Viasat Community Internet sites are being set up in parts of eastern Slovakia, in partnership with the nation's Kosice region, to provide internet access to Ukrainian refugees there, Viasat said Thursday. Viasat Community Internet uses connectivity from a Viasat satellite to create a public Wi-Fi hot spot.
Nokia expects “no impact” to its financial outlook from its decision to exit Russia over the Ukraine invasion, said the company Tuesday. It has been clear to Nokia since the “early days” of the Feb. 24 invasion that “continuing our presence in Russia would not be possible,” it said. “Over the last weeks we have suspended deliveries, stopped new business and are moving our limited R&D activities out of Russia. We can now announce we will exit the Russian market.” Western governments, for “humanitarian reasons,” have expressed concerns about “the risk of critical telecommunication network infrastructure in Russia failing,” said Nokia. Governments have also emphasized the importance of “ensuring the continued flow of information and access to the internet which provides outside perspectives to the Russian people,” it said. “The most responsible course of action” for Nokia as it exits the Russian market is to “aim to provide the necessary support to maintain the networks" by applying for "the relevant licenses to enable this support in compliance with current sanctions,” it said. Nokia drew less than 2% of its 2021 net sales from Russia and expects to take a “provision” of 100 million euros ($108.3 million) on its Q1 results from its decision to leave, it said.
Chinese companies Huawei and Lenovo are two of the few global tech companies still doing business in Russia nearly seven weeks into the Ukraine invasion, reported John Strand of Strand Consult Tuesday. “There is a consensus among people and organizations in the free world that the invasion is despicable, and hence there is a desire to end relations with Russia,” he said: “Companies interpret that if they continue to do business in the country, that they will suffer backlash from the public and reputational repercussions in future. Moreover, consumers and shareholders are sophisticated [enough] to understand the power of their money to influence political decisions and behavior.”
Cowen downgraded its forecast on Netflix Q1 net subscriber additions due to the impact of the war in Ukraine. It now expects global paid net additions of 1.45 million subscribers for the quarter, compared with pre-war guidance of 2.55 million, amid the suspension of about a million Russian subscription accounts, wrote analyst John Blackledge in a Tuesday note to investors. “Netflix still holds a wide lead in living room TV, even as TikTok gains mobile video viewing share,” said the analyst. Netflix shares are down 31% since its Q4 earnings report on Jan. 20 reflecting “pressure on shares of companies that fared well during the pandemic,” Blackledge said. Original content volume picked up last year and should drive higher engagement and potentially reduce churn, he said. Cowen’s monthly survey of 2,500 U.S. consumers showed Netflix still holds a “wide lead” in living room TV viewing, while holding “relatively steady” in mobile. On which apps or websites respondents used most often to watch video content on their smartphone, 34% ticked YouTube, down from 42% in Q1 2021, he said. Facebook slipped 5 points to 17%, followed by Netflix with 12%, TikTok at 9% and Instagram 6%. Europe, the Middle East and Africa was the largest contributor to Netflix paid net adds in Q4, said the company Jan. 20. Netflix reports Q1 earnings April 19.
EU and Ukrainian operators will cooperate to keep Ukrainian refugees connected, the European Commission announced Friday. The agreement, brokered by the EC and the European Parliament, was signed by 27 operators (and counting) in the EU and Ukraine, including members of associations such as the European Telecommunications Network Operators Association, the GSM Association and MVNO Europe, the EC said. The initiative aims to create a more stable framework to help displaced Ukrainians in Europe stay in touch with friends and family back home. Operators will voluntarily and bilaterally lower wholesale roaming charges as well as wholesale fees for terminating international calls through commercial agreements. In return, Ukrainian telcos said they will gradually reduce international termination rates for calls to Ukraine originating from EU numbers, and calls to Ukraine from Ukrainian numbers roaming in the EU, toward levels that will allow EU operators to offer reduced wholesale roaming charges and affordable international calls to people calling Ukraine. They also agreed to pass along the full benefits of the lower EU wholesale roaming charges to their customers roaming in Europe.
Six weeks into Russia’s invasion of Ukraine, Acer said Friday it decided to suspend its business in Russia, citing “recent developments.” Acer “strictly adheres to applicable international trade laws and regulations, and is closely monitoring the conflict between Russia and Ukraine,” said the PC vendor. “The company is focusing on the safety of all its employees, which includes ongoing efforts to help every individual and their families impacted by the current situation.” Acer’s preliminary Q1 revenue reached 78.37 billion New Taiwan dollars ($2.7 billion), up 9.5% year over year, for its highest first-quarter revenue in nine years, it said. Acer’s Q1 gaming business revenue grew 25.9% from the year-earlier quarter, it said.
The Senate’s unanimous vote Thursday to “cut off permanent normal trade relations” with Russia and Belarus, combined with a similar vote in the House, “shows our determination to isolate Russia from the global economy and multilateral institutions” amid its invasion of Ukraine, said U.S. Trade Representative Katherine Tai Friday. “Additionally, Congress voted overwhelmingly to ban energy imports from Russia,” which will “complement” the executive order President Joe Biden signed last month “and further restrict Russia’s economy,” she said.
The Ukrainian Congress Committee of America filed another petition asking the FCC to revoke the licenses of stations belonging to Arthur and Yvonne Liu. The two own a Washington-area station that broadcasts the Russian-sponsored news channel Radio Sputnik, WZHF(AM) Columbia Heights, Maryland (see 2203230054). The new petition targets the license renewals of six stations in New York and New Jersey owned by the Lius’ company Multicultural Broadcasting, and contains a testimonial from a New Jersey UCCA member who listens to the stations. The previous filing used much of the same language and contained a testimonial from a D.C. UCCA member. UCCA attorney Arthur Belendiuk, of Smithwick and Belendiuk, told us the new version is necessary because FCC staff told him the petitions had to target an application -- such as a license renewal application -- to be valid. The new filing is “fundamentally identical” to the previous one but addresses the agency’s standing issue, he said. The stations in the petition include WZRC(AM), New York; WHWH(AM), Princeton, New Jersey; and WPAT(AM), Paterson, New Jersey.
Intel is halting “all business operations” in Russia, effective immediately, in protest of the Ukraine invasion, after its March 3 move to suspend shipments to customers in Russia and Belarus, the company said Tuesday. “We are working to support all of our employees through this difficult situation, including our 1,200 employees in Russia,” said Intel. “We have also implemented business continuity measures to minimize disruption to our global operations.”
LCD TV panel prices continue to fall, though the “pace” of the declines “is slowing as prices approach cash costs,” reported Display Supply Chain Consultants Monday. DSCC sees “no sign that prices will hit bottom and rebound,” it said. “The potential for a negative impact on global TV demand from the Russian war in Ukraine combined with high inventory levels suggests continued price pressure in Q2.” As the industry heads into “the slowest selling season of the year in Q2,” the LCD TV panel market “appears to be in a sort of a lull,” said DSCC President Bob O’Brien. Prices have “declined dramatically” from their peaks in mid-2021, but supply “continued to be robust throughout the first quarter and to start the second,” he said. “Prices cannot fall much further before they are below cash costs, but there are no obvious drivers of demand, and demand uncertainty has been heightened by the war in Ukraine.”