Batelco to review future of business operations in India (Bahrain, India)
The Supreme Court’s decision to cancel all 122 2G licences in India seems to be having a ripple effect in the Indian telecom industry. According to reports, Batelco seems to be following Telenor’s footsteps in deciding its future in the Indian mobile market.
The company has issued a statement claiming that Batelco’s India affiliate STel will review the sustainability of its operations under the revised terms imposed by a recent court order. The operator says that whilst the immediate focus is on STel’s customers, employees and suppliers, STel shareholders will also review the sustainability of its business operations under the revised conditions imposed by the court’s recent judgement impacting the telecoms industry.
The statement added that Batelco was not involved in the STel licence application process nor had any knowledge of any of the events surrounding the granting of the 2G licences in January 2008. Further, Batelco holds 42.7 per cent equity in STel since May 2009. As at December 31, 2011, Batelco’s carrying value of its equity in STel is $123.3 million.
Further, Batelco invested in STel following a diligence exercise with the support of financial and commercial advisers. It also received certain representations and warranties from STel’s promoter regarding the validity of the licence. The firm respects and abides by all legal and regulatory rulings and determinations in every market it operates. Batelco will review, together with other STel shareholders, all legal options following the handing down of the Indian Supreme Court judgement.
Finally, as Batelco continues to grow and diversify its operations, it intends to explore all options to remain involved in the Indian telecommunications market.
Telenor seeks help from Norway to protect Indian investment (Norway, India)
Following the Supreme Court ruling in India wherein it revoked 122 2G licences, telecommunications company Telenor has turned towards the government in Norway to help protect the future of its US$ 2.9 billion investment in India. Telenor controls a 67.25 per cent equity stake in Unitech Wireless and offers nation-wide mobile services under the brand name Uninor.
According to reports, Rigmor Aasrud, IT Minister, Norway met with India’s Telecom Minister Kapil Sibal to arrive at Telenor’s future in the country following the cancellation of the licences. After the meeting Aasrud said that they had a good, fruitful and constructive meeting with the telecom minister and they took up Telenor’s case along with other issues.
Kapil Sibal stated that both the IT minister and the Telenor official met him to share their perceptions and they had a dialogue on this issue. He told them that the SC verdict will bring clarity to the sector, the sector is robust and enough spectrum is available. Further, the National Telecom Policy 2011 which will be put out will be fair and robust.
Sibal added that India’s market is full of opportunities and no-one should be in doubt on the investments to come into India.
Sigve Brekke , managing director, Uninor has said that they are talking to the government because they need to protect their investment and they also need to make sure that there is a framework for continuing their operations in the country.
Apple overturns German online sales ban by Motorola (USA, Germany)
iPhone maker Apple Inc. has managed to overturn a ruling by the German court which imposed a ban on the sale of some of its products in the country. According to reports, Motorola Mobility had won the legal case and forced Apple to remove some of its iPhone and iPad models from the online store in Germany.
As per sources, a statement by Apple claims that all iPad and iPhone models will be back on sale through Apple’s online store in Germany shortly. Further, Apple appealed this ruling because Motorola repeatedly refuses to license this patent to Apple on reasonable terms, despite having declared it an industry standard patent seven years ago.
In response to this Motorola issued a statement saying that they are pleased that the Mannheim court has recognized the importance of their intellectual property and granted an enforceable injunction in Germany against Apple Sales International. However, although the enforcement of the injunction has been temporarily suspended, Motorola Mobility will continue to pursue its claims against Apple.
EU asks Google to delay consolidation of privacy policy (Europe, USA)
European regulatory group, Article 29 Working Party, has reportedly asked internet search engine Google, to postpone its plan to consolidate its privacy policy in a letter addressed to Larry Page, CEO, Google. According to reports, Google had announced that it plans to consolidate over 60 privacy policies into one universal policy that will govern its entire product range.
Google planned to launch the new policy from 1 March 2012; however, the regulatory group has reportedly asked the internet giant to pause its changed policy in order to ensure that there can be no misunderstanding about Google’s commitments to information rights of their users and EU citizens.
In response, Google claimed that they will continue with the scheduled date as they have maintained that there will be no changes in the privacy policy. Further, the firm also said that they had briefed most of the members of the working party in the weeks leading up to the announcement and none of them expressed substantial concerns at the time.
Vodafone terminates merger with Wind Hellas (Greece)
World’s leading mobile communications company Vodafone has terminated plans of a potential business deal with Wind Hellas. According to reports, the decision was taken after the British firm faced opposition by the European Union regulators. Sources claim that the merger, if allowed to go through, would result in a market having only two operators, which was the prime reason for the opposition.
As per sources, Vodafone had reported a US$ 710 million loss in November 2011 for its unit in Greece owing to discounted tariff plans and declining cash flow. The merger between the two firms would have helped Vodafone to significantly cut costs and compete better with rival OTE.
Vodafone is yet to make an official statement regarding the reason for terminating the deal.
Facebook to increase revenue via mobile ads (USA)
Social networking giant Facebook, which announced its IPO (Initial Public Offering) plans last week, is planning to increase its revenue by focussing on subscribers logging in through their mobile devices, according to a report by FT. With the widespread adoption of smartphones, users have been increasingly using their mobile handset to stay connected on Facebook.
As per the report, the social networking site, owned by Mark Zuckerberg, is planning to introduce advertisements to mobile users in the coming weeks before its IPO. The ads will displayed in the user’s news feed and are expected to go live in March.
Facebook had claimed that is has been unable to earn revenue from over 400 million members using their mobile device to access the site, which may have a negative impact on the firm’s financial results. Further, the firm believes that putting the sponsored ads on mobiles is a potential opportunity to increase revenue.
However, industry analysts claim that Facebook will be need to be careful with its new strategy as many users may not like seeing too many commercial ads on their small screen device.
Apple and Samsung lead smartphone shipments in 2011
The demand for smartphones around the world continues to witness a rise as users across segments have been increasingly replacing traditional handsets with smartphones by Samsung and Apple. According to a report by IDC, the worldwide smartphone market went up by 55 per cent in Q4 2011, largely driven by the demand for the Apple iPhone 4S.
As per the report, around 492 million smartphones were shipped in 2011, a 61 per cent rise from 305 million units in 2010. Apart from the introduction of high and medium-end devices by telecom giants Samsung and Apple, affordable handsets by these firms have gone a long way in increasing their presence in the market.
South Korea’s Samsung emerged as the leading smartphone maker for 2011, with the launch of its successful range of the Galaxy series, primarily the Galaxy SII and Galaxy Nexus. The Apple iPhone 4S helped the US manufacturer maintain its market position as well as set a new shipment volume record for a quarter.
Smartphone vendor Nokia attempted to gain back some its market share with the launch of its Windows Phones, the Lumia 710 and Lumia 800, while BlackBerry maker, Research in Motion (RIM), is still working towards recovering from the losses caused due its network outage and hopes to release its updated handset by the end of the year. Taiwanese handset maker, HTC also saw a decline in the volumes shipped in the fourth quarter as compared to the previous quarter.
