Telecom Italia in a bind after losing GVT bid battle

Seven bankers and investors tell Reuters the telco lacks a clear direction

Reuters

PARIS/LONDON/MILAN (Reuters) - Telecom Italia has lost a promising path to earnings growth by failing to secure Brazilian broadband business GVT and may now turn from hunter to hunted in a fast-consolidating telecoms industry.

Winning the auction for French media company Vivendi's GVT was vital for both Telecom Italia and its rival, Spain's Telefonica, as their European markets have been shrinking. Italy was gripped by a mobile price war for much of last year, revenue is falling and competition remains tough.

Sprint grabs lifeline with rural U.S. roaming deals

Experts say Verizon has only comparable alternative for rural carriers to offer nationwide 4G roaming

Reuters

WASHINGTON (Reuters) - With plans for a T-Mobile US Inc merger in tatters, Sprint Corp is expanding a roaming program with rural cellphone companies that could provide a much-needed way for the debt-laden wireless carrier to cheaply increase its footprint.

In March, Sprint Chairman Masayoshi Son struck a roaming deal with the Competitive Carriers Association (CCA), which represents many U.S. rural and regional carriers, to use each other's networks for roaming at a mutually attractive price.

AT&T sues Cox Communications for patent infringement

Patents relate to methods for improving the quality and reducing the costs of telecom services

Reuters

(Reuters) - AT&T <T.N> is suing Cox Communications for infringing eight patents dealing with network quality after the regional cable provider ignored its complaints about the issue and made "billions" off of the technology, according to a new lawsuit.

In the suit filed Friday in Delaware federal court against Cox and more than 30 of its regional units, AT&T said that Cox had been warned about the claims of patent infringement as far back as 2009. It said Cox delayed negotiations and refused to take a license for the technologies.

Brazil telecom battle heats up as Oi tries to buy, split TIM

Move adds a new twist to the bidding war for Vivendi SA's Brazilian broadband unit GVT

Reuters

RIO DE JANEIRO/PARIS (Reuters) - Brazil’s Grupo Oi SA unveiled plans on Wednesday to take over Telecom Italia's local mobile unit, in a move sources said was aimed at breaking up the country’s second-biggest wireless carrier and upstaging merger bids by foreign rivals.

Oi said on Wednesday that it hired Brazilian investment bank and shareholder Grupo BTG Pactual SA to explore alternatives to acquire Telecom Italia SpA's 67 percent stake in TIM Participações SA, the country's second biggest wireless carrier.

South Korea's Daum, Kakao shareholders approve merger

Combined entity will be called Daum Kakao, pending shareholder approval

Reuters

SEOUL (Reuters) - Shareholders of South Korean internet portal operator Daum Communications Corp and messaging app company Kakao Corp on Wednesday approved a merger of the two firms in an all-stock deal that values Kakao at more than $3 billion.

Kakao's KakaoTalk is the undisputed chat leader in South Korea, but its global user base is far smaller than the likes of Facebook Inc's WhatsApp or Naver Corp's Line.

The merger with Daum, South Korea's No. 2 internet search company, will give Kakao new lines of revenue and boost its resources for overseas expansion.

IBM to help China's Inspur to design servers

K1 server touted as China's first fully home-grown, high-end server

Reuters

BEIJING (Reuters) - IBM will help China's largest server vendor Inspur International design server systems, the two companies said on Friday, an unexpected development in what has been a politically charged rivalry in the Chinese technology market.

Since last year Inspur has aggressively marketed its servers to Chinese state-owned firms as a replacement for IBM (International Business Machines Corp) systems while U.S.-China relations have worsened dramatically over mutual suspicions of cyber-spying.

FBI probing reported theft of 1.2 billion Internet credentials

Collected over several years from approximately 420,000 websites and other servers

Reuters

(Reuters) - The U.S. Federal Bureau of Investigation is investigating a report by a U.S. cybersecurity firm that it uncovered some 1.2 billion Internet logins and passwords amassed by a Russian crime ring, the largest known collection of such stolen data.

Hold Security of Milwaukee, Wisconsin, disclosed earlier this month that it had discovered the credentials, collected over several years from approximately 420,000 websites and other servers.

Carriers Must Leverage SDN and NFV for Greater Network Insight

A massive paradigm challenges deeply held beliefs on the role of carriers as service providers

Recent research suggests 90 percent of all existing data has been generated in the last three years, leaving telecom carriers to grapple with how to manage this data deluge effectively and still turn a profit. The answer may lie in Software Defined Networking (SDN) and Network Functions Virtualization (NFV). Based on Commercial-Off-The-Shelf (COTS) hardware, one immediate benefit of both technologies is the potential to reduce cost, for vendors and their carrier customers.

Cisco to take $700 million in restructuring charges for layoffs

Facing pressure to retire, CEO Chambers says savings will go toward profitable sectors like cloud and security

Reuters

(Reuters) - Network equipment maker Cisco Systems Inc said on Thursday its plan to slash 6,000 jobs will result in restructuring charges of $700 million in cash in the year ending July 2015.

The latest round of layoffs, announced on Wednesday, is at least the fourth workforce reduction in about as many years for a company once synonymous with the Internet boom and could spark a shakeup in management, analysts said.

Shares in Cisco, still the world's largest networking equipment maker, were down 2.7 percent at $24.52 on the Nasdaq.

Reclassify Internet providers for 'net neutrality': NY Times

As FCC collects public comment, Times calls proposed rules troubling

Reuters

WASHINGTON (Reuters) - U.S. regulators' new "net neutrality" rules should classify Internet providers more like public utilities to prevent them from potentially slowing users' access to some Web content, the New York Times said in an editorial in Thursday's newspaper.

The statement comes as the Federal Communications Commission is preparing to set the new rules, which would regulate how Internet service providers, or ISPs, manage traffic on their networks. In January, a federal court struck down the agency's previous version of those rules.

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