TeliaSonera, the dominant carrier in Sweden and Finland, saw its profits slip as mobile sales continued to slow. Sales for the carrier’s main mobile unit decreased by 3.5% to $3.64 billion. Net income fell 4% to $600 million in line with analyst estimates.
“Our markets continue to be characterized by a changing customer behavior and an evolving convergence trend,” CEO Johan Dennelind said in a statement. “We stay focused on upgrading our customers’ Internet experience through further investments in 4G and fiber.” Deenelind also pointed out that in Sweden the company’s 4G coverage is approaching 90% of the population. The goal is to reach 99% by the end of this year.
However, slow growth in the TeliaSonera’s main Nordic markets has led it to expand elsewhere, including in Turkey, Russia and Eastern Europe. Its activities in one of those countries, Uzbekistan, has brought the carrier under investigation by Swedish, Dutch and U.S. authorities over alleged corruption related to its purchase of a 3G license there. The scandal led TeliaSonera to replace most of its leadership, including its CEO last December.
More telecom news from Europe:
América Móvil expected to finalize Telekom Austria deal this week. An agreement to give joint ownership of Telekom Austria to América Móvil and the Austrian government could be reached as early as April 23, according to Reuters. Mexican billionaire Carlos Slim, who owns América Móvil , has said he will invest $2.07 billion in the company if the deal goes through.
French treasury chief may become Orange’s CFO, sources say. The potential move of Ramon Fernandez from the treasury to Orange highlights the French government’s continued strong role in the carrier, which developed out of the state-controlled France Telecom. The French government currently owns 27% of Orange.
Hacking from Eastern Europe grows. According to a Verizon’s Data Breach Investigations Report, 21% of security breaches were suspected to have come from Eastern European countries. The most breaches 49% could be traced to residents of China and East Asian nations.
Former Greek partner sues Vodafone for $1.85 billion. Athanasios Papistas, a Greek businessman, has issued three writs seeking damages after the U.K.-based telecom after it pulled out of a retail franchise deal.
