Tag: telecoms

Canadian Government Takes Steps to Open Telecom Industry

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Canada has had a monopolistic telecom industry for as long as I can remember, but it seems Parliament is finally taking steps to improve the situation. In the prebudget Throne Speech yesterday, the government said it would open Canada’s borders to greater foreign investment and make the industry more palatable to mergers and acquisitions.
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Nortel reports $3.4 billion loss, cuts 1,300 jobs

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Woo boy, I guess I was a little more right than I thought about more bad economic news; this time it hits a little closer to home.

¬≠Canadian telecommunications equipment manufacturer Nortel Networks has posted a loss of US$3.4 billion in Q3 2008, it’s largest loss in the past seven years. Revenue was down 14% year over year to US$2.32 billion and 1% year-to-date.

Commenting on the market dynamics, Nortel President and Chief Executive Officer Mike Zafirovski said: “In September, we signaled our view that a slowdown in the market was taking place. In the weeks since, we have seen worsening economic conditions, together with extreme volatility in the financial, foreign exchange and credit markets globally, further impacting the industry, Nortel and its customers. We are therefore taking further decisive actions in an environment of decreased visibility and customer spending levels.”

Nortel also announced plans to cut a further 1,300 jobs, on top of a previous round of cuts of 1,200 staff. About a quarter of the job cuts will occur this year, with the rest in 2009. None of the remaining staff will receive pay rises in 2009, unless already agreed. The cost savings are expected to reduce annual gross costs by approximately US$400 million in 2009.

|via CN|

EU wants to open up 900 MHz beyond GSM

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GavelInteresting news coming straight out of Brussels today via Cellular-News. They’re reporting that the European Commission will has proposed abolishing a 1987 rule which limits the use of the low frequency/cost 900 MHz spectrum to GSM services. Since 1987, European Union rules have set aside the frequencies between 900 MHz and 1800 MHz exclusively for GSM phones, which helped the E.U. roll out mobile phone services cheaply and quickly.

If the commission is successful, telecoms will be able to use the cheaper spectrum for services like video, data streaming and broadband Internet, estimating that the move would cut the costs of maintaining wireless mobile networks by 40% for the industry.

Obviously no word yet on if those savings would be passed onto the consumer (unlikely), but BBCool will keep you informed. The commission expects the measure to be passed into law by the end of the year. What do you think, folks: good move or bad for our friends in Europe?