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Belgacom plans to cut down on acquisition finances (Belgium)

  • November 20th, 2008
  • 12:16 pm

Belgacom, the Belgian mobile operator, has plans to cut down on the amount of $5.1 billion-$6.3 billion for potential acquisitions amid scarce credit due to the global financial crunches. No financial plans have been revealed following the announcement but the operator has confirmed it is still mulling possible targets.
   

Azercell adds Belgium telco to the list of international MMS partners (Azerbaijan)

  • November 20th, 2008
  • 8:40 am

Azercell is on spree of increasing the number of international MMS roaming partners and Belgium Mobile Telecommunication Company of Belgium to the list of international MMS partner.
Azercell which kickstarted the MMS roaming service in Azerbaijan in April 2007 now provides service in 34 countries with 38 mobile communication operators and uptil today it has concluded GPRS/MMS contracts with 158 operators from 68 countries.
But possibilities of MMS service differ from GPRS/MMS service. A subscriber abroad can exchange MMS only with Azercell subscribers and using GPRS through the GPRS/MMS roaming service, which has been in use up to now. But International MMS roaming service offers a possibility to Azercell’s subscribers to exchange MMS not only within the network, but also with the subscribers of the operator, with which the contract has been signed.

   

Blyk plans expansion, targets 200 brands (UK)

  • November 19th, 2008
  • 10:46 am

Blyk (Mobile Service Provider) is making a move to expand its operations. It has raised EUR 40 million for this move. Blyk is active in UK and planning to launch in the Netherlands and Belgium. Blyk said it has seen strong demand from the advertising industry to expand its service to other markets. They are focussing on youth market, offers free calls and texts for viewing advertising messages on mobile phones. The company reaches to the mark of 200, 000 subscribers in the first year of its operations in UK and claiming an average response rate to the ads of over 25%. With 180 brands using the advertising service, Blyk said it’s on track to hit its goal of 200 brands using the service by year-end. No financial details have been provided on the source of new investments.

Mobistar reports 10% rise in its subscriber base, 3Q revenues drop (Belgium)

  • October 23rd, 2008
  • 6:04 am

Mobistar reported its financial results for the third quarter. In this quarter the performance is quite stronger than expected. The cellco posts a slight rise in EBITDA which is EUR150.4 million, up from EUR148.7 million for the same period last year, with the operator noting that EBITDA margin had remained stable due to cost efficiency, regardless of what it termed ‘an environment of increasing costs.’ This year revenues slipped from EUR71.2 million to EUR70.4 million, with Mobistar attributing the drop to the decrease in mobile termination rates in May and July 2008, alongside lower fees for roaming.
However, Mobistar posted 10% rise in its subscriber base over the twelve months to 30 September 2008 to 3.75 million. The operator further stated that it had invested EUR109.1 million in its network during the first nine months of 2008, as they are planning to launch its 3G/HSDPA covering 85% of the population by the end of 2008.

Mobistar targets the youth market, pays to view advertisements (Belgium)

  • September 24th, 2008
  • 1:34 pm

Mobistar Belgium, as following the trend will target the youth market. The Belgian operator introduces a new offer wherein it will offer cash for viewing advertisement. In partnership with Belgian start-up Pumbby launches the service for Mobistar TempoMusic subscribers. According to a survey by the operator nearly 50% of young people are willing to view advertisement in exchange of cash benefits. The subscribers can choose the kind of ads they wish to view regarding which they will receive SMS with links to advertising messages. If they view the ad, Pumbby credits them EUR 0.44.
Pumbby will send a maximum 10 messages per day. Mobistar contract subscribers can use the service if they sign up for an Orange World plan at EUR 6 per month. When they sign up via Orange World they can look at several ads in one session. Through the Pumbby portal, subscribers can swap their credits for TempoMusic top-up cards, cinema tickets, DVDs and CDs, books or a cash transfer to their bank account. The new service comes ahead of the launch of Blyk on the Belgian market, expected next year. Blyk offers free voice and SMS credit in exchange for viewing ads.

   

Belgacom may go for wholesale market consolidation (Belgium)

  • September 24th, 2008
  • 10:38 am

In the whole sale sector Belgacom International Carrier Services (ICS) calls for a reduction in the number of players. According to Daniel Kurgan, CEO of Belgacom ICS, Economically there is a need for consolidation in this business. It should be the objective of every carrier to create the best platform they can and drive volumes while keeping their cost base as flat as possible, he said. Considering the scenario of the market, as the market remains crowded, prices will continue to decline, even though the rising number of new services coming to market this implies that the business of providing wholesale services is becoming more intricate. To help wholesale carriers streamline their costs and stave off a growing price war across the industry consolodation is needed. He also claimed that most operators subsidise their wholesale voice operations with their retail divisions. This model is not sustainable in the long term, he said. There are some obsatcles to this consolidation:
Lack of Transparency in the business

Non-Economic Barriers
Kurgan mentioned the importance of implementing clear governance and decision-making processes following a merger in order to meet the needs of customers and therfore reponding apidly to rivals and to other market forces. I believe that consolidation is the future. It will generate value for shareholders, better services for customers, and will position carriers to take advantage of possible synergies during future rounds of consolidation, Kurgan added.

Belgacom considers an investment of USD7.23 billion in developing countries (Belgium)

  • September 23rd, 2008
  • 5:29 am

Belgacom, according to Chief Executive Officer, is thinking of an investment of upto USD7.23 billion in foreign assets. The CEO, Didier Bellens, will consider the investment in developing countries, diverging from it’s former strategy of smaller European acquisitions in recent years. ‘We may go further than just Europe for mobile companies, but prices were very, very high. The prices have adjusted dramatically, and I believe there is growth in these countries’, said Bellens.
   

Groupe Sude Presse - Base to instigate mobile service in 2009 (Belgium)

  • September 8th, 2008
  • 9:54 am

Belgian newspaper publisher Groupe Sud Presse and mobile operator Base are in a partnership to instigate their own mobile brand as of 2009. This new service will help the publisher to further its strategy of making available local and regional information to the public at large across different media platforms at any time of the day, said Didier Hamann, Sud Presse Group’s Director General. Its mobile offering will be available both in the form of prepaid cards and regular subscriptions. This will also include the full range of services on offer from BASE.

Proximus to lose it’s market share to Base - 2008-2010 forecast (Belgium)

  • August 14th, 2008
  • 8:16 am

Belgium’s mobile market has three main operators Proximus, Mobistar and Base and around 7 MVNOs. The incumbent’s Proximus unit controls just less than half of the market, and remains the only operator to have launched 3G services. The mobile market has room to grow both in terms of penetration and technology.
Notable highlights of the Belgium Mobile Forecast include:

  • The wireless penetration level of Belgium is gradually increasing, and it will reach 106,4% in 2010. The number of total subscribers will increase from the projected 10.78 million in 2008 to 10.53 million in 2010.
  • A significant drop in the market share for Proximus is forecasted. It’s current projected mobile market share (by subscribers) of 42.5% will drop to 41.2% in 2010. It is believed that most of the drop in market share will be taken up by Base.
  • Based on Q1.08 data, the ARPU forecasts are reversing. According to the forecast, Proximus and Mobistar will continue to receive similar ARPUs over the next three years. It will be US$46.43 per month for Proximus and US$47.72 per month for Mobistar in 2010.
  • Proximus will continue to enjoy the highest EBITDA margins in the Belgium operator space in 2010 at 47.3%.

   

Telenet raises the target for 2008 (Belgium)

  • August 7th, 2008
  • 6:24 am

Telenet ( Belgian triple-play provider), proclaimed its financial results for the three months ended 30 June 2008, reports 11% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to $191.9 million. The operator shows net profits at EUR55.8 million.  Telenet shows good growth in all its core product lines which was an very essential factor in the results. By the end of the june, 2008, the operator has added around 181,000 customers.