Feeds

mmO2 preps market for 3G writedowns

Big Red

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

mm02's financial PR bunnies are softening up the press in advance of Wednesday's results in which the UK-owned network operator is expected to declare a massive loss.

Stories in the Sunday Times, FT and The Guardian all say that mmm02 will write down, the majority of its £9bn investment in 3G licences (to be precise, former parent BT footed the bill). At the same time, the company will take a massive hit on its lossmaking Dutch operation, valued in the books at £1.4bn, but sold last month for €25m. The twin write down will see mm02's asset value reduced by between £6bn and £9bn, according to which newspaper you read. Currently, mmO2's asset value is £18bn.

mmO2's 3G writedown is to be welcomed. It will be interesting to see if Vodafone, T-Mobile and Orange get realistic too.

Vodafone maybe could take the pain, but T-Mobile parent Deutsche Telekom and Orange parent France Telecom have battered enough balance sheets as it is without this additional headache. ®

Related story

mmO2 sells Dutch ops for peanuts

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.