Shares in Alcatel-Lucent took a dive after the telecoms vendor reported its first quarter 2010 financial results, showing that despite a small recovery in the previous quarter, it has once again slid back into the red with a net loss of €515 million (US$665 million). This is 28 per cent more than the €402 million loss reported in Q109 and a steep plunge from the €46 million profit posted in the fourth quarter of last year.

CEO Ben Verwaayen said the company is currently experiencing a strong increase in demand for key technologies such as IP, terrestrial optics and WCDMA/LTE, however a shortage of components in its supply chain negatively affected its sales.

“We were not able to fully satisfy customer demand for our products due to tightening components availability. This resulted in a weak financial performance this quarter, which does not reflect the overall underlying momentum within the company,” Verwaayen contended.

“We are encouraged by the continued progress in cost management highlighted by the year-over-year increase of 110 basis points in gross margin and continued decrease in operating expenses. This will continue throughout the year,” he added.

First quarter revenues declined 9.8 per cent year-on-year and 18.1 per cent sequentially to €3.247 billion. The company reported revenues of €3.598 billion in Q109 and €3.967 in billion in Q409.

Geographically by region, North American revenues remained stable with an increase of 0.1 per cent. However revenues for Europe, Asia Pacific and rest of world declined by 8.3, 18.2 and 22.3 per cent respectively.

The Palestinian Telecommunications Company (Paltel) has announced a first quarter 2010 net profit increase of 20.77 per cent to reach US$32.66 million, up from US$27.05 million a year earlier.

Revenues also experienced growth rising by almost 10 per cent to reach US$113.06 million. Revenues from its mobile, media and data services units increased by 15.65, 43.95 and 0.76 per cent respectively.

Paltel added that its mobile subsidiary Jawwal passed the two million subscriber milestone during the quarter.

Based on the quarterly results, the company plans to continue improving commercial opportunities and optimising operations, by focusing on the company’s core business, relying on outsourcing for non-core services.

CEO of Paltel Group, Ammar Aker, said that the financial results are the best proof of the company’s decision to re-focus on core services and he is confident in the group’s ability to continue its strong performance into the next quarter.

In a bid to make an aggressive competitive entrance on the Omani fixed line market and grab market share away from incumbent Omantel, Nawras has committed OMR 150 million (US$390 million) in investment in its fixed line services to expand infrastructure across the sultanate and acquire the necessary manpower resources.

Nawras plans to launch its fixed line services including an international gateway during the second half of this year. Fixed broadband will be available to more than 54 per cent of the population at launch, with coverage expected to increase to 81 per cent by the middle of next year. The operator is building WiMAX base stations in addition to laying 5,000 kilometres of fibre optic cable.

According to figures provided by the Telecommunications Regulatory Authority of Oman, there remains plenty of growth potential in the Omani market with very low levels of fixed line and Internet penetration currently. There were 267,317 fixed line subscriptions as of December 2009, representing a penetration rate of 9.3 per cent, while Internet subscribers reached 78,135, a penetration rate of a mere 2.7 per cent.

Egypt’s market regulator has given Orascom Telecom one week to provide further information on the settlement agreed with co-owner France Telecom (FT), which ends their long-running dispute concerning joint venture Mobinil. The Egyptian Financial Supervisory Authority wants clarification on how the two firms came to determine FT paying Orascom a US$300 million settlement fee, and the price for Orascom’s put option.

Additionally, the regulator has requested further details on how the transaction will affect management structure, voting rights and how earning will be accounted, while minority shareholders have the same timeframe to express their views on the matter. If Orascom does not respond in time, it could meet sanctions imposed by the regulator.

Orascom and FT have been embroiled in legal action over the ownership of a holding company that owns 51 per cent of the Egyptian Company for Mobile Services (ECMS), which trades as Mobinil, Egypt’s largest mobile operator by subscribers. Orascom has a 20 per cent stake in ECMS. FT had wanted to purchase the remaining ECMS shares at EGP 245 (US$43.70) each, but the block was upheld by an Egyptian court last month.

The put option, to sell ECMS share to FT only, will be valid from September 15 to November 15 in 2012 and 2013 and will increase in value from EGP 221.70 at the signing, to EGP 248.50 pounds at end-2013 for ECMS shares.

France Telecom’s Orange and Investec, the Tunisian unit of privately-held Mabrouk group, today announced the launch of Orange Tunisia.

Orange Tunisia will offer mobile, fixed and Internet services in Tunisia as of May 5.

The company plans to invest around €500 million to launch operations and develop Tunisia’s first 3G network, France Telecom said in a statement.

France Telecom holds 49 per cent of Orange Tunisia. The French telco and its local partner Divona Telecom, which is owned by Investec, last year were awarded a fixed and mobile licence in Tunisia.

Orange Tunisia will employ 1,500 people by the end of the year and its offers will be sold in nine shops and 400 distribution outlets, France Telecom said.

Prior to the licensing of Orange, Tunisia was served by the state-backed Tunisie Telecom, which held a monopoly in the fixed-line market, as well as offering mobile services. The second mobile operator and market leader by a slight margin was Tunisiana, controlled by Egypt’s Orascom Telecom.