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  • iPhone Sales: T-Mobile Hits 120,000; Russia May Sell 3.5 Million In Two Years

    Two separate reports released today confirmed that the iPhone is selling well despite initial activation problems, and that Apple ( NSDQ: AAPL ) believes that it will continue to sell well after launching in various countries. -- T-Mobile International said it has sold more than 120,000 iPhone 3G devices since it went on sale July 11, Reuters reported . CEO Hamid Akhavan told German weekly magazine Focus that delivery problems and activation problems will be cleared by the end of the month, and despite those issues, "Our expectations were surpassed." In Germany alone, the carrier sold 75,000 iPhones. To put that in some context, Apple said the official number of iPhones sold in the first weekend totaled 1 million. -- Apple expects to sell 3.5 million iPhones in Russia over the next two years, according to Reuters , who quoted market sources familiar with the deal being struck between Apple and Russian carriers. The estimates may be based on the 600,000-or-so iPhones that have flooded the black market in Russia through unauthorized channels. An official deal will likely be signed with Mobile TeleSystems, Russia's largest carrier, with sales probably starting in October. Other carriers Vimpelcom and MegFon are also talking to Apple, Reuters said. Eldar Murtazin, an analyst with Moscow-based Mobile Research Group, said based on conversations he's had, he expects "total sales by the Big Three carriers will amount to 3.5 million iPhones within the next two years." Social Media Deals Report: This 199-page report, filled with charts and data, examines the categories, number and size of VC and M&A deal in social media from 2007 through 2008. Visit the ContentNext Reports page
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  • Earnings: Deutsche Telekom Profits Down 35 Percent; T-Mob USA Revenue Up

    Deutsche Telekom's second quarter profit dropped 35 percent to 394 million euros ($608.2 million) from 604 million euros ($934 million) a year ago. The company blamed the strong euro and higher interest costs for the decline. Net revenue was down 2.9 percent to 15.13 billion euros ($23.39 billion). The company's mobile unit T-Mobile, meanwhile, reported revenue of 8.68 billion euros ($13.43 billion), holding stable from 8.65 billion ($13.37 billion) a year ago. Core profit, or adjusted EBITDA, was up 3.4 percent to 2.84 billion euros ($4.39 billion), up from 2.75 billion euros ($4.25 billion) year-on-year. Earnings Highlights: T-Mobile USA: — US operation is "continuing to demonstrate robust development of operations", though the weak US dollar dragged down revenues. Counted in euros, revenue in the first half of 2008 fell 0.8 percent to 6.96 billion euros ($10.76 billion). In dollars, revenue jumped 14.3 percent. Total revenues rose to $5.47 billion from $4.78 billion in the prior-year quarter. — T-Mobile USA added 668,000 net subscribers in Q2, with 525,000 being the more valuable contract customers. Still the figure was a 22.1 percent drop from 857,000 year-n-year compared to last year, which the network blamed on customers failing to renew their two-year fixed term contract contracts that were imposed on new customers in April 2006 for the first time. During Q2, the network added more than one million MyFaves customers, giving it a total of 6.5 million using the service. T-Mobile USA now has a total base of 31.5 million customers. — ARPU was $51, down slightly from $52 a year ago. Data ARPU including messaging--17 percent of total ARPU--came in at $8.60 in Q2, up slightly from $8.50 sequentially. More T-Mob Territories after the jump. Release | PDF Presentation | Financial Charts in PDF | Conference Call T-Mobile UK: — Total revenue dropped 13.8 percent in Q2 to 1.02 billion euros ($1.57 billion) compared with the same period in 2007. Measured in...
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  • Toshiba's Mobile TV Subsidiary Mobile Broadcasting Corporation Shutting Down

    Toshiba mobile TV subsidiary Mobile Broadcasting Corporation is shutting down, after failing to attract enough interest, the company said Thursday. "The number of subscribers has not reached a sufficient level to sustain operations and, following a thorough review of operations, the company has decided to cease broadcasting," it said in a statement. MBC's digital satellite mobile TV service Moba-Ho! began broadcasting in October 2004, and had some 40 channels of audio, video and data information programming. The service will shut down at the end of March 2009, with Toshiba expected to take a 25 billion yen ($232 million) hit on MBC's closure. So what happened to MBC's Moba-Ho? The likely story is that Japan's other mobile TV technology, the very popular digital terrestrial mobile TV service One-seg helped kill it off. In an interview in 2005, Mobile Broadcasting Co. President Tetsuya Mizoguchi said that he wasn't concerned with terrestrial digital mobile TV, since the focus was different. One-seg offers local broadcasts for free, while Moba-Ho! had its own special line up of content. But One-Seg has proven very popular--especially after handset manufacturers began building recording functions into phones that allowed Japanese consumers to record and watch programs whenever they wanted. In February, One-Seg hit the 20 million-handset mark less than two years after its launch. This week hasn't been the best for mobile TV services—at least paying ones. MBC's news follows just days after German press reports that the country's DVB-H mobile TV service Mobile 3.0 is on the verge of shutting down . German operators after losing out on the DVB-H license to Mobile 3.0 have brought the service it seems to a halt, after deciding to support a competing technology—the "free" DVB-T, or digital terrestrial mobile TV technology. ( Release ). Related Operators Kill DVB-H In Germany Shipments of Japan's Mobile TV Enabled Handsets...
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  • Toshiba's Mobile TV Subsidary Mobile Broadcasting Corporation Shutting Down

    Toshiba mobile TV subsidiary Mobile Broadcasting Corporation is shutting down, after failing to attract enough interest, the company said Thursday. "The number of subscribers has not reached a sufficient level to sustain operations and, following a thorough review of operations, the company has decided to cease broadcasting," it said in a statement. MBC's digital satellite mobile TV service Moba-Ho! began broadcasting in October 2004, and had some 40 channels of audio, video and data information programming. The service will shut down at the end of March 2009, with Toshiba expected to take a 25 billion yen ($232 million) hit on MBC's closure. So what happened to MBC's Moba-Ho? The likely story is that Japan's other mobile TV technology, the very popular digital terrestrial mobile TV service One-seg helped kill it off. In an interview in 2005, Mobile Broadcasting Co. President Tetsuya Mizoguchi said that he wasn't concerned with terrestrial digital mobile TV, since the focus was different. One-seg offers local broadcasts for free, while Moba-Ho! had its own special line up of content. But One-Seg has proven very popular--especially after handset manufacturers began building recording functions into phones that allowed Japanese consumers to record and watch programs whenever they wanted. In February, One-Seg hit the 20 million-handset mark less than two years after its launch. This week hasn't been the best for mobile TV services—at least paying ones. MBC's news follows just days after German press reports that the country's DVB-H mobile TV service Mobile 3.0 is on the verge of shutting down . German operators after losing out on the DVB-H license to Mobile 3.0 have brought the service it seems to a halt, after deciding to support a competing technology—the "free" DVB-T, or digital terrestrial mobile TV technology. ( Release ). Related Operators Kill DVB-H In Germany Shipments of Japan's Mobile TV Enabled Handsets...
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  • Operators Kill DVB-H In Germany

    The companies behind Mobile 3.0, publishing houses Burda and Holtzbrinck together with South African media company Naspers, are reportedly about to end their plans to launch a DVB-H network in Germany. The consortium won the license to provide the service in January this year and started test transmissions on June 1, with 9 TV channels and 3 radio stations. However, after the carriers failed to win the mobile TV license they were apparently reluctant to carry handsets supporting the DVB-H network, and decided to release handsets which receive DVB-T transmissions free of charge—which naturally put a dent into Mobile 3.0's plans of a 5-10 euro subscription model, reports Rapid TV News quoting German newspaper Bild. The big issue now is how the companies will exit without losing face, who will pick up the several million euro bill of investment to date, and what will happen to the license. This isn't really surprising… back in May Vodafone ( NYSE: VOD ) said that it wouldn't be selling any handset with a mobile TV service customers would have to pay for, because there was the risk they would spend less on other services. The lesson seems to be that if you want to offer a mobile service, you need to have the carriers on side (did that really need to be taught?). In this case, the third-party mobile TV provider model doesn't seem to have worked… Although it isn't doing too bad in Italy and the US. The key is making the benefit to the operators very clear, most easily through a slice of the revenue. Related Vodafone Germany Head Questions Pay Mobile TV Model; Cites DVB-T European DVB-H: Mobile 3.0 Wins German License; Orange Bids In France Can "Free" DVB-T Drive Mobile TV Uptake? Social Media Deals Report: This 199-page report, filled with charts and data, examines the categories, number and size of VC and M&A deal in social media from 2007 through 2008. Visit the ContentNext Reports page
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  • Vodafone Germany Head Questions Pay Mobile TV Model; Cites DVB-T

    More evidence that DVB-T, the technology that allows handsets to receive regular terrestrial TV signals, may have European operators rethinking their mobile TV business models. According to Forbes , picking up an interview in the Financial Times Deutschland, V odafone Germany CEO Fritz Joussen has questioned the "viability" of offering pay TV on their handsets following the "surprise" entry of DVB-T handsets into the German mobile market. Vodafone ( NYSE: VOD ) lost out last fall on a DVB-H mobile TV license, which it applied for along with Deutsche Telekom's T-Mobile and Telefonica's O2. The l icense was awarded instead to Mobile 3.0 , a JV between German Mobile TV wholesaler MFD and publishing firm Neva Media. The mobile operator said it will now concentrate on generating revenue by selling add-on services around mobile TV. For instance, it could sell a video clip or song aired on mobile TV. Jouseen was emphatic, however, that Vodafone wouldn't be "supporting" any mobile TV offering if it meant that subscribers would have to pay for it —thereby running the "risk" they'd spend less on other services. The operator plans to sell DVB-T phones, as does T-Mobile. What does this mean for DVB-H, the beloved technology of the EC? Mobile 3.0 is slated to launch a DVB-H mobile TV service in Germany on June 1, and to date, there's no mention of price. Across Europe, however, DVB-H mobile TV services are typically priced around 15 euros a month. But with both Vodafone and T-Mobile throwing its weight and support behind DVB-T, it will be tough going for Mobile 3.0 and DVB-H—especially if Vodafone will only accept free TV for its customers. Related Can "Free" DVB-T Drive Mobile TV Uptake? Register for our EconAds seminar , June 3rd, at the New World Stages in New York City. Covering the economics of online advertising.
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  • Arun Sarin To Step Down As Vodafone CEO; Colao To Be Replacement: Reports

    Arun Sarin, who defined Vodafone ( NYSE: VOD ) as the big global telecom conglomerate in his five years as CEO, is going to step down in JUly and will be replaced by Vittorio Colao, who is presently Sarin's number two and has responsibility for the company's European operations, reports Telegraph . The exact timing of Sarin's departure, along with record headline full-year profits of about £13 billion will be announced on Tuesday, the story said. The timing of his departure comes as a surprise, if only because he was almost ousted two years ago in a board battle, but has since managed to steady the ship, with his focus on building Vodafone's presence in emerging markets including India. Sarin is expected to move into private equity world. Times UK : As well as success in emerging markets, Sarin has also seen revenues rise thanks to data. Last year revenues from this area—the downloading of music clips, e-mailing and so on—surged nearly 50 per cent in the first half to £1 billion. Data revenues now account for 7.3 per cent of the group's total Western European revenues. Register for our EconAds seminar , June 3rd, at the New World Stages in New York City. Covering the economics of online advertising.
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  • T-Mobile Expects To Remain Exclusive Carrier Of iPhone In Germany

    In the last few weeks, Apple ( NSDQ: AAPL ) has been striking iPhone deals with carriers around the world, with the handsets to be sold on a non-exclusive basis in several countries. But T-Mobile Chief Executive Hamid Akhavan said today that he expected the wireless operator to continue being the phone's exclusive distributor in Germany, r eports Reuters . Akhavan told the Reuters Technology, Media and Telecoms Summit in Paris that he also expected that it would be the sole carrier of the upcoming 3G iPhone. Deutsche Telecom sells the iPhone in Austria, but last week Orange announced it too would carry the device there. France Telecom's Orange has also said its exclusive agreement with Apple will run another two and a half years. Looking for a job? Looking for a new hire? ContentNext's job boards match the latest industry opportunities to the right people.
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  • Earnings: Telefonica Profits Rise 22 Percent Boosted By Latin American Units

    Spanish telecoms group Telefonica ( NYSE: TEF ) reported a first quarter 22 percent rise in profits, boosted by its Latin American mobile phone units. Net income rose to 1.54 billion euros from 1.26 billion euros a year ago. Latin American sales climbed 10 percent to 5.16 billion euros, while revenues in Spain were up 1.9 percent to 5.1 billion euros. Telefonica Europe, which includes operations in the UK, Ireland, Germany and the Czech Republic, meanwhile, fell 1.7 percent to 3.47 billion euros. The company met analyst expectations, which put the company's revenues at 1.56 billion. In Europe, Telefonica saw non-SMS data (mobile web and the operator's portal services) use climb, with net additions in O2 UK being driven in part by the iPhone. Additional Highlights: — O2 UK added 21,152 mobile customers in the quarter, bringing its total subscriber base to 18.4 million, a growth of 3.7 percent year-on-year. A total of 206,385 net contract customers were added in the quarter, boosted in part by the iPhone . O2 UK's total ARPU was 31.1 euros, 5.5 percent higher than the first quarter last year if counted in pound sterling. — O2 UK data ARPU came in at 10.7 euros, 9.6 percent higher counted in pounds than the first quarter last year, boosted by test messaging, as well as a surge in mobile web use and O2 Active services. Revenues for mobile web and O2 Active use were up 55.7 percent year-on-year, counted in pounds. — O2 Germany added 535,994 customers, taking the mobile customer base to 13.0 million, an increase of 16.3 percent from last year. ARPU in the quarter was down 17.7 euros, 13.4 percent lower than the same quarter last year, which the operator blamed on a changing customer base, and the introduction of new tariffs and promotions, market competition and the termination rate cut of approximately 10 percent in 2007. (Deutsche Telecom called it "fierce price wars" in their Q1 earnings.) -- O2 Germany data revenues were also down. Data ARPU was 4...
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  • Earnings: Deutsche Telekom First Quarter Stable; T-Mobile Hit By Currency Declines

    German telecoms giant Deutsche Telekom ( NYSE: DT ) reported stable first-quarter results with adjusted earnings before interest, taxes, depreciation and amortization of 4.7 billion euros ($7.28 billion), virtually unchanged from the same period a year ago. Net revenue was down slightly by 3.1 percent to 15 billion euros, hit by the customers leaving their broadband and fixed line businesses, and the appreciation of the euro against the US dollar and pound sterling. Still, the results were in line with analyst expectations, and the company said it expects to hit its forecast for 2008 of an adjusted EBITDA of approximately EUR 19.3 billion and free cash flow of some EUR 6.6 billion. Highlights From the Earnings: — DT's mobile unit, T-Mobile scooped up 13.9 million customers in the quarter, with 3.4 million of them coming from its acquisition of Orange Nederland and the US network SunCom. Its total worldwide subscriber base stands at 123 million. — In Germany, T-Mobile Deutschland reported a 3.4 percent decline in revenue to 1.9 billion euros, and adjusted EBITDA fell 1.1 percent to 692 million euros. DT, which reported its subscriber base in Germany was up 12.3 percent to 37.1 million blamed the falling revenue on "fierce price wars." But new calling plans—including MyFaves and Max have begun generating "strong demand," while DT said new flat rate data plans for both cell phones and mobile broadband and its cooperation with Yahoo! ( NSDQ: YHOO ), which powers the search on its wen'n'walk portal has improved its "competitiveness" in the mobile web. — T-Mobile USA saw revenues hurt by the declining dollar . Revenue dipped slightly year-on-year by 0.2 percent to 3.5 billion euros, while adjusted EBITDA rose 3.3 percent to EUR 966 million. When measured in US dollars, however, revenue increased by 14.1 percent, and adjusted EBITDA was up 18 percent. DT attributed the growth to stable ARPU rates and "strong" customer growth...
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  • Can "Free" DVB-T Drive Mobile TV Uptake?

    Is mobile TV gaining momentum or isn't it? In recent weeks, both Nokia ( NYSE: NOK ) and Qualcomm have said the service isn't getting the take up it had expected, with the Finnish handset maker dramatically declaring it was " a bit in a turmoil ." According to an IHT feature on the subject, however, it's got respectable traction in Europe and Asia. In Switzerland, 40,000 people watch a 100-second news broadcast on their mobiles each day through Swisscom's service costing 13 Swiss francs ($12.50) a month. In Italy, some 1 million people subscribe to mobile TV services from its three operators, paying up to 19 euros ($30) a month. Research firm In-Stat says Japan and South Korea lead in uptake. They, however, measure uptake according to how many devices come with TV receivers—20 million in Japan, and 8.2 million in South Korea. By comparison, In-Stat estimates that US carrier Verizon ( NYSE: VZ ), which has offered mobile TV services via Qualcomm's MediaFlo for a year now, has fewer than 100,000 paying viewers. European uptake could be higher as well, but is apparently being hindered by the lack of available broadcast spectrum. While the European Commission has endorsed the DVB-H standard for mobile video, the lack of spectrum is driving some European operators to turn to a different standard called DVB-T, with the T standing for terrestrial. The technology, however, lets users bypass network control of mobile TV, meaning they don't pay a penny for it. Some operators, however, are considering the trade-off—free terrestrial TV services for a bigger audience. In Germany, T-Mobile failed to secure a DVB-H license and now plans instead on selling DVB-T mobile phone, while Vodafone ( NYSE: VOD ) is also thinking of selling DVB-T devices. The question is of course, whether "free" can drive viewership and how revenues will be wrung from such services. Related AT&T's MediaFlo Mobile TV Service To Launch Next Week; Pricing Will...
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  • Deutsche Telekom Looking To Buy Sprint?

    Will Sprint ( NYSE: S ) Nextel find a buyer to get it out of its troubles? So says Der Spiegel ( via Reuters ), the German magazine: Deutsche Telekom ( NYSE: DT ), owner of T-Mobile USA here, is looking at possibly buying the third largest wireless carrier in U.S. As this point, it is being mulled over within DT, the story says, and no decision has been made. Previously analysts have speculated on such a move by DT, and another rumor said that Sprint may sell off Nextel and had hired Morgan Stanley for it.
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