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GLG News by this Author
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
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East or West which is best? Deutsche Telekom (ADS-DT)
May 10, 2007
Obermann's ordeal | www.ft.com
1. Deutsche Telekom continues to be handicapped as a competitor because despite deregulation it is still subject to the legacy of past agreements regarding conditions of staff employment, as well as political pressures since the Government is still its major shareholder.
2. Deutsche Telekom is competing to become a regional operator in Europe
3. Deutsche Telekom has been claiming that its principal growth opportunities lie with T-Mobile USA. -
Show me the money: Private Equity targets Telecom
May 9, 2007
Providence, Blackstone chasing Alltel: source | www.reuters.com
1. Private equity is becoming increasingly interested in buyouts of telecom businesses
2. Regulation, high capital costs and uncertainties about future new revenue streams continue to make these deals risky
3. It is much easier to cut costs than to build new growth paths for long established telecom operators -
May 9, 2007
Cable giant eyes phone subscribers | news.xinhuanet.com
1. Cable MSOs are better placed to capture the voice business of telcos than the latter are to penetrate cable's video markets
2. Nevertheless competition from satellite and emerging fiber-based access networks from telcos is putting pressure on cable MSOs to invest in building additional capacity
3. Cable MSOs have concentrated on consumer markets, but can also capture a share of the SME communications services market, which has been underserved by telephone companies. -
In-building coverage, Nomadic and Mobile Services - T-Mobile USA
May 7, 2007
T-Mobile to Offer Wi-Fi Phone Service | www.wirelessweek.com
1. The T-Mobile USA HotSpot@Home offering is another example of how operators (in this case a mobile-only one) are trying to cover customers' needs for fixed, nomadic and mobile services through one subscription.
2. Since for now - unlike in Germany and several other European countries - T-Mobile USA is not associated with a fixed network, its growth prospects are vulnerable to the success of bundled fixed and mobile offers such as are being promoted by AT&T and launched by cable MSOs (e.g. Pivot).
3. If this kind of offer is successful it poses yet another challenge to the already beleaguered Vonage. -
May 7, 2007
Germany warned of Telekom suit; EU says law grants monopoly on DSL | www.contentagenda.com
1. The size of the investments needed to deploy new or next generation broadband access networks (VDSL+FTTN or FTTP) widely raises anew the question of whether these networks should be regulated as a natural quasi-monopoly, i.e with effectively guaranteed rates of return.
2. The IHT article (and its title) does not clearly distinguish between DT's new VDSL and fiber optic access network investments, to which the new German law or "regulatory holiday" with respect to DT's investments apply, and its existing copper telephone pair-based ADSL access services to which it does not. -
Can Sprint succeed as a long distance runner?
May 3, 2007
Sprint Nextel Reports First Quarter 2007 Results | www2.sprint.com
1.Sprint’s short term numbers continue to raise concerns about its competitiveness against AT&T and Verizon Wireless
2.On the plus side Sprint is the most successful wholesale operator in the MVNO segment
3.However, Sprint’s WiMax initiative to build differentiation among high end mobile customers is very risky
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Who has the relationship with the customer? - Sprint and WiMax: Cable, Wireless, and the quad play
April 30, 2007
Complement or Competition? | www.telecommagazine.com
1. Fixed cable telephony services of cable MSOs are growing strongly and capturing customers from telcos
2. Major telcos are fighting back with video offerings that compete with cable, and are now beginning to include their wireless services in their services bundles
3. Hence cable operators are exploring how best to enter the wireless business -
April 30, 2007
Telefonica wins battle for control of Telecom Italia | news.independent.co.uk
North American telephone companies from Bell Canada to Verizon and BellSouth have almost completely divested their interests in Latin America
Latin American telecommunications markets are becoming a battleground between the Spanish incumbent Telefonica and the Mexican telecommunications interests of the billionaire Carlos Slim.
Telefonica has a stronger strategic interest and greater possibilities for operational benefits in combining its operations with Telecom Italia's in both Europe and Latin America than other bidders. -
The next billion customers for Intel processors
April 30, 2007
Intel Profits From Cost Cuts; Forecast Lags | www.smartmoney.com
- Intel has tried and failed before in wireless, writing off a few billions of dollars in the process
- Intel is trying again with WiMax, and has been financing operators which commit to WiMax
- WiMax represents a risky play, which even if successful, will only pay off in the long term
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Braidband Investment, Regulation, and Net Neutrality
April 30, 2007
“Broadband Investment Gap’’ | www.scoop.co.nz
1. Speed and timing of the deployment of broadband communications depend on the prospects for achieving reasonable returns on the substantial investments involved, and hence on the extent of regulatory obligations placed on broadband network operators regarding prices and other conditions of access by users and third party service providers to these networks.
2. Public policies with respect to regulatory obligations for broadband network operators must take account of very widely varying circumstances between countries and regions (e.g. geography, demographics, wealth), which make a “one size fits all” approach unrealistic
3. Size of broadband investment requirements and their perceived economic value multiplier are encouraging moves towards a sharper separation between the supply of network infrastructure facilities and the provision of services, and a return to a more “utility-like” approach to regulation of the former
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The Italian Job - Telecom Italia and Deutsche Telekom
April 27, 2007
Deutsche Telekom to bid for Telcom Italia? | wirelessfederation.com
Politics, personalities, and non-telecom related factors continue to determine the fate of Telecom Italia (TI) as much as, if not more than, any coherent business strategy
Telecom Italia’s medium term future and strategy are very uncertain and subject to sudden strategic shifts, and a complex political and regulatory situation in Italy makes investment in TI by foreigners a risky proposition
Mexican-Spanish rivalry in Latin America introduces an interesting twist into the Italian situation
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Independent versus exclusive mobile retail channels
April 26, 2007
Carphone Warehouse to take on US | www.telecoms.com
The mobile phone retail battle in the U.S. is intensifying.
Electronics chain Best Buy and its U.K.-based partner Carphone Warehouse are challenging the retail giant Wal-Mart, the longtime cellphone retailer Radio Shack, as well as Target and Circuit City.
However, the bulk of the market is still owned by the Big 4 mobile operators – AT&T (formerly Cingular), Verizon Wireless, Sprint Nextel, and T-Mobile USA, which between them operate almost 7,000 retail outlets and account for about 2/3 of the sales of mobile phones.
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April 25, 2007
AlcaLu Files Annual Report | www.lightreading.com
Success of the Alcatel-Lucent merger is dependent upon effective product portfolio optimization (in terms of rationalization, development and customer support) as well as intelligent cost cutting and operational improvements.
Mergers are inevitably disruptive, and when they involve significant layoffs can easily cause key staff to focus on internal affairs and their own positions, taking their eyes off customers to the benefit of their competitors.
Alcatel-Lucent has strong fixed line assets, a #3 position in wireless infrastructure, and in principle the capacity to manage the integration of complex projects.
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April 24, 2007
Proposals from the European Parliament announced on April 12th to cap roaming charges for mobile calls made within the European Union by customers from other member states may encourage the growth of a single European market in terms of retail prices, but lead to increases in prices for non-European travelers.
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April 24, 2007
Proposed Broadband Strategy for Sweden | www.pts.se
As it becomes increasingly clear that the “end game” for networks involves investing in highly capital-intensive fiber to the premises access, both regulators and many network operators are assessing the relationships between the owners of networks and the providers of services and online content. The market for the former is much closer to being a “natural” monopoly or duopoly (suited to an environment of a regulated utility) than the latter. Hence increasingly the question is being posed as to whether strict structural or even complete separation between the two sectors of activity is desirable from the perspective both of regulation and business and corporate dynamics.
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I can do anything better than you can
April 24, 2007
Motorola Announces First-Quarter Sales and Earnings | www.motorola.com
Motorola’s current troubles are emblematic of the difficult balance mobile handset manufacturers have to strike between scale (i.e. market share, essential to stay in the race) and profits. The top 5 vendors (Nokia, Motorola, Samsung, Sony Ericsson, and LG) account for 80% of the market, which poses large challenges for the dozens of other companies which are fighting over the supply of some 200 million units annually. Motorola itself will need much more than money and financial engineering (necessary, but not sufficient) to put itself on the right growth track.
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When "CrackBerry" Becomes "BlankBerry"
April 24, 2007
RIM explains its BlackBerry outage | www.computerworld.com
A service provider's response to a problem can cause more long term damage than the problem itself
Does RIM have a single point of failure in its network architecture?
RIM has been able to compete against less expensive mobile email alternatives thanks to a prestigious brand, reputation for reliability, and compelling user experiences. Will it lay to rest rapidly and effectively the doubts that this outage has engendered? -
April 24, 2007
Mobile Payments Gain Energy | www.wirelessweek.com
Technology has advanced to the point where use of the mobile phone as a vehicle for payments has become economically and operationally feasible
However, the extent and speed with which mobile payments develop in the U.S. (in contrast for example to Japan, where cash still plays a much more important role than credit or debit cards for all types of payments) will depend upon their interaction with human (customer) behavior, and the initiatives and efforts made by mobile operators, banks, credit and debit card companies, newer players in the payments business such as PayPal and Google, plus of course sellers and merchants themselves. The strategies and tactics of these organizations are being driven by their pursuit and perceptions of their very diverse interests, including their willingness to collaborate with others (or not) in a “win-win” mentality to implement complete payments solutions. -
Litigation is the continuation of competition by other means
April 17, 2007
QUALCOMM Files Arbitration Demand Against Nokia to Resolve Dispute Over License Agreement | www.qualcomm.com
Qualcomm is determined to ensure that it is heavily involved in all potential future streams of mobile broadband wireless technologies. This goal contrasts with its original position as the leading protagonist in one stream (CDMA) of an earlier generation of narrowband wireless technologies, which captured a much smaller global market share than GSM.
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