T-Mobile to sue over DVB-H licence bid
According to reports in the Czech Business Weekly, Czech mobile operator T-Mobile is suing the Czech Radio and Television Broadcasting Council (RRTV) over the company’s failure to secure a DVB-H licence. The cellco was unlikely to get a permit as local media laws would have disbarred it but T-Mobile’s law suit is designed to draw the attention of the country’s Constitutional Court to the discriminatory nature of Czech media law. Although T-Mobile was awarded a 60-day permit for a pilot trial of DVB-H last year, its application for a full licence was turned down as under local law, a mobile operator is prohibited from broadcasting either its own content or content purchased from a third party. A spokesman for the cellco’s legal team, Petr Josefi, said: ‘The lawsuit will be filed against the council, but the aim is to be able to ask the Constitutional Court whether the fact that we are not allowed to broadcast content isn’t against the Constitution. We are convinced that forbidding a great number of subjects to gain a content broadcasting license or even to register isn’t justifiable.’ T-Mobile has already lodged a complaint with the European Commission, which is understood to be currently examining the complaint.
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PT hints at possible Telemar bid
Portugal Telecom is considering a bid for Brazilian telecommunications group Telemar, says Reuters citing a report from local daily Diario Economico. ‘Portugal Telecom’s executive commission proposed to the company’s board a bid for Telemar,’ said Diario Economico, quoting unidentified sources as saying. Telemar has a market capitalisation of about USD9.7 billion.
Windstream expands in North Carolina
The US wireline carrier Windstream Corp has agreed to pay USD585 million cash to acquire CT Communications of North Carolina. The deal will add 158,000 phone lines and 29,000 broadband accounts to Windstream’s customer base, giving it 3.4 million access lines and 744,000 broadband subscribers in total. Windstream was established last year when the fixed line business of Alltel was spun off and merged with Valor Communications. It currently operates in 16 states and targets predominantly rural areas.
Windstream’s president and CEO, Jeff Gardner, commented: ‘CT Communications fits strategically with Windstream and advances our strategy of continuing to grow through acquisitions while expanding our free cash flow.’
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Telecom close to finalising hybrid network deal
Reports from New Zealand suggest that the country’s dominant telco is close to announcing the deployment of a new hybrid mobile system. A report from CommsDay claims that Telecom New Zealand is finalising a contract with Alcatel-Lucent which will see the telco rolling out a combined GSM/UMTS and CDMA2000 1xEV-DO network. The operator currently owns a nationwide CDMA system, much of which has been upgraded with high speed EV-DO technology, and it plans to retain this network for data use. A new GSM-based system will be deployed alongside the CDMA infrastructure to handle voice calls, for the short term at least. It is thought that Telecom will use UMTS 3G technology on the GSM network and eventually all voice and data traffic will be carried on this network.
GSM/UMTS-based networks are more popular worldwide than Telecom’s current CDMA-based system, so the move to GSM will give its customers more options when roaming abroad. Telecom’s only rival in the New Zealand mobile market, UK-based Vodafone, already uses a GSM/UMTS system. A third network is currently being deployed by NZ Communications/Econet Wireless, while TelstraClear recently scrapped plans to roll out its own 3G system and will now offer services only via resale deals.
Meanwhile, the latest quarterly operational figures show that Telecom is continuing to close the gap on Vodafone in the mobile market. Telecom added 65,000 net new users in the first three months of 2007 while Vodafone added 44,000. Vodafone still leads the market, however, with 2.24 million customers, ahead of Telecom with 1.94 million.
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Golden Telecom completes Corbina buy
The Russian wireline operator Golden Telecom has completed its purchase of a 51% stake in broadband provider Corbina Telecom. Golden paid USD162 million for the stake using a combination of shares and cash. The deal was first announced in December but has had to wait for regulatory and shareholder approval. Corbina offers internet services in Moscow and across 24 other regions. The firms say they will invest a total of USD1 billion over the next four years to roll out high speed networks in 65 of Russia’s largest cities.
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Vodafone to sell Bharti stake and rebrand Hutch
The Economic Times has reported that Vodafone Group will transfer its 5.6% stake in Bharti Airtel back to a Bharti Group company for USD1.6 billion by November 2008. The newspaper also reveals that Vodafone will invest USD1 billion in India in 2007, nearly 20% of its global expenditure. Earlier this year Vodafone took a controlling 67% stake in Hutchison Essar for USD10.9 billion.
In separate but related news, DNA Money quotes Vodafone CEO Arun Sarin as saying that the Hutchison logo will be replaced by the Vodafone one before the end of 2007.
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Satmex sale nearing conclusion
BNamericas reveals that the sale of satellite operator Satmex is in its final stages, with bids due to be handed in today, while the outcome could be made public as eary as next week. Satmex’s restructuring advisor Thomas Heather told the news agency that once the bids are received, they will be passed on to Morgan Stanley, the US investment bank in charge of the sale. The minimum price for the bid is set at USD500 million including the company’s debt of around USD378 million giving a 100% share in the company, including portions previously owned by Mexico’s government. However, to comply with Mexican law, 51% of the voting power must remain in the hands of a Mexican firm.
Bezeq reveals strong first quarter
Bezeq has reported that group revenue for the first quarter of 2007 came in up 2.5% year-on-year to ILS3.09 billion (USD768.2 million). EBITDA grew 12.5% to ILS1.1 billion, while operating income and net income both rose 27% to ILS657 million and ILS399 million respectively. Strong performance from its international and mobile operations helped it to offset 0.8% decline in revenue from its wireline division.
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Vodafone Spain still planning DSL provision
The head of Vodafone Spain, Francisco Roman, has revealed that despite falling back in the running for Deutsche Telekom’s ya.com subsidiary the cellco still plans to provide fixed internet access, likely before March 2008. Vodafone Spain currently provides wireless internet access services to consumers and offers fixed internet access to businesses by reselling BT’s services. Ramon said: ‘We will continue to look at our options … those being to resell other people’s services; to build our own (infra)structure; or to reach a (purchase) deal with someone.’
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ONO revenues slip but sees narrowing net loss
ONO has announced revenues of EUR402 million (USD541.2 million) for the three months ending 31 March 2007, down 4.2% year-on-year from EUR420 million. Falling operating expenses, however, helped EBITDA to grow 12.8% to EUR148 million and for net loss to be narrowed, coming in at EUR13 million compared to EUR22 million in the corresponding period last year. The cableco also revealed that the number of residential customers reached 1.85 million, up 9.6% year-on-year, and that it added 76,000 net new internet customers during the quarter.
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