VimpelCom in talks with Coptic billionaire Naguib Sawiris to discuss merger of Weather Investments’s stakes in Orascom and Wind
Russian telecommunications service provider VimpelCom Ltd is in negotiations with Egyptian billionaire Naguib Sawiris, to fully merge Wind and a majority stake in Egyptian group Orascom Telecom under its umbrella.
According to the report, Sawiris would become a considerable minor investor in the newly created entity, which would include Sawiris Weather Investments’ 51 percent share in Egypt’s Orascom Telecom Holding and Italian mobile operator Wind Telecomunicazioni.
For the first quarter, VimpelCom’s net income was of US$412.22 million. Total operating revenues for the quarters’ were US$2.54 billion.
The transaction would create an entity with a combined total mobile subscriber base of more than 200 million customers.
VimpleCom was created by the merger of assets owned by Russia’s Alfa Group and Norway’s Telenor following an acrimonious and long running battle over their Ukrainian investments. VimpelCom is 39.6% owned by Telenor while Alfa’s Altimo unit controls 39.2% and minority shareholders own 21.2 percent. It is not clear what percentage Sawiris would end up with following the proposed merger.
India Allows Two Firms to Import in Telecom Equipment from China
The Indian government has allowed Reliance Communications Ltd. and Tata Teleservices Ltd. to import telecom equipment from two Chinese manufacturers.
A source close to deal revealed, Reliance Communications and Tata Teleservices can now source equipment from China’s ZTE Corp. and Huawei Technologies respectively.
The approval shows that government is now taking the matter at ease. Recently government restricted imports of telecom equipment, particularly from China, because of security concerns. While there was no formal ban, Indian telecom operators stated their growth plans were being affected as the central authorities were rejecting their proposals to import equipment.
The products created by these Chinese companies are in demand as they are cost effective when compared to any other manufactures.
DoT’s guidelines stated that, if violation of security is perceived, equipment must be taken out of service. And in such matters, DoT can impose a penalty of US$ 10.730 million per purchase order and 100% of the contract value on service providers. DoT can also blacklist the equipment vendor.
Etisalat Sri Lanka Reaches 3 Million Subscribers with 24% growth since Launch
Etisalat, a UAE-based telecommunications services provider announced a striking three million subscribers in Sri Lanka operation and the company expects to add another million subscribers by the next year.
According to the company, Etisalat’s recent expansion drive covering 480 new 2G sites, taking Etisalat’s footing on the top position in 2G coverage, with a total of 1580 sites, including all urban areas as well as steady growth in the North East.
According to the CEO Dumindra Ratnayake, Etisalat is rolling out a development in coverage network upgrade to IP and latest in 3G with an investment of around US$163 million this year. Reaching 3 million subscribers is a landmark achievement for Etisalat in recently entered Sri Lankan market, and the company is committed to growing this number and taking this company to great heights.
According to Etisalat, since its launch, the company has seen a 24 % growth in subscriber base with a significant raise in market share, building it one of most dominant players in the telephonic arena in Sri Lanka.
Chile Confirms LTE Auction to be Held in December
Chile’s telecoms regulator Subtel has confirmed to launch auction for 4G LTE spectrum in the 2.6 GHz band in December and plans to award the licenses around the middle of next year
According to Subtel’s head Jorge Atton, the company is clearing the spectrum and has decided to auction it. The governing body hopes to achieve better coverage and enhanced broadband capacity as a result of spectrum allocation. The auction is scheduled to be held in Dec’10. The company hopes to award the spectrum no later than June, which will coincide with the introduction of number portability and greater competition. By then Nextel and VTR should be operating in the market. The company will have greater competition, which will bring price reductions and better quality of service for the consumer.
The regulator has also been talking of sell digital dividend spectrum in the 700 MHz bands by the next year.
Brazil Mobile Penetration Reached 96%: 1.89 Million New Mobile Subscribes in July’10
Brazil saw a significant growth in its new mobile subscriptions as it grew to 187 million in July, the telecommunications regulator Anatel revealed.
1.89 million new subscriptions were added in the month of July, an increase of 1.02% compared to June. Brazil has recorded 13.06 million new users in 2010.
Brazil now has 96.83 mobile phone users for every 100 population by now. Of the total number of mobile phones, almost 80% are prepaid and the remaining 20% postpaid.
Vivo remained the market leader with 30.25 percent of the total and is closely challenged by Claro 25.42%, TIM 24.05%, Oi 19.93% and others 0.35%.
Nokia to offer Ovi Life Tools, Music & Free Data on RCOM
RCOM has joined hands with Nokia to offer Ovi Life Tools, Ovi Music, and to endorse mobile Internet packages across Nokia GPRS phones.
RCOM will make Ovi Life Tools available across rural and semi-urban segments. Customers can subscribe to this service at very nominal rates. This would include agricultural, education and entertainment service.
RCOM GSM customers will be permitted to download up to 12 GB of music via Nokia’s Ovi Music Unlimited enabled phones 5530, 5800, X6 16GB and 5325. Consumers who are willing to buy these handsets can also buy Reliance Netconnect Broadband+ USB data cards at much lower rates.
RCOM will also offer a mobile data package of 1.2GB on Nokia GPRS enabled handsets, and 1800 minutes free on-net minutes. This offer would be valid for six months from the day of purchase.
Verizon spends $4.4 Million in 2nd quarter
Verizon Communications Inc. has spent US$4.44 million in the second quarter to foyer the central government on a broad collection of issues, including cyber security, texting while driving and broadband.
The amount was raised a little from the US$4.23 million compared to last year, but not as much of US$4.72 million it spent in the first quarter of 2010.
The amounts comprise of spending by Verizon Wireless, which is a combined project between Verizon Communications and Vodafone Group PLC, Britain.
According to a report filed on July 20, Verizon lobbied the central government on legislation concerning taxes on phone bills and the smuggling of phones into prisons, among others. Verizon supposed it lobbied Congress, the White House, the Commerce Department, the Treasury Department, the Department of Homeland Security and the Internal Revenue Service.
ZTE 1H net profit grows by 12%
ZTE Corp., a Chinese telecommunications equipment maker, revealed that its first-half net profit grew by 12% compared to last year, which were below market expectations since revenue from handsets sales raised but deals from Chinese carriers slowed.
According to Chinese accounting standards, Net profits of the company for the six months ended June 30 were US$129 million, a considerable increase from US$115.380 million last year.
Revenue grew 11% to US$4.525 million from US$4.081 million, largely motivated by sales of visual display (terminal) products and telecom tools for international carriers’ networks, but fairly counterbalance by a decrease in revenue from sales to domestic carriers.
According to ZTE, revenues from products for carriers’ networks were raised by 1.1% at US$2.798358 billion, revenue from terminals were raised by 39.7% at US$ 1.148 million, and revenue from other products, like telecom software systems and services was up by 18% at US$574.399 million.
China issued licenses for 3G mobile services in 2009, which directed a stronger demand for ZTE’s products and services as companies hurried to build infrastructure to support the new platform.
Telkom and Indosat plan mutual satellite launch
Indonesian communications firms, Telkom and Indosat have come together to install a satellite for telecom as well as for HDTV services for $200 million.
As per the agreement, a new satellite will replace Indosat’s Palapa C-2, which will stop the course in 2014.
According to Telkom President, Rinaldi Firmansyah, Telkom and Indosat will spend up to US$200 million to purchase the new satellite, which will also be capable of delivering next generation high definition television (HDTV), and other bandwidth hungry telecoms services.
Indosat presently owns two satellites, whereas Telkom has two in operation and is planning to launch another satellite next year.
LTE not necessary for Austria’s mobilkom: CFO
As the mobile industry rushes to grab the LTE network, Telekom Austria revealed on Thursday that it will be several years before it rolls out a next-generation mobile network.
According to Hans Tschuden, CFO, Telekom Austria, The Company’s HSPA+ network is still sufficient. LTE is not a necessity right now. The lower cost of upgrading to HSPA+ compared to LTE is an important consideration in mobile markets like the one in Austria, where intense competition and regulatory intervention over interconnection and roaming fees have pressured earnings. HSPA+ is very resourceful from a cost outlook because it’s a software upgrade. LTE requires capex and one has to make the necessary bandwidth available.
Telekom Austria’s mobile took over mobilkom in March 2009 and became one of the first operators all over the world to roll out HSPA+.
