The telecom industry is constantly faced with many factors that could significantly alter the current makeup of the sector. Considering the seemingly perpetual state of change the telecom market appears to be in, industry members should stay on top of recent develops to better prepare for the future. Here's what's happening in the telecom capital market this week:
Facebook acquisition targets telecom industry
Facebook's competition has traditionally been viewed as fellow tech giants such as Google or Apple. However, the social media company's latest acquisition appears to suggest that it is setting its sights on the telecom sector. Since Facebook recently acquired the texting app WhatsApp for $19 billion, the company plans to add phone calls to the application's service menu.
WhatsApp already offers unlimited text messages and voicemails for its users, but Facebook's leaders are reportedly interested in expanding its services to cover phone calls as well. This would place WhatsApp and Facebook in a position to directly compete with mobile carriers. According to CNN, the SMS features offered by WhatsApp has made it a popular product in developing countries such as India and Brazil, where standard data plans are less common among mobile users.
Astellia acquires Ingenia Telecom
French telecom Astellia recently announced that it plans to acquire Ingenia Telecom and its assets to bolster its own offerings. Ingenia Telecom has quickly distinguished itself in the Spanish and Latin American markets for its services focused on optimizing wireless mobile networks. With the addition of these capabilities, Astellia officials believe they can build out their network solutions to provide comprehensive B2B offerings.
Observers raise concerns regarding China Telecom value
As the third largest wireless carrier in China, China Telecom has often been a secure investment for those looking to take advantage of the country's burgeoning mobile market. However, the company has experienced an increase in competition in recent weeks, fostering concerns that its position in the Chinese telecom landscape is not as safe as it once was. According to Trefis, China Telecom saw the number of its 3G subscriber additions drop significantly in January. The organization added approximately 30,000 new 3G customers that month, compared with around 730,000 in December 2013.
Those figures may not bode well for a company that has placed a distant third in China's wireless marketplace. It has yet to make a significant impact on the nation's 4G market, allowing China Mobile to take the reins. According to Trefis analysts, the more disconcerting news is that China Telecom is losing current subscribers to its larger competitors. Although the company has been able to carve out a place for itself through its superior technology, that gap is rapidly shrinking. Trefis analysts suggested that China Telecom place more focus on its 3G offerings while taking steps to enhance the end user experience to stem the tide of subscription defectors.
Oracle gains big data capabilities with recent acquisition
Oracle recently moved to expand the range of its cloud-based offerings when it announced the acquisition of BlueKai. BlueKai's Data Management Platform offers a central hub for businesses to manage their incoming data streams and mine that information. By pairing DMP with its existing marketing platform, Oracle can offer its clientele a more effective cloud management package that takes advantage of the latest big data technology.
