Vodafone India plans IPO roll-out (India, UK)
British telecom major Vodafone Group plans to list its Indian venture on local exchanges but hasn’t set any date yet, as said by unit Chief Executive Marten Pieters, as reported by WSJ.
In April 2011, parent Vodafone Group’s chief executive, Vittorio Colao, told a television station that it may consider an initial public offering for the India unit.
Vodafone has been battling Indian tax authorities since it bought Hutchison Whampoa Ltd.’s 67 percent stake in its India venture for $11.2 billion in 2007.
India plans to demand about $3.75 billion in taxes from Vodafone, a senior government official said on May 10. The British company says it isn’t liable to pay taxes on the deal as it was conducted overseas.
Bharti Airtel’s business future: strong or weak (India)
My history is that I have constantly been proving people wrong, says Sunil Bharti Mittal, chairman and managing director of the Bharti Group, to his partners. The man has successfully led Airtel to become a leading telecom operator not only in India, but in its oversees operations as well.
The company established itself as the most preferred mobile operator in India and entered the African market in 2010, thereby expanding its presence across borders. As reported by Wireless Federation earlier, Airtel became the first operator to launch 4G/LTE services in India in one telecom circle, with another launch to follow in the coming month.
While Bharti Airtel continues to stand amongst the bigger players in the market, the situation recently has been changing. The operator has consistently reported a decline in its quarterly profit over the two past years, causing industry analysts to speculate about its future position in the market. The operator has been suffering declines in its business operations both in India and abroad. Further, Airtel had invested around $ 14 billion for its African operations and is yet to earn spectacular returns on its investment.
Analysts believe that while the operator is at the forefront of many other services, it still needs to focus on its data services to improve revenues. Airtel needs to identify and implement creative data services that can engage customers and improve revenues.
However, while the industry may be abuzz with rumours that the declining profit margins could lead to the downfall of the telecom company, industry analysts believe that the fundamentals of the company are still very strong and that this is just another phase for the company which can be tackled well through a different strategic focus.
Vodafone and Tata get till 19 April to make C&W bid (UK, India)
Vodafone Group Plc and Tata Communications, which are planning to bid for UK operator Cable & Wireless Worldwide (CWW), have been given an extended deadline to submit their bids. As per a report by BN, the new date for submission of bids has been set for 19 April. However, CWW has said that there is no certainty that an offer will be made.
CWW has said that the extension of the bid deadline will enable Vodafone and Tata to establish whether or not their preliminary discussions with Cable & Wireless might result in a formal offer for the company which the board of Cable & Wireless would be willing to recommend.
Tata Communications had hinted at a possible cash offer for CWW while Vodafone had said that they are evaluating a potential bid offer for the operator.
Verizon Wireless extends 3G services in Ohio (USA)
Verizon Wireless, a leading telecommunications operator in the United States, has reportedly expanded its local network in portions of Lorain County in Ohio, so as to meet the increasing demand for wireless voice, 3G multimedia and internet access. According to reports, the new network provides increased wireless voice and 3G services between Dover, Kentucky and Russellville, Ohio. As per sources, the extended 3G data capacity in the area will enable notebook computer and smartphone users to download and use apps, rapidly browse through the web, work remotely with file sharing as well as download and play 3D games among others.
Mark Frazier, President, Ohio/Pennsylvania/West Virginia Region, Verizon Wireless has reportedly said that the people across Ohio are increasingly relying on smartphones and 3G applications to manage their busy lives and stay connected at home or on-the-go. He added that the nearly $2 billion they’ve invested into their Ohio network has kept them ahead of consumer trends, provided their customers a 3G advantage and underscored their belief that any mobile device is only as good as the network it runs on. He also said that proactive and sustained investment has made Verizon Wireless the 3G leader in Ohio and nationwide.
Apart from expanding its 3G network, Verizon Wireless has also launched its 4G LTE network across 165 metropolitan areas across the country. Sources claim that the 4G LTE network offered by Verizon is the fastest and most advanced 4G network in America and offers speeds up to 10 times faster than the current 3G network.
Telkomsel partners with On-Waves to provide low cost international roaming services to maritime workers (Indonesia)
Telkomsel, the largest cell phone operator in Indonesia, has partnered with Iceland-based maritime GSM service provider, On-Waves, to provide low-cost international roaming services to people working on ships. According to reports, Sarwoto Atmosutarno, Managing Director, Telkomsel has said they hope that over 30,000 Indonesians working in the maritime sector around the world can enjoy this international roaming service. He added that apart from providing expanded roaming access, they are also offering lower rates for voice, SMS and data services.
As per sources, Telkomsel distributed free premier SIM cards to 30 Indonesian crew members on the Louis Cristal cruise ship. Sarwoto reportedly added that customers using either Halo, AS or Simpati SIM cards would now be able to make calls to anywhere in the world for $1 (IDR 9,000) per minute and send text messages for $0.22 (IDR 2,000) per message.
Talking from a business point of view, Sarwoto has said that for the 30,000 Indonesian citizens working in cruise ships, commercial and oil drilling in the middle of the sea, cooperation with operators such as On-Waves GSM helps them to stay in touch with their family at an affordable cost. He added that such cooperation deals present an opportunity with a huge potential to be developed.
MetroPCS may acquire assets in AT&T and T-Mobile (USA)
MetroPCS Communications Inc., an American mobile phone service provider, may reportedly enter into an agreement to buy assets from AT&T and T-Mobile, as the two companies hope to finalize their $39 billion merger, currently being blocked by the U.S. Justice Department. As per industry sources, the deal is likely to include subscribers and wireless spectrum and may be valued at less than $4 billion. AT&T has reportedly approached other smaller operators as well, however, MetroPCS with over $2 billion in cash and short-term investments, is emerging as the strongest candidate for the deal. Sources also suggest that Deutsche Telekom may help MetroPCS with the financing.
Industry analysts say that simply palming off some of T-Mobile’s subscribers or network is not enough for the government to allow the deal to go through, as the amount of assets being transferred are unlikely to transform any regional player into a national network. According to reports, in order to be a national competitor, MetroPCS needs as many as 25 million subscribers which is almost half the subscriber base of T-Mobile.
As per sources, MetroPCS reported a subscriber base of 9.1 million subscribers in June 2011 while T-Mobile, AT&T, Verizon Wireless and Sprint had a subscriber base of about 33.6 million, 100.7 million, 107.7 million and 53.3 million respectively in September 2011. Reports suggest that AT&T and MetroPCS may meet with the Justice Department in the next two weeks to see if this deal would persuade the regulator.
Vodafone UK partners with Velti to drive its loyalty programs (UK)
Vodafone UK, has entered into an agreement with Velti, a leading global provider of mobile marketing and advertising solutions, to drive the next generation of loyalty programs for the operator in the UK. According to reports, Velti aims to target as many as 6 million Vodafone pay-as-you-go customers through this opportunity.
As per sources, Srini Gopalan, Consumer Director, Vodafone UK has said that the Vodafone Freebee Rewardz is yet another reason why customers are choosing Vodafone on pay-as-you-go. It’s a unique scheme offering Vodafone customers something more than just discounts, while enabling customers to take part with whatever pay-as-you-go phone they have. Reports suggest that each time the pay-as-you-go customers refill their account balance; they receive a voucher code through a text message. Customers can either redeem this voucher by claiming an instant reward or bank the points to save up for something bigger. Vodafone UK and Velti have reportedly teamed up with brands such as Thorntons, Blockbuster, Fitness First among others to provide top prizes.
Reports suggest that Menelaos Scouloudis, Chief Commercial Officer, Velti has said that customer retention and ARPU stimulation is vital for operators especially in the pre-paid market where competition is increasingly fierce. He added that by understanding who the customers are and the nature of their relationship with Vodafone UK, the operator is able to provide a more personalized and therefore rewarding experience.
