Vodafone is seeking talks with fellow shareholders in Poland’s second-largest mobile operator with the probable aim of increasing its stake, according to the Financial Times.
This is the latest twist to a long-running and complicated tale concerning Polkomtel’s ownership. In 2006 Vodafone objected to plans by Denmark’s TDC to sell its stake in Polkomtel. The matter was referred to arbitration.
Last week the tribunal ruled that TDC can sell 14.8% of its 19.6% stake to four state-controlled Polish companies.
It is thought that TDC has been advised to talk to Vodafone about its acquisition of the outstanding 4.8%. If it goes through, this would raise Vodafone’s holding from 19.6% to 24.4%. There is also speculation that the Polish government’s privatisation programme might eventually allow Vodafone to control Polkomtel.
In a statement yesterday, Vodafone said, “Vodafone’s key concerns have been supported by the arbitration panel . . . to move this matter to a swift conclusion, Vodafone will be speaking to all the other shareholders in the coming weeks.” TDC said it was studying the tribunal’s ruling.
According to the Financial Times, a source close to the dispute between Polkomtel’s shareholders said the four state-controlled Polish companies had no interest in managing the mobile operator and were hoping that the TDC transaction would drive up the price Vodafone would be willing to pay them for their shares.
The world largest operator by revenue made no mention yesterday of its sticky day on the stock market on Monday when its shares fell almost 4%.
This was in reaction to Morgan Stanley’s analysts recommending that investors should sell not buy shares in Vodafone because of fears that intervention by the European Commission could reduce prof its at Vodafone’s European mobile businesses by £900 million (€1.140 billion) between 2009 and 2012 or an 8% cut in the Group’s interest, tax, depreciation and amortisation. Other analysts disagreed, saying that it would amount to no more than a 2% cut.
Ms Reding claims termination rates are de facto subsidies for the European mobile industry, and wants the charges to reflect the true costs of connecting calls to networks.
Wireless Mobile Telecom Wireless News
- January 9th, 2008
- 2:42 pm
Danish operator TDC has launched HSDPA services, under the brand Turbo 3G. The service is initially available in cities on the islands of Bornholm, Zealand and Funen in Southern Jutland where TDC already has 3G coverage. Turbo 3G will be expanded to cover the rest of Jutland by the end of March 2008. TDC is investing DKK 2 billion over three years to ensure that 99 percent of all Danes have mobile internet in 99 percent of the country. Some 80 percent of the population will have access to Turbo 3G by the end of 2008. TDC’s network will be expanded so that the not covered 3G/Turbo 3G geographical areas will be covered by EDGE. Turbo 3G subscriptions include free usage of TDC’s 700 nationwide hot spots. Following the mobile network upgrade, TDC will offer download speeds of up to 3 Mbps in the centres of Copenhagen, Odense, Aarhus and Aalbork and up to 1.5 Mbps in other cities.
Wireless Mobile Telecom Wireless News
- August 13th, 2007
- 2:08 pm
Danish incumbent TDC has reported its results for the quarter ended 30 June 2007. Highlights include a 2.5% increase in revenues year-on-year to DKK10 billion (USD1.85 billion), attributable to more domestic mobile and cable TV customers. EBITDA increased by 2.6% compared to 2Q 2006 to DKK3.1 million, impacted by the acquisition of Hungarian incumbent Invitel and the divestment of Baltic operator Bité. Adjusted for acquisitions and divestments, EBITDA was up 1.6% year-on-year.
The company’s outlook for 2007 shows expected revenues will increase slightly compared to 2006, as the continued growth in the broadband and mobile sectors, along with the acquisition of Invitel, more than offset the decrease in landline business and the impact of the divestment of Bité. Net income is expected to decrease approximately 20% in 2007, as a result of an altered capital structure and the acquisition of Invitel, plus an amendment to Danish corporate tax legislation.
Wireless Mobile Telecom Wireless News
Danish incumbent TDC and broadcaster Viasat have announced the test launch of DVB-H (Digital Video Broadcasting, Handheld), allowing subscribers to watch TV on their handsets. So far, TDC users have only been able to watch mobile TV via 3G content stremaing, but for the next three weeks, selected subscribers equipped with appropriate Nokia cell phones will have access to six TV channels via DVB-H, which is expected to become the European standard for mobile TV. As opposed to streaming, DVB-H broadcasts TV signals to cell phones, offering better picture quality to multiple users. TDC and Viasat have installed transmission equipment in Copenhagen to carry out the test. Viviane Reding, European Telecoms Commissioner, has said that DVB-H should be a pan-European standard. On that basis, Viasat and TDC expect that DVB-H will also become the standard in Denmark.
Wireless Mobile Telecom Wireless News
TDC and Viasat said Tuesday they have just launched a test of TV on the cell phone via DVB-H (Digital Video Broadcasting, Handheld).
So far, it has only been possible to watch mobile TV with 3G, but for the next three weeks, selected test persons equipped with Nokia cell phones will have access to six TV channels via DVB-H.
The test is to provide the two companies with Danish user experience with DVB-H, which is expected to become the European standard for mobile TV.
Viasat has obtained permission to test TV on the cell phone with DVB-H. The test, which is carried out in cooperation with TDC, runs over the next three weeks.
As opposed to 3G where the content is streamed, DVB-H concerns broadcasting of TV signals to cell phones etc., and the technology can, among other things, offer better picture quality to many users at the same time.
The test persons have been given Nokia phones, and until July 15, they will have access to DR1, TV 2, TV 2 NEWS, TV 3, TV 3+, and MTV Music.
TDC and Viasat have installed transmission equipment at Lynetten in Copenhagen in order to carry out the test.
Both Viasat and TDC have carried out tests with DVB-H abroad. The two companies have now decided to carry out tests in Denmark because they are interested in obtaining Danish user experience. Both Italy and Finland have come far with DVB-H, and several other E.U. countries are also well on the way.
Moreover, Viviane Reding, Commissioner for Information Society and Media, has clearly expressed the view that DVB-H should be a pan-European standard. On that basis, Viasat and TDC expect that DVB-H will also become the standard in Denmark.
DR, TV 2, Nokia, and Broadcast Service Danmark are also involved in the test.
Wireless Mobile Telecom Wireless News
News such as Bjarne Riis’s doping admission and the clearing of the Youth Center on Nørrebro, Copenhagen, keep the Danes glued to the screen. And it is not just the TV screen, but also the smaller cell phone display that attracts attention. TDC has just analyzed the use of mobile TV almost six months after its launch, and the statistics clearly show that the main attraction is brief television features such as news. During the clearing of the Youth Center, there was a period with four times as many unique users accessing mobile TV as on ordinary days. Similarly, the press conference where Bjarne Riis admitted to doping abuse almost doubled the viewers for the channels showing the news.
TDC’s statistics also show that each unique user on average
Watches mobile TV for 9-10 minutes a day
Accesses mobile TV 2.7 times a day
Watches for 3.5 minutes per session, i.e. each time a channel is activated.
“The analysis has confirmed that mobile TV has its natural place in the media picture and that TV on the cell phone is particularly suited for breaking news when people do not have access to traditional television. You always carry your cell phone, so you can choose to watch the news or whatever else you fancy when and where you want,” says Anders B. Christjansen, Vice President, TDC Mobile.
The analysis of viewer habits during the first six months is also the reason behind TDC’s recent release of two additional TV channels on the cell phone: the news channel DR Update and the music channel MTV Shorts, which both bring short features. The entertainment channel Star! will soon be added. TDC already offers a broad range of mobile TV in Denmark with access to DR1, DR2, TV 2, TV 2 News, Kanal 4, and Voice TV. In addition, TDC offers access to TV 2 Sputnik as video on demand.
“After the first six months with mobile TV, we are overall very satisfied. We are still in a start-up phase, where we are gaining experience with the medium. That experience we are, among other things, using to improve the user experience and ensure that we offer the right content,” says Anders B. Christjansen.
TDC Mobile TV is accessed through the mobile portal Fly. So far, only TDC’s mobile customers can use the feature, which also requires a 3G cell phone. Mobile TV is only accessible in areas covered by TDC Mobile’s 3G network. Unlimited usage costs DKK 29 per day, DKK 49 per week, or DKK 75 per month.
Wireless Mobile Telecom Wireless News
TDC has decided to divest Talkline, TDC’s mobile business in Germany, to debitel AG at a price of EUR 560m corresponding to DKK 4.2bn. The sale is expected to result in an after tax gain of approximately DKK 3.3bn.
“Talkline has been a sound investment for TDC. However, TDC has its strategic focus on the Danish and Nordic markets. Therefore, it is natural to divest the business to a telecommunication provider that is already present in the German market. The new owner is therefore able to strategically take advantage of acquiring Talkline, which is also reflected in the price we have been offered”, says Jesper Theill Eriksen, Head of TDC’s international activities.
Talkline is Germany’s third biggest service provider (mobile business without own network) and has in total 3.8 million customers and revenue of DKK 7.7bn in 2006. TDC acquired Talkline in 1997 and the German mobile business today has approximately 850 employees. Talkline’s headquarter is located in Elmshorn near Hamburg.
debitel AG is Germany’s largest service provider and has in total 9 million customers and approximately 2,400 employees. debitel’s headquarter is located in Stuttgart and the company has revenue of DKK 16.6bn.
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Tele2 AB Friday said it has sold UNI2 Denmark to TDC Hosting A/S.
UNI2 Denmark had approximately 3500 Danish business customers at the end of the first quarter 2007, generating revenue of SEK67 million and EBITDA of SEK6 million. The company has approximately 30 employees. The transaction will have a positive one time effect on Tele2 of approximately SEK50 million, the company said.
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TDC A/S Tuesday said it has agreed to sell fully-owned German mobile operator Talkline to debitel AG for EUR560 million on a cash and debt free basis.The company said the sale is subject to approval from the EU competition authorities. The sale of the shares is currently expected to result in an after tax gain of around DKK3.3 billion, which will be included in the third quarter income statement under special items.
Wireless Mobile Telecom Wireless News
Denmark-based telecommunications operator TDC has decided to divest its German mobile service provider Talkline to Germany-based European mobile service provider debitel for EUR 560 million corresponding to DKK 4.2 billion. The sale is expected to result in an after tax gain of approximately DKK 3.3 billion. The divestment is part of TDC’s strategy to focus on the Danish and Nordic markets. Talkline is Germany’s third biggest service provider and has in total 3.8 million customers in 2006 including the customers of the mobile discount brand callmobile. debitel is Germany’s largest service provider and has in total 9 million customers and approximately 2,400 employees. The sale is subject to approval from the EU competition authorities. This transaction could mean that the remaining larger German mobile service providers, Drillisch (1.763 million customers in 2006) and freenet (5.12 million customers on 31 March 2007), will be forced to combine their operations to be able to stay competitve.
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Vodafone seeks to raise Polkomtel stake, shares fall
