SingTel to sell majority stake in Network i2i to Bharti
Telecompaper writes…Singapore Telecommunications (SingTel) plans to sell its almost 50 percent interest in Network i2i to Bharti Airtel. Network i2i owns the i2i undersea cable network between India and Singapore. SingTel sold its 49.99 percent stake for about USD 55 million but the transaction may alternatively be structured as a sale of the assets of i2i to Bharti for approximately USD 110 million. The parties have not yet reached a definitive agreement.
BenQ Selects Kineto for UMA-Enabled Handsets
Businesswire writes…Kineto Wireless, Inc., the key innovator and leading supplier of Unlicensed Mobile Access (UMA) technology, today announced that BenQ has selected Kineto’s industry-leading UMA client software for inclusion on a number of upcoming UMA-enabled dual-mode handsets. The BenQ handsets to feature the Kineto UMA client include an open OS smart phone and a feature phone available later in 2007.
BenQ is pleased to be working with the UMA technology leader on our new UMA-enabled handsets,??? said Dr. Irwin Chen, senior vice president and general manager, Mobile Communication Business Group (MCG) of BenQ. Kineto’s proven UMA client software and superior engineering support are helping BenQ accelerate our UMA products to market in order to meet the growing need for UMA handsets from our important operator customers.???
With UMA client software from Kineto Wireless, BenQ dual-mode handsets can seamlessly handover between GSM networks and Wi-Fi connections in subscriber’s homes, offices or hotspots. UMA technology enables seamless mobility for all mobile services, including circuit-based voice services as well as packet and IMS-based services. UMA technology is being deployed by leading operators around the world including Orange, T-Mobile, Telecom Italia, TeliaSonera, and British Telecom.
Kineto is excited to be working with BenQ on these compelling new UMA-enabled handsets,??? said Mark Powell, vice president of the client business unit and co-founder of Kineto Wireless. With demand for UMA product growing rapidly, BenQ’s attractive designs and excellent products will prove a welcome addition to the portfolio of handsets available to UMA operators worldwide.???
East Africa: Safaricom to End All East Africa Roaming Charges
Allafrica writes…Say goodbye to roaming charges on Safaricom lines used in Uganda and Tanzania: Kenya’s leading mobile operator has partnered with MTN Uganda and Vodacom Tanzania to provide a joint network for subscribers within East Africa.
The network will be formally launched on February 1 in Kampala. Subscribers will then be able to use their Safaricom lines in the neighbouring countries for no extra cost.
The partnership between MTN, Vodacom and Safaricom will see the three offer a service to rival Celtel’s ‘One Network’. Celtel, which operates in all three countries, launched a seamless cross border network in September 2006.
Ugandan media reports quote Mr Eric van Veen, MTN’s chief commercial officer, saying his firm had already signed Memorandums of Understanding (MoUs) with Safaricom and Vodacom Tanzania. Safaricom’s top executives declined to elaborate on the deal ahead of the launch.
Meanwhile, the Kenyan mobile phone service provider has launched a new promotion for its customers.
Chief Executive, Mr Michael Joseph said the new ‘Bonga’ programme would reward all Safaricom subscribers with points based on their usage and lifetime on the network. The points, he said, would be kept in customers’ accounts and used to win various prizes, including airtime and other merchandise.
“For every Sh10 spent on voice calls, SMS or data, subscribers will get a minimum of one Bonga point,” he said.
To take part in the reward programme, Safaricom subscribers are required to enrol by sending a free SMS with the word ‘Bonga’ to 125.
Why India deal is vital to Vodafone
Inhome.Rediff writes…The bidding war is heating up for Hutchison Essar, India’s fourth largest cellular company. Britain’s Vodafone Group kicked off the scramble last month when it signaled interest in acquiring the Indian affiliate of Hong Kong-based Hutchison Wampoa.
Since then, the list of potential buyers has grown to include India’s second-largest mobile operator, Reliance Communications, and Indian conglomerate Hinduja Group. Even Essar Group, which currently owns one-third of Hutchison Essar, may make a bid.
It’s easy to see why everyone wants in-and why the rumored price tag has climbed into the range of $18 billion to $20 billion. Although China is the world’s largest mobile-phone market, with nearly a half-billion customers, India recently overtook it as the world’s fastest-growing. More than six million new users signed on in India in December alone.
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The country’s six main mobile operators now share 150 million customers, nearly double the number a year earlier. But with India’s population topping 1.1 billion, that translates to penetration of just 14%. Market researcher Gartner figures the customer base should double again by 2010.
Holding on to Airtel
For Vodafone and its India-born chief executive Arun Sarin, the stakes have never been higher. With growth slowing in its core European markets, the world’s largest wireless operator is turning, as never before, to developing economies.
The company figures its revenues from emerging markets will grow at an annualized rate of more than 12% between now and 2010, vs. just 4% annual growth in Europe, where penetration is near saturation.
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Vodafone already owns a 10% stake in India’s No. 1 mobile operator, Bharti Airtel. But the British giant doesn’t stand a chance of taking majority control because Bharti’s main shareholders aren’t selling. Instead, Vodafone is expected to divest its Bharti stake to acquire Hutchison Essar, whose primary owner is selling out to fund other ventures.
“With limited growth prospects in Vodafone’s core European markets, Sarin’s No. 1 job right now is to convince investors that he has a viable long term growth strategy,” says John Delaney, principal analyst at telecom consultancy Ovum in London. “And gaining control of a fast-growing operator in India is the best opportunity he has to do it.”
Bharti welcomes Vodafone’s absence from board meet
Indiaprwire writes…India’s largest private cellular operator Bharti Airtel welcomed British telecom giant Vodafone’s decision to abstain from its board meeting as it is acquiring Hutch-Essar, Airtel’s biggest competitor in the cellular market.
‘Vodafone directors had abstained from the Board meeting. It is a responsible company and it shows their high standards,’ Akhil Gupta, Airtel’s joint managing director, told the media here Tuesday.
Gupta also confirmed that Airtel had received a notification from Vodafone regarding its interest in acquiring Hutch-Essar, India’s fourth largest mobile telephone operator.
Currently Vodafone holds 9.9 percent stake in Airtel and for it to emerge successful in its bid for Hutch-Essar, the company has to exit from Bharti’s board.
Vodafone’s India-born chief executive Arun Sarin had earlier said that the company will announce a formal bid early next month.
According to industry sources, the board of Hutchison Telecom International Ltd (HTIL) is expected to meet Jan 29.
HTIL currently holds 67 percent stake in its Indian operation, Hutch, which it is trying to sell to potential bidders.
Besides Vodafone, Anil Ambani’s Reliance Communication and London-based Hindujas have also officially announced their interest in acquiring Hutch.
Bharti Airtel to hive off mobile towers
IndiaInfoline writes…The company also plans to start DTH services. It will also acquire a submarine network cable system from Network i2i by purchasing all the assets or equity for US$110mn
Bharti Airtel Ltd. on Tuesday announced that it will transfer all the towers for mobile communications and related passive infrastructure into a wholly owned subsidiary, Bharti Infratel Ltd. for enhanced operational efficiencies.
The Board of the New Delhi-based company also approved the proposal to start Direct To Home (DTH) services to address the fast growing home entertainment segment through its wholly owned subsidiary, Bharti Telemedia Ltd.
Also, the company would acquire a submarine network cable system from Network i2i (jointly owned by Singtel and a Bharti group) by purchasing all the assets or equity for an overall consideration of US$110mn, subject to obtaining the requisite approvals.
Bharti Airtel Q3 net up at Rs 1,215 cr
Zeenews writes…Bharti Airtel, the country`s largest private cellular operator, on Tuesday reported a massive 123 per cent rise in net profit at Rs 1,215 crore as it added 50 lakh new subscribers in the third quarter this fiscal.
The company`s market share rose to 21.8 per cent with its subscriber base – mobile, broadband and telephone – increasing about two-fold to reach 3.37 crore as on December 31, 2006. It added 50.19 lakh customers during October-December 2006, a growth of 92 per cent year-on-year.
Total revenues stood at Rs 4,913 crore for the third quarter this fiscal, up 62 per cent over Rs 3026 crore in the corresponding period last year. Net profit during the third quarter of 2005-06 was at Rs 545 crore.
The average revenues per user for mobile services stood at Rs 427 and monthly usage per customer was 467 minutes during the quarter under review.
For the nine months ended December 31, 2006, the company`s net profit increased by 84 per cent year-on-year to touch Rs 2,904 crore and revenues grew by 59 per cent on a yearly basis and stood at Rs 13,126 crore.
“Demand for telecom services continues to be robust across all segments, led by a buoyant economy. The wireless sector has seen record additions and the trend is likely to continue,” Bharti Airtel Chairman and Managing Director Sunil Bharti Mittal said in a statement.
Bharti Airtel will transfer its towers and related passive infrastructure business into a wholly-owned arm – Bharti Infratel Ltd. The company also plans to acquire a submarine network cable system from network i2i for 110 million dollar.
Nokia shares – dead money or dead cheap?
nzherald writes…Nokia has outsold rival mobile phone makers for the last five years but its stock has effectively not moved a bit since 2002, leaving investors and analysts hoping it will pull away this year.
The shares are lingering around 15 euros, the level where they were six years ago when the technology bubble burst.
That is despite a forecast 62 per cent increase in earnings per share to 1.15 euros in 2007, from 0.71 euros in 2002, according to a Reuters poll of analysts.
The explanation for this apparent paradox is that investors are not looking at earnings per share, which are powered by share buybacks, but at Nokia’s inability to turn booming demand for its phones — 1.15 billion sold over the past five years — into an attractive profit.
While its sales of mobile phones have grown by over 150 per cent in those five years, Nokia’s revenues grew by a much more modest 31 per cent and net profit by just 23 per cent.
Not only did the Finnish company sell ever cheaper phones, it also made less profit on those cheaper models.
Nokia has been unable to convince investors that it can make the same margin on a cheap phone as it can on a more expensive phone. As soon as they can do that, their problems are over,” said Theo Maas, a fund manager at ABN AMRO Asset Management, who helps oversee over 30 billion euros in assets.
That moment may well be near, other investors say.
“A marginal improvement in Nokia’s business can have a big impact. If they show an improvement in the mid-end of their phone range, there’s a lot of upside to be made,” said Jan Keuppens, a fund manager at Dutch-based Robeco, who helps oversee 8.5 billion euros in assets, including Nokia stock.
“I don’t expect any fireworks at short notice. But some time in 2007 I expect an improvement.”
By any yardstick, shares in Nokia — Europe’s number one technology firm with a 61.4 billion euros market capitalisation — look cheap.
In 2002 and 2003, Nokia shares traded at roughly 20 times expected earnings, but since then the valuation has fallen and the stock now trades just 13.4 times forecast 2007 earnings, well below its rivals.
Nokia’s closest rival, Motorola, trades at 15 times expected 2007 earnings, according to Reuters Estimates, even though profit margins in its key handset unit more than halved to 4.4 per cent in the Christmas-fuelled fourth quarter, compared with Nokia’s much higher 13 per cent margin.
“When calculating relative valuations it is clear the stock is not expensive,” said eQ analyst Jari Honko.
His sell-side colleagues try persuade investors to buy the bombed out stock. Out of 65 sell-side analysts covering the stock, only nine suggest investors should reduce or sell their Nokia holdings, while 19 recommend hold and 37 accumulate or buy.
“The phone market is growing. Nokia has gained market share and it has become increasingly evident that the market is being split between fewer players. Also Nokia’s profitability is still at a good level,” said OKO Bank analyst Hannu Rauhala in Helsinki.
Investors are now waiting for the first signs that Nokia is taking back market share among mid-priced phones.
Nokia held on to its global market share of about 35 per cent in the last quarter due to its success with affordable phones for emerging markets like India.
Nokia content with Australian channel coverage
CRN.com writes…Mobile phone giant satisfied with mobile and security reseller numbers.
Nokia is content with its current channel set-up in Australia, but it may look to add new VoIP resellers later in the year.
Brad Reed, marketing manager for Nokia Enterprise Solutions, said: We have built up our channel in Australia and have found the market to be more mature than some other overseas markets. We have built a mobility and security channel and have the numbers we want.???
Reed said Nokia has four mobility partners and nine security partners across Australia.
One area which will grow in the second half of the year is VoIP and we will be releasing a new raft of products around VoIP this year. We will be looking to build out some channels in this area,??? added Reed.
The Shame Game
MobileGames writes…On the good old w2forum there is a lively discussion going on about malicious partners in our little industry. How can developers claim money for sales on their mobile games with a non-paying partner, or even from pirate sites? There is a whole thread about it.
