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PCCW launches CDMA2000 services in Hong Kong

  • November 21st, 2008
  • 5:38 am

PCCW has launched it CDMA2000-based mobile service in Hong Kong, reports The Office of the Telecommunications Authority (OFTA). In a statement the telecoms regulator said, ‘This is the fifth 3G mobile network in Hong Kong , in addition to the four W-CDMA networks licensed in 2001. At service launch, the new network offers high speed data and voice services conforming to the CDMA2000 standard in the ‘golden bowl’ areas covering the Kowloon peninsula and the northern part of Hong Kong Island. The service coverage will be further extended to cover places such as the airport, Mass Transit Railway stations, the road tunnels and border control points.’

   

China Netcom and Richard Li agree to privatise PCCW (Hong Kong)

  • November 4th, 2008
  • 12:49 pm

Richard Li and China Netcom have, reportedly, agreed to buy out shareholders for up to $2.5 billion and take PCCW private. The reports came after PCCW had denied sale of its core assets last month, which led to fall in stocks. China Netcom agrees to buy 57.62% of PCCW Group for HKD19.5 billion ($2.5 billion), with proceeds from the sale earmarked for overseas operations to offset slowing domestic business. The offer price represents a premium of 81.82% over the 13 October closing price of HKD2.75.

   

PCCW shareholders fail to deduce the pricing for ownership deal (Hong Kong)

  • October 30th, 2008
  • 7:03 am

PCCW Group Chairman Richard Li and Hong Kong telco’s largest overseas shareholder China Unicom have failed to reach a common point over the pricing of a proposed joint buyout, media reported. China Unicom had deemed an initial offer of HKD4 (USD0.52) a share to take PCCW private, while minority shareholders, whilst minority shareholders refuses to accept less than HKD5 a share.

PCCW when cancelled a plan to vend off 45% of its core assets via a newly formed unit, dubbed HKT Group Holdings, shares drop to their lowest level since 1999, HKD2.45. Good news turn up with the proclaimation of PCCW securing the second fixed line licence in Oman, through a local joint venture.

Netcom intends to take over PCCW-Report (Hong Kong)

  • October 15th, 2008
  • 6:43 am

PCCW’s second largest shareholder China Netcom is planning to buyout other shareholders in lieu of low share prices reportedly. Further, the parties are expected to put forward a proposal in an emergency board meeting while HSBC would arrange financing for the deal. According to an insider, “The sense of the board is that they will be presented with a take-private transaction led by the two lead shareholders and that is already creating controversy at the board level.” Some members believes that a takeover deal have to be offered at about HK$6 a share but wondered if PCCW’s Chairman Richard Li and Netcom would bid that high. The stock sinks as low as to HK$2.45 which is the lowest level since 1999, after PCCW ends sale of stake in its new HKT unit.

PCCW shelves the sale of HKT stake (Hong Kong)

  • October 13th, 2008
  • 6:13 am

PCCW has ended the sale of a stake in its new HKT unit due to economic crisis in the market. The auction is assessed to be worth more than $3 billion which had drawn several private equity bidders. This is the second major Asian deal which had been pulled in the last week due to the global market plunge. China’s Huawei Technologies has pulled its auction for a stake in its mobile handset division, which was said to be worth more than $3.5 billion and also attracted private equity giants. According to the company statement, “The recent market downturn has significantly impacted the offers received . ” Earlier PCCW said that it planned to fold its core media and telecoms businesses into a separate firm called HKT and sell 45 percent of the new company. HKT consists of three PCCW businesses: information technology, telecommunications, and media. PCCW is expecting to spin off HKT into a publicly traded division. They are also hoping to get a minority stake investor in the division before it went public. 20% of PCCW is owned by China Netcom.

PCCW invites bid for a 45% stake in its HKT Group (Hong Kong)

  • October 7th, 2008
  • 12:10 pm

PCCW (Hong Kong-based full-service telecoms group) has invited bidders for a 45% stake in its newly-created HKT Group Holdings unit which expected to receive offers as much as a third lower than its original reserve price because of the worldwide banking crisis and its own falling share price, media reported. Previusly six bidders have been shortlisted for a stake in the new division comprising PCCW’s core telecoms, media and IT assets, originally estimated to be worth up to USD2.5 billion. Formal bids are anticipated by the end of this week.

Hong Kong’s PCCW to combine telco, media units

  • June 2nd, 2008
  • 2:40 pm

Hong Kong’s PCCW plans to fold its media and telecoms businesses into a separate firm and sell 45% of the new company to investors, a Reuters report said.

The plan is part of its latest effort to hive off core assets, the report added.

Shares of PCCW surged more than 11%, ending 9.4% higher, on hopes of a separate listing of the assets that have a current market worth of around US$3.9 billion (€2.51 billion).

PCCW said it will group its main media and telecoms divisions into a new firm called HKT Group Holdings, and invite proposals from potential investors, the report said.

Analysts noted several benefits of the plan, including slashing a crippling tax burden and speeding up the possible listing of its more valuable telecoms assets separately from its Pacific Century Premium Developments property unit.

“Apparently, they will put everything except properties into the new company,” said Kelvin Ho, an analyst at Nomura International, quoted by the report.
“This is a way to unlock the value of its assets.”

The reorganization does not need the approval of shareholders as it is an internal group shift and there is no change of ownership of the assets, PCCW said.

The company said it may use proceeds of the possible stake sale for investments in further growth initiatives in telecoms, media and technology.

It did not identify any potential investors.

   
 

Saudi approves telco services for foreign carriers (Saudi Arabia)

  • February 26th, 2008
  • 1:37 pm

Consortiums led by Bahrain Telecommunications , Hong Kong’s PCCW and US-based Verizon Communications won final approval to operate new Saudi fixed-line phone networks, a Reuters report said.

The Reuters report quoted official news agency SPA as saying that the Saudi cabinet approved a decision under which the three new firms set up to operate the fixed-line services would sell 25% of their shares in initial public offerings, 10% to a state pension fund and 5% to a social insurance body.

Saudi Arabia, the largest Arab economy, had given initial approval to the three groups in April after short-listing them from 10 applicants for licenses to end the monopoly of state-controlled Saudi Telecom, the Reuters report said

The consortium of Bahrain Telecom and Saudi Arabia’s Atheeb group plans to invest $1 billion in its fixed-line operation in the first five years of business, Atheeb’s chairman said on Sunday, according to the report.

   

 

Five apply for fixed line licence (Qatar)

  • December 18th, 2007
  • 3:07 pm

Qatar’s telecoms regulator ictQATAR yesterday launched an auction for the country’s second fixed line network operating licence. ictQATAR published details of the application process on its website, with the licence expected to be awarded in April 2008. Five expressions of interest have already been received from the following parties: Argos Consortium (including US-based Verizon Communications), Bahrain Telecoms Company (Batelco), the UAE’s Emirates Telecommunications Corporation (Etisalat), Italian alternative telco Eutelia and QIPCO Consortium (including PCCW-HKT of Hong Kong). The concession will be awarded through a ‘beauty contest’ procedure, involving comparative evaluation of the potential operators, with ictQATAR assessing the technical merits of the bids based on the quality of the network and the range of services proposed by applicants. The regulator also published the terms of the licence together with responses to an earlier consultation paper on the draft permit. The licence will cost a fixed fee of QAR10 million (USD2.75 million), and will allow facilities-based domestic and international services, including authorisation to operate an international gateway. Additional parties may still register their interest until 7 February 2008.

Commenting on the launch of the auction, Dr Hessa Al Jaber, Secretary General of ictQATAR, said ‘Our goal is to bring to the residents and businesses of Qatar a state of the art network combining the latest technologies and services. We believe this is a very attractive market - with an expanding population, multiple new residential and business developments and one of the highest per capita incomes in the world.’ Last week the Vodafone & Qatar Foundation Consortium won Qatar’s second mobile network operating licence. Dr Hessa Al Jaber said that ‘Competition for this mobile licence from the international community was great and we expect a vigorous competition for the fixed licence as well.’ Both fixed and mobile licensees will compete with incumbent provider Qatar Telecom (Qtel).

   

Qatar receives 5 applications for fixed-line licence (Qatar)

  • December 18th, 2007
  • 2:50 pm

Qatar has received five applications for its second fixed-line licence on offer, local regulator IctQatar announced. The country expects to award the new licence in April 2008, and the winner will compete against incumbent Qatar Telecom. The licence will be awarded according to a ‘beauty contest’ procedure, with IctQatar assessing each bid’s technical merits and services offered. The applicants include the Argos consortium with Verizon, Batelco, Etisalat, Eutelia and the Qipco consortium including PCCW. Additional parties may still register interest until 7 February 2008. The license award will be a fixed fee of QAR 10 million.