Virgin Mobile Middle East & Africa (VMMEA), is reported to have appointed UBS to conduct a strategic review that could include a sale or IPO.

Sources said UBS had been drafted in to explore options, with several strategic buyers said to be interested in acquiring the company that houses MVNO businesses in Oman, Jordan, Saudi Arabia, Malaysia and South Africa. An IPO is also under consideration to allow the company to expand, following its launch of MVNO services in Saudi Arabia. A decision on the review is expected by Q3 2015, sources said.

VMMEA’s two major shareholders are Gulf Investment Corporation and Virgin Group. Minor shareholders include ePlanet Capital, Dolphin International, NTEC and Millennium Private Equity. The company formed following the strategic partnership of Virgin Mobile South Africa and Dubai-based MVNO Friendi Group in June 2012.

VMMEA also recently raised a US$15 million senior secured facility from Bank of London and the Middle East. At the time the company said the money would help fuel the company’s growth in the GCC region and further cement its position as a leading MVNO, with future roll-outs planned in a number of other countries in the Middle East and Africa.

Qualcomm has reported that its fiscal second quarter performance to March 29, 2015 yielded net earnings of US$1.1 billion, down 45% from US$2 billion a year earlier.

Results for the quarter included a US$975 million charge related to a settlement with Chinese regulators over a probe of Qualcomm under anti-monopoly law.

Qualcomm’s revenues for the quarter were up eight per cent at US$6.9 billion compared with US$6.4 billion in the prior year.

“We are pleased with our second quarter results, with record licensing revenues and earnings driven by all-time high 3G/4G device shipments reported by our licensees,” said CEO Steve Mollenkopf.

Mollenkopf said the company sees robust global demand for 3G/4G devices, including in China.

Qualcomm reported that MSM chip shipments for the quarter reached 233 million, up 24 per cent year-on-year, while total reported device sales came in at US$75.8 billion, up 14 per cent year-on-year, above our prior guidance range.

For the third quarter, the company expects revenues of US$5.4 billion to US$6.2 billion.

For the fiscal full-year 2015, the company lowered its revenue guidance to approximately US$25 billion – US$27 billion, down six per cent to up two per cent year-on-year, versus prior guidance of US$26.3 billion – US$28 billion.

Qualcomm raised its guidance for total reported device sales in fiscal 2015 to approximately US$255 billion to $275 billion, up five per cent to 13 per cent year-on-year, versus prior guidance of approximately US$245 billion – US$270 billion.

Ericsson reports that Q1 network sales in North America fell by 40 per cent year-on-year in US dollar terms, as US operators rein in spending on mobile broadband infrastructure.

Favourable exchange rates helped cushion the fall. Reported Q1 network sales in North America fell by 20 per cent, to SEK5.2 billion (US$600 million), while overall revenue for Ericsson’s networks business segment increased by eight per cent, to SEK26.4 billion.

Take away favourable currency movements, however, and revenue at the business unit declined by nine per cent year-on-year.

Reported operating margin at networks was squeezed from 10 per cent (Q114) to two per cent in Q115.

Reported group sales were up 13 per cent, to SEK53.5 billion, but fell six per cent without the favourable currency movements.

Group operating income fell 19 per cent during Q1, year-on-year, to SEK2.1 billion. Had it not been for restructuring charges, at SEK600 million, operating income would have been flat.

Ericsson primarily attributed the subdued performance to a change in business mix at the networks segment, as well as an increase in operating expenses (mainly driven by increased selling expenses due to negative currency effects and acquisitions).

Although declines in North American network spending was keenly felt, it was partly offset by a “continued fast pace of 4G deployments” in China.

However, coverage projects in China are less profitable for Ericsson than capacity upgrades in North America, which impacts operating income and operating margin (which dropped, year-on-year, from 5.5 per cent to four per cent).

The change in the business mix was also a factor in squeezing gross margins, down from 36.5 per cent (Q114) to 35.4 per cent.

Strains on operating income filtered through to the bottom line. Net income fell 14 per cent, to SEK1.5 billion.

There was better news at Global Services, which, even at constant exchange rates, managed to hold fairly steady on the top line with only a two per cent dip in sales. Reported revenue at the division was up 17 per cent, to SEK23.9 billion, helped by stronger performances from professional services and its network rollout business. Operating income was up 62 per cent, to SEK1.7 billion.

Sales at Support Solutions declined by 11 per cent, at constant exchange rates, although reported revenue was up 11 per cent, to SEK3.1 billion.

Ericsson also said its cost and efficiency programme, launched in November 2015, is “progressing according to plan”.

The ambition is to achieve savings of approximately SEK9 billion with full effect during 2017. As part of the plan, Ericsson announced last month that 2,200 jobs would be cut in Sweden, as well as reducing the number of consultants in its home market by 850.

Google has unveiled its mobile service in the US, partnering with Sprint and T-Mobile on an initiative called Project Fi that claims to be capable of switching seamlessly between Wi-Fi and LTE technology.

The MVNO service will only be available at launch via Google’s own Nexus 6 Android device using a custom designed SIM. There is no official launch date but Google is encouraging people to sign up for the service online.

Initial availability is on a selected basis; once an application has been received Google will respond within 30 days (criteria is based on date of application and network/service access in a user’s hometown). Users can transfer their current personal number over to Project Fi once signed up.

The Nexus 6 phone will switch between Sprint and T-Mobile US networks, depending on which carrier has the strongest 4G signal. When 4G is not available, the phone will drop back to a 3G/2G signal.

The Project Fi website states: “The Nexus 6 works with our unique SIM that lets you access multiple networks and has a state-of-the-art cellular radio tuned to work with different network types.” Google claims its software is optimised “to not put extra strain on your battery by only moving you between networks when absolutely necessary.”

However, Google has not revealed specific technical details on how the service works.

Google claims that Project Fi has access to more than a million free, open Wi-Fi hotspots.

The no-contract service costs US$20 a month for basic subscription (unlimited talk and texts, Wi-Fi tethering, and international coverage in 120+ countries) and then users pay a flat US$10 per GB for 4G data while in the US and abroad. Any unused data is refunded.

Unlimited data plans are not supported. Neither are family plans. International data access is restricted to speeds of 256kb/s without incurring roaming fees.

Zain Saudi Arabia announced a 27 per cent increase in EBITDA to SAR348 million (US$93 million) quarter-on-quarter, with the telco’s EBITDA margin rising to 21 per cent in Q115, up from 17 per cent in the previous quarter.

Revenues were up nine per cent year-on-year to SAR 1.678 billion in Q1, and by six per cent quarter-on-quarter, reflecting a gross margin of 52 per cent.

Improving profitability reduced Zain Saudi’s net loss for the quarter by 19 per cent year-on-year to SAR 257 million, and 16 per cent quarter-on-quarter.

Mobile broadband customer numbers increased by 135 per cent during the quarter.