America Movil may acquire a 28% stake in KPN for $4.2 billion (Latin America, Europe)
Telecom group America Movil has reportedly made an offer to acquire 28 percent of Dutch telecom company KPN for $10.37 a share. According to reports, the deal valued to be $4.2 billion would enable America Movil to enhance its presence in the Europe market, so as to make up for the stagnant growth in its domestic market.
Carlos Garcia Moreno, CFO, said that America Movil is a long-term investor and they think if the company executes the strategy well, it will perform well. It’s a company that should benefit for the long term.
He added that KPN is the target for their first investment. Europe is facing some times which are economically challenging. They have a long-term investment horizon. They have taken their time. This one seems to make a lot of sense. Further, KPN is a solid company and in the long term seems to be a good return on investment. This is a market they do not know. Being closer to the action through the likes of KPN can give a better view for them.
Court postpones Djezzy’s $1.25 billion fine (Algeria)
The appeal hearing regarding a $1.25 billion fine on Djezzy has been postponed until May 27 as reported by Reuters. The appeal hearing on the local mobile phone unit of Russian telecoms firm Vimpelcom had already been postponed once, a week earlier.
As per the report, Djezzy chief executive Tamer El Mahdy, who has been convicted in the case and faces jail if the conviction is upheld, was not in court for Sunday’s hearing. A lower court ruled in March that Djezzy and its CEO were guilty of violating foreign exchange regulations. Djezzy’s parent company denied the allegations against it and its chief executive, and lodged an appeal.
Reuters reveals that Djezzy has been the subject of a long-running dispute with the Algerian government, during which the firm has been hit by back-tax demands, threatened with nationalisation, and put under criminal investigation. Vimpelcom acquired Djezzy last year when it bought the assets of previous owner, Egyptian firm Orascom Telecom.
Under pressure from the Algerian government, Vimpelcom agreed to talks on selling a controlling stake in Djezzy to the Algerian state. However, the decision to impose the $1.25 billion fine soured those talks and prompted Vimpelcom to announce it was going to international arbitration against Algeria.
Globe announces Q1 results, mobile revenues up 6 percent (Philippines)
Globe Telecom, started the year on a high note with first quarter consolidated service revenues soaring to an all-time high of $478.5 million, up 6 percent against last year’s level of $452.3 million. Mobile revenues increased by 6 percent year-on-year from $370 million to about $393.2 million this period despite intense competition and continued price pressures.
Broadband revenues were also up 13 percent year-on-year from to $47.4 million in the first quarter amid the strong take-up of Tattoo-On-The-Go offerings. Globe Postpaid kept its growth momentum going as the customizable plans continue to attract new and old subscribers, alongside the success of the Apple iPhone 4S launch.
Revenues from Globe Postpaid outperformed past year’s level, improving a robust 17 percent year-on-year, while Globe Prepaid and TM combined delivered a 2 percent revenue growth driven by the new brand campaigns and a boost in service offerings. Cumulative mobile subscriber base as of end-March stood over 31.0 million, up 14 percent from the same period last year.
Total subscriber base reached almost 1.5 million by end of March, 26 percent above last year with wireless customers comprising about 80 percent of the total from 78 percent a year ago. Against the seasonally strong fourth quarter, this period’s service revenues were up by 1 percent with strong results from Globe Postpaid coupled with the sustained expansion of the broadband and fixed line data segments.
Ernest L. Cu, President and CEO of Globe Telecom, said that they are pleased with their results this period, and the way they have built on and sustained the momentum of the last six quarters. Despite intense competition, they continue to make gains in our mobile and broadband businesses. This reinforces their commitment to their transformation agenda to better serve their customers. He added that the industry is entering a new phase, and they see 2012 as a year of investments in their customers, in their networks, and in their systems and processes.
Orange to launch TV Check app in iPhone in UK (UK)
Telecom operator Orange is planning to launch its TV Check iPhone application in the UK this month, and will launch the app on the Android platform in both France and the UK at the same time, according to a report by DTVE. The app offers additional content and games such as quizzes around TV shows, and the ability to chat and comment on shows via Twitter and Facebook.
Patrice Slupowski, vice-presdent, digital innovation and communities at Orange, said that they are happy to open a second country. They will see how the UK audience does with it.
Slupowski told DTVE that Orange would add social recommendation features to the app and said that Orange would discuss with channels in the UK about building partnerships with them. He said the Android version of the app would launch both in France and the UK at the end of May. Slupowski said that the app had been downloaded about 100,000 times in France.
Airtel brings the 4G revolution to Bengaluru (India)
Bharti Airtel, a leading global telecom services provider with operations in 20 countries across Asia and Africa, today launched its 4G services in India’s IT hub – Bengaluru. Following the recent inaugural launch of Airtel 4G services in Kolkata, customers in Bengaluru have now become the second in India to have access to cutting-edge 4G LTE technology that delivers the most advanced wireless broadband experience available across the globe. As a first for the telecom industry worldwide, Airtel has also introduced ‘Smartbytes’ for 4G – thus allowing customers to buy these add on packs and continue enjoying the 4G experience even after exhausting their monthly data limits.
At the launch, Sanjay Kapoor, CEO – India & South Asia, Bharti Airtel said that as seen the world over, the total data usage is exploding and is doubling each year to grow to nearly 3.6 hexabytes by 2014. With the launch of 4G, India will move from being a follower in technology to matching the world in this domain. Leading from the front, Airtel is now the only operator that gives citizens of the Information Technology capital of Bengaluru, access to entire spectrum of broadband services including 2G, 3G and now 4G – thereby giving the customers never seen before data experience. Besides offering rich content, Airtel 4G will allow superfast access to High Definition (HD) video streaming, multiple chatting, instant uploading of photos and much more.
As part of an exciting introductory offer by Airtel, customers subscribing to 4G services will now be given a cashback for the CPE / dongle – thus bringing device cost to customers zero and paving way for mass adoption of 4G services. Airtel 4G is now also available in an all new 30GB pack priced at $57.
Customers on Airtel 4G can already choose from a catalogue of over 35 high quality Bollywood movie titles and leverage the power of 4G to enjoy an unmatched video streaming experience. While 10 movie titles will be available free of cost for customers during the first month, movie buffs can pay a monthly subscription of INR 149 and watch unlimited movies. Airtel will be further adding to this list of movies in the catalogue in weeks to come.
In 2010, Airtel had successfully bid for BWA license spectrum in Kolkata, Karnataka, Punjab and Maharashtra (excluding Mumbai) circles. The company has launched its 4G LTE services in Kolkata and Bengaluru and is currently working towards rolling out state-of-the-art networks in remaining licence circles.
Telefonica faces writedown over alliance with Telecom Italia (Europe)
Telecom operator Telefonica may face writedown owing to its alliance with Telecom Italia, according to a report by BN. As per the report, Telefonica SA Chairman and Chief Executive Officer Cesar Alierta told investors in April last year that an alliance with Telecom Italia SpA (TIT) would generate $2 billion in cost savings. However, at the time, shareholders in the Spanish telephone operator weren’t warned of the downside.
The report reveals that with consumer spending falling and the two countries among the worst hit by Europe’s debt crisis, Telecom Italia’s stock has since slumped 21 percent, while Telefonica is down 40 percent. Analyst Andres Bolumburu says that the problem with the stake in Telecom Italia is that investors expected the Italian operator to reverse the negative trend in its domestic market and this hasn’t happened. It could continue to lose value.
As per the report, the outlook raises questions as to whether Madrid-based Telefonica, which paid around $3 billion for Telecom Italia shares in 2007, will ever recoup the investment and whether the holding is proving to be a distraction for Alierta as Spain’s largest phone company seeks to halt a slowdown in its domestic business.
AT&T moves towards wireless-centric home security and automation services (USA)
AT&T today announced plans for a new portfolio of all-digital, IP-based home security monitoring and automation services. Called AT&T Digital LifeTM, , the services will give users unparalleled control and security of their homes using any web-enabled device, PCs, tablets and smartphones, regardless of wireless carrier. The trials for the same are expected to begin trials in Atlanta and Dallas this summer.
As per the company, checking on the welfare of loved ones, protecting one’s home from intruders, fire or water damage, unlocking a door for the repairman or changing the temperature setting on the thermostat, can be as easy as if one were right at home.
Managed by a newly created Digital Life group, the remote monitoring and automation portfolio will feature web-based access to automation, energy and water controls, as well as professionally monitored security services.
Larry Hettick, Research Director, Consumer Services, for Current Analysis, said that the AT&T Digital Life service has the potential to take home monitoring and home security solutions to another level. The service promises to be as robust as anything in the marketplace today backed by the trusted AT&T brand. These consumer-friendly capabilities will help grow this industry.
The AT&T Digital Life will feature a robust lineup of connected devices like cameras, window/door sensors, smoke and carbon monoxide sensors, door locks and moisture detection among others. The devices will be wirelessly enabled to connect to the IP-based AT&T Digital Life platform inside the home.
Kevin Petersen, senior vice president, Digital Life, AT&T Mobility, said that AT&T Digital Life will change the way people live, work and play — and meets a clear need in the market. The service is smart, simple and customer centric– freeing homeowners to do the things they want to do without compromising on the things they need to do to care for family and home.
He added that they are planning a unique suite of services, from start to finish, that will give homeowners control of their property and their possessions through an easy to navigate user interface. Their focus is on providing their customers with a comprehensive home security and automation solution that offers the best possible customer experience, and uses the most advanced mobile internet technology on the market to make their lives easier and keep their families and property safer.
According to reports, industry analysts claim that such a move is largely inspired by the declining competition in the mobile industry. Stagnant revenues are causing mobile operators to diversify their business portfolio and enter segments where there is still scope for revenue growth.
Intel reports quarterly revenues of $12.9 billion, dividend up by 7 percent (USA)
America based chip maker, Intel Corporation, announced its first quarter results, reporting quarterly revenue of $12.9 billion.
Paul Otellini, Intel president and CEO, said that the first quarter was a solid start to what’s expected to be another growth year for Intel. In the second quarter they will see the first Intel-based smartphones in the market, ship products based on 22nm tri-gate technology in high volume, and accelerate the ramp of their best server product ever, providing a tremendous foundation for growth in 2012 and beyond.
The company announced that its board of directors has approved a 7 percent increase in the quarterly cash dividend to 22.5 cents per share (90 cents per share on an annual basis), beginning with the dividend that will be declared in the third quarter of 2012.
Otellini added that 2012 is expected to be another year of record revenues for Intel, with strong demand in their core business and significant progress in smartphones and other new growth areas. This latest dividend increase is one more example of their commitment to return cash to their stockholders as they continue to generate strong cash flow fueled by the global growth of computing.
