Wireless Federation

www.WirelessFederation.com/news: Zain, the Middle East and African mobile operator, intends to sell a stake in its African operations, Celtel, for a right price. The Group has received offers from French telecoms Group and various other telcos, Zain Group’s Assistant Chief Executive for Business Development and Government Relations Barrak al-Subeih revealed. He said the company will go ahead with the sale if the price is right.
Zain has still come to decision of selling the stake, excluding Sudanese operations. The group values the operations at around $10 million. Vivendi approached Zain in recent months about exploring a purchase of the African division, the sources said.

www.WirelessFederation.com/news: According to a media report, it is likely that the Indian mobile operators, Bharti Airtel and Reliance Communication are in the race to acquire Zain’s African business.
Bharti and Rcom are competing with the French telecoms group Vivendi, which is already in talks with the Zain Group for a deal valued at $12 billion.

www.WirelessFederation.com/news: Econet Wireless Group (EWG) of South Africa has reportedly begun moves to block the sale of Kuwaiti-based Zain’s interests in Zain Nigeria until a ruling on a dispute over ownership of the company is passed. Previous media reports indicated that the Zain Group, may agree to a deal to sell its African operations to French company Vivendi for up to USD12 billion.

www.WirelessFederation.com/news: Vivendi is reportedly in talks with Kuwait’s Zain Group regarding a possible takeover of Celtel International. It was reported earlier by Wireless Federation that Zain Group may agree this week to sell its unit Celtel Africa to a French company for up to USD 12 billion. Zain has reportedly made its demands and is now waiting for a reply from Vivendi. If the deal doesn’t conclude as it anticipated to be, Zain will look for other potential buyers.

www.WirelessFederation.com/news: Vivendi’s Chief Executive, Jean-Bernard Levy states that France Telecom should be forced to offshoot its fixed-like phone network because of its unhealthy dominance in the French market. Levy said there should be “total separation” between France Telecom and its fixed-line network because the French fixed-line market is currently dysfunctional. “If we look 10 years down the road, I think that’s where we ought to be going,” he said.

Vivendi holds 56% of SFR, one of France Telecom’s contender in French Broadband market. Vodafone owns the remaining shares. Vivendi filed a complaint to the European Commission earlier this month, accusing France Telecom of abusing a dominant market position. He reportedly said that there are no rules for fair competition, so this is why we are taking it to Brussels.

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Outlook 2009: Strong Growth of the EBITA

• Revenues 2008: EUR 25,392 million, an increase of 17.2% (+18.3% at constant currency).
• EBITA(1): EUR 4 953 million, an increase of 4.9% (+5.6% at constant currency) after EUR 245 million in Neuf Cegetel and Activision cost integration.
• Adjusted Net Income(2): EUR 2,735 million; Adjusted Net Income at constant perimeter(3) up 8.4%.
• Earnings attributable to equity holders of the parent: EUR 2,603 million (-0.8%).
• Proposed dividend of EUR 1.40 per share.

Comments by Jean-Bernard Levy, CEO of Vivendi
“We reached the goals that we set in the beginning of 2008. Despite an unstable environment, our business units’ operating performances were excellent.
In 2008, we created Activision Blizzard, the leading third-party publisher of video games worldwide. With the completion of the Neuf Cegetel integration, we established the new SFR, a major telecommunications group capable of responding to the needs of all markets (general public, enterprise and wholesale).
Vivendi’s shareholders will benefit from our strong 2008 results. Our strategy has allowed Vivendi to strengthen its leadership in each activity. Our balance sheet is solid and our liquidity secure. At the shareholders’ meeting we will propose to increase the dividend per share to EUR 1.40.
Despite the current market conditions, I approach 2009 with confidence and vigilance. Vivendi has the ability to resist, due to its subscription based model and the quality of its contents and services, added to continuous cost control. The profitable growth is expected to continue. Vivendi expects its EBITA will show strong growth in 2009.”

Orange, France’s largest mobile operator has reportedly lost the exclusivity of iPhone 3G in France. The report came after a Paris appeals court said in a ruling that the French incumbent will have to surrender its exclusive rights to sell iPhone 3G in France.
The new ruling has opened the doors for the other incumbents, Vivendi and Bouygues Telecom, can now begin selling the iPhone 3G in the French mobile market.
It was Bouygues Telecom, which had in September 2008 filed a lawsuit against Orange, alleging that the latter had violated the anti-trust competition laws.
Orange, which asserted Arcep has eventually “put the market economy into question” and surprised over the collapse of its ruling.
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According to Arcep, the French regulator, the number of mobile subscriber across the country has risen by 0.7% in Q3′08 and by 6.3% on a y-o-y basis. Country’s subscriber base totalled to 56.41 million by September end, adding 370,800 subscribers in Q3.
The penetration rate in France rose to 88.7% from 88.1% in June-end. In metropolitan France, MVNOs market share rose to 4.9% in Q3 from 4.67% at the end of June.
The three mobile network operators are France Telecom, Vivendi, and Bouygues Telecom.

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Saudi Telecom Company is sure about it’s expansion in North Africa, despite a reported rejection from the Maroc Telecom’s French owner Vivendi. According to STC CEO Saud Al Duweish hopes a change in mind of Vivendi, which reportedly denied of STC making any official bid. ‘We tested the waters for Maroc Telecom but we didn’t get a positive feedback…We hope Vivendi will change its mind,’ he said, adding, ‘We are interested in the Middle East and North Africa in general but we are looking at North Africa in particular.’

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Saudi Telecom is planning to cut nearly 14% of it’s workforce at home and also wants to double it’s efforts for it’s expansion abroad after it saw rejection in Moroc Telecom stake, by French firm Vivendi.
The telco’s Chief Executive Saud Al-Duweish had hopes from Vivendi, after the decline of selling Moroc Telecom stake that it would change it’s mind, and showed interest in the Algeria Telecom’s privitisation.
The operator is under immense pressure to improve it’s profitability as there is a huge competition among regional telco’s, like Kuwait’s Zain, as well.
Saudi Telecom for foreign expansion has spent nearly $6 billion in the past 15 months. In order to catch up with the expenses, the group plans to cu it’s expnses by 15% and to cut 3,000 jobs out of its workforce of 21,000, or 14 percent.
Al-Duweish said he is still interested in participating in the privatisation of Algeria Telecom.
“We will always be interested in Algeria, which is a country with huge potential.”

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