Orange to boost network investments to fuel recovery by 2018

Follows similar moves by Deutsche Telekom and Britain's Vodafone

Reuters

PARIS (Reuters) - France's Orange will plow 15 billion euros ($15.9 billion) into upgrading networks until 2018 to differentiate itself from rivals in a price war in its domestic market.

Orange, Europe's fifth-largest telecom operator by market value, also said that it would take until 2018 for its sales and core operating profit to exceed 2014 levels.

France's low-cost telco Iliad aims to raise operating profit by 10 percent

With mobile push, Iliad has had to contend with sharper competition in its core broadband market

Reuters

PARIS (Reuters) - French telecoms group Iliad pledged to raise operating profit by 10 percent this year after it reached a 15 percent market share in mobile three years after shaking up the market with low-cost, no-contract plans.

Founded and majority-owned by billionaire Xavier Niel, Iliad sparked a price war in mobile in 2012, forcing larger rivals Orange, Numericable-SFR and Bouygues Telecom to cut costs to cope.

U.S. telecoms firm IDT establishes direct connection with Cuba

First commercial accord realized since the December rapprochement

Reuters

HAVANA (Reuters) - Direct telephone connections between the United States and Cuba have been established under the first commercial accord realized since the December rapprochement between the two longtime adversaries, Cuba's national telecom provider said on Wednesday.

The U.S.-based IDT Corp reached an agreement with Cuba's Empresa de Telecomunicaciones de Cuba S.A. (ETECSA) to provide direct international long distance telephony.

Computing, telecoms industries set on collision course

At the annual Mobile World Congress in Barcelona last week, the brewing battle was apparent

Reuters

(Reuters) - Telecom network gear makers are on a collision course with Silicon Valley computing giants as software and cloud computing have begun to change the way operators from AT&T to China Mobile run their networks.

The shift, while in its early stages, involves relying on ever cheaper computer boxes and powerful software that promises to make networks more flexible and efficient.

Neustar faces loss of contract after FCC staff recommendation

Since 1997, Neustar has managed the world's largest local number portability registry

Reuters

WASHINGTON (Reuters) - U.S. Federal Communications Commission staff on Wednesday recommended that the agency drop Neustar Inc in favor of Ericsson AB subsidiary Telcordia Technologies as a contractor that helps telephone carriers route calls and text messages.

Neustar's shares slid as much as 17 percent on the news. The exclusive government contract, which expires on June 30, accounts for about half of the company's revenues.

Alibaba opens first U.S. cloud center, enters hotly contested market

IDC says public cloud services market could grow to $100 billion by 2017

Reuters

HANGZHOU, China (Reuters) - Alibaba Group Holding Ltd is launching a cloud computing hub in Silicon Valley on Wednesday, the e-commerce giant's first outside of China, underscoring its global ambitions in the face of stiff and entrenched competition.

The new California data center marks the Chinese company's latest measured expansion onto American soil, and into a hotly contested U.S. market now dominated by Amazon.com Inc , Microsoft Corp and Google Inc.

NXP deal means security to come built-in on far more devices: CEO

Together, NXP and Freescale become world's 7th largest semiconductor maker

Reuters

BARCELONA (Reuters) - The merger of NXP and Freescale will bring together two highly diversified chipmakers to create a more focused, leading player in two high-growth markets - automotive electronics and security, NXP's top executive said on Wednesday.

The cash and stock deal, announced on Monday, valued Freescale at $11.8 billion, excluding debt, and is expected to close in the second half of the year, subject to regulatory approvals. An overlapping business in radio frequency amplifier chips will be sold to ease antitrust concerns.

From MWC, Italtel CEO says operators must upgrade to all-IP core to survive

Customer Value and Quality of Experience must be at core of transformation, said Stefano Pileri

BARCELONA – Operators wanting to stay afloat in the rapidly changing telecoms market will need to massively transform their infrastructure in terms of guaranteed bandwidth, communications security, low latency rate and minimum cost for increased capacity, Italtel’s CEO Stefano Pileri has warned.

Europe's big telecoms roar back to health, worrying rivals

Incumbents gained broadband market share in 1H 2014 for first time in 8 years

Reuters

PARIS (Reuters) - Europe's big telecom firms are back to rude financial health after years of poor results and regulatory pressure, drawing crowds of new investors and protests from rivals who worry the formerly state-owned companies may rebuild their monopolies.

Germany's Deutsche Telekom and Spain's Telefonica have predicted that revenues will grow this year, while France's Orange and Norway's Telenor  have promised higher future dividends, a major motivation for investors in the sector.

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