About this weblog

What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Thursday, March 23, 2017

China Mobile Dials Down Capex

In 2016, China Mobile's revenue rose by 6% to 708.4 billion Chinese yuan (103 billion US dollars), as the giant operator expanded its 4G customer base to 535 million connections (up 71%). China Mobile said it plans to cut capex by 6% in 2017 to 176 billion Chinese yuan, as it prepares to reduce 4G investment by 11% and wireline broadband spending by 47%. The operator plans to "adjust network structures centering on data centers [and] reserve resources in advance to support the future development of 5G and IoT."

China Mobile is aiming to add 100 million Internet of Things (IoT) connections in 2017 (on top of the 100 million it already serves), together with 100 million new 4G subscribers and 20 million wireline broadband customers. source: China Mobile presentation

Thursday, March 2, 2017

Deutsche Telekom Sees Sedate 2017

Deutsche Telekom forecast that its revenues will grow between 1% and 2% in 2017, following a rise of 5.6% in 2016 and a 9.4% increase in the fourth quarter of 2016. Although revenue in Germany declined in the fourth quarter by 0.5% to 5.6 billion euros, revenue in the US leapt almost 24% to 10.2 billion US dollars.

The group forecast it will spend 12 billion euros on capex, excluding spectrum, in 2017 compared with 11 billion euros in 2016. It said: "The ongoing increase of customer numbers in the United States and improving results in the German home market continue to be the main driver of revenue and earnings." Source: Deutsche Telekom presentation
YouTube said that consumers worldwide now use the service to watch one billion hours of video per day. That compares with the 100 million hours of video that is consumed via Facebook each day. Source: YouTube blog post

Friday, February 24, 2017

Samsung Offers Largest Smartphone Selection

Infographic: Is Less More in the Smartphone Market? | Statista Source: Statista

Spain and Fibre Lift Orange

Orange reported revenues of 40.92 billion euros in 2016, a 0.6% increase after falling 0.1% in 2015 and 2.5% in 2014 (on a comparable basis). In the 4th quarter of 2016, revenues rose 1% after rising 0.8% in the 3rd quarter and 0.3% in the first half. Stéphane Richard, CEO of Orange Group, said:"Our investments are driving our commercial performance, led by very high speed fixed and mobile broadband and despite a level of competition that is intense and unprecedented, particularly in France. Our fibre customer base grew 75% with 3.3 million customers by the end of 2016 and our 4G customer base in Europe rose 58% with 28 million customers." source: Orange statement

Telefónica Forecasts Flat 2017

Telefónica forecast that its revenues in 2017 will be stable compared with 2016, despite the negative impact from regulation, which it estimates will amount to 1.2 percentage points. It plans to spend 16% of revenue on capex, excluding spectrum, in 2017.

In 2016, Telefónica's revenues increased 1.3% on an organic basis to 52.04 billion euros. In the fourth quarter of 2016, revenues rose by 2.7% on an organic basis. In 2016, organic growth in broadband revenues accelerated to 16.1%, "services over connectivity" grew by 7.7% and voice and access decreased by 7.9%.

Digital services revenues reached 1.28 billion euros in the fourth quarter (+11.1%) and 4.79 billion in 2016 (+14.1%). Video revenues rose 12.4% to 2.8 billion euros in 2016, "driven mainly by the consistent increase in the TV base in Hispanoamerica (+4%) and by the improvement in ARPU in Brazil and Spain associated with the wider adoption of premium content." Source: Telefónica presentation

Monday, February 6, 2017

Telecom Italia Targets Big Capex Cut

Telecom Italia set a target to increase revenues each year over the period between 2017 and 2019, while keeping the capex/revenue ratio at the end of the three-year period below 20%. For 2016, it reported a 2.5% year-on-year organic decline in revenues to 19.04 billion euros and capex of 4.88 billion euros (a capex/revenue ratio of almost 26%).

Revenues for the fourth quarter were up 0.8% year-on-year in organic terms to 5.1 billion euros, reversing a negative trend that had persisted for 18 quarters. Telecom Italia said: "This positive result was driven by the domestic business unit, which grew by 2.7% in organic terms compared with -2.6% in the fourth quarter of 2015. This result was helped by the introduction of innovative offers aimed, for example, at optimising use of the mobile network in off-peak hours and at retaining the customer base by offering new products ("enabling products") that extend the reach of TIM services into adjacent markets."  source: Telecom Italia statement