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AT&T shops up a storm

The company bought Atlantic Tele-Network's US retail wireless operations and various licences from Verizon Wireless.

Paul Booth
By Paul Booth
Johannesburg, 28 Jan 2013

The international ICT market was quiet, with the main stories being some major acquisitions by AT&T and Cisco's sell-off of its Linksys unit.

At home it was also quiet, with the Department of Communications' announcement regarding its DG being the main story.

Key local news of the past week

* Positive trading updates from AdaptIT and Pinnacle Technology.
* The Department of Communications' DG, Rosey Sekese, has been placed on "special leave", with Gift Buthelezi acting in her position until 15 February.
* The Softline Group, bought out by the Sage Group (UK) 10 years ago, will become known as Sage from 4 February.
* A renewed JSE cautionary by FoneWorx.

Key African news

* Orascom Telecom acquired Wind Mobile (Canada).
* France Telecom made an additional investment in Orange Kenya, following its purchase of Alcazar Capital's stake, which now gives it a 60% share in the East African operator.
* LIBTELCO (Liberia) has launched its first fibre-optic cable.
* Libercell (Liberia) has been sold in order to pay off its debt to the Liberian government.
* Essam Gawish was appointed MEA business development manager of Nello, a tower manufacturer.

Key international news

* Amazon acquired Ivona, a text-to-speech software company.
* American Movil bought CIE's media and advertisement division (Mexico), for $131 million.
* AT&T purchased Atlantic Tele-Network's US operations, operated under the Alltel brand, for $780 million.
* AT&T acquired wireless airwaves and spectrum licences from Verizon Wireless for $1.9 billion.
* Belkin bought Cisco's Linksys, its home networking business.
* Cisco purchased Intucell, an Israeli software maker, for $475 million.
* Ericsson acquired the Devoteam Telecom & Media operations in France.
* Iron Mountain bought records management assets from Datastore and Technology Services.
* Yahoo purchased Snip.it, a social news start-up.
* BlackRock, the world's largest asset management company, made an $80 million investment in Twitter.
* Samsung invested in Fixmo, a Canadian mobile security software vendor.
* A US trade panel, the International Trade Commission, which specialises in patent disputes, will review a potentially key decision in the patent fight between Samsung and Apple over smartphones and tablets.
* Atari has filed for Chapter 11 bankruptcy protection.
* Excellent quarterly results from Cirrus Logic and Western Digital.
* Good quarterly numbers from LSI (back in the black), Micros Systems, Open Text, Samsung Electronics and VeriSign.
* Satisfactory quarterly results from Apple, Check Point Software Technologies, F5 Networks, Google, Molex, Motorola Solutions and Symantec.
* Mediocre quarterly results from Altera, CA Technologies, Flextronics, Nokia (but back in the black), SanDisk, Texas Instruments and Xerox.
* Mixed quarterly figures from Avnet, with revenue up but profit down; IBM, with revenue down but profit up; Informatica, with revenue up but profit down; Juniper Networks, with revenue up but profit down; KLA-Tencor, with revenue up but profit down; Lam Research, with revenue up but profit down; Maxim Integrated Products, with revenue up but profit down; Microsoft, with revenue up but profit down; Netflix, with revenue up but profit down; Reliance Communications, with revenue up but profit down; SAP, with revenue up but profit down; and Saudi Telecom, with revenue up but profit down after a write-down on its investments in Cell C and Airtel.
* Very poor quarterly figures from Celestica and Polycom.
* Quarterly losses from Acer, AMD, AT&T, Diebold, LG Display, Logitech, Rambus, RF Micro Devices, Teradyne and Verizon Communications.
* The appointments of Robert Lento as CEO of Limelight Networks; Thomas Volk as CEO of Lumesse; Dan Schulman as chairman of Symantec; and Henry Wallace as executive chairman of Diebold.
* The resignation of Tom Swidarski, president and CEO of Diebold.

Look out for

* International:
* Further developments regarding the privatisation of Dell, which has now attracted investment interest from Microsoft.
* Africa:
* The move by Tencent into Africa with its mobile messaging system.
* South Africa:
* The set-up of a call centre in Cape Town by Serco, a UK-based firm that has significant BPO capabilities, with more than 100 centres across 11 countries.

Research results and predictions

Look out for the set-up of a call centre in Cape Town by Serco.

* Samsung surpassed Apple as the top semiconductor customer in 2012, according to Gartner.
* The smartphone market grew 1.9% in Q4 2012, with Samsung displacing Apple as the number one vendor, and Huawei, Sony and ZTE filling the number three to five slots, according to IDC.
* Africa eLearning revenue will reach $512.7 million by 2016, 50% up on the $250.9 million figure for 2011, according to a new Ambient Insight report.
* Africa is the world's second fastest growing economy, after expanding 5% a year for the past two years, according to output from the WEF meeting in Davos.

Stock market changes

* JSE All share index: Up 0.9% (highest-ever weekend close)
* Nasdaq: Up 0.5%
* Top SA share movements: AdaptIT (+16.9%), ConvergeNet Holdings (-16.7%), EOH (+8.1%), FoneWorx (+10.3%), Labat Africa (-16.7%), MiX Telematics (+33.3%), Sekunjalo (+8.9%), Silverbridge (-46.2%), Stella Vista (-33.3%) and TCS (-50%)

Final word

Gartner's Executive Program Survey of more than 2 000 CIOs shows digital technologies are top priorities in 2013. It was conducted in Q4 of 2012 and included 2 053 CIOs, representing more than $230 billion in CIO IT budgets and covering 36 industries in 41 countries.

The survey showed CIO IT budgets have been flat to negative ever since the dot-com bust of 2002. For 2013, CIO IT budgets are projected to be slightly down, with a weighted global average decline of 0.5%. EMEA is the only region to show a slight growth of 0.4% in 2013.

Top 10 CIO business and technology priorities in 2013:

Top 10 business priorities

Ranking

Top 10 technology priorities

Ranking

Increasing enterprise growth

1

Analytics and BI

1

Delivering operational results

2

Mobile technologies

2

Reducing enterprise costs

3

Cloud computing

3

Attracting and retaining new customers

4

Collaboration technologies (workflow)

4

Improving IT applications and infrastructure

5

Legacy modernisation

5

Creating new products and services (innovation)

6

IT management

6

Improving efficiency

7

CRM

7

Attracting and retaining the workforce

8

Virtualisation

8

Implementing analytics and big data

9

Security

9

Expanding into new markets and geographies

10

ERP applications

10

Source: Gartner Executive Programs (January 2013)

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