Verizon picks LTE for 4G mobile broadband network (USA)
US mobile operator Verizon Wireless plans to develop and deploy its fourth-generation mobile broadband network using the Long Term Evolution standard. The selection of LTE provides Verizon Wireless and its shareholder Vodafone with an opportunity to adopt a common access platform, compatible with existing technologies of both companies. Currently Verizon uses a CDMA network, but it has recently announced a policy to open its network to all types of devices and applications. Vodafone meanwhile uses GSM networks. Verizon and Vodafone have a coordinated trial plan for LTE that will start in 2008. Trial suppliers include Alcatel-Lucent, Ericsson, Motorola, Nokia Siemens and Nortel.
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Polish mobile networks unveil co-operation agreement (Poland)
Polish mobile operators PTK Centertel (Orange) and Polska Telefonia Cyfrowa (PTC) (Era) have signed a co-operation agreement to create market standards for development and implementation of a new generation of mobile services. They have signed a Letter of Intent outlining their readiness to undertake joint action aimed at creating the necessary standards for new services. They aim for the standards to have an open character and to involve other mobile operators and partners.
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Vimpelcom posts Q3 record net income of USD 458 mln (Russia)
Russian mobile operator Vimpel Communications (Vimpelcom) has reported record net operating revenue of USD 1.96 billion for Q3 2007, up 43.9 percent from Q3 2006 and up 13.9 percent from Q2 2007. OIBDA reached a record USD 1.01 billion for the quarter, up 41.4 percent year-on-year and up 13.2 percent quarter-on-quarter; with net profit up 70.7 percent year-on-year to a record USD 458 million. The consolidated figures cover its operations in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. Vimpelcom registered a total of 50.69 million active mobile subscribers at end-Q3 2007, up 18.9 percent from 42.64 million a year earlier.
Its Russian operations had a total of 41.80 million active subscribers at end-September, up 7.8 percent from 38.79 million a year earlier. Its Russian business generated Q3 revenue of USD 1.65 billion, up 34.5 percent from USD 1.23 billion in Q3 2006; with net income of USD 422.58 million, up 50.1 percent from USD 279.96 million. ARPU in Russia was USD 13.40 in Q3 2007, up 26.4 percent from USD 10.60 in Q3 2006, with average minutes of use (MOU) up 37.5 percent year-on-year from 151.9 to 208.9 minutes. Churn rate in Russia was 10.1 percent, versus 9.9 percent in Q3 2006.
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Sprint rejects investment offer from SK, Providence (USA)
US mobile operator Sprint Nextel has rejected an offer from Korea’s SK Telecom and private-equity firm Providence Equity Partners to invest USD 5 billion in the company. Sprint’s former chairman Tim Donahue, who would have returned as CEO under the investment plan, made the proposal to Sprint’s board in a letter earlier this month, people familiar with the matter told the Wall Street Journal. No meeting with the potential investors was held. Donahue is the former CEO of Nextel, acquired by Sprint in 2004. Sprint is currently searching for a new CEO. A Sprint spokeswoman declined comment, while Providence Equity and SK Telecom didn’t respond to inquiries. SK Telecom is already part owner of Helio, a mobile venture with Earthlink that uses Sprint’s network.
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Ofcom sets 2-hour deadline for mobile number porting (UK)
UK regulator Ofcom set new rules to allow consumers keep their mobile number when they switch providers. Under the new rules, consumers will be able to receive calls using their existing number within two hours of moving to a new mobile network. The rules are expected to strengthen competition and consumer convenience, and it will also help protect consumers from the risk of losing calls if their old providers’ network fails. The move follows Ofcom’s earlier decision to reduce mobile number porting lead times from five days to two days from 1 April 2008. Two-hour transfers for mobile numbers must now be implemented by 1 September 2009. In addition, mobile operators will have to ensure that the new porting process includes the necessary levels of protection for consumers. Ofcom also advises mobile operators to co-operate to create a common regulated database to handle calls in order to bring more efficient call routing. This will ensure that consumers are not affected by problems with their old their network, after they have ported their number. The new database will remove dependency on the previous network by routing calls to ported numbers directly to the new provider’s network without the need for the call to travel over the previous network.
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