is latest prong of US’s India pitchfork

17 Jan 2025

Earnings at Mukesh Ambani’s $198 bln giant grew 7%, supported by its energy business. But US sanctions against Russian oil will dull gains from a 10-yr supply deal it just signed with Rosneft. The curbs appear to have caught it off guard and threaten its share price recovery.

Huawei is a microcosm of China’s last four decades

14 Jan 2025

Since its founding in 1987 the tech giant has learned from Western rivals, expanded overseas, and is now on the front lines of a new Cold War. In this episode of The Big View podcast Eva Dou, author of ‘House of Huawei’, explains how the secretive firm became a national champion.

China offers escape hatch for Hong Kong tycoons

28 Nov 2024

The $200 bln China Mobile is eyeing assets in the financial hub. Beijing's push for deeper integration between Hong Kong and the mainland plus beaten down valuations mean other state giants can bargain hunt too. Family-owned business like Li Ka-shing's ports may all be in play.

Tycoons’ odd telco bets mask a greater logic

26 Nov 2024

In recent years high-profile, rich investors like Carlos Slim have snapped up stakes in the likes of $19 bln BT. These haven’t always yielded juicy returns, nor prompted strategic shifts. But as a bet on much-needed consolidation, they may yet end up looking smart.

Dish deal collapse would torch massive windfalls

22 Nov 2024

DirecTV ended plans to buy its satellite rival as owner Charlie Ergen refuses to haggle with bondholders balking over a $1.5 bln discount. He’ll be stuck with $10 bln of debt, creditors get left on shaky ground and synergies worth $8 bln vanish in an epic lose-lose-lose.

Friendshoring is set to become friendshoving

19 Nov 2024

India benefits from firms like Apple moving production beyond China. Under Trump, the country may get whacked by reciprocal US tariffs, dinged for its trade surplus and for a tightly managed currency. The flaws in rerouting supply chains are about to become apparent.

Charlie Ergen drowns in two kinds of debt

15 Nov 2024

The EchoStar founder may lose a deal to merge his satellite TV service Dish with rival DirecTV after bondholders balked at a $1.5 bln haircut. Years of bidding up assets and finagling the financial burden has tried creditors’ patience. It would be wise to come to the table now.