KPN Q3 revenues flat, profit up slightly (Netherlands)
Dutch operator KPN reported third-quarter revenues unchanged from a year earlier, at EUR 3.037 billion. The figure includes EUR 30 million from selling real estate; revenues were otherwise down 0.7 percent. EBITDA improved slightly, to EUR 1.220 billion versus EUR 1.998 billion a year earlier, helped by the Dutch and German mobile activities, while net profit grew to EUR 355 million from EUR 342 million. KPN repeated its outlook for the full year, for flat annual sales, versus a decline of 0.7 percent in the first nine months, while EBITDA is also expected unchanged in 2007, after a 0.1 percent drop in the first nine months. The outlook excludes the recent acquisitions of Getronics and iBasis. Free cash flow is expected to exceed EUR 2 billion this year, while capex will come in at the low end of the previously estimated range of EUR 1.6-1.8 billion.
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T-Mobile, Apple unveil iPhone tariffs in Germany (Germany)
T-Mobile Germany and Apple have confirmed the mobile tariffs that will be offered in combination with the Apple iPhone, which is available from 9 November. Customers will be able to choose from three tariffs: Complete M, Complete L and Complete XL. All tariffs include flatrates for unlimited internet access via T-Mobile’s EDGE network and Deutsche Telekom WLAN HotSpots. The tariffs also offer free use of Visual Voicemail, which enables users to see who called and if they left a message without the need for calling their voicemail box. Complete M further includes 100 call minutes within Germany and 40 SMS messages send within Germany for EUR 49 per month, Complete L includes 200 call minutes and 150 SMS messages for EUR 69 per month and Complete XL includes 1,000 call minutes and 300 SMS messages for EUR 89 per month. After using the included minutes all T-Mobile iPhone customers pay EUR 0.39 per minute and EUR 0.19 per send SMS message. The iPhone itself costs EUR 399 in combination with a two year contract for one of the iPhone Complete tariffs plus a EUR 25 activation fee.
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DoCoMo’s net income falls 20%, plans reorganisation (Japan)
Japan’s NTT DoCoMo saw its revenues fall in the first half of fiscal 2008 due to lower mobile services revenues because of changed accounting methods, the launch of new discount services and growth in the number of handsets sold. Operating revenues went down 2.4 percent to JPY 2.33 billion from JPY 2.38 billion in the year-ago period. Operating income and income before tax fell 21 percent to JPY 408.5 billion and JPY 410.9 billion, respectively. NTT DoCoMo’s net income went down 20.4 percent to JPY 246.5 billion from JPY 309.8 billion. The company ended the period with 52.94 million subscribers of which 40 million are FOMA users. Churn rose in the period to 0.90 percent due to mobile number portability. ARPU stood at JPY 6,550 down 3.8 percent year-on-year. For the financial year 2008, ending 31 March, revenues are forecasted to total JPY 4.67 billion (down 2.5 percent), operating income is expected to reach JPY 780 billion and net income is forecasted to go up 4.1 percent to JPY 476 billion. NTT DoCoMo further announced it will reorganise its group structure by integrating its eight wholly-owned regional subsidiaries. The group’s nationwide business operations will be consolidated under a single entity to enhance customer service as well as the speed and effectiveness of its operations. DoCoMo intends the reorganisation to be completed sometime during the second quarter of the fiscal year ending March 2009.
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Vonage, Verizon resolve VoIP patent lawsuit dispute (USA)
US VoIP services provider Vonage and Verizon have agreed to resolve their patent lawsuit. In June 2006, Verizon Services brought a lawsuit against Vonage to enforce several Verizon patents relating to VoIP services. The terms of the resolution depend on how the Court of Appeals decides Vonage’s pending petition for rehearing regarding two of the Verizon patents (the ’574 and ’711). If Vonage wins rehearing on either of the patents or if the injunction is vacated as to the patents, Vonage will pay Verizon USD 80 million. If Vonage does not win rehearing on either patent, or if the stay is lifted reinstating the injunction, Vonage will pay Verizon USD 117.5 million.
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New Zealand govt seeks comments on TNZ separation plan (New Zealand)
The New Zealand Communications Minister David Cunliffe has called for public submissions on Telecom New Zealand’s (TNZ) draft separation plan. Cunliffe has noted that some aspects of the next generation network migration plans contained in the draft separation plan remained a work-in-progress. Cunliffe has welcomed the change in Telecom’s approach to the separation process. Submissions must be received by the Ministry of Economic Development no later than 17:00 on 23 November.
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Telenor unveils Turbo-3G mobile broadband service in Norway (Norway)
Mobile operator Telenor will launch its Turbo-3G mobile broadband service in November. Norway’s four largest cities will be covered by this service, soon to be followed by six other cities. Customers who use Telenor’s mobile broadband will also, in addition to Turbo-3G, have access to a Telenor Wireless Zones. Turbo-3G can reach speeds of up to 3.6 Mbps, but the normal speed will be around 0.5-1.5 Mbps. Telenor will launch Turbo-3G in Oslo, Bergen, Stavanger including Sandnes and Trondheim, along with various winter sport centres in southern Norway. The three broadband packages include Fri Bruk (Free Access) for NOK 499 per month, Kveld & Helg (Evenings & Weekends) for NOK119 per month and Litt Bruk (Some Access) for NOK 59 per month. More than seventeen winter sport centres will have access to Turbo-3G by November. From as early as January next year, Turbo-3G will be available in ten cities.
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Pakistan sees 70 mln subscribers in September (Pakistan)
The Pakistan mobile market grew to a total of 70 million mobile subscribers in September, up 3 percent from 68 million in August, according to figures from the Pakistan Telecommunications Authority. Mobilink was the number one, with 28.57 million customers versus 27.83 million in August. Ufone came in second with 15.42 million subscribers from 15.33 million a month earlier, and Paktel grew to a total 1.23 million users from 1.04 million in August. Warid had 11.87 million subscribers at the end of September versus 11.5 million subscribers in August. The mobile density was 43.60 in September as compared to 42.64 in August.
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Safran to sell Sagem Communications to Gores Group (France)
French electronics, communications and defence group Safran has received a binding offer from US investor Gores Group for the acquisition of Sagem Communications at an enterprise value of EUR 383 million. Safran and Gores entered exclusive negotiations for the sale of the subsidiary, which offers broadband and convergence solutions, including printing terminals, digital TV STBs, broadband and residential terminals and telecommunication systems. The company has 6,500 employees and posted an EUR 866 million revenue in the first nine months of 2007, compared to EUR 1.3 billion in all of 2006. Safran said the sale should be finalised in the coming months, following consultation with corporate and employee entities and receipt of the required administrative authorisations. Gores will be majority shareholder and will be joined by minority shareholders including Safran and a large group of employees (management, employee mutual fund, etc).
According to Les Echos, the sale will close in the spring, with Safran keeping 10 percent for an unspecified period. Gores plans to maintain Sagem Communications’ three plants in France under their current directors, said Gores president Steven C Yager, in charge of mergers and acquisitions. In addition to the new funds, the US company will use its connections to help Sagem Communications grow in the US market.
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Mobistar CEO to step down by year end (Belgium)
Belgian cellular network operator Mobistar’s CEO, Bernard Moscheni, will step down from the company before the end of the year.The 50.2 percent France Telecom susbsidiary will be headed by Werner De Laet, its current CFO, until a new CEO is appointed. The selection process will be led by Mobistar chairman Jan Steyaert and Orange senior executive vice president Olaf Swantee. Moscheni, who held the CEO post for three years, will take on another professional challenge, according to the company press release.
Iliad Q3 sales up 29.4 percent, driven by Free broadband (France)
French telecommunications group Iliad reported a turnover up 29.4 percent to EUR 307 million in the third quarter, compared with EUR 237.2 million in the year-earlier period. Iliad added 141,000 net customers in the quarter, with ISP subsidiary Free reaching 2.77 million ADSL subscribers at the end of September, up from 2.63 million three months earlier. Consolidated broadband turnover, including intersector revenues, rose by 35.9 percent to EUR 299.2 million, while consolidated traditional telephony sales were down by 54.7 percent to EUR 7.7 million.
Broadband ARPU increased to EUR 35.3 per month, from EUR 35 euros in the second quarter 2007 and EUR 33.5 in the third quarter of 2006. The traditional telephony business continued to suffer from the success of VoIP. The total number of Onetel subscribers fell to 180,000 subscribers as of 30 September, versus 194,000 on 30 June. ARPU has stayed at around EUR 10 since the fourth quarter of last year. Furthermore, Kedra’s revenues decreased by 81% between the third quarter of 2006 and the third quarter of 2007, due to the large increase in direct interconnection with mobile operators.
Iliad reiterated its key targets for 2007: to reach more than 2.8 million broadband subscribers by the end of the year (rising to 4 million broadband subscribers by 2010); to have an unbundling rate of 80 percent of subscribers by the end of 2007 and 85 percent of subscribers in the long term; to maintain a EUR 20 average gross margin per unbundled subscriber; to pursue the innovative and profitable growth strategy; and to have eight equipped FTTH NROs providing horizontal coverage of 241,000 homes by the end of 2007.
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