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A round-up of the major stories in telecoms in 2011, as reported in our daily news service Introducing... www.totaltele.com

JANUARY-MARCH ALU signals base station end plan in late December; AT&T will also counting the cost as subsea Alcatel-Lucent launched pay a $4 billion break-up fee to networks were severed and the Page takes Google helm lightRadio, a small-scale mobile . threat of component shortages Google co-founder Larry Page base station that uses virtualised loomed. By the end of 2011, many replaced Eric Schmidt as CEO components. Sweden auctions spectrum areas of the industry were still of Google. Schmidt became Sweden raised 2.05 billion feeling the effects of the disaster. executive chairman of the picks Windows OS kronor (US$324 million) from 2 Day Conference company. Nokia announced plans to use the sale of spectrum suitable Etisalat scraps $12bn Zain buy Microsoft’s Windows Phone 7 for 4G services. HI3G Access, Etisalat pulled out of its planned 12 – 13 June 2012, London MNP in India platform as the main operating TeliaSonera and Net4Mobility - a acquisition of a 46% stake in Mobile number portability came system for its smartphone joint venture between and Kuwait-based Zain, having made For more information email into force nationwide in India portfolio. The first devices went Telenor - all acquired spectrum an offer worth around $11.7 after repeated delays. on sale in November. in the 800-MHz band. billion in September 2010. The [email protected] UAE incumbent cited the results PT in $5bn Brazil deal Telstra uses 1800 for LTE France Teleocm in Iraq buy of due diligence and political Portugal Telecom inked a deal to At Mobile World Congress 2011 A joint venture between France turmoil in the region among its take a minority stake in Brazil’s Australia’s Telstra shared plans to Telecom and logistics company reasons for backing away. Oi for 8.32 billion reias (US$5 roll out LTE services in its 1800- Agility agreed to plough new billion). Oi has since simplified MHz spectrum. capital into Iraq’s third mobile CEO quits its ownership structure and operator Korek Telecom in return resigned as appointed a new CEO, Francisco AT&T bids for T-Mobile USA for a 44% stake. CEO of Clearwire as the US Valim. AT&T announced it had offered WiMAX operator reshuffled its US$39 billion to acquire rival Tragedy in Japan management. Chief operating iPhone for T-Mobile USA. Lawsuits from the While Japan struggled to come officer Erik Prusch was appointed After years of speculation Verizon Department of Justice and other to terms with the human cost to the post in August. Wireless revealed it would offer opponents ensued, and the FCC of the tsunami and resulting a CDMA version of the Apple also came out against the deal. floods that hit the country in Voda takes over Indian unit iPhone to its customers. The companies abandoned the March, telecoms companies were paid around $5.46 billion to buy out its joint venture Raja arrested in India Spectrum fragmentation by % of LTE connections partner in India. The deal closed India’s former telecoms minister 800/1800 MHz in July. Andimuthu Raja was arrested 2600 MHz 3% 2011 as the Central Bureau of 5% Investigation probed allegations APRIL-JUNE 1700/2100 MHz 8% 16% of corruption in the allocation of 2015 mobile spectrum in 2008 that may Voda sells SFR stake have cost the government billions Vivendi agreed to pay €7.95 13% of dollars in lost revenues. The 2100 MHz 11% billion for Vodafone’s 44% stake 67% investigation was still going on at 11% 700 MHz in SFR, giving it total control of the end of 2011. n 700-900 MHz 6% 10% the French mobile operator. n 1700-1900 MHz 2500 MHz Kleisterlee takes Voda chair n 2100-2600 MHz New Pakistan minister , chief Pakistan appointed Zaheeruddin executive of Electronics Source: Wireless Intelligence Babar Awan to the vacant telecom There will be 38 different spectrum frequency combinations used in LTE was named as the successor deployments worldwide by 2015, as ongoing spectrum auctions, licence and IT minister position. renewals and refarming initiatives contribute to fragmentation, according to to as chairman of Wireless Intelligence. This lack of harmonisation could hurt roaming, since device Vodafone. makers will have to support many disparate frequencies; this means a ‘world’ LTE KPN gets new CEO device is unlikely to emerge in the near future. Eelco Blok took over as chief www.totaltele.com/wireless December 2011/January 2012 www.totaltele.com 3 timeline

executive of KPN, replacing billion to roll out fibre-based aims to complete the transition portfolio. The deal included the Ad Scheepbower. Almost broadband to 5 million premises by the end of 2012. transfer of 2,600 staff. immediately the Dutch in rural areas of the UK over the incumbent issued a full-year next 3-5 years. It is working with More phones than people TeliaSonera fibre plan profit warning and said jobs , TalkTalk Telecom The number of fixed and mobile TeliaSonera said it will invest would go in its home market. and Cisco. phone connections worldwide over 8 billion kronor (US$1.3 reached 6.92 billion in May, billion) in fibre networks by Level 3 buys Global Crossing DT and FT form JV according to The Mobile World. 2014. SEK5 billion of the total Level 3 Communications agreed Deutsche Telekom and France The US Census Bureau estimated will be spent in Sweden. to acquire Global Crossing in Telekom created a joint venture the population of the world at an all-stock deal worth around company through which to slightly under 6.92 billion. UK telcos tackle m-commerce $1.9 billion. The deal to combine acquire network equipment. Everything Everywhere, O2 and the two international network The telcos aim to book savings DT ups stake in OTE Vodafone UK created a mobile operators closed in October, of €1.3 billion a year as a result. Deutsche Telekom acquired an payments joint venture, a move when Global Crossing CEO John The venture, known as Buyin, additional 10% stake in Greek that enraged rival player 3, which Legere left the company. launched in October. incumbent OTE for around €400 was left out of the project. But million, raising its holding to by the end of the year the telcos CenturyLink in M&A market Syria ices licence auction 40% plus one share. were in talks to potentially allow US telcos CentryLink and Qwest The sale of a third mobile licence 3 into the venture, codenamed completed their merger deal on 1 in Syria was postponed due to Netherlands net neutrality Project Oscar. April after FCC approval enabled political turmoil in the country. The Dutch government pushed the $22 billion tie-up to go Qatar’s Qtel and Saudi Telecom through a new telecoms law Nigeria cancels telecoms sale ahead. Later that month, Qwest were the only operators still in that forces telcos and ISPs to The latest attempt to privatise announced it would acquire the running for the licence. ensure equal access to all types of Nigerian incumbent Nitel ended cloud services provider Savvis for content on their networks. in failure after both the preferred around $2.5 billion. That deal Microsoft in $8.5bn Skype buy and reserve bidders did not pay closed in July. Microsoft said it would pay $8.5 Apple launches iCloud the initial sums required of them. billion in cash to a Silver Lake- Apple introduced iCloud, a Web- Cisco restructures led investor group for Internet based offer that enable users to Google+ comes to market Cisco moved to refocus on its telephony specialist Skype. store data and content–including Google made a new attempt to core networking equipment Analysts questioned the sum, but music–in the cloud. The move conquer the social networking business, exiting certain noted that Microsoft could reap put it in direct competition with space with the launch of consumer operations, such as the benefits of owning Skype in the likes of Amazon and Google. Google+. The move came video camera Flip. In July the the longer term. just days after the Internet company revealed plans to Telstra, govt in NBN deal giant pulled the plug on its reduce its global workforce by Telefonica Brazil restructure The Australian government PowerMeter and Health services, around 6,500–incurring charges In a move designed to and incumbent Telstra signed citing disappointing uptake. of $1.3 billion–in a bid to reduce consolidate its Brazilian assets agreements worth A$11 billion operating costs by $1 billion in following its 2010 takeover of that will see the telco transfer , NBN in TD-LTE deal its next fiscal year Vivo, Telefonica unveiled a new its fixed lines to NBN Co, the Ericsson announced it has won unified structure in Brazil. company set up to roll out the a A$1 billion contract from Israel awards licences country’s nationwide high- Australia’s NBN Co to roll out Mirs Communications and TI happy in LatAm speed broadband network. a TD-LTE networks to provide Xfone 018 secured spectrum for Telecom Italia ruled out further In December Telstra released coverage to rural households. 3G services in Israel with bids expansion in Latin America, its latest structural separation of just over $200 million each. saying it will instead focus on plan; the ACCC has requested Bharti, Africa deal Their licence payments will be expanding its businesses in Brazil comments by 13 January. India’s Bharti Airtel outsourced returned to them if they each and Argentina. the expansion and management manage to carve out a 7% share Ericsson buys Telcordia of its mobile networks in Africa of the market within five years. Nokia ditches Ovi Sweden’s Ericsson brokered a to China’s Huawei. The deal is Nokia revealed plans to abandon $1.15 billion all-cash deal to reportedly worth $400 million. Fujitsu enters UK fibre fray its Ovi brand name, instead acquire Telcordia. It hopes the Japan’s Fujitsu said it will invest bringing all of its mobile services deal will boost its position in the New CEO at 3UK between £1.5 billion and £2 under its core ‘Nokia’ name. It OSS/BSS space and fill gaps in its Kevin Russell stepped down as

4 www.totaltele.com December 2011/January 2012 timeline

chief executive of UK mobile mobile operator’s shareholders, Telecom won spectrum suitable Broadcom buys NetLogic operator 3 to be replaced by offloading its 24.39% stake for offering 4G services in Spain Wireless chip maker Broadcom COO David Dyson. through the deal. via a licensing process that raised acquired rival NetLogic €1.65 billion for the government. Microsystems in a $3.7 billion Virgin closes in Qatar Kroes tackles roaming rip off Earlier in the year France deal designed to bolster Qatar’s telecoms regulator European commissioner Neelie Telecom and TeliaSonera won its position in the network ordered incumbent Qtel to close Kroes proposed a series of the country’s first 4G spectrum processor market. down its Virgin Mobile-branded measures to reduce the cost of auction, agreeing to pay €168 service. Rival operators had roaming in Europe, including million. Saudi LTE launches claimed the service constituted allowing consumers to sign Saudi Arabia’s three main an MVNO. dedicated roaming contracts. She New GSMA head mobile operators all claimed also proposed a data roaming cap Mobile industry body the GSMA to be first to market with LTE AT&T gets Indonesia licences of €0.50 per megabyte. announced the appointment in September. Saudi Telecom AT&T became the first foreign of Anne Bouverot, formerly Company (STC) launched under telecoms operator to be granted Rogers opens LTE network of Orange, as its new director the Quicknet banner, Zain and a licence to operate in Indonesia. Rogers Communications in July general. She replaced Rob Vodafone’s local units also The licence allows it to provide became the first Canadian mobile Conway. introduced services. services direct to customers in operator to launch LTE services the country, without using a local when it switched on its network Colombia sells 1900 MHz France concludes 4G sale third party. in Ottawa. The Colombian government France Telecom, Bouygues raised $79.9 million by selling Telecom, SFR and Iliad all Globalive gets go-ahead M2M moves 25 MHz of spectrum in the 1900 acquired blocks of spectrum in A Canadian appeals court backed TeliaSonera in July joined the MHz band. Telefonica took the the 2.6-GHz band, generating the government in its decision machine-to-machine (M2M) lion’s share with 15 MHz. €936 million for government to allow Globalive to continue communications alliance coffers. operating in Canada, despite the established by France Telecom DoCoMo invests in Vietnam fact the regulator had earlier and Deutsche Telekom earlier in NTT DoCoMo acquired a stake Google opens Wallet moved to block it. The telco, the year. Meanwhile, Telekom of around 25% in Vietnamese Google Wallet launched in the which offers services as Wind Austria announced the creation mobile content provider VMG US in September. The Internet Mobile, was at the centre of a of a new subsidiary to focus on Media worth around €12 million. giant partnered with Sprint foreign ownership row. the M2M space. Nextel, Citi, Mastercard and Google buys Moto Mobility First Data to bring the mobile No BSkyB for News Corp Google agreed to pay $12.5 payment system to market. JULY- Rupert Murdoch’s News Corp billion in cash to acquire SEPTEMBER backed away from a planned . The Internet Another new HP CEO takeover of UK satellite TV and giant made it clear that it is HP appointed Meg Whitman Nortel patents sold for $4.5bn broadband operator BSkyB amid primarily interested in Moto’s as its new CEO, replacing Leo A consortium made up of some a phone-hacking scandal that patent portfolio, which will Apotheker who had been in the of the world’s largest technology brought down UK newspaper the help it to protect its Android job for less than a year. Whitman firms won Nortel Networks’ News of the World. operating system from litigation. initially backed her predecessor’s patent portfolio with a bid of strategy, but in October revealed $4.5 billion. The group, which Management changes at EvEv Bharti to invest in Nigeria that HP would hang on to its included Apple, RIM, Microsoft replaced Tom India’s Bharti Airtel added PC unit; Apotheker had said and Ericsson, beat competition Alexander as the CEO of UK hundreds of millions of dollars to the company was looking at a from Google; the Internet giant mobile operator Everything its investment plan in Nigeria. It possible sale or spin-off. had acted as a stalking horse with Everywhere. Swantee earmarked $1 billion for network an initial $900 million offer. then named a new, leaner and facilities spend in 2011 alone. management team, appointed OCTOBER- Polkomtel sold for $5bn-plus a new CTO and cut 22 middle Yahoo fires Bartz DECEMBER Polish businessman Zygmunt managers. Later the company Carol Bartz was removed from Solorz-Zak agreed to buy announced a further 550 job cuts. her position as Yahoo CEO Kroes on copper Polkomtel for 15.1 billion after two and a half years. CFO European Commission VP for zlotys ($5.43 billion) in cash. Spain awards 4G spectrum Timothy Morse stepped into the the digital agenda Neelie Kroes Vodafone was one of the Polish Telefonica, Vodafone and France role on an interim basis. proposed a reduction in copper

December 2011/January 2012 www.totaltele.com 5 timeline

access prices in a bid to encourage Industry and IT statistics. The India’s 100m Internet surfers investment in fibre networks. She country also became the world’s The number of Internet users also shared plans to make a €9.2 biggest smartphone market in in India rose to 112 million billion fund available to support Q3, when unit shipments reached by September, making it the investment in new networks and 24 million, according to Strategy third biggest market globally, services. Analytics. according to the Internet and Mobile Association of India. BlackBerry bungle BT accelerates fibre plan India is adding 5 million-7 A difficult year for RIM was BT said it will complete the million users per month. It is exacerbated by a network outage rollout of its fibre network to poised to overtake the US within in October that affected millions two thirds of UK premises by two years. LOSS OF JOBS of BlackBerry users worldwide. the end of 2014, a year earlier The telecoms industry and The outage was caused by the than originally planned. The Ericsson’s $650m Iraq deal the wider world mourned the failure of a core switch at a UK incumbent will bring Zain awarded Ericsson a $650 passing of Apple co-founder and former CEO Steve Jobs European facility. Earlier in the forward £300 million of planned million contract to manage its IT in October, just two months year the Canadian company investment and recruit 250 operations and mobile network after he stepped down from cut 2,000 jobs and announced engineers for the project. in Iraq. leading the company and two the retirement of COO Dan days after Apple unveiled its newest iPhone. Jobs, 56, died Morrison. SK signs Hynix deal NZ Telecom splits after a battle with pancreatic SK Telecom agreed to New Zealand’s Telecom Corp cancer dating back to 2004; Voda pulls plug on 360 purchase a 21% stake in Hynix and infrastructure arm Chorus he took medical leave from Vodafone announced it Semiconductor for more than officially became two separate work in 2009, when he un- derwent a liver transplant, and would close its 360 cloud US$3 billion. businesses in December. The again in the first half 2011. synchronisation and back-up move was a key requirement Former COO Tim Cook, who service by the end of the year. Greece sells licences of Chorus being awarded the deputised for Jobs during his Greece made €380.5 million from contract to roll out much of the absences, became Apple’s new chief executive in August. Qualcomm gets India licence extending the 900-MHz and country’s planned national fibre Despite the loss of the vision- India granted Qualcomm an 1800-MHz licences belonging network. ary Jobs, demand for the operating licence for the four to the country’s existing mobile iPhone 4S was strong; the de- vice sold 4 million units across areas in which it won broadband operators. Relief for Clearwire seven markets around the wireless access spectrum in 2010, Clearwire signed a four-year, $1.6 world in the first three days of paying over $1 billion. Qualcomm Swedish m-commerce deal billion deal with Sprint Nextel availability, a new company was under threat of losing Telia, Telenor, Tele2 and 3 to give the latter access to its record. Apple introduced Siri, a voice-activated digital assis- the licences due to regulatory formed a joint venture to build WiMAX–and forthcoming LTE– tant, as part of the iPhone 4S, complications. a unified m-payments platform. network. The funding will enable a move viewed by some as They are seeking a CEO for the Clearwire to invest in its own the company’s entrance into ALU sells Genesys for $1.5bn venture. LTE infrastructure. Clearwire the search business. Indeed, Google chairman Eric Schmidt Private equity firm Permira also announced it is seeking an admitted that he views Siri agreed to pay $1.5 billion in cash Google Music launches additional $300 million via an as a competitor to Google’s for Alcatel-Lucent’s call centre Google unveiled its digital music equity offering. core search business. Jobs services unit Genesys. service Google Music in the US. in March unveiled the iPad 2, an updated version of RIM backs away from BBX Apple’s market-defining tablet BT ordered to block site NSN slashes jobs, refocuses RIM renamed its new operating device. And in his last public A UK court instructed BT to Nokia Siemens Networks system BlackBerry 10 after its presentation, Jobs took to the block access to Newzbin2 and any announced plans to cut 17,000 use of the BBX monicker was stage at Apple’s Silicon Valley headquarters in June to take other IP addresses or Webpages jobs as part of a reorganisation challenged in court. US software the wraps off iCloud, a range used by the operators of the that will see it pull out of all company Basis International of Web-based services that pirate site. businesses not connected with said it had trademarked the BBX allow users to store and ac- cess their data, and synchro- . The vendor name. nise their iTunes music col- 100m 3G users in China sold its microwave transport lections, as well as calendar The number of 3G business to DragonWave and its LTE launch in Uruguay entries and contacts, across users in China reached 102 WiMAX business to NewNet Antel declared itself the first any Apple device. The move stepped up the pressure on million by the end of September, Communication Technologies LTE operator in Latin American consumer cloud service rivals up from 34.99 million a year There are more divestments to when it launched its network in Google and Amazon. earlier, according to Ministry of come. December.

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REVIEW OF THE YEAR DEAL BREAKERS AT&T pulls the plug on its $39 billion merger plan, but the TMT sector will continue to account for a hefty portion of global M&A activity going forward. By Mary Lennighan

lobal mergers and acquisitions in “The actions by the FCC and the DoJ to the lead from Verizon Wireless in terms the year to Q3 2011 were valued block this transaction do not change the of subscribers and the deal would have Gat €1.7 trillion and the technol- realities of the US wireless industry. It is reduced the number of main players in ogy, media and telecoms sector accounted one of the most fiercely competitive the market from four to three. for a significant 14% of that, according to industries in the world, with a mounting But while that proved unacceptable to M&A research firm Mergermarket. need for more spectrum that has not US regulators, the situation is different in Despite the troubled global economic diminished and must be addressed imme- Europe, where Vodafone has the support climate, the 150 European deal makers diately, “ AT&T said as it announced the of rival players for its bid to reduce the interviewed by the firm during the third death of the deal. Greek mobile market from three players quarter predict the total deal value to Thomas Wehmeier, principal analyst at to just two. However, the drivers behind swell by 14.5% next year, and 30% of Informa Telecoms & Media, also its plan are not dissimilar from those of respondents named the TMT sector as commented on the wider implications of AT&T and T-Mobile USA. one of the areas that will see the most the news on the US mobile market. “Much Vodafone has been holding talks with M&A activity next year. has been made of the need for in-market Wind Hellas about merging their Greek According to one unnamed corporate consolidation within the intensely mobile operations since August; together deal maker from a U.K.-listed technology competitive mobile industry, having to they would hold around half of the group, M&A activity will accelerate next potentially navigate around seemingly market, with current leader Cosmote year as companies increasingly sell up or insurmountable regulatory hurdles is claiming the other half. merge with rivals. “The macroeconomic likely to shake the confidence of would- “We believe that there is a good case to environment is deteriorating and in this be investors to the core,” he warns. go there, Vodafone Europe CEO Michel type of business climate you get troubled AT&T insisted from the start that a Combes told Total Telecom recently. The companies that need to consolidate to merged AT&T/T-Mobile USA would be economic situation in Greece is very survive,” she is quoted as saying. Indeed, beneficial for US consumers and the specific, he said. In addition, the country 45% of survey respondents expect consol- country as a whole, not least because it requires investment to support the migra- idation to be one of the largest deal would have enabled the telco to acceler- tion to 4G, which is made more complex drivers in 2012. ate its LTE rollout. It stands by that by its geography. “It makes sense to have The desire to consolidate assets–mobile assertion, describing the merger as an two rather than three networks in order spectrum in particular–was a key driver “interim solution” to the spectrum short- to focus investments on coverage,” for what was almost the biggest deal in age, without which “customers will be Combes said. the telecoms space in 2011. But as the year harmed and needed investment will be “A two-player market would be more drew to a close it emerged that, lacking stifled.” However, the fact remains that competitive, would provide better service regulatory support, the deal would not go the merged company would have regained and more choice to the customers,” he ahead. added. And incumbent operator OTE, In late December AT&T pulled the Global M&A by value (Q410-Q311) parent of Cosmote, agrees; in November plug on its planned US$39 billion tie-up the telco said it believes regulators will with T-Mobile USA, some nine months Leisure 2% Construction 2% approve the deal, describing it as a healthy Transportation 4% Others 1% and much legal wrangling after it first Real Estate 3% move for the market. announced the deal. There was much Business opposition from the start, and ultimately Services 4% Big deals in 2011 Energy & the companies’ failure to gain the support Resources But aside from what almost happened and Consumer 24% of the Department of Justice (DoJ) and 8% what looks set to happen in the near Federal Communications Commission Pharma, future, 2011 was a year in which multi- (FCC) led to the breakdown of the deal. Medical & billion-dollar transactions in the industry Biotech 9% Industrial & Deutsche Telekom will receive the US$4 Chemicals were signed on the dotted line, and TMT 16% billion break-up fee due to it from 14% Vodafone was right in the thick of it. Financial AT&T–a quarter of which will come in Services In June the operator finalised the sale the form of $1 billion worth of mobile 14% of its 44% stake in French mobile opera- spectrum–and the pair will work together tor SFR to its partner Vivendi for €7.95 via a seven-year roaming agreement. Source: Mergermarket billion. And that same month it offloaded

8 www.totaltele.com December 2011/January 2012 BUSINESS & FINANCE

Selected 2011 deals at a glance billion for the 6,000 patents, significantly more than the $900 million stalking horse JANUARY portugal Telecom inks deal for minority stake in Oi offer submitted by Google in April. FEBRUARY cisco acquires Inlet Technologies MARCH at&T announces $39 billion acquisition of T-Mobile USA. Vendor consolidation France Telecom, Agility buy into Iraq’s Korek Telecom There were no multi-billion-dollar valua- Vodafone pays $5 billion to buy Essar Group out of Indian unit APRIL Vivendi takes sole control of SFR with €7.95 billion Vodafone deal tions in what was arguably the year’s level 3 to pay $1.9 billion for Global Crossing biggest M&A-related story though. In centuryLink agrees to pay $2.5 billion for Savvis November Nokia Siemens Networks MAY Microsoft confirms $8.5 billion acquisition of Skype JUNE deutsche Telekom acquires an additional 10% stake in Greece’s OTE revealed it plans to focus solely on the ericsson announces $1.15 billion Telcordia purchase mobile broadband space and will pull out cable & Wireless Worldwide rejects bid for its overseas assets of all businesses not considered core to JULY technology consortium agrees to pay $4.5 billion for Nortel’s patents that. The change in strategy will bring polkomtel shareholders sell to businessman for $5.4 billion news Corp pulls out of plan to take full control of BSkyB with it 17,000 job losses as the vendor nokia, Siemens reveal they will not sell Nokia Siemens Networks aims for €1 billion in cost-savings in the France Telecom confirms talks to acquire Congo Chine Telecom next two years. AUGUST HP announces plan to acquire UK software company Autonomy So far, Nokia Siemens has been reluc- Motorola Solutions sells Orthogon and Canopy units to Vector Capital Google announces $12.5 billion Motorola Mobility buy tant to disclose exactly which businesses SEPTEMBER Broadcom to pay $3.7 billion for rival mobile chip maker NetLogic are on the block. It had already agreed to OCTOBER alcatel-Lucent gets $1.5bn binding offer for Genesys sell its microwave transport business to ericsson sells out of Ericsson mobile handset business DragonWave at the time the announce- NOVEMBER SK Telekom to acquire Hynix stake for $3 billion. DECEMBER at&T and T-Mobile USA abandon merger plan. ment was made, and news that NewNet Communication Technologies would buy its WiMAX business, and Adtran would its 24.39% stake in Polkomtel; the Polish said would allow it to “protect” its buy its fixed-line broadband access oper- mobile operator’s shareholders together Android operating system from future ations quickly followed; NSN did not raised 15.1 billion zlotys ($4.76 billion) in patent litigation, another topic that domi- disclose the value of any of those deals. cash from the sale of their shares to busi- nated the telecoms space in 2011. Nokia Siemens’ retrenchment was not nessman Zygmunt Solorz-Zak. Google insists that owning one of its the only big news on the vendor side. In In addition, Vodafone agreed to pay customers for the Android platform will June Ericsson detailed its $1.15 billion $5.46 billion to buy India’s Essar Group not hurt its position with rival handset acquisition of Telcordia. The Swedish out of Indian mobile operator Vodafone makers and went to great lengths to vendor pointed out that in addition to Essar. And Vodafone’s 45% stake in demonstrate that its various hardware driving forward its OSS/BSS business, the Verizon Wireless finally paid dividends; partners support the deal. Nonetheless, it integration of the US company would it is due to receive £2.8 billion from the seems unlikely that Google will want to help it to fill gaps in its portfolio. 2,600 US operator in January. make phones in the long run; we could Telcordia staff will transfer to Ericsson More surprising was the announce- see a divestment in the not-too-distant under the deal, including CEO Mark ment in May that Microsoft had agreed to future. In the meantime, the deal is facing Greenquist. pay $8.5 billion for Skype. While Skype regulatory scrutiny; the DoJ and European And finally...Level 3 in April revealed had been tipped as a takeover target for Commission have both requested more that it would pay around $1.9 billion in an some time, Microsoft was not thought to information as part of their respective all-stock deal to acquire Global Crossing. be in the frame. In addition, the price tag antitrust reviews. The two international network operators raised some eyebrows, given Skype’s Returning to patents, the intellectual closed the deal in October, at which point struggles to monetise its business: in 2010 property wars intensified this year, in the the Global Crossing name disappeared the Internet telephony specialist posted a mobile space in particular, where Apple, from the global telecoms landscape. In net loss of $7 million on revenues of $860 , Nokia, Motorola and others September mobile chip maker Broadcom million and its paying customer base did battle over various handset designs agreed to acquire rival NetLogic stood at just 8.8 million. and features. Furthermore, the value that Microsystems in a $3.7 billion deal; Google’s move to take over Motorola telecoms companies now place on owning Alcatel-Lucent received a $1.5 billion Mobility was also unexpected; it agreed patents was exemplified by the sizeable offer for its Genesys call centre services to pay around $12.5 billion in cash in sum Nortel Networks netted for its patent unit from private-equity firm Permira in August. It immediately became apparent portfolio in July. A group comprising October; and in November South Korea’s that the big draw was Motorola’s 17,000- Apple, Microsoft, RIM, EMC, Ericsson SK Telecom said it would pay over US$3 strong patents portfolio, which Google and Sony agreed to pay a whopping $4.5 billion for Hynix Semiconductor. n

December 2011/January 2012 www.totaltele.com 9 TELECOMS 2012

TOTAL TELECOM PREDICTIONS CALLING IT We expect European mobile consolidation, a new owner for Nokia Siemens Networks and an LTE iPhone in 2012. By Total Telecom staff

On the stock market start to go awry and targets will Motorola Mobility's devices BUSINESS & l Facebook will press ahead be pushed back. Local councils business. FINANCE with its IPO, which will value it run the risk of missing the in the region of the $100 billion February deadline to submit l 2012 will be make or break More M&A that observers have been talking proposals for a slice of the £530 for RIM. BlackBerry 10-powered l Nokia Siemens Networks about, and the world will finally million in funds being put up phones will have to uphold RIM’s will be acquired, probably by know how much revenue it by BDUK (Broadband Delivery reputation among enterprise a private equity player. NSN generates, and its monetisation UK). Miscalculations may result users for security and reliability, failed to tempt private equity strategy. in projects being delayed or and also come with enough investment in 2011. However, running over budget. bells and whistles to keep the now it is selling–or managing Intellectual property consumer segment entertained, for value–anything that is not l Patent litigation will be Data centre opportunity and attract app developers. mobile broadband, it will prove less high-profile than in 2011. l Investors flock to the data a more attractive prospect. However, companies will focus centre space as a safe haven in a l Probably not something a more on their intellectual difficult economic climate. Jobs-era Apple would have l Vodafone and Wind Hellas property for revenue-generation. done, but the company will will get the nod to merge in finally unveil an LTE iPhone, Greece, leading more European l Google will be a strong MOBILITY the iPhone 4GS. By the second mobile operators to look at contender to buy patents half of 2012 the addressable LTE in-market consolidation as the company InterDigital, pushing Long-Term Excitement markets in the US, Asia-Pacific, economic crisis further hits up the company’s price. l A flurry of LTE and parts of Europe will be big consumer spending power. However, it will be beaten to the announcements will grab enough to warrant Apple making punch by another technology headlines worldwide. By the end its move. Or not heavyweight or a consortium. of the year we’ll be talking about l AT&T and T-Mobile USA will LTE launches in India and China. l Nokia will launch a Windows- extend the roaming agreement powered tablet in 2012, but not they announced in December NETWORKS l Industry hypesters will quickly until the end of the year, giving into a full network-sharing pact. tire of talking about LTE and Microsoft enough time to get the Meanwhile, Deutsche Telekom No entry move on to speculating about the OS right. will seek a way of exiting the US l Huawei and ZTE will continue arrival of LTE-Advanced. There altogether. Verizon Wireless, in their respective campaigns will be numerous trials of the which spent much of 2011 to enter the US, only to find technology, but little chance of AND FINALLY... buying up spectrum assets, will themselves thwarted by the commercial services before 2013. go back to differentiating on the government on national security l The industry will grow weary quality of its network while its grounds. Both companies will l 3G licensing in Thailand will of the term ‘storm clouds’ rivals get busy integrating theirs. continue to appoint Westerners remain a long-term dream as the being used in headlines for to senior roles as part of ongoing country again fails to meet its articles about the intensifying l Debate over consolidation public image campaigns. deadline of Q1 2012. competition between cloud in India will turn out to be services providers. little more than talk. The Fibre fun Machines rule the world new telecoms policy will not l Although the various l Everyone will (still) be talking l With any luck the term materialise before 2012. Tight parties involved in Australia’s about M2M in 2012. There will “multi-SIM price plan” will enter credit markets and the ongoing national broadband network be more partnerships in the the mobile industry vernacular spectrum scandal will dissuade rollout appear to have reached space as mobile operators admit in 2012. operators from making any big agreement, things will not be they are unsure how to proceed acquisitions. Strong likelihood plain-sailing for NBN Co in 2012. alone. l Apple will get so carried away of an IPO from Vodafone with its litigation spree that it though. l The UK government’s Device developments accidentally sues itself for patent “superfast broadband” plan will l Google will hive off and sell infringement. n

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MOBILE DEVICE DEVELOPMENTS PHONEY WAR Nokia leapt from its burning platform in 2011, while Apple and Android went from strength to strength; non-iPad tablets received a cool reception. By Nick Wood

ompetition between mobile oper- will find greater traction with consumers tumbled to 27.4% from 44.2% as consum- ating systems stretched warfare than with enterprises between now and ers continued to shun Nokia-made Cand racing metaphors to break- 2015, although it sees the popularity of smartphones, while Apple maintained ing point during 2011, as players battled it Microsoft’s platform peaking in 2013 approximately the same market share but out across multiple fronts in order to keep with a 7% share of the consumer segment crucially saw unit sales double on-year. pace with their rivals. before coming under renewed competi- Nokia CEO Stephen Elop wasted no This year was viewed largely as a two- tive pressure. time in identifying where he thought the horse race between Android and iOS, “Our data says app developers can reach company was going wrong, stating during with the former dominating the smart- nearly three times as many users in the a quarterly results call in January, when phone sector in volume terms and the US by targeting BlackBerry apps than he had only been in the job for a few latter consistently topping the hype they would if they targeted Microsoft months, that Nokia must “build, catalyse charts and maintaining a commanding ones,” noted the analyst firm. and/or join a competitor’s ecosystem”. lead in the tablet market while rivals Whatever happens, 2011 will be seen as This was followed by February’s now floundered or launched products that the year when the smartphone war infamous ‘burning platform’ memo, in were coolly received by end users. claimed its first high-profile victim in which Elop compared Nokia to a man Mobile operators have expressed Symbian, and effectively finished off standing on a North Sea oil platform concern that compelling alternatives another in webOS. engulfed in flames, who has to decide have not been forthcoming and conse- Nokia-owned Symbian had been whether to let himself burn or take the quently a duopoly has emerged (see Total languishing since the second half of 2009, risk of jumping into unfamiliar waters. Telecom+ December/January). However, when investors began to ask with more “He decided to jump. It was unexpected. Yankee Group predicted in December urgency when the Finnish handset maker In ordinary circumstances, the man that there will still be room in years to would produce a device that could would never consider plunging into icy come for rival operating systems to find a compete with the iPhone and fend off waters. But these were not ordinary niche (see charts). Android. times,” said Elop. For instance, despite the growing prev- It didn’t happen, and by the first quarter It was not the most subtle indication of alence of bring-your-own-device (BYOD) of this year Android had emerged as the what Nokia was about to do, and three policies opening the corporate door to clear frontrunner in the smartphone days later the former Microsoft executive Android and iOS, the analyst firm expects race, taking a 36% share of global smart- was joined by his old boss Steve Ballmer RIM to maintain a double-digit share of phone sales to end users–representing a to tell the world that Nokia was going to the enterprise market over the next four seven-fold increase in unit sales from a leap from its burning platform, swim for years. year earlier–according to Gartner. the relative safety of Windows Phone–a Yankee also predicts Windows Phone Second-placed Symbian’s market share rescue craft of questionable

Consumer smartphone users Enterprise smartphone users

11.1% 16.0% 46.0% 41.0% 23.0% 4.4% 51.7% 33.1% 3.4% 58.1% 2.4% 6.9% 6.6% 47.6% 0.5% 65.0% 1.3% 7.0% 0.5% 6.8% 0.5% 0.0% 0.5% 0.6% 0.4% 0.4% 0.5% 5.9% 0.8% 35.2% 0.6% 3.4% 3.7% 1.1% 31.8% 0.7% 0.3% 0.8% 3.1% 0.7% 27.3% 0.5% 1.6% 21.4% 1.0% 2.7% 0.7% 0.5% 0.9% 0.5% 13.6% 2.0% 19.5% 22.0% 1.0% 0.5% 8.3% 7.8% 7.2% 16.5% 8.8% 1.0% 12.9% 9.0% 8.0% 12.9% 12.3% 12.5% 12.2% 22.1% 27.1% 30.6% 33.0% 34.6% 12.0% 9.0% 12.1% 14.7% 16.9% 18.8%

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 n Don’t have n Other n Windows Mobile n Symbian n Don’t have n Other n Windows Mobile n Symbian n Palm OS n iPhone n Blackberry n Android Source: Yankee Group n Palm OS n iPhone n Blackberry n Android Source: Yankee Group

12 www.totaltele.com December 2011/January 2012 DEVICE STRATEGIES

seaworthiness–and let Symbian and MeeGo go up in smoke. Key smartphone, tablet launches in 2011 It was a move that has changed Nokia JANUARY Motorola unveils the Xoom, its first tablet forever. Restructuring and massive job FEBRUARY HP shows off its latest webOS devices cuts followed with various divisions Sony Ericsson updates Android-based Xperia range wound up or outsourced, as the company MARCH apple reveals iPad 2 Samsung takes the wraps off its Galaxy Tab 10.1 tablet transformed itself over the course of 2011 APRil BlackBerry PlayBook goes on sale from a waning Finnish phone giant to a Samsung launches Galaxy S2 Windows Phone evangelist infused with MAY Vodafone launches €90 Android phone, built by Huawei a jumbo-sized helping of US culture. It JUne Huawei unveils high-end Android tablet Nokia launches first and only MeeGo phone was evident at September’s Nokia World JULY china’s unveils Windows, Android tablets in London that Elop spent some of 2011 AUGUST RIM launches BlackBerry 7 phones bringing in friends from across the pond SEPTEMBER Amazon unveils its first tablet, the Kindle Fire with low inhibitions and a penchant for OCTOBER apple launches iPhone 4S Motorola resurrects Razr brand with Droid Razr LTE smartphone strong coffee. RIM launches BBX operating system (later renamed BlackBerry 10) It’s too early to say whether Elop has nokia launches Windows-powered Lumia phones rescued Nokia. In November the company NOVEMBER Barnes & Noble launches Nook Tablet said sales of its Windows-powered Lumia DECEMBER ZTE details plans to launch high-end US smartphone in mid-2012. phones are off to a strong start in the UK, but some of the old guard are probably still getting used to the idea of Nokia’s In April RIM’s first tablet, the support, and hardware specification and smartphone future being at least partially BlackBerry PlayBook, finally went on sale design all still have a significant influ- in the hands of Microsoft. in the US. Reviewers disliked its diminu- ence over whether or not a phone sells. tive screen, lack of native email and Even those Android players that have Turbulent times calendar, and the dearth of apps running performed well this year have had to HP attempted to keep the webOS dream on its QNX operating system. Promotions contend with Apple on the legal warpath, alive by unveiling two smartphones and a and price cuts were needed to keep sales filing patent infringement claims and tablet, called the TouchPad, in February. ticking over, and in early December RIM calling for sales bans in markets across However, the devices did not achieve announced it would book a $485 million the world, with varying degrees of anywhere near the penetration needed to charge on its PlayBook inventory. success. Its spat with Samsung was partic- stay relevant with app developers or end Given the furore over October’s ularly bitter; Apple claims its South users. In August, less than two months network failure and criticism from share- Korean rival’s Galaxy Tab “slavishly after it went on sale, HP announced it was holders over its strategy, RIM will likely copies” the iPad’s design. The extent of axing the TouchPad. A subsequent $400 be glad to see the back of 2011 so it can late Apple chairman Steve Jobs’ loathing price cut caused a feeding frenzy, and the focus on giving its upcoming range of for Android became clear in extracts of company responded with one final BlackBerry 10 (known as BBX until a his posthumously-published biography, production run. Somewhat perversely, lawsuit forced RIM to change the name) in which he declared that Android’s exist- research firm NPD Group revealed in smartphones a fighting chance of clawing ence amounts to “grand theft” of Apple’s November that the TouchPad had the back lost market share. intellectual property, and that he was highest share of non-Apple tablet sales in Android may have consolidated its willing to “spend every penny of Apple’s the US during the first 10 months of 2011, position as the most widely-used smart- $40 billion in the bank” to right what he edging out Samsung by a single percent- phone OS in the world in 2011, with saw as a clear wrong. age point. Gartner putting its Q3 market share at The mobile device market was so liti- It was also a turbulent year for Research 52.5%, but Android phone makers have gious in 2011 that Google openly said that In Motion, which has had to weather by no means enjoyed an equal share of bulking up its patent portfolio was the competitive headwinds punctuated by the spoils. primary motivation for its $12.5 billion guidance cuts, a high-profile network Samsung, HTC and Motorola, along acquisition of Motorola Mobility in outage and a lukewarm reception to its with rising Chinese stars Huawei and August. first tablet. RIM’s share of the overall ZTE all enjoyed steady year-on-year Other highlights of the year included handset market has remained flat at growth in quarterly unit sales, while Sony Ericsson selling out of its handset joint around 3%, according to Gartner, while Ericsson and LG experienced the oppo- venture with Sony; Sprint and Verizon its share of the smartphone market is site, proving that riding on the coattails being invited to the iPhone party; and shrinking, falling to 11% in Q3, from of a popular OS is far from a panacea. China’s emergence as the world’s biggest 15.4% a year earlier. Rather, it seems branding, price, operator smartphone market. n

December 2011/January 2012 www.totaltele.com 13 withBreakfast Join in our series of mini-conferences connecting buyers Brwitheakfast and sellers of telecom products and services in a focused, cost-effective and engaged environment.

What we’re talking about in 2012

LTE Opportunities Olympics – A Gold Medal Effort? Breakfast 14 March 2012, 76 Portland Place, London 13 September 2012, 76 Portland Place, London with Spectrum allocation for high speed mobile data services The games are over, so how did communications fair? Was has a massive impact on mobile operators’ business it a gold medal effort, or did telecoms fall at the first hurdle? models. We will look at the current scenario, examine the case studies, and how operators can exploit the revenue M2M Breakfastwith opportunities of new data services. 9 October 2012, 76 Portland Place, London From remote monitoring to healthcare, advertising, and fleet Emerging Markets - Another BRIC in the Wall? management, the scope of M2M is extensive and according 10 April 2012, 76 Portland Place, London to Machina Research will increase 12-fold in the next For operators looking to exploit options outside their decade. We discuss why this is and how mobile operators Breakfast domestic market, BRIC (Brazil, Russia, India and China) are can take their fair share. not the only emerging markets to watch. We will examine with Brthe wihottestthea marketskf and astregions, and how opportunities vary Content – Location Based Services by location. 29 November 2012, 76 Portland Place, London Operators have the relationship with the customer and a Cloud Security multitude of unique data assets. Join us to examine the 3 May 2012, 76 Portland Place, London opportunities surrounding Location Based Services and Cloud has become one of the hottest topics in telecoms, discuss how to monetise the opportunity, rather than it but the biggest concern is security. Hear from leading becoming another part of the content discussionBr where eakfastwith proponents in this area, and discuss with those who are operators are bit-part players. actually addressing the issues. Wholesale Market Update 4 July 2012, 76 Portland Place, London The business is changing from just selling capacity to offering countless services to enable the entire telecoms market. We will bring together leading carriers, emerging players and wholesale thought leaders, to look at what is For more information or to book your happening in this fast moving sector. place contact: [email protected]

www.totaltele.com/breakfast MOBILITY analyst predictions THE WIRELESS FUTURE Some of the industry’s leading mobile analyst companies share their predictions for 2012 and beyond.

l The recession will have an circuit switch fall back (CSFB) controllers for home automation OPERATORS adverse impact on smartphone will inhibit LTE uptake in 2012. products. Meanwhile Facebook and tablet sales, particularly (Northstream) will become the online control Consolidation ahead when it comes to unsubsidised panel for many connected l will trigger devices. A prolonged downturn l Price pressure on mobile homes. (CCS Insight) a wave of consolidation after could have a serious negative infrastructure will ease off as the an ill-fated attempt to acquire impact on sales of dedicated market matures. Nokia Siemens Bubble breaker Deutsche Telekom prompts a e-readers. (Juniper Research) Networks, Alcatel-Lucent l The investment bubble merger between the German and ZTE are under sufficient for consumer-focused social incumbent and France Telecom. l The compatibility of Windows financial pressure that they will networks will burst in 2013 on This will spark a flurry of M&A 8 with both mobile devices and not be prepared to undercut the realisation that opportunities activity as the likes of Telefonica, traditional PCs will create a vast one another in order to win to differentiate in a market where Telecom Italia and Scandinavian ecosystem of products for app market share and peg back players with overlapping features operators scramble for scale. developers to target, driving in leaders Ericsson and Huawei. compete for a finite Divestitures made to satisfy uptick in Microsoft’s OS market (Northstream) have been and gone. (Gartner) regulators will be snapped up by share and spurring a revival at China Mobile. (CCS Insight) Nokia. (Juniper Research) Addressing data usage l Operators will worry less FURTHER AHEAD Show me the money Service split about pricing and instead will l Belt-tightening by consumers l RIM will restructure into focus on finding a vendor 2013... in Western Europe will drive two divisions, one focusing on partner that will help them plan l Android’s share of the mobile operators’ churn rates hardware and another focusing and optimise their networks smartphone OS market will from 2.3% per month to 2.4% by on BlackBerry services and as mobile data consumption fall for the first time in 2013 as the end of 2012, representing an infrastructure. (CCS Insight) continues to rise. (Northstream) licensees look to lower their extra 7 million people switching dependency on the Google- provider. (Yankee Group) Clouds gather owned platform to offer a more l SIMs will disappear into the ENTERTAINMENT balanced portfolio, and tap l Some operators may see data cloud driven by Apple, Google, into consumer interest in other revenues exceed voice revenues and the growing need for over- The pull of video operating systems. In addition, by the end of 2012, as compelling the-air (OTA) subscription l Google will acquire Netflix litigation could drive up the cost data tariffs correct the under- provisioning. (Northstream) by 2013 in a bid to augment of using the Android OS. (CCS charging that has been inherent YouTube’s ad-funded distribution Insight) to the industry in recent years, l Amazon’s success in the model that is focused on short, reverse top-line revenue decline, tablet segment makes it the home-made clips with a richer ...and beyond and offset falling voice and SMS target of several patent lawsuits. content distribution platform. l Mobile application revenues. (Northstream) To defends its position in the (CCS Insight) development projects aimed at connected devices market smartphones and tablets will Amazon is obliged to buy l Video consumption on tablets outnumber native PC projects DEVICES companies with relevant will more than double in the first by a four-to-one ratio by 2015. intellectual property assets. (CCS six months of 2012, driven by (Gartner) New products on the market Insight) the launch of operator-backed l In a bid to counter the TV everywhere services and l By 2016 at least 50% of competitive threat of Apple and authenticated content models enterprise email users will rely Amazon, Google will leverage NETWORKS that include streaming video to primarily on a browser, tablet, or its Motorola Mobility assets and tablets. (Yankee Group) mobile client instead of a desktop develop a cheap Nexus-branded Hardware issues client. Market opportunities tablet that relies on advertising l The lack of carrier-grade Remote controls for mobile device management to offset the subsidised price tag. voice support for LTE networks l Apple iOS products will platform vendors will soar. (CCS Insight) and the subsequent reliance on emerge as the primary hardware (Gartner) n

December 2011/January 2012 www.totaltele.com 15 PEOPLE

EXECUTIVE INS AND OUTS THE FEMALE OF THE SPECIES There were a number of high-profile executive changes in 2011; the women in the in- dustry in particular made their presence felt. By Mary Lennighan

t was good to see the relatively few attributes” from its leader. profile executive changes within the women in high places in the telecoms Whitman initially said she supported industry, some of which we saw coming, Iindustry making their presence felt Apotheker’s controversial strategy, which others we didn’t. in 2011. But while some are squaring up to included a possible PC unit spin-off and January brought an unexpected reshuf- make their mark on the industry in 2012 exploring its options regarding its webOS fle at Google, which moved co-founder and beyond, we may not see much of mobile platform. However, within weeks Larry Page into the CEO seat while Eric others going forward. it became clear that Whitman–the former Schmidt became executive chairman. As “I’ve just been fired over the phone,” CEO of eBay–had plans of her own and in the year progressed, it became clear that erstwhile Yahoo CEO Carol Bartz October she revealed that HP would hang the personnel shift had little bearing on famously declared in September, on to its PC business. “HP and [PC unit] the company’s strategy. announcing her departure from the trou- PSG are better together,” she said. Embattled US mobile operator bled Internet company in her own A decision on the future of webOS is Clearwire announced the resignation of inimitable style. Indeed, Bartz wasted no expected early in the new year. chief executive Bill Morrow in March and time in unleashing her particular brand Meanwhile, Europe’s first lady of tele- named then COO Erik Prusch as its new of fury on the media, remarking to coms Neelie Kroes is continuing where president and CEO in August. Francisco Valim became chief execu- We are proposing a long-term structural tive of Brazil’s Oi in September, a critical time for the telco which unveiled plans to solution to get to the root cause of roaming simplify its ownership structure earlier this year and is working in partnership rip-offs Neelie Kroes, July 2011 with shareholder Portugal Telecom. China’s Huawei boosted its executive Fortune that she was “f***ed over” by the her predecessor Viviane Reding left off workforce in various global markets. In company’s board, potentially putting her by making moves to reshape the EU May it hired Mark Mitchinson as its UK $10 million severance package under roaming market. In mid-2011 she and Ireland vice president as part of its threat in the process. proposed a radical shake-up of the sector bid to establish itself as a consumer- Bartz took the helm at Yahoo in January in a bid to address “roaming rip-offs”. facing brand, and appointed Simon 2009 and won praise during her first 12 Her proposals include the creation of Culmer as its vice president of enterprise months for cost-cutting, a re-focus on dedicated roaming providers to enable for the same market. And in June it display advertising, establishing a part- end users to bypass their regular opera- created a board of directors for its nership with Microsoft and revitalising tor for roaming calls. She aims to have Australian arm as it looks to win a role in the brand. However, the honeymoon did the new rules adopted by June 2012, with the rollout of Australia’s national high- not last and lacklustre results coupled structural changes to have been imple- speed network. NBN Co appointed its with investors demanding to see where mented by 2016; in the meantime, she first COO, Ralph Steffens, in November. growth would come from hammered the proposes a series of retail roaming price Cable & Wireless Worldwide appointed nails firmly in Bartz’ coffin. caps–such as €0.50 per megabyte for former Vodafone executive Gavin Darby Yahoo appointed CFO Timothy Morse data–as a “safety net”. as its new CEO in November to replace to act as interim chief executive and said In addition, industry body the GSMA interim chief exec John Pluthero; previ- it would engage a headhunter to source a named Anne Bouverot as its new director ous CEO Jim Marsh left in June following permanent replacement; as we head into general in August, replacing long-time the company’s third profit warning in 12 2012 Morse is still in the hot seat. CEO Rob Conway; most recently Bouverot months. 2012 will be a demanding year for new served as executive vice president of Elsewhere, Vimpelcom CEO Alexander HP chief executive Meg Whitman, who Orange’s Mobile Services business and Izosimov stepped down in May, to be in September was tasked with the job of represented the French incumbent on the replaced by chairman Jo Lunder; running the company more effectively GSMA’s board. And in the UK, BT named announced that Rupert Pearce will take than her predecessor; Leo Apotheker was Olivia Garfield as the new CEO of its over as its chief executive in 2012; and let go by HP less than a year after he took network arm. France Telecom added the role of chair- on the CEO role, with the board saying it Of course, it wasn’t all about the ladies man to CEO Stephane Richard’s was now looking for “additional in 2011; as always, there were many high- responsibilities. n

16 www.totaltele.com December 2011/January 2012 ADVERTORIAL prime numbers contacts

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the end of 2011, up 15.7% on 2010, the firm predicts, MANAGEMENT SEMICONDUCTOR following growth of 30.5% last year. Routers, carrier Ethernet Rob Chambers [email protected] switches (CES) and optical gear together make up two thirds Publisher +44 (0)20 7608 7077 STATISTICS Greg Hitchen [email protected] Worldwide semiconductor of the carrier Ethernet market, with the CES segment Chief Executive Officer revenue will reach $309 billion showing particularly rapid growth, Infonetics notes. It in 2012, up 2.2% on 2011, calculates that Cisco has a healthy lead in the switches OTHER PUBLICATIONS segment, claiming 45% of the market. Online: www.totaltele.com according to Gartner, which Television: www.totaltele.tv has revised down an earlier growth forecast of 4.6%, carrier ethernet equipment revenue Total Telecom Events citing global economic forces, 45 World Communication Awards inventory correction, manu- www.worldcommsawards.com World Vendor Awards facturing oversupply and www.worldvendorawards.com natural disasters. The analyst Asia Communication Awards firm has cut its prediction for www.terrapinn.com/2011/asia Total Telecom World growth in the PC production www.totaltele.com/world unit segment to 5% from 10.1%, the market having been Total Telecom+ is published by in $US billions hit by both the economy and Global Revenues the hard disk drive shortage resulting from the floods in Thailand earlier in the year. © 2012. All rights reserved. However, it has raised its view 0 2009 2012 2015 Terrapinn Holdings Ltd registered office: on mobile phone production 4th Floor Welken House, 10-11 Charterhouse to 7.5% growth from 7%. Source: Infonetics Research Square, London EC1M 6EH

18 www.totaltele.com December 2011/January 2012