Eircom looks at outsourcing operations in bid to cut costs

Eircom is looking at outsourcing its transport and logistics operations in the latest measure to drive down costs at the telecoms firm where sales are slumping.

Releasing first-quarter results yesterday, Eircom said its revenue in the three months to the end of September fell 9pc to €323m, while earnings before interest, tax, depreciation and amortisation (EBITDA) slipped 1pc to €119m.

In the first quarter of the last financial year, revenue fell 7pc and EBITDA declined 10pc year-on-year.

Eircom has been slashing its workforce and aims to reduce it by 2,000 by next summer. About 800 have already left and, of another batch of 830, a chunk will leave by the end of December.

The telco said that its operating costs fell 13pc to €204m in the latest quarter.

Speaking to the Irish Independent, chief financial officer Richard Moat said the company was keeping every part of its cost base under review but EBITDA had continued to stabilise.

He confirmed that part of that review included possible outsourcing of the company's transport and logistics function.

Eircom underwent the largest examinership process ever in Ireland last year. Senior lenders took control of the business under a deal that saw the telco's debts slashed from about €4bn to €2.3bn.

US private equity group Blackstone was one of those that took a hit on its investment in Eircom under that deal. However, the group has since boosted its stake in Eircom to slightly under 25pc. A debt-equity agreement, which meant post-examinership that any investor taking an equity position in Eircom had to also assume debt, ends next year. That will make it easier for other investors to buy stakes in Eircom.

In Eircom's fixed-line arm, revenue fell 10pc in the first quarter to €249m and EBITDA declined 6pc to €111m.

Mr Moat said Eircom's fixed-line business was shouldering the bulk of revenue declines.

NETWORK

Eircom is spending over €400m rolling out a high-speed fibre network, while it has also launched a 4G mobile network and a pay TV service.

The company's chief executive, Herb Hribar, said that those new services would start to have an impact on revenue. He said there had been a "really good" response to the new 4G network, while Eircom had also been investing heavily in trying to attract higher-spending postpay mobile customers. The company owns the Meteor mobile brand.

Mr Moat said the planned takeover of O2 Ireland by 3 wouldn't receive regulatory approval until next spring and would probably take between 12-18 months after that to bed in. He said that gave Eircom "some runway yet" to secure more mobile customers.

Revenue at Eircom's mobile division fell 5pc in the quarter but its EBITDA rose to €8m from €2m in the first quarter last year.

source: http://www.independent.ie/business/irish/eircom-looks-at-outsourcing-operations-in-bid-to-cut-costs-29796929.html

YTL CEO Wing Lee bets on 4G in Malaysia

There's probably no single, simple path. But in the case of YTL Communications in Malaysia, the answer combines aggressive construction of a 4G network, a government boost for new network operators, and a business that embraces the services that many carriers don't like.

That's according to Chief Executive Wing Lee, who sat down to talk with CNET News' Stephen Shankland during a visit to Europe. Lee, who previously worked for 15 years at Sprint and Clearwire, was named CEO of YTL Communications in 2009. He expects the company to become profitable a year and a half from now.

An entrepreneur wanting build a developed country's next Vodafone or Verizon might not be able to take the same route: YTL can attract customers to its wireless service because Malaysia's fixed-line broadband options -- cable, phone, and fiber-optic lines -- aren't as widespread as in many countries.

YTL got its start building its network along highways outside Malaysia's major cities, but the company got an unusual opportunity: a contract to supply Malaysia's 10,000 schools not just with network access but also with a countrywide online education system for students and teachers. YTL brought Google in as a partner, and now it's the largest deployment of Google Chromebooks, Lee said. Lee is a fan of 4G, which he's lived and breathed for years. YTL and his former employer, Clearwire, embraced the WiMax network standard that mostly proved commercially unsuccessful, but YTL soon will begin installing LTE technology, too.

But Lee believes there's a 4G honeymoon period that will come to end as consumers encounter its shortcomings. To hear his thoughts, read this edited transcript of the interview.

Malaysia has a fairly progressive education blueprint that calls for the transformation of learning to prepare the next generation for the workforce. Toward that end, we dived into this private-public partnership with the government. 1BestariNet is a project that's a part of this blueprint. Its focus first and foremost is to deliver Internet to all public schools in Malaysia. There are 10,000 public schools. Malaysia has a population of 28 million, so some of the schools are quite small -- 40 or 50 people in small villages -- to 2,000-plus people in big cities. The total enrollment is about 5 million students. Delivering connectivity to the school is just a starting point. We just happened to have this 4G network, which gave us a tremendous advantage when it comes to deployment speed. The alternative would take years to complete. That's why we can deliver broadband to over 85 percent of the schools in 18 months' time. We target to complete all 10,000 schools by the end of this year.

source: http://news.cnet.com/8301-1035_3-57611479-94/ytl-ceo-wing-lee-bets-on-4g-in-malaysia-q-a/

Optus has begun a trial of a 4G based home wireless broadband product. It takes advantage of the company’s key technological differentiator – 4G TDD.

Optus is leveraging its new TDD (time division duplex) 4G network to provide a new wireless broadband products for home and small business customers.

It has not released the product as yet, but has given a clear indication that it intends to do so with the announcement of a major trial in the homes of its employees.

Optus says its Home Wireless Broadband product is designed to provide an “easy, hassle free and flexible option for customers who may not want, or who are unable to receive, a fixed broadband service.”

There is no need for an existing phone line, installation technician or complicated set-up procedure, says Optus. “Customers will simply need an Optus Home Wireless Broadband device to start receiving quality broadband.” It will use the Optus 4G Plus network, initially only in Sydney, Melbourne, Adelaide and Brisbane. If successful, it will be released across all Optus 4G Plus areas.

The trial will involve up to 200 Optus staff, who need to volunteer and register with the company. Martin Mercer of Optus said the trial will be used to test and learn how wireless broadband technology can “deliver a more consistent day-to-day experience and expand the home broadband options available to its customers.”

Telstra has a much larger 4G network than Optus, but does not offer a similar product – its 4G broadband is limited to mobile dongles, and it does not offer TDD.

source: http://www.itwire.com/your-it-news/home-it/62343-optus-to-trial-wireless-broadband-on-4g