Cable & Wireless M&A activity eyed by analysts

Cable & Wireless Worldwide could be a focus for M&A activity, analysts believe, following its third profit warning in a year yesterday.

The group yesterday saw its shares beat a retreat after it warned slower than expected sales orders means its full year profits will come in below expectations. It plans to slash the full year dividend by half.

The company also announced the resignation of its chief executive Jim Marsh and revealed chairman John Pluthero will be taking over at helm of the telecom group.

Its problems on the sales front, coupled with an intention to accelerate the investments in the hosting and cloud arena, is expected to lead to earnings before interest, tax, depreciation, and amortisation (EBITDA) for its current year coming in “some 5 to 10 percent below current market expectations”, with an attendant impact on trading cash flow.

As a consequence of the reduced cash flow forecast, the Cable & Wireless board has decided to cut the intended dividend for the current 2011/2012 year by half to 2.25 pence per share.

In the wake of the warning, Goldman Sachs analysts cut their EBITDA estimates for the group by 12 percent for its 2012 year and 13 per cent for the 2013 year.

The lower forecasts mean its 12-month target price has reduced 22% to 49p from 63p. The Goldman analysts warn: “Visibility on growth is deteriorating and pricing pressure accelerating - operations could get worse near term.”

The analysts believe there is potential upside from a new cost cutting programme flagged by the new chief executive John Pluthero but, equally, there is now the prospect of M&A activity involving the company.

Broker JP Morgan also points to potential M&A activity, saying the prospects for a break-up or takeover of the company is likely to limit downside for the shares.  It notes that Cable & Wireless Worldwide management have already stated they have an open mind about the group’s appropriate asset base going forward, which may further fuel expectations of M&A going forwards.

JP Morgan, which has a ‘neutral’ stance on the shares with a price target of 48p. It wants the company to reaffirm forecasts and indicate that the  downgrade cycle has ended.

Broker Citi, meanwhile, points out that the appointment of Pluthero as chief executive of Cable & Wireless Worldwide risks being seen as an interim measure as he had stepped back from executive role to become the group chairman. He will be under pressure to show how he intends to turn around operations.

Read more - http://www.proactiveinvestors.co.uk/companies/news/29981/cable-wireless-ma-activity-eyed-by-analysts-29981.html

The Best 4G Phones

June 29, 2011—The future of wireless data connectivity is 4G. Actually, in a world where most smartphones require two-year contracts, 4G is essentially now. Granted, wireless carriers currently offer a limited number of 4G-compatible handsets, and networks are still being built out, but it’s safe to say that 4G is quickly replacing 3G as the fastest way to access the wireless Internet. Verizon has plans to cover almost its entire network with 4G by 2013, and AT&T promises to upgrade its network and offer faster 4G to 80 percent of Americans in the same timeframe. If you’re in the market for a powerful, cutting-edge smartphone to take you through the next couple of years, you should consider a 4G-compatible handset.

But all 4G phones and networks are not created equal. Verizon, for example, uses LTE for its 4G network. LTE is currently the finest 4G in the land, and can provide download speeds that are faster than your home Internet connection. Sprint, on the other hand, was the first carrier to enter the 4G game with WiMAX, and still uses that standard. WiMAX can lap 3G, but it’s not nearly as fast as LTE. AT&T and T-Mobile use HSPA+ for 4G. AT&T plans to upgrade to LTE in the next two years, but currently uses HSPA+ 21, while T-Mobile is moving to a faster HSPA+ 42.

Basically, just like there’s no single standard for 3G connectivity, 4G technologies and speeds vary. The wireless carrier you choose will determine just how fast your data network is, so we picked the top 4G phones on each major carrier, and threw in the best unlocked model for the contract-phobic.

Read more - http://www.pcmag.com/slideshow/story/266291/the-best-4g-phones

Shaw profit up 28 percent; mum on wireless plans

TORONTO (Reuters) - Shaw Communications reported a 28 percent jump in quarterly profit Wednesday as it reaped the benefits of cost cuts, the introduction of faster broadband Internet and higher prices for cable television.

Shaw said it expects 2011 core operating earnings growth to moderate from a rate of around 7.5 percent last year due to competitive pressures and higher programming costs, but that still suggests a hefty uptick in the current quarter. Its shares gained 1.7 percent in early trade.

Desjardins analyst Maher Yaghi said that while the company’s results and outlook looked good, investors would likely want Shaw to show more proof it can handle the pressure being put on its cable division.
“A resurgent competitor in the marketplace is simply making life more difficult” for Shaw, he said, referring to telecom rival Telus, which launched an Internet-protocol television product called Optik last year that competes in Shaw’s home market in Western Canada.

UBS analyst Phillip Huang noted Shaw is ceding cable market share while reporting strong revenues.
Calgary-based Shaw had net income of C$203 million ($209 million), or 45 Canadian cents a share, on revenue of C$1.28 billion in the three months to May 31.

Analysts had, on average, expected Shaw to earn 42 Canadian cents a share on revenue of C$1.27 billion, according to Thomson Reuters I/B/E/S.

Shaw had a profit of 37 Canadian cents a share in the year-before quarter on revenue of C$943.6 million.

Read more: http://www.calgaryherald.com/entertainment/Shaw+profit+percent+wireless+plans/5024186/story.html#ixzz1QgcKIm5o

Windows Phone 7 lands Angry Birds

After a long wait, Windows Phone 7 owners can now get their hands on Angry Birds.

The phenomenally popular game, which lets users slingshot angry birds through obstacles to attack pigs, is available for $2.99 to U.S. Windows Phone 7 owners. It's also available internationally. To let users get a feel for the game before buying, developer Rovio is offering a free trial.

The Windows Phone 7 price on Angry Birds might surprise iPhone and Android handset owners. The game is currently available in Apple's App Store for just 99 cents. In the Android Market, users can download a free, ad-supported version of Angry Birds.

Angry Birds has taken a long road to get to Windows Phone 7. Last fall, Microsoft posted a Web site for its Windows Phone 7 platform that ...

Read more: http://news.cnet.com/wireless/#ixzz1Qgc1lKw0

Samsung Galaxy Tab 10.1 4G now up for preorder

The 4G-capable Samsung Galaxy Tab 10.1 is now available for preorder.

Customers interested in buying the device can head to Verizon's Web site and preorder the 16GB or 32GB models for $529.99 and $629.99, respectively. To buy the device at those prices, however, consumers must enter into a two-year contract with Verizon.

Samsung's Android Honeycomb-based Galaxy Tab features a 10.1-inch display and a dual-core 1GHz processor. The device includes both a front- and rear-facing camera so users can snap photos and have video chats. Samsung currently offers a Wi-Fi-only version of the tablet for $499.99 and $599.99 for the 16GB and 32GB models, respectively.

Verizon's preorder offer is a little late. Earlier this month, Verizon announced that it would start offering preorders on the 4G-capable Galaxy Tab 10.1 on June 8.

According to Verizon, the 4G Galaxy Tab 10.1 will start shipping in four to six weeks.

Read more: http://news.cnet.com/wireless/#ixzz1QgbTGHBF

RIM to ramp up courting European developers

BlackBerry-maker RIM announced this week that it's expanding its series of conferences aimed at software developers to European programmers. The first DevCon Europe, as it's called, will occur in Amsterdam February 7th and 8th, 2012.

RIM has been slowly reaching out to developers, only launching DevCon Asia this year (the 2012 show will take place in Bangkok.) Meanwhile, the San Francisco area will see its fifth such conclave this fall.
RIM's quickening pace for wooing developers with dedicated shows makes us wonder how much the troubled mobile device-maker hopes that developer interest will increase its mainstream appeal. Android and iOS have hundreds of thousands of apps apiece, and even the much younger Windows Phone OS may have arguably surpassed the longer-established BlackBerry App World.

There's no guarantee that a swollen app store will turn consumers into buyers, and even beyond its stagnant app store, RIM's ...

Read more: http://news.cnet.com/wireless/#ixzz1QgawGXGO

iPhone, iPad maxed out AT&T network

By Athima Chansanchai

In a recent filing to the FCC regarding its acquisition of T-Mobile, AT&T finally copped to a problem some of its users already knew: its network wasn't equipped to deal with the popularity and demands of the iPhone and its users.

Reading through the filing, it looks like gobbling up T-Mobile couldn't have come at a better time for AT&T, which "faces network capacity constraints more severe than those of any other wireless provider," in large part to an astronomical mobile data volume surge of 8,000 percent from 2007 to 2010. (Not coincidentally, the iPhone and iPad years.) It never mentions the iPhone by name and only mentions the iPad once in this release, which seems to imply that tablets could be an even bigger nightmare for the company if it does not take T-Mobile under its vast wing:

A smartphone generates 24 times the mobile data traffic of a conventional wireless phone, and the explosively popular iPad and similar tablet devices can generate traffic comparable to or even greater than a smartphone.

To put it in perspective: "In just the first five-to-seven weeks of 2015, AT&T expects to carry all of the mobile traffic volume it carried during 2010."

AT&T states that this $39 billion deal will be a boon for consumers, who will see a drop in the number of dropped and blocked calls, not to mention higher data speeds and better in-building coverage.
Which is the closest it's come to admitting its' network wasn't ready to handle the bandwidth demands of its iPhone and iPad users.

The acquisition will give customers of both companies several improvements, including improved voice quality, thanks to the "additional spectrum, increased cell tower density and broader network infrastructure." AT&T will immediately "gain cell sites equivalent to what would have taken on average five years to build without the transaction, and double that in some markets." This way, AT&T won't have to clutter up America with more cell towers, since its network density will increase by approximately 30 percent in some of its most populated areas.

As more justification for this massive merger, AT&T writes in the filing: "The network synergies of this transaction will free up new capacity — the functional equivalent of new spectrum — in the many urban, suburban and rural wireless markets where escalating broadband usage is fast consuming existing capacity."
As to cries of monopoly, AT&T also had an answer to that: "The FCC found last year that approximately three-quarters of Americans live in localities contested by at least five facilities-based wireless providers," so there should no worries that it'll be the only choice in town.

read more - http://technolog.msnbc.msn.com/_news/2011/04/22/6512886-iphone-ipad-maxed-out-att-network

Two iPhone unlocking stores call it quits

If you were hoping to unlock your iPhone using one of the two solutions that came onto the scene earlier this month, you're out of luck. Both Cut Your Sim and GSM Phone Source no longer offer their services.
The two providers promised those with an iPhone 4 a way to get a "permanent" unlock to use their device on the network of their choosing, with no need to jailbreak or worry about future software updates affecting the fix. Such functionality is especially appealing to travelers who seek to avoid paying international roaming fees to their own carrier and instead be able to swap in SIM cards from local providers.

As noted by Cult of Mac, Cut Your Sim announced a discontinuation of its unlocking service earlier this week after providing it to 400 customers. GSM Phone Source, which offered a similar jailbreak-free unlocking solution, stopped selling its own unlocker last week, citing poor turnaround times from its provider.
Both services say that those who already paid for the service are in the clear, but those with phones that hadn't yet been activated through Cut Your Sim's service will have to wait "a couple of days" to get a refund, according to a FAQ on the matter.

The moving parts behind the unlocking service were actually provided by a third party, a Cut Your Sim representative told Cult of Mac in an interview. "We are not sure where the service comes from, or whether it's a contact through AT&T or Apple. We do know that the service is performed in the U.K., but that's about it," the person said. A person familiar with the gray-market unlocking industry told CNET that several suppliers provide unlocking services that companies could then resell, but that most of those go through the same source.

Apple and AT&T did not immediately respond to a request for comment on whether they were actively involved in shutting down such operations.

Unlocking mobile phones that are on an active contract can be no small feat. Depending on where mobile subscribers are in their contract, what kind of plan they're on, and how long they've been a customer, carriers can facilitate an unlock. In Apple's case, this is a managed database that unlocks the matching phone when it's connected to iTunes. Both of the closed services made this possible by first collecting the customer's unique phone identifying number and then using a provider to get that information added to the system.
Despite the shutdown, Cut Your Sim says it's working on a follow-up iPhone unlocking service for select carriers.

"We do plan on offering iPhone unlocking services in the near future after we send out cancellations and refunds, but the service will be different, it will be for iPhones locked to certain carriers," the company said on its FAQ page. In an e-mail to CNET, a company representative elaborated on these plans, saying the cost would scale depending on the country where the iPhone originates.

Read more: http://news.cnet.com/8301-27076_3-20056635-248.html#ixzz1KW4IPMda

Ask Maggie: AT&T to cut T-Mobile Wi-Fi call feature?

All good things must come to an end. At least that's likely the case for T-Mobile USA customers who like using the carrier's Wi-Fi calling feature on certain smartphones.


In this week's column, I discuss whether I think AT&T will keep the Unlicensed Mobile Access Wi-Fi calling feature that T-Mobile offers on some of its smartphones. I also discuss Samsung's problem with long delays for Android OS updates. And I explain to a Boost Mobile customer that he has two years to pick out a new phone before Sprint turns out the lights on the existing iDEN network that the Boost service currently uses.

Ask Maggie is a weekly advice column that answers readers' wireless and broadband questions. If you've got a question, please send me an e-mail at maggie dot reardon at cbs dot com. And please put "Ask Maggie" in the subject header.

Read more: http://news.cnet.com/8301-30686_3-20051921-266.html#ixzz1JJRoiVkf

Verizon updates Galaxy Tab, but sans Honeycomb

Verizon Wireless has rolled out a beefy update for owners of Samsung's Galaxy Tab.
Now being launched as a mandatory system update dubbed EC02, the 35MB package offers a variety of fixes and enhancements for the Tab.

Verizon and Samsung are promising better speed and performance for the built-in browser and less drain on the battery when searching for Wi-Fi hot spots. The e-mail and message apps have been enhanced as well. Tab users can now access hyperlinks within e-mail messages, manage and download attached Word 2000 and 2003 documents, and open video attachments 5MB in size. Adobe Flash also has been updated to the latest 10.2 version.

You must be on a Wi-Fi connection to receive the update, according to Verizon's documentation (PDF). After the notice appears, you'll be prompted to download the update. Verizon says the package will take anywhere from 5 to 10 minutes to download and another 5 minutes to install.

Though EC02 does offer several useful fixes and improvements, it still leaves the Galaxy Tab stuck at Android 2.2, aka Froyo. With the launch of the Motorola Xoom and other upcoming tablets sporting newer Android versions, will Tab owners ever get beyond Froyo?

Though unsubstantiated rumors have surfaced claiming the Tab would eventually get a newer OS, Samsung has so far been mum about any specific OS upgrade plans for the 7-inch Tab. The company seems to be more focused now on prepping three new versions of the Tab, including a 10.1-inch dual-core edition and two "thin" models, one with an 8.9-inch display and the other with a 10.1-inch display, each running Honeycomb.

A developer on the XDA Developers forum managed to create a hack that does let current Tab owners upgrade to Android 2.3 Gingerbread. But as is the case with all such hacks, users are warned to proceed at their own risk.

Tab owners using Sprint as their carrier also recently received an update in the form of an "ID pack." This pack includes updates to Android 2.2 and Adobe Flash and also offers a collection of wallpapers, widgets, apps, and other gadgets to choose from.

Read more: http://news.cnet.com/8301-1035_3-20052097-94.html#ixzz1JJODn0Zt

Egypt withdraws access to the Internet Following Street Protest

Egypt, following days of anti- government protests, withdrew the Internet after Egyptian authorities shut connections to the outside world.

According to reports, Internet traffic in and out of the country slumped shortly after midnight Cairo time. Mobile-phone services run by local units of Vodafone Group Plc and France Telecom SA were also halted.
According to sources, rather abruptly, in a coordinated fashion, the entire major Internet providers that have traffic in and out of Egypt basically withdrew from the Internet.

National authorities shut the connections after demonstrators took to the streets, inspired by an uprising that ousted Tunisian President Zine El Abidine Ben Ali on Jan. 14. Egypt has one of the most advanced telecommunications markets in the Middle East and Africa.

Facebook Inc., owner of the world’s biggest social- networking site, is seeing only minimal traffic from Egypt. Google Inc., the largest search engine, stated people in Egypt are unable to access Google and its YouTube video service, or at best are having real difficulty doing so.

TOT awards 3G contract to Samart (Thailand)

Thailand’s Samart Corp. has won the bidding to build TOT’s forthcoming 3G network following a public auction.

The action was nearly delayed after protests from Ericsson who claimed they had been unfairly dismissed from bidding, but a court order last night permitted it to go ahead.

The reserve bid for the network tender was set at US$561.30 million, and there were 17 bids during the auction.

The Samart consortium – which is made up of Samart, Loxley, Nokia Siemens Networks and Huawei – won with a minimum bid of US$527 million, which was 6.59% below the reserve price. The formal contract is expected to be signed next month with a limited service launch from April. The state-owned TOT will then expand its 3G coverage of over 5,000 base stations nationwide within this year.

http://www.wiireless.com/251884-tot-awards-3g-contract-to-samart-thailand/

Nokia launches affordable mobile phone (India)

Nokia has launched its affordable range of QWERTY mobile phones in Gujarat.

According to Head service marketing, Nokia India, Jasmeet Gandhi, the Nokia X2-01 is competitively priced with colorful design and optimized for messaging performance. Among mobile phones, QWERTY category of phones is the fastest growing segment where messaging and accessing emails could be faster. The X2-01 is targeted at the youngsters who want to be connected with the internet and social networking sites, and want information on the go.

He added that it has been kept in the affordable range looking at the spending capacity of college goers and teenagers. With the new 3G spectrum coming in place, Nokia is also planning to add more 3G enabled phones to its portfolio.

He further stated that in the past few years the company has seen more business coming from the rural market rather than the urban centres. The main reason behind this growth from rural areas was because the mobile operators had now started exploring the rural markets.

http://www.wiireless.com/251883-nokia-launches-affordable-mobile-phone-india/

China Unicom cautions of 50% drop in full-year profit

China Unicom has issued a short statement warning its shareholders of a profits warning and stated that it now expects its net profit for 2010 to be more than halved compared to the previous year.

Although revenue of the Company had grown rapidly in 2010, the company stated that there is high pressure on its earning in 2010 due to the fast increase of depreciation and amortization, networks, operations and support expenses, as well as selling expenses, particularly the 3G handset subsidy, in relation to the initial operation stage of the Company’s 3G business.

The drop in profits compared to 2009 comes on top of the fact that 2009′s profits were themselves sharply down on 2008, by 73%. Only last week, Telefonica announced a deal to increase its stake in China Unicom to 9.7% for US$500 million.

http://www.wiireless.com/251867-china-unicom-cautions-of-50-drop-in-full-year-profit/

Etisalat Misr to suspend telecom services in Egypt areas

Emirates Telecommunications Company is suspending services in some areas of Egypt on directives from the authorities as widespread protests continue in the country.

Etisalat Misr is the Egyptian unit of Etisalat, the state-owned telecoms major of the United Arab Emirates. According to Etisalat’s statement, the authorities had told all mobile operators on Friday to suspend services in selected areas of the country.

Etisalat Misr would comply with the order. President Hosni Mubarak ordered troops and tanks into Egyptian cities on Friday in an attempt to quell street fighting and growing mass protests demanding an end to his 30-year rule.

http://www.wiireless.com/251866-etisalat-misr-to-suspend-telecom-services-in-egypt-areas/

France Telecom won’t bid for Telekom Srbija stake

France Telecom SA spokesperson has revealed that the company has decided not to take part in the privatization of Serbian telecom operator, Telekom Srbija, as it considered the asset too expensive.

According to the company’s spokesperson, they have studied the tender offer but decided not to take part in the bidding process notably because they considered the asking price too high.

A series of companies including VimpelCom Ltd., Weather Investments SpA, Telekom Austria AG, America Movil SAB, Turkcell and Deutsche Telekom AG have applied to take part in the tender.

Final bids are expected at the end of March.

http://www.wiireless.com/251865-france-telecom-wont-bid-for-telekom-srbija-stake/

India is know the leading market for the mobile operators

With one of the major facts that India is know the leading market for the mobile operators, mobile network operators are trying to fetch the most of the client base in Indian market. The rate of addition of new subscribers, reduction in call rates, and success of interactive SMS services all point towards a high prospect for more Value added services offered by wireless network operators. However, there are significant challenges which wireless network operators face in this process which includes lack of infrastructure; gaps in piracy protection, lack of transparency in revenue sharing, and rigid focus on only one sub-segment remain. In such a scenario, there are many ways in which a Mobile Network Operators can fail.

Mobile phones are becoming one of the most important need of the individual himself and making phone calls is seen by many as just one of its utilities. Customers are increasingly making use of other services offered by wireless network operators such as messaging, gaming, browsing, receiving stock information and cricket scores. More and more mobile carriers have started catering such Value-added Services (VAS) and are coming up with new and innovative offerings. However, the Indian context presents several challenges both regulatory and in terms of customer preferences. Proper understandings of these are needed for any mobile carriers that want to enter this space.

The growth in Value added services in India is being helped both by macro factors and by new market initiatives. High growth rates have led to higher disposable incomes, and people are ready to accept new technologies and thus are willing to spend more on services offered by mobile carriers. Just to have an understanding about these services, Ring tones are now associated with the personality status so the young generation is keener to avail such features. Coupled with a reduction in call rates and new regulatory initiatives for lower costs of basic services, many more mobile carriers are entering the List of mobile network operators.

Some major challenges that need immediate attention of key stakeholders are the limited youth focused market, entertainment heavy content, lacunae in piracy protection for content companies, lack of infrastructure, pre-dominance of low cost handsets and high cost of services.