South Korea’s largest fixed-line carrier, KT Corp. (KTC), announced third quarter results with reported net income increasing 80% year over year to KRW351.4 billion (US$285 million) or KRW1,497 per share (70 cents per ADS). The annualized growth was driven by gains from wireless and a stronger Korean won versus the US dollar, which helped reduce the cost for foreign currency debt.   Revenues for the quarter increased 3.9% year over year to KRW4.82 triillion (US$1.97 billion), driven by growth in wireless data and subscriber base. However, operating profit declined 11.7% year over year to KRW413.1 billion (US$335 million) due to increase in depreciation and amortisation costs and higher marketing expenses resulting from intense competiion.   KT is battling with its Korean peers SK Telecom (SKM) and LG Dacom to win new customers in a highly matured domestic wireless market, represented by approximately 96% mobile penetration.   ...

Spain’s incumbent telecom carrier Telefonica SA (TEF) has reportedly made an all-cash bid to acquire Brazilian telecom operator GVT Holding SA in an effort to expand its presence in the lucrative Brazilian telecom market. The Spanish operator’s Brazilian fixed-line subsidiary Telecomunicacoes de Sao Paulo (Telesp) has offered BRL48 (US$27.2) per share of GVT to acquire atleast 51% of the company, equating to a total investment of €2.55 billion (US$3.75 billion). This offer, which is subject to regulatory and shareholders approvals, has outbid the BRL42 (US$23.8) per share offer made by France-based media company Vivendi SA in September 2009. Telefonica targets to eventually acquire 100% stake in GVT. Large telecom carriers across the US and Europe are increasingly focused on expanding their foothold in under-penetrated markets given the limited growth prospects in their matured domestic markets. With its vast population and relatively low wireless and broadband penetration, ...

Vodafone (VOD), the largest revenue generating international wireless carrier, has reportedly entered an agreement with BT Group (BT), to develop and upgrade broadband infrastructure and build advance networks in the Republic of Ireland. This represents the latest deal in the long-term strategic alliance between the two companies.  Under the seven-year deal, which is subjected to approvals by the Irish regulators, BT will transfer its consumer and small business broadband and voice customer base and will provide access to its fixed-line network to Vodafone. The aggregate value of the business to be transferred by BT is approximately €4.8 billion ($6.8 billion), covering roughly 84,000 residential customers and 3,000 small business clients.  Currently, Vodafone has 4.6 million fixed broadband subscribers across Europe with Germany being the most significant with 3.1 million customers. With the acquisition of Perlico (a leading fixed-line carrier in Ireland) in November ...