TeliaSonera counts cost of International Carrier business

Nordic telecoms giant TeliaSonera has conceded defeat in its quest to build its own European IP infrastructure network through its International Carrier subsidiary, and says it plans to take a USD510 million writedown on the unit in the fourth-quarter, and in turn expects to post lower than previously forecast profits. In the late 1990s the Sweden-based operator invested heavily in building out an IP network covering northern and eastern Europe under former CEO Marianne Nivert, but despite several attempts to restructure the ailing enterprise, it now admits it has failed to deliver consistent, sustainable profits – largely as a result of the global collapse in demand for new capacity.