Verizon Wireless is on track for Alltel’s acquisition worth $28.1 billion, even though the country sees a financial downfall.
According to company spokeswoman Robin Nicol, the telco plans to close the deal by year end, becoming USA’s largest wireless carrier.
“Considering the size of this deal, it would be surprising that Verizon would enter something with such significant risk that it really threatens to preclude this deal from closing,” said Bill Densmore of New York-based Fitch Ratings.
For the acquisition Verizon needs to be financially strong so as to buy the assets, which may be sold to get the approval of federal regulators. Additionally, Verizon has to shun off a large number of it’s subscribers for the regulatory approval, regarding which nothing has emerged from the talks between the telco and Department o Justice.
“There could be more markets we have to divest. Right now we have no idea,” Robil Nicol said. “But even if those numbers increase, we still think we’ll be able to reach an agreement with DOJ.”
Wireless Federation » archive for 'Regulatory'
Verizon Wireless on track with Alltel’s acquisition worth $28.1 billion (USA)
- October 6th, 2008
- 6:57 am
Telecom Italia reaches an agreement of 5000 job cut with unions (Italy)
- September 22nd, 2008
- 5:33 am
The largest Italian operator, Telecom Italia, reaches an agreement of 5000 job cuts, with it’s three main unions.
The telco had in June revealed a cost cutting plan to bring about reduction in it’s costs by nearly EUR300 million for which it had decided to cut 5,000 jobs in Italy by 2010.
Telecom Italia which has 83000 employees, has cost cutting as it’s top most priority in order to give it’s profits a high. The telco is facing a debt of EUR37 billion and falling margins, due to cut throat competition and regulatory pressures.
Colombian antitrust agency fines America Movil and Telefonica Spain (Colombia)
- September 10th, 2008
- 7:52 am
The Colombian antitrust agency fines the Mexico-based America Movil and Spain’s Telefonica. The agency claims that the two operators are charging higher costs when subscribers make phone calls from fixed to mobile network, in order to boost the usage of cell phones rather using fixed lines.
The agency has ordered the two telcos to shell out COP923 million ($448,100) each.
3 Italia suspends data bills until regulatory investigation ends (Italy)
- July 23rd, 2008
- 11:04 am
3 Italia is suspending bill collection for some mobile data subscribers after the competition regulator launched an investigation into subscriber complaints over high bills.
Subscribers complained after receiving bills for up to EUR 10,000 for service plans such as the Tre.Dati Abbonamento. The regulator have ordered 3 to suspend billing until it investigates whether the operator correctly informed subscribers of the data limits of 5 GB on the plan and extra charges for roaming and gave subscribers the opportunity to monitor usage. The order applies to the period 21 September 2007 to 31 May 2008.
In a statement, 3 defended its customer information practices and said it will launch an educational campaign on the costs of the data services.
Bharti and other global telcos may enter the tussle for MTN
- July 21st, 2008
- 2:30 pm
Reliance Communications (RCOM) and South Africa’s MTN announced that merger talks between the two telcos have ended. RCOM has become the second Indian telco in as many months to fail in pulling off a merger with MTN.
Bharti Airtel and MTN were close to a merger in May but the Indian telco called off the talks after the two companies failed to agree on the corporate structure of the combined entity.
The failure of RCOM and MTN to clinch a deal may present a second chance to Bharti Airtel to re-engage with the South African telco. As reported earlier, MTN is learnt to have sent feelers to Bharti for reviving talks if it failed to clinch a deal with RCOM.
Sources close to the development reveals that Bharti was ‘open to take the discussions with MTN forward’. However, it is possible that other global telcos may also enter the fray for MTN.
RCOM-MTN deal called off
- July 21st, 2008
- 2:30 pm
The much-touted deal between Anil Ambani group company RCOM and South African telecom giant MTN is called off.
“The two sides were unable to conclude the transaction due to certain regulatory issues,” RCOM spokesperson said in statement.
The deal, which was clouded by the bitter dispute between the Ambani siblings, was called off a day after RIL nominated an arbitrator to resolve the dispute with RCOM.
RCOM and MTN decided to end the exclusivity agreement three days before its expiry.
MTN, in a statement to Johannesburg Stock Exchange, said, “With regard to exclusive negotiations relating to a potential business combination between MTN and RCOM, owing to certain regulatory issues, the parties are unable to conclude a transaction. Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse.”
This is the follow up of the story as reported yesterday http://wirelessfederation.com/news/rcom-under-ril-arbitration-india/ by wireless fedration site.
MTN shares fall nearly 4% after the deal with RCOM lapsed
- July 21st, 2008
- 2:03 pm
Shares of South African telecom major MTN plunged nearly 4 per cent after the firm’s talks with Indian billionaire Anil Ambani-led Reliance Communication for a possible merger were called off. Shares of the company saw high fluctuations touching an intra-day high of 128.75 rands and an intra-day low of 120.50 rands.
Both MTN and RCOM called off their exclusivity talks for a possible merger citing “certain regulatory issues.” Both sides said they have mutually agreed for lapse of the 45-day exclusivity agreement that was extended on July 8 for a further two weeks to July 21. MTN announced withdrawal of the agreement “owing to certain legal and regulatory issues,” and said the parties were unable to conclude a transaction.
Lending of Mobile phones to friends banned in Sri Lanka
- July 21st, 2008
- 6:37 am
New law is going to be introduced by Sri Lanka’s government which is claimed to be aimed at cutting down terrorist activity would also forbid lending the phone to other people. Also, planning to introduce new legislation which would require mobile phone users to carry a certificate of ownership at all times when carrying their phone around.
Telecommunication Regulatory Authority (TRC) propsed that proof of identity will be provided whenever a phone is purchsed in future. This step has been taken to avert irregularities and illegal activities while minimizing threats to national security created by the irresponsible use of telephones.
Existing subscribers would be told about the new guidelines with their next monthly bill and the system would be effective the following month. The Mobile World estimates that there were some 8.5 million GSM subscribers in the country at the end of Q1 ‘08 said TRC Director General, Priyantha Kariyapperuma.
New regulations will also affect fixed wireless CDMA handsets which will be limited to being used only at their registered address.
In a move which is more likely aimed at clamping down on tax evasion, the regulator will also require mobile phone retailers have a trading license and secure the legitimate source of all handsets they offer for sale. The government imposes a six percent import tax plus sales taxes on all imported phones making smuggling a profitable enterprise.
It has been previously estimated that over 20,000 mobile phones are entering the country through illegal channels every month.
Third Mobile License Tender in Armenia (Armenia)
- July 18th, 2008
- 9:36 am
Armenia’s telecoms regulator, The Public Services Regulatory Commission (PSRC) announced a plan to offer a third mobile license for the country. There will be a reserve price of US$16 million for the license and the winner will be required to invest a minimum of US$320 million in the network rollout.
Armenia currently has two mobile networks, Armentel (majority owned by Russia’s VimpelCom) and VivaCell (majority owned by Russia’s MTS). According to Armentel,3G license had been granted to them in 2007.
Third license would be offered have been reported in local media for several months with Russia’s other main operator, Megafon is cited as the certain winner of the tender.
In 2007, the country ended with 3 million subscriber- representing a population penetration level of 61% as per the figures from the mobile world.
