Telenor to fund its Indian deal with cash flow & debt (Norway)
Telenor, the Norwegian mobile operator, reveals its plans to fund its investment in its Indian mobile operations with cash flow and new debt. Telenor, additionally, has decided not to have dividend payout for 2008 and 2009.
Telenor has also inked a 8 billion Norwegian crown ($1.19 billion) three-year term loan, which likely will be used to finance its investment in the Indian service provider, Unitech Wireless. “Closing of the Indian transaction is subject to certain conditions being fulfilled…(and) Telenor anticipates that this will take place during the first quarter of 2009,” Telenor said in a statement.
“Telenor remains confident that all conditions will be met within the indicated timeframe.”
Cadillac dealership leverages mobile marketing at auto show
San Dieogo’s Cadillac dealership Marvin K. Brown Auto Center takes up the most approachable media mobile phone to generate buzz across about its new CTS car and drive people to its location.
The dealer has temaed up with Ping Mobile to create a campaign with a call to action on the Cox Media network, asking the local travellers to SMS CTS to 269411 to receive a free gas card. The campaign is designed around the 2009 San Diego Auto Show, where the dealer had its booth set up.
“The strategy for this client’s campaign was to engage visitors to the 2009 San Diego Auto Show and make their booth stand out as much as possible, and not just fade into the background like white noise,†said Shira Simmonds, president of Ping Mobile, Englewood Cliffs, NJ.
They also wanted to generate buzz and drive people to their dealership using the incentive of a free gas card,†she said. The use of Bluetooth was also implemented in order to push out an image of the new Cadillac CTS-V.
The strategy for this was to create more hype about the new product release, at the venue itself- allowing people to view the car directly on their phones.â€
Viewers who texted in received a message that said, Show this msg @ the MKB Cadillac Dealership when U Test Drive Any ’09 Cadillac CTS & get a FREE $25 Gas Card! Hurry, valid Only while supplies last!â€
After recievingthe first SMS, the viewers recieve another text asking them to opt-in for information on the Cadillac CTS. The message said, Do U LOVE Cars as much as we do? Reply YES 2get Cadillac Xclusive invites & offers. Mx4msgs/mo. Std txt rts apply. Reply YES Now!â€
The challenge was that the dealership had to find a way to differentiate itself from every other auto dealer at the show without the use of fixed signage something that was prohibited by the organizers of the auto show,†Ms. Simmonds said. This isn’t the first time that Cadillac cars were promoted via mobile.
“Mobile was an excellent fit for the dealership because it was able to stand out at the auto show despite the fact that it was not permitted to use fixed signage which would hinder any brand’s promotional ability,†Ms. Simmonds said.
Marvin K. Brown Auto Center has overcome monotony and older methods by adopting a model mingling with the visitors, wearing a T-shirt that had the promotion printed on the front and back of it.
Mobile was an innovative way to catch people’s attention and make their dealership stand out,†Ms. Simmonds said. “Additionally, the Bluetooth component enabled the client to further enhance their overall campaign by attracting the attention of visitors, driving them to their booth. The use of Bluetooth was also a complimentary addition to the model that was used,†she said.
(Credits: Giselle Abramovich)
Turk Telecom sheds 500,000 subscribers in ’08 (Turkey)
Turk Telecom subscribers fell in 2008 by 500,000 to 17.5 million, a level the company is trying to keep in 2009, according to a report. “We haven’t made any changes now after the beginning of the crisis to the plans we made before the crisis,” said Erem Demircan, head of the company’s marketing and internal communications. According to a report, Turk Telekom is expected to make investments of between 1.1 billion and 1.3 billion lira in 2009.
Shyam Telelink renamed Sistema Shyam TeleServices (Russia, India)
Sistema, the largest diversified public corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer services sectors and technology industries, announced that Shyam Telelink Ltd., a subsidiary of Sistema, was renamed Sistema Shyam TeleServices Ltd. (Sistema Shyam TeleServices†or Shyamâ€), following the decision made at the EGM of Shareholders of Shyam.
Vsevolod Rozanov, President and Chief Executive Officer of Sistema Shyam TeleServices, commented: Renaming of Shyam Telelink is a logical step in the development of our Indian operator. As previously announced, Shyam will be offering its services under the MTS brand from February 2009. Furthermore, Sitronics has supplied radio relay equipment to Shyam in the state of Rajasthan. These efforts clearly position Sistema Shyam TeleServices as an integral part of the Sistema Group, which is now reflected in its name.â€
Vitaly Savelyev, First Vice President of Sistema, Head of Telecommunications Assets†operating unit, Chairman of Sistema Shyam TeleServices, commented: We intend to further develop Sistema Shyam TeleServices and to launch its mobile network in two additional Indian circles in the near future.â€
Shyam opened its new head office with a staff of 120 in Gurgaon, a satellite city near Delhi. Sistema Shyam TeleServices now has spectrum in 22 Indian circles, covering 28 administrative states and 7 union territories with a population of approximately 1.1 billion people. Sistema Shyam TeleServices launched a CDMA 800 MHz mobile network in the state of Rajasthan at the end of September 2008. The Sistema Shyam TeleServices’ subscriber base has exceeded 500,000 users, including nearly 300,000 mobile subscribers, as at January 26, 2009.
About Sistema
Sistema is the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer services sectors and technology industries and has over 100 million customers. Sistema develops and manages market-leading businesses in selected industries, including telecommunications, technology, banking, real estate, retail, media, tourism and healthcare. Founded in 1993, the company reported revenues of US$ 12.6 billion for the first nine months of 2008 (unaudited), and total assets of US$ 32.0 billion as at September 30, 2008 (unaudited). Sistema’s shares are listed under the symbol SSA†on the London Stock Exchange, under the symbol AFKS†on the Russian Trading System (RTS), under the symbol AFKC†on the Moscow Interbank Currency Exchange (MICEX), and under the symbol SIST†on the Moscow Stock Exchange (MSE).
Sistema Shyam TeleServices Limited (SSTL) was founded in 1998 and started its operations in the state of Rajasthan in 2000. Presently SSTL has more than 500,000 fixed-line and mobile subscribers in the state of Rajasthan and continues to further expand its network and develop its service offering. SSTL obtained a unified pan-Indian license to provide cellular services in March 2008 and now has spectrum in 22 Indian circles. SSTL is a joint venture between Sistema and the Shyam Group of India. Sistema Shyam TeleServices is majority-owned by Sistema (73.7%).
For further information, please visit www.sistema.com
Vodacom reports a 13.7% rise in 9 month revenues (South Africa)
Vodacom, South Africa based mobile service provider, posts a 13.7% rise in its 9 month revenues as its subscriber base grows in the non-South African markets. Vodacom reportedly ends December’08 with revenues of 40.5 billion rand ($4 billion). The operator’s subscriber base rose by 14.3% to 37.8 million.
Vodafone, which owns Vodacom jointly with the South African fixed line telco Telkom, plans to take controlling stake in the operator.
Vodacom plans to expand its coverage across the continent. On a quarterly basis, non-South African subscribers rose 8.4%. Its South African subscriber base jumped by 4.8% compared to the previous quarter to 26.45 million, and it lost one percentage point of market share to 52%.
Wireless Mobile Telecom Wireless News
Sprint to axe 8,000 jobs by 31st March’09 (USA)
Sprint Nextel Corp will axe total of about 8,000 jobs by March 31, the company said. Their plan is to reduce internal and external labour costs by about $1.2 billion on an annual basis. The job cut is going to affect all levels of the company and various geographic locations; it currently employs around 60,000 people.
“Labour reductions are always the most difficult action to take, but many companies are finding it necessary in this environment,” said Sprint CEO Dan Hesse. In total 850 positions would be eliminated under voluntary separation plan initiated in late 2008. Severance and related costs associated with the reduction could result in a charge of more than $300 million in the first quarter of 2009, according to a report. Sprint said the company is also suspending its 401(k) match for the year, extending a freeze on salary increases and suspending its tuition reimbursement program.
BT plans to enter the array of mobile telephony services (UK)
BT, a fixed line and broadband incumbent is reportedly planning to launch mobile telephony services under a joint venture with T-Mobile and Hutchison Whampoa-owned 3. The three companies have reportedly held informal talks which, although still at early stage, have included discussions on branding, costs and revenue. BT is considering the move in a bid to increase profits as customers increasingly migrate to mobile broadband services offered by other operators.
RCom posts a subscriber base of 1.35Mn at Dec’08-end (India)
RCom, the Indian incumbent, posts a 2.7% rise in its consolidated net profit for the quarter ending on 31 December’08. The net profit stood at INR14.1 billion (USD286.7 million), rising from INR1.37 million in 2007. RCom’s revenues also jumped in this quarter to INR58.5 billion, a hike by 20% whereas EBITDA rose by 11% since 2007 to INR23.5 billion. The operator’s growth was driven by a rise in its subscriber base with the coming of its GSM and DTH services.
According to the RCom’s chairman and managing director, the operator is likely to cut down its CAPEX for fiscal year 2009-2010 to INR150 billion, down from the INR250 billion it has planned for the existing year. RCom’s subscriber base rose to 1.35 million at December’08-end, up from 56.05 million at 2007-end.
Wireless Mobile Telecom Wireless News
Synchronica signs up Entel PCS as first operator in Latin America
Synchronica plc, the international provider of mobile email and synchronization solutions, has won a key contract in South America with leading Chilean mobile operator Entel PCS. The agreement, Synchronica’s first win in the region, will enable Entel PCS to launch a mass email solution called Email Movil to subscribers, an affordable instant email (push email) and synchronization service that works on a broad range of mobile phones in use today.
Entel PCS has a 43.4% revenue share of the mobile market in Chile and almost six million subscribers. Synchronica’s push email and synchronization solution supports Entel PCS’s stated aim of focusing more on value-added services as a way of increasing overall subscriber revenues and improving customer loyalty.
This agreement represents the first win for Synchronica’s strategic partner Brightstar. Brightstar was appointed in February 2008 to promote Synchronica Mobile Gateway in high-growth regions, such as Latin America.
Carsten Brinkschulte, CEO of Synchronica comments: ‘The agreement with Entel PCS, a major player in the South American market, represents a key milestone for Synchronica. By offering this innovative push email service that works on almost any handset, Entel PCS can accelerate mobile email adoption rates, resulting in higher ARPU over time.’
Rodrigo Baudrand, Business Solutions Manager of Entel PCS adds: ‘We share a common view with Synchronica that value-added services, such as mobile email, represent the future for our business. We are continually looking to provide our customers with life-enhancing value-added services that raise ARPU and improve customer loyalty, and with the Synchronica Mobile Gateway we have a simple and easy to use email solution that will help us do just that.’
According to a recent report by IE Market Research, the level of wireless penetration in Chile will continue increasing to reach 103.2 percent during 2010. This will be the second highest wireless penetration level in Latin America after Argentina (108.9 percent during 2010). The number of total subscribers in Chile will increase from a projected 15.8 million to 17.7 million in the forecast period 2008-2010.
About Entel PCS
With almost six million subscribers, Entel PCS leads the main financial, brand, and service indicators in Chile and was awarded with the Frost & Sullivan prize for the Best Mobile Service Provider 2007 in Latin America. Entel PCS is part of Empresa Nacional de Telecomunicaciones S.A., the largest telecommunication company in Chile that provides mobile, data and IT, and internet services, local and long-distance telephony services (together with related services). Entel also has operations in Peru and is listed on the Chilean stock exchange (Bolsa de Comercio de Santiago) under the ticker symbol ENTEL. Its headquarters are located in Santiago, Chile.
For more information, please visit www.entelpcs.cl.
About Brightstar
Brightstar Corp. is a global leader in customized distribution and supply chain solutions for the wireless industry. Headquartered in Miami, Brightstar operates sales, distribution, and manufacturing facilities in 50 countries on six continents, providing the largest global reach for its customers. Brightstar was named a Global Growth Company by the World Economic Forum, an exclusive list of 142 companies recognized for being visionary and fast-growing businesses that have exceptional executive leadership and are redefining their respective industries. The company provides solutions to more than 30,000 network operators, MVNOs, retailers, resellers, and independent agents around the world and also represents the world’s leading wireless manufacturers. The company exceeded USD 4.8 billion in gross revenues in 2007.
For more information, please visit www.brightstarcorp.com.
About Mobile Gateway
Synchronica’s Mobile Gateway provides carrier-grade push email and synchronization services for virtually all mass market feature phones and smartphones being used by subscribers today. It is based on the dominant open industry standards Push IMAP (LEMONADE) for mobile email and SyncML (OMA DS) for contact and calendar synchronization and works with the built-in email and synchronization clients found in more than 1.5 billion phones. The new email-to-SMS functionality expands its reach to virtually every phone in use today. Serving consumers and prosumers, Mobile Gateway includes back-end support for POP3 and IMAP mailboxes, connecting to popular services, such as AOL or Gmail. For business users, it provides a unique zero footprint architecture where users simply register their devices and instantly start to receive corporate email on their phone without requiring additional connectors behind the firewall. Business mailboxes supported include Microsoft Exchange, Lotus Domino, and Sun Java System.
MTN Nigeria plans investment of US$1.6Bn
MTN Nigeria has reportedly announced the plan to invest up to USD1.6 billion during 2009. The investment will help in improving the quality of service on its network; which presently covers 90% of the population. Wale Goodluck, corporate service advisor of MTN Nigeria, said the company has invested in building up transmission networks over the past four years in order to make up for the country’s lack of telecoms infrastructure. According to a report, MTN Nigeria has ended September 2008 with a subscriber base of 20.17 million.
