Google CEO wants to avoid long EU probe
Google Inc reportedly wants to avoid a lengthy legal battle with European Union regulators investigating its market dominance.
According to company’s CEO, Eric Schmidt, they certainly want to avoid that. He thinks it is in their interest and he would hope in their interests to a do a quick analysis of concerns that have been raised by competitors, hopefully they are minor or they are not correct. They’ll find out and make sure they are operating well within the law and the spirit of the law.
Brussels launched a formal investigation into Google in November following complaints from European rivals that it was abusing its dominant position in the market for web search services.
A previous EU investigation into software giant Microsoft snowballed into a 10-year legal battle in which the company paid $2.3 billion in fines.
Orange & T-Mobile to hand back spectrum to ease merger (UK)
www.WirelessFederation.com/news: Orange and T-Mobile have proposed to hand back some of the mobile phone spectrum controlled by them so that it can be used by the rival firms. The move will prevent their planned merger being subjected to a probe by the Office of Fair Trading.
The news of OFT asking the European Commission to investigate the planned merger of the two mobile phone networks instead of the process being dealt with solely by Brussels was welcomed by the consumer group this month.
The merger will create the largest operator in the UK.
Telecom operators press for Brussel’s scrutiny
www.WirelessFederation.com/news: In order to to scrutinise the proposed merger of their UK mobile phone businesses, France Telecom and Deutsche Telekom are pressing for regulators in Brussels rather than London. The telecoms groups are
hopeful that European Commission’s inquiry would be shorter than one by UK competition authorities.
On the other hand, consumers feel that the proposed merger of France Telecom’s Orange UK and Deutsche Telekom’s T-Mobile UK, Britain’s third and fourth-largest mobile operators respectively will have a negative impact on the competition.
The two groups hope that Brussels will hold on to the case and the final say is of Brussels even if the UK authorities could ask the Commission to send the case to London. France Telecom and Deutsche Telekom are preparing the documents about the merger are under preparation and the companies may submit it to the Commission before Christmas, although it may not happen until January.
The length of the regulatory scrutiny will partly depend on whether France Telecom and Deutsche Telekom are willing to make concessions. Last month the two groups said they saw no need for major concessions, such as giving up valuable radio spectrum.
Belgacom pays Vodafone US$2.6 billion for rest of mobile arm Proximus
BRUSSELS (AP) – Belgium’s biggest telephone company, Belgacom SA, said Friday it has agreed to buy Vodafone Group PLC’s 25 per cent stake in Proximus for $2.6 billion US, giving it full control of the mobile operator. Proximus is Belgium’s largest mobile operator, with 47 per cent market share and 4.25 million customers. Belgacom said it expected the deal would add six to seven per cent to next year’s earnings – citing “significant synergies” and tax savings as it struggles with falling revenue from its main market, traditional telephone calls. It said it would finance the two-billion-euro buyout with a bridge loan in the short term and may make a bond offering later. It will also use the 67 million euros ($86 million) it will receive by selling its 5.8 per cent stake in French telecom firm Neuf Cegetel. France’s second largest mobile operator, SFR, has agreed to buy Neuf Cegetel. Belgacom said these deals were part of its plan to focus on its core market, saying it would continue to roll out new services such as digital TV and broadband internet in Belgium. Analyst Dirk Saelens who covers Belgacom stock for KBC Securities said both deals are positive news. The price paid for the Proximus stake “is not cheap, but it’s a good move and still earnings enhancing,” he said. Belgacom shares rose 2.5 per cent to 27.82 euros ($35.70) in trading in Brussels. The company faces a tough market, expecting revenue from its major source of revenue – fixed line telephone services – to decline by three per cent this year. New European Union rules on lower charges for international roaming to be introduced next year will also have a significant financial impact on Proximus, it said. Belgacom depends on fixed-line telephone calls for nearly half of its revenue but the market is shrinking. Revenue from fixed line services fell 1.4 per cent in the first six months of 2006, it said, which was partly offset from the growth in Internet, network integration services and selling access at wholesale rates to rivals. Belgacom reported a net profit of 219 million euros ($281 million) in the second quarter, down 23 per cent from 286 million euros in the same period last year. Total revenues rose 11 per cent to 1.525 billion euros ($1.96 billion) from 1.37 billion euros a year ago. Belgacom CEO Didier Bellens said the company would spend up to 200 million euros ($257 million) buying back shares and paying shareholders an interim dividend of 100 million euros ($128 million) before the end of the year. Bellens said the company was doing better than expected but preferred to reward shareholders rather than actively hunt for new acquisitions.
Source- http://money.canoe.ca
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