A drop in global mobile revenues forecast for 2018 will be the first time in the history of the mobile industry that service revenue contracts year on year, according to industry analysts Ovum.
There’s plenty of stuff in this world the Informer doesn’t understand and how companies that make no money can rake it in from a stock market floatation is one of them. The Twitter founders buzzed the bell at the New York Stock Exchange on Thursday and released 70 million shares to the frenzied masses. Despite opening at $26, the market closed at almost $45, with the company reflecting a market value of more than $31bn. The company’s valuation ahead of the IPO was closer to $17bn.
With Twitter’s IPO set to go live later today the company has priced its shares at $26 each, higher than the expected range of $23-25. With 70 million shares on offer the company is looking to score around $1.8bn in proceeds with a 30 day option for another 10.5 million shares to be sold.
Revenues from mobile value added services (VAS) are forecast to see a seven per cent decline in CAGR in Europe over the next five years, according to Ovum. The analyst firm also expects mobile VAS revenues to grow at a slower pace over the next five years globally.
The European Commission has outlined its plan for a single EU telecoms market. The package calls for the abolition of roaming rates within the EU, spectrum assignment to be coordinated across the continent, consumer rights to be harmonised across Europe, EU-wide protection of net neutrality and simpler rules across the EU to enable companies invest more and cross borders with their offerings.
It’s the time of year again when the industry and Apple fans alike brace themselves for the launch of the next iPhone. This time the industry is expecting to see two devices launched – the iPhone 5S and the debut of a lower priced entry-level iPhone, expected to be named the iPhone 5C.
Following Microsoft’s announcement that it is to buy Nokia’s Devices & Services business for €5.44bn, industry analysts have had their say about what the future will hold for the two firms.
On September 2, 2013, Vodafone and Verizon announced that they had reached an agreement for Vodafone to sell its 45 per cent stake in Verizon Wireless back to Verizon for $130bn. Ovum believes that the deal is good for both parties, but that the decision to return 65 per cent of the proceeds from the sale back to shareholders is short-sighted. It may make Vodafone CEO Vittorio Colao popular, but we don’t believe that he will have enough left to future proof the business.
Web giant Google is looking to monetise its wearable computing project Google Glass by measuring how long users gaze at advertisements in their glasses for. The firm has been granted a patent for its Gaze Tracking System.
O2 UK has told customers of its e-health services Help at Hand and Health at Home that it is to cease operations at the end of this year. The decision comes just four months after the services were launched.
Dutch incumbent KPN has confirmed that it is to sell its German mobile operation, E-Plus, to Spain’s Telefónica, which operates as O2 in the German market. Telefónica will pay €5bn in cash to KPN, which will also hold a 17.6 per cent stake in Telefónica Deutschland once the deal, subject to regulatory approval, has been completed.
Microsoft’s foray into the hardware market is not going smoothly as it revealed in its quarterly results that it has taken a $900m charge related to inventory adjustments for its Surface RT tablet. The charge had an impact of $0.07 per share, the firm added.
Operators are “missing the big picture”, “exaggerating the threat from over-the-top (OTT) players”, and “misunderstanding the broader benefits of innovation”, according to Ovum.
This year, 100G fibre is expected to generate revenues of over $1bn for the first time, according to research firm Ovum. The firm analysed financial results from 1Q13 in the global optical networking market and found several trends, including one disappointing trend that market growth overall remained difficult, with only Japan’s Fujitsu posting sequential and year-on-year gains.
Competition and investment in the global telecoms industry is being held back by inconsistent regulatory frameworks, according to research firm Ovum. The firm assessed and ranked the regulatory performance of 11 countries across three geographic areas in the second iteration of its annual Regulatory Scorecard.
As mobile operators expand their geographical horizons, they are increasingly finding themselves setting up shop in emerging markets; markets that are dynamic and undergoing major economic and social transition. However, as many have recently found out, such markets are not without their challenges and can often play home to political unrest. Providing the lines of communication to the general public during times of intense political turmoil can be a gruelling task for operators.
Despite the economic downturn, intense competition, and regulatory actions, revenues for the European wholesale telecoms market remained steady between 2010 and 2011, according to research firm Ovum. In the firm’s annual analysis of the size of the European wholesale market it revealed that the market was worth $48.4bn in 2011, just 0.5 per cent less than in 2010. This represents 11 per cent of the leading wholesalers’ total European revenues.
The Chinese government is to make fibre-to-the-home (FTTH) connectivity mandatory in the construction of new residences. The country’s Ministry of Industry and Information Technology will introduce the legislation from April 1, 2013 according to local reports.
Total global telecom operator revenue has exceeded $2tn in 2012 according to analysis published by Ovum. 60 per cent of that figure was generated by mobile operators and, although overall growth is expected to be minimal over the next five years, Ovum believes some segments will still have above-average growth over the period.
With traditional network architectures struggling to cope with more dynamic applications and services, software-defined networking (SDN) provides the answer to operators’ woes, according to research firm Ovum. The company believes SDN will be key in enabling future networks to become more flexible, scalable and intelligent.