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RCOM offers $500million for GSM 3G network tender (India)

August 5th, 2008
1:58 pm

Reliance Communication (RCOM) is offering $500 million tender for the rollout of its GSM 3G network. Primarily, tender will cover 15 million lines. Also cover the supply of hardware components and servicing of the 3G network. RCOM is operating its GSM services in 8 circles and holds licences for the other fourteen circles, the operator’s 3G infrastructure is expected to be overlaid on these 2G networks. Vendors like Huawei, ZTE, Alcatel-Lucent, Nokia Siemens Networks and Ericsson are in talks with RCOM.

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Mobile, India, 3G, GSM, Huawei, ZTE, Alcatel-Lucent, RCom, Nokia Siemens Networks
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Mobile Handset factories to be established in Venezuela

August 1st, 2008
11:03 am

The Government and the companies ZTE and Huawei are in collaboration to set up two new factories that will make mobile handsets in Venezuela. It is expected that the factories will be ready between the end of 2009 and 2010. First factory will be in the state of Falcon while the second will be at the headquarters of Cantv and could later be moved to Paraguana or even to Cuba. In dveloping the Mobile telephony technologies, countries like China, Japan, Morocco and Sweden will be helping Venezuela.

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Airtel with Huawei for handset bundle offer (India)

July 31st, 2008
2:31 pm

Bharti Airtel joins with Huawei to come up with Handset bundle offer. Huawei’s T156 handset along with Airtel Lifetime connection will be for Rs. 1199. “This innovative offering is a great value for money proposition for our customers in the Delhi & NCR region and we are confident that this will help us consolidate our leadership position in Delhi”, said Shashi Arora, CEO.

This is available with 2 year warranty. With the follwing features in a handset:

speakerphone
alarm clock
calculator
call vibrator

Wireless Mobile Telecom Wireless News

THE WRAP: 3G iPhone launches in Germany and UK

July 11th, 2008
1:26 pm

As the 3G iPhone launches in Germany and the UK today, comScore M:Metrics reports that more than 80% of iPhone users in France, Germany and the UK browse the mobile web, compared to 32% of other smartphone users.

Even on 2.5G networks, the iPhone has increased internet consumption by 13 times for social networking sites: 42% of iPhone users visited a social networking site on their device in May compared to the market average of 3% and 10% of other smartphone owners.

Nearly 70% of iPhone users send and receive e-mail, compared to 26% among other smartphones users and 7.6% of the mobile phone market overall. Given stories of massive demand for the 3G version, it will be interesting to see how it is put to use.

In the meantime, Nokia claims operators and other interested parties are flocking to join the new Symbian Foundation whose first version of royalty-free software is due out next year followed by open source in 2010.

Whatever their functionality, it turns out that 97% of mobile phones no longer in use languish in drawers: the Western world need to do much better at recycling. Ignorance is no defence.

Dan Kaminsky announced that he had saved the world – having discovered an security flaw in the internet six months ago, he immediately set about fixing it in secret, in cahoots with some of the world’s biggest tech companies. Now it’s fixed with a software patch and a global phishing phest has been averted – we hope.

The European Parliament decided it would like to have a single telcom authority after all – to be known as BERT – and opted to pursue a policy of functional separation, which managed to enrage both incumbents and alternative service providers. Quite a coup.

The European Commission continued to rain on the mobile industry’s parade, outlining plans to change the way mobile termination rates are regulated by 2012, suggesting that wholesale charges should be calculated on a different basis.

The UK’s Competition Commission is taking immediate unilateral action: its enquiry into mobile termination is likely to run and run.

Vimpelcom, Russia’s second largest mobile network operator, has finalised its mobile joint venture with Vietnamese state companies. A Reuters report said this will be the Russian carrier’s launch pad for its Asian expansion.

It’s likely to meet the Chinese coming the other way, so to speak: Huawei’s 2007 revenue was up 48% to almost €8 billion, due in large part to expansion outside its home market.

And of course the week wouldn’t be complete without more action on the Yahoo/Microsoft/grumpy shareholders front. Microsoft has given shareholder agitator Carl Icahn assurances that if he manages to oust Yahoo’s board at the general meeting in early August, it will put another deal on the table.

Yahoo decided that a new approach to search is the way to attack Google.

Wireless Mobile Telecom Wireless News Mobile

Mobile, 3G, Germany, UK, Microsoft, Huawei, Yahoo, Google
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Huawei’s 2007 revenue up 48% to almost €8bn

July 9th, 2008
2:00 pm

Huawei Technologies has underlined its position as the word’s fifth biggest telecom equipment supplier, posting revenues of US$12.56 (€7.99 billion) in 2007, up 48 percent from 2006. The four in front of it and others should be scared. Very scared.

As Light Reading Europe points out, the Chinese giant has stated the revenue is actual sales, not signed contracts, which it had included in the past. This time its results were audited by KPMG International and said to be “in accordance with IFRSs (International Financial Reporting Standards).”

The article adds that while 2007’s income was higher than expected, Huawei’s gross margin was 33.9% (down from 36.2% in 2006); its operating margin was 7% (unchanged from 2006) for an operating profit of US$879 million (€559.2 million); and its net income was US$674 million (€428.8 million), up 32% up from the previous year’s profit of US$512 million (€325.75 million).

Or as Light Reading puts it, “So, while Huawei’s revenues and the value of its contract awards are growing at a rapid pace, its operating margin is static (at 7 percent), its gross profit is down, and its net income is increasing at a slower pace than its revenues.”

This would seem to give credence to criticism that Huawei is willing to buy market share for long term gain rather than focus on short term profit. It is also widely believed that the company is able to do this because of the backing of the Chinese state, despite Huawei’s claims that it is a privately-owned enterprise.

In May, Nokia Siemens Networks’ CEO, Simon Beresford-Wylie, hit out at what he called, “Silly pricing,”, that is making deals that don’t generate profit: in 2007 NSN pulled out of a GSM infrastructure deal with India’s Bharat Sanchar Nigam Limited (BNSL) on thosee grounds. He said buying market share is now now proliferating in the fast growing professional services market.

Let’s restate the troubling point he made then:

In mature markets, margins are typically at 30 to 35%

In high tech growth areas opex runs at 27 to 33%

Leaving earnings before interest and tax (EBIT) at 0 to 5%

As is so often the case, the industry seems better at outlining problems and challenges than coming up with answers – in this case how to compete by achieving relatively short term profit and a long term sustainable business against an increasingly powerful rival that doesn’t have to care about the short term.

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Kalimat Telecom launches 3.5G network (Iraq)

June 6th, 2008
3:00 pm

Iraqi fixed wireless operator Kalimat Telecom, owned by Trade Links Middle East, has reportedly launched a 3.5G national telecom network in Iraq under the brand name Kalimat with an introductory promotional offer, Telecompaper reports. Kalimat Telecom, which has a ten-year licence to operate a fixed wireless network in Iraq, awarded a USD275 million infrastructure contract to Chinese vendor Huawei Technologies in August 2007. Huawei is installing CDMA base stations and creating an all-IP network infrastructure for the company.

Wireless Mobile Telecom Wireless News

Huawei in talks with Warid; Banglalink rejects WiMAX (Bangladesh)

June 6th, 2008
2:51 pm

Fresh from securing a network expansion contract with GrameenPhone, Huawei has announced that it is negotiating with Warid, Bangladesh’s four largest mobile operator by subscribers, reports local newspaper The Daily Star. ‘We are in talks to sign a deal with Warid. But some time is required to complete the deal,’ said an official of Huawei. Meanwhile, in separate but related news, during his visit to Dhaka last month, Naguib Sawiris, chairman of Orascom Telecom Holding (OTH), said Banglalink is committed to 3G W-CDMA rather than WiMAX. ‘We will stick to 3G. Because, we believe, it is the continuation of GSM. It’s much easier for us to upgrade our technology by adopting 3G rather than WiMAX,’ he said.

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Huawei signs deal with PCCW for CDMA2000 network (Hong Kong)

June 6th, 2008
2:49 pm

Huawei has announced that is inked a deal with PCCW to help deploy a CDMA2000 1x and 1xEV-DO Rev A network, the first of its kind to be rolled out in Hong Kong. No financial details have been disclosed.In October 2007 PCCW won a 15-year 850MHz CDMA2000 mobile network operating licence. It was the only applicant for the concession, which permits it to launch commercial services from 20 November 2008.

Wireless Mobile Telecom Wireless News

Huawei wins in Bangladesh

June 4th, 2008
3:11 pm

GrameenPhone, the largest cellular operator in Bangladesh in terms of subscribers, has awarded a network expansion contract to Chinese equipment vendor Huawei Technologies. Though the firms did not disclose the value of the deal, a report from Reuters cites company sources who say the contract is worth in excess of USD500 million over three years. ‘The contract reflects Huawei’s leading position as a network infrastructure supplier and is expected to help GrameenPhone meet growing capacity requirements,’ the companies said in a joint statement on Wednesday. GrameenPhone claimed 17.8 million subscribers and a 47% share of the Bangladesh mobile market at the end of March 2008.

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Vodafone eyes Huawei handset unit

May 20th, 2008
1:39 pm

Vodafone and US giant AT&T have been named as possible buyers for a 50% stake in Huawei Technologies’ handset division.

A report from the South China Morning Post said the sale is expected to raise upwards of US$2 billion (€1.287 billion) for the company, while also making it easier for the firm to overcome US concerns about security issues with the Chinese owners.

Sources told the South China Morning Post that phone companies such as AT&T and Vodafone had expressed an interest, along with private equity firms, Blackstone, TPG and Kohlberg Kravis Roberts.

Observers however said that a sale to a phone company could put Huawei in an uncomfortable position when trying to secure handset sales to rival operators, the report said.

The company was recently thwarted in its attempt to take a minority stake in US based 3Com following a backlash from US politicians over company founder and president Ren Zhengfei’s military background.

Bids are expected to be tabled next week, the report said.

Huawei plans to sell off its mobile phone, laptop, wireless data-card and home router businesses, while retaining its network infrastructure division.

The divestment of the handset division into a separate company could well fuel speculation about industry consolidation, particularly as Motorola’s handset division is being spun off into a separate company at the moment, the report further said.

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