Telecom Italia’s main agenda is it’s debt reduction and not M&A (Italy)
Telecom Italia’s Cheif Executive has reportedly said that mergers and acquisitions are not on agenda for the company. France Bernabe, the exec, denies the rumours regarding Telecom Italia being a potential bidder for African operator MTN and a telecom venture in India. The operator’s main focus is to reduce it’s EUR37 billion (USD54.6 billion) debt.
Du focuses on basic connectivity rather than VAS (UAE)
In UAE most of the people prefers basic connectivity rather than lots of value-added services. Andrew Grenville, executive vice president of carrier services at du, said in this case I will say B2B I mean back to basics. The services you move into massively depends on the market you’re moving into. Some are more open than others, in some the regulators are strong, in others they are less so, he continued. du expects to begin developing VAS in the next two to three years. Grenville further said that du expects to begin developing VAS in the next two to three years. Currently, du is not planning to expand outside UAE. After Etisalat, du has became the second operator to begin offering services in the United Arab Emirates and recently in August it obtained government approval to offer Research in Motion (RIM)’s BlackBerry inturn increases the competitive presurre on the incumbent which also offers the popular business handsets. According to Grenville, incumbents can be quite resistant to liberalisation because they see these new players coming in and destroying value, but it’s actually just new players coming in and trying to grow their business. Now the market will determine what works, he added.
DTAC, AIS and True Move gear up for the 3G race (Thailand)
DTAC in the 3G race, reportedly, raises the planned number of 3G base transceiver stations from 1,200 to 2,800. DTAC presently hold a permission of rolling out 1200 UMTS BTSs, from NTC. It initially is using it’s 850MHz frequencies in Bangkok, Chon Buri and Phuket at an estimated cost of THB5 billion (USD150 million) and plans to double this budget.
According to DTAC CEO Tore Johnsen, one of three suppliers, Ericsson, Nokia Siemens Networks and Huawei Technologies, will be chosen as its main 3G equipment partner.
AIS has lately increased the planned size of it’s UMTS-900 network from 400 BTSs to 1,900, costing around THB6 billion; AIS subscribers in Bangkok expect commercial 3G services by the year end. All it awaits is the regulatory permission in order to deploy the additional 1,500 BTSs.
Thailand’s third operator, True Move, has planned a roll out of least 600 3G BTSs using 800MHz-850MHz spectrum, at a cost of over THB1 billion.
Idea gets $100 mln monetary support from IFC (India)
To instigate services in Bihar and to strengthen Idea’s existing network, International Finance Corporation (IFC), the private sector funding arm of the World Bank will lend a $100 million (Rs 460 crore) to Idea Cellular. According to Idea and IFC, this loan will help to establish a national long-distance network to meet growing demand for services. Idea and IFC are working on a project that will estabilish Pocket Public Calling Offices to deliver mobile phone-based communications and other value-added services to under-served rural communities and the urban unconnected in India. Idea Cellular MD Sanjeev Aga, said IFC’s investment will provide the much-needed long-term funding that many companies in India find difficult to access while helping expand the local telecommunications infrastructure. For developing rural telephony in India, Asian Development Bank announced a loan of $150 million to GTL Infrastructure in May 2008.
GNCC fines Megafon for illegal operations (Georgia)
The Georgian National Communications Commission fines Megafon for it’s unlicenced operations. The fine is of more than USD360,000. According to the officials, Megafon has been warned continously by the regulator for the illegal operations.
‘We believe that what Megafon is doing in Georgia is akin to an economic occupation and annexation,’ said Giorgi Arveladze, chairman of the GNCC. ‘Our spectrum surveys indicate that this company dramatically expanded coverage before, during, and after the war, potentially making them a war profiteer and an active participant in Russia’s military operations inside the sovereign territory of Georgia.’
Swan Telecom all geared up to buy Allianz Infratech’s mobile licences (India)
UAE’s Etisalat acquires 45% stake in Swan Telecom a deal for $900 million hits yesterday. Now Swan telecom is set to obtain mobile licences held by Allianz Infratech. According to Industry sources, it is anticipated that the deal, which may run into a couple of hundred crores, is likely to be announced within a fortnight. Allianz Infratech had aaplied for Telecomlicences on a pan- India level but was permitted to instigate in only two circles, Madhya Pradesh & Bihar. Swan already have the licence to operate in 13 of the 22 telecom zones in India though Madhya Pradesh & Bihar is not included in these zones. Ajay Singh, Ashish Singh, Praveen Singh and Ashish Deora are the four individuals-aviation entrepreneur who promotes Allianz Infratech. Each holds 25% of the share in the company. Following the deal, Swan will be able to provide telecom services in 15 circles covering over a billion people.Swan managing director Shahid Balwa denied the development. He admitted that Swan would make an acquisition to extend its footprint in India. Mr Balwa further said, Swan would launch mobile services in the first quarter of 2009. The company was in talks with existing operators and stand-alone tower companies for infrastructure sharing, he added. Swan Telecom is among the seven companies that was successful in obtaining GSM licences earler this year.
PT Telkomsel predicts 10 million new subscribers in 2009 (Indonesia)
The Indonesian cellular operator, Telkomsel, predicts a subscriber base of more than 60 million by the year end and an addition of 10 million new subscribers in 2009.
PT Telkomsel’s Chief Executive Kiskenda Surihardja says, “We expect to get at least ten million new subscribers next year despite stiffer competition.”
According to the executive, in order to support a huge subscriber base, the operator is planning a capital expenditure of IDR14 trillion, next year.
“We will use our internal cash and look at possibility to issue rupiah bonds to help finance the capital expenditure,” he added.
Vimpelcom recieves a mobile licence in Vietnam, plans an investment of $1 billion (Vietnam, Russia)
Russia’s second largest mobile operator, Vimpelcom, reportedly, recieves a mobile licence in Vietnam. This licence will a be a venture between the Vietnam’s government and Vimpelcom. The Gtel venture, as it is named, will be providing GSM-technology services and will be building telecoms infrastructure. Vimpelcom will invest up to $1 billion in the venture that may become the centre of its Asian operations.
Vietnamese mobile market has a larger number of GSM operators and subscribers as well, in comparison to the CDMA business.
Mobistar targets the youth market, pays to view advertisements (Belgium)
Mobistar Belgium, as following the trend will target the youth market. The Belgian operator introduces a new offer wherein it will offer cash for viewing advertisement. In partnership with Belgian start-up Pumbby launches the service for Mobistar TempoMusic subscribers. According to a survey by the operator nearly 50% of young people are willing to view advertisement in exchange of cash benefits. The subscribers can choose the kind of ads they wish to view regarding which they will receive SMS with links to advertising messages. If they view the ad, Pumbby credits them EUR 0.44.
Pumbby will send a maximum 10 messages per day. Mobistar contract subscribers can use the service if they sign up for an Orange World plan at EUR 6 per month. When they sign up via Orange World they can look at several ads in one session. Through the Pumbby portal, subscribers can swap their credits for TempoMusic top-up cards, cinema tickets, DVDs and CDs, books or a cash transfer to their bank account. The new service comes ahead of the launch of Blyk on the Belgian market, expected next year. Blyk offers free voice and SMS credit in exchange for viewing ads.
Belgacom may go for wholesale market consolidation (Belgium)
In the whole sale sector Belgacom International Carrier Services (ICS) calls for a reduction in the number of players. According to Daniel Kurgan, CEO of Belgacom ICS, Economically there is a need for consolidation in this business. It should be the objective of every carrier to create the best platform they can and drive volumes while keeping their cost base as flat as possible, he said. Considering the scenario of the market, as the market remains crowded, prices will continue to decline, even though the rising number of new services coming to market this implies that the business of providing wholesale services is becoming more intricate. To help wholesale carriers streamline their costs and stave off a growing price war across the industry consolodation is needed. He also claimed that most operators subsidise their wholesale voice operations with their retail divisions. This model is not sustainable in the long term, he said. There are some obsatcles to this consolidation:
Lack of Transparency in the business
Non-Economic Barriers
Kurgan mentioned the importance of implementing clear governance and decision-making processes following a merger in order to meet the needs of customers and therfore reponding apidly to rivals and to other market forces. I believe that consolidation is the future. It will generate value for shareholders, better services for customers, and will position carriers to take advantage of possible synergies during future rounds of consolidation, Kurgan added.
