BlackBerry narrows fiscal Q2 losses to US$207 million

BlackBerry narrowed its quarterly loss to US$207 million, compared with a prior year loss of US$965 million, on revenue of US$916 million, down from US$1.57 billion a year earlier.

The revenue split was 46 per cent hardware, 46 per cent services, and eight per cent software and other revenue.

During the fiscal second quarter to August 30, some 2.1 million BlackBerry smartphones shipped, although a slightly greater number – 2.4 million – were sold to end customers, reducing the amount of BlackBerry inventory held in the channel.

The company said that its EZ Pass Program, offering no-cost upgrades to BlackBerry Enterprise Service 10 with a subsequent free upgrade to BES 12, has resulted in a total of 3.4 million BES10 licences issued, a “nearly three-fold” increase from the prior quarter.

With BlackBerry’s renewed focus on the enterprise space, the fact that 25 per cent of licences traded-in for the EZ Pass Program came from competitive mobile device management platforms is encouraging.

Its BBM messaging platform now has 91 million active users, up from 85 million in the prior quarter.

The results came in a week which also saw BlackBerry unveil its flagship Passport smartphone – a device intended to reinvigorate its performance in the high-end enterprise market.

The period also saw BlackBerry restructuring to create its BlackBerry Technology Solutions unit, and announcing its acquisition of Secusmart.

Total cash and investments at August 30 amounted to US$3.1 billion.

Millicom pushes for US$9 billion annual sales by 2017

Millicom, the telecom group with mobile operations in Africa and Latin America, repeated its goal of generating US$9 billion in sales by 2017 – spurred on by digital growth – which is a dramatic hike from the US$5.2 billion turnover posted in 2013.

The group is counting on increased sales of mobile data, broadband, pay-TV and mobile banking as it continues its transformation into a “digital lifestyle company”.

In a performance update the company highlighted that overall revenue (in local currency) is growing at an annual rate of nine per cent. Mobile is moving forwards by six per cent, cable 16 per cent, and mobile financial services up by 41 per cent.

The company says 23 per cent of its users now use mobile data services compared with 17 per cent a year ago.

“We began to convert the company into a digital lifestyle provider last year and now, with talented global and local teams, we are committed to the rapid implementation of this plan,” said Hans-Holger Albrecht, Millicom’s chief executive. “Millicom’s growth and transformation is well on track.”

A projected EBITDA margin of 35 per cent in 2017, however, is slightly lower than previously expected. “The lower EBITDA margin businesses are growing a bit faster than anticipated,” said Albrecht, referencing cable and digital services.

Coinciding with its performance update, Millicom unveiled two new digital music initiatives in Africa. One is Tigo Music, which is set to launch across Millicom’s African operations, starting in Ghana, in Q4. Bundled as part of prepaid data plans, the service will offer unlimited music streaming with instant access to a library of more than 30 million songs.

The other initiative is Africa Music Rights (AMR), a new venture in partnership with Africori (an online music licensing platform) to fund, acquire and manage music rights.

Key areas for AMR growth, according to the report, include South Africa, Nigeria, and Kenya, as well as Millicom’s six Tigo markets.

Microsoft to lay off 2,100 staff members as part of wider 18,000 cull

Microsoft is to cut 2,100 jobs, including roles in Silicon Valley and Seattle, as part of a wider plan to cut 18,000 roles across the company.

Satya Nadella, Microsoft’s CEO, announced in July that the company planned to reduce its workforce by around 14 per cent over the course of the next year.

The move was intended to “simplify its organisation and align the recently acquired Nokia Devices & Services business with the company’s overall strategy”.

Around 13,000 employees were reportedly made redundant in July, largely impacting the Nokia handset business Microsoft acquired in April.

The latest cuts mean that 2,900 jobs are still to go in the next nine months in order to reach the 18,000 target.

Microsoft has around 127,000 employees around the world and will take a charge of between US$1.1 billion and US$1.6 billion for costs related to the cuts.

It is understood that in the current round Microsoft will cut 160 roles in California and another 750 in the Seattle area. The remainder of the job losses will be spread across different countries and teams, according to a Microsoft representative.

The latest wave of job cuts will see 50 jobs go at the Microsoft Research lab in Silicon Valley, which is also set to close.

A Microsoft representative said Microsoft’s research in the US will be consolidated to work at the company’s main campus in Redmond, Washington, as well as offices in New York and Boston.

Huawei claims plump MTN Group managed services deal

Huawei reports it has been awarded a five-year managed services contract with MTN Group.

Under the terms of this contract, Huawei will provide managed services for MTN Group in six countries in which the group operates, including Ghana, Cameroon, Guinea and Benin, and cover a range of services such as managed network operations, network performance management and spare parts management.

In the next five years, Huawei will continue to operate, optimise, transform and improve MTN’s operations and services with Huawei’s Managed Services Unified Platform (MSUP) and support from its global expertise in MAI (Measure, Analyse, Improve), to ensure greater efficiency and business value can be achieved at MTN.

Financial terms were not disclosed.

Makook Smart Living enters alliance with Prodea Systems

Makook Smart Living, a Dubai Internet City-based telecommunications, media and technology company, announced today its strategic partnership with Prodea Systems, a US-based technology innovator that has developed the first-of-its-kind technical platform to power a seamless connected life for consumers.

The agreement will enable Makook Smart Living to introduce an exciting new service, based on Prodea Systems’ powerful Residential Operating System (ROS). ROS is a managed service delivery platform that enables connectivity and services between people, data and devices in a fashion never before available. Through ROS, service providers around the globe are able to broaden their offerings by delivering enhanced services to homes and businesses.

The service in the UAE and wider MENA region will be known as Makook, and will deliver an integration of online media content such as blockbuster movies, combined with networking and remote control solutions such as energy efficiency, home automation and personal media libraries.

The Makook service will simplify and automate connectivity between people, their homes and their communities, personalising the way individuals experience entertainment, access their personal media content, and remotely control and access their living environments.

Makook Smart Living has negotiated an exclusive agreement to develop and deploy the ROS platform and services in 19 markets across the MENA region, and the company is currently engaged in a number of active discussions with the view to securing country and channel partnerships in the GCC.

To start, Makook is going to focus on entertainment, automation, security, and networked personal data storage, but has plans to introduce state-of-the-art applications such as energy efficiency, e-Education and e-Health.

Makook Smart Living intends to commercialise the Makook service in the UAE in the fourth quarter of 2014, before looking to penetrate further markets within the region thereafter. The service in the UAE will be offered directly to consumers online and later in sales kiosks. This will essentially serve as an example of a self-standing and fully-featured Makook offering that can be replicated, all or in part, in any other MENA market.