VimpelCom has reported a near collapse in its first quarter profits as revenues also declined by a tenth.

The company posted revenues down by 10 per cent at a shade over US$5 billion, while net profit collapsed, down by 90 per cent to just US$39 million.

The decrease in net profit was primarily the result of the decline in operational performance, as well as foreign exchange losses of US$92 million. A higher rate of tax in some countries also impacted on the net profit figure.

The revenue decline was mainly due to operational performance in Russia, the intense price competition in Italy particularly through the summer of 2013, regulatory and governmental actions in the Africa and Asia, together with unstable macro-economic situations in Pakistan and Ukraine.

EBITDA decreased organically six per cent year-on-year to US$2.1 billion, reflecting the decline in revenue and higher infrastructure and distribution costs in Russia.

Capex increased 24 per cent to US$736 million in Q114, reflecting the continued investments in high-speed data networks, including the roll out of LTE networks in Russia, 3G networks in Algeria and Bangladesh, and continued investments in Italy in HSPA+ and LTE.

The Group’s total customer base grew by three per cent to the end of the period at 218 million subscribers.

Cell C has outlined plans to invest ZAR2.3 billion (US$223 million) this year as it sees a rising subscriber base.

The company’s customer base has risen by 22 per cent over the past year, reaching 16.6 million at the end of April.

Cell C, which is majority owned by Dubai-based Oger Telecom, said that it will add 300 more base stations, expand its fibre-optic network and carry out general network upgrades.

Cell C also said it was close to agreeing to a US$125 million financing deal with investors.

Econet Wireless is reporting that WhatsApp usage now accounts for nearly a quarter of its entire mobile data traffic.

In February the telco launched an unlimited WhatsApp bundle, using Sandvine’s Usage Management solution. The bundle includes various plans – US$0.30 daily, US$0.95 per week and US$3 a month – to offer bite-sized Internet plans priced to meet the needs of the market demographic.

WhatsApp now accounts for more than 23 per cent of network activity.

KDDI is reportedly close to signing a deal that would see it take over the management of the state owned telecom network in Myanmar.

Myanmar recently granted mobile licences to Ooredoo and Telenor, bringing competition to the underserved market, where the state-owned telco was largely a tool of the military and politicians.

Citing government officials, local media reported that KDDI is expected to sign a deal by the end of the month to take over the management of Myanmar Posts and Telecommunications (MPT).

Other bidders to run MPT included Orange and SingTel, although they were dropped from the bidding.

MTN South Sudan has switched on the first of 161 base stations that it has been deploying across the newly independent country.

The switch-on is part of a US$76 million network upgrade project that MTN is undertaking after it split the network away from the main service in the rest of Sudan.

A further 160 base stations will be deployed this year, and that is in addition to upgrades and the existing 147 towers, which are having 3G coverage added to them.

MTN is working with ZTE to modernise its existing network to make the cellco the largest in South Sudan by the end of the year.

The company cited the difficulties in deploying towers in rural areas with a lack of necessary infrastructure or power supplies. They are also required to pay for equipment in US dollars, which is proving difficult to raise in the local currency.

MTN South Sudan was only recently formally granted an operator licence.