CAPEX

Verizon expects 2010 CAPEX of $16.8bn-$17.2bn (USA)

On 03.10.10, In Mobile, By Editor

www.WirelessFederation.com/news: Verizon Communication, the telecommunications giant has announced that its capital investment this year will be very similar to last year. A full-year CAPEX of $16.8 billion to $17.2 billion is also expected by the company which is roughly flat from 2009, besides expecting continued strong free cash flow this year.

Company’s strong wireless business will provide it with much of its cash flow while the joint venture of Verizon and Vodafone Group Plc, Verizon Wireless is also expected to contribute much of the cash flow growth.

Customer growth is also expected by Verizon in the fiscal first quarter. Verizon Wireless still has the opportunity to grow its more lucrative contract customers which is very much unlike other carriers focusing their attention on the prepaid business.

The price of the unlimited calling plans was reduced by Verizon Wireless by $30 to $70, earlier this year. According to Chief Financial Officer John Killian, the company will have a strong first quarter for wireless subscriber growth in the first quarter, and that prepaid wireless service will start to pick up.

Claro Argentina plans investment of USD800m in 2010

On 03.03.10, In Mobile, By Editor

www.WirelessFederation.com/news: An investment of around USD800 million has been planned by Argentina’s leading mobile operator by subscribers, Claro. Claro’s total capital expenditure last year was around USD700 million.

Company’s third-generation and fibre-optic networks will receive roughly 70% of the CAPEX, in order to support increasing demand for advanced services.

According to Claro’s president, Carlos Zenteno, 3G subscribers comprise around 20% of Claro’s approximately 17 million wireless customers, while the 3G network reaches 450 cities, covering 80% of the population.

Tagged with: 3G • Argentina • CAPEX • Capital Expenditure • Claro • Fibre-Optic Network • operator • South America

Bharti’s debt ratings to downgrade following Zain acquisition (India)

On 02.26.10, In Mobile, By Editor

www.WirelessFederation.com/news: Fitch Ratings has placed Indian telco Bharti Airtel on Rating Watch Negative (RWN) and expects that the ratings might go down by one mark if its deal with Zain is completed and substantially debt funded. Bharti has been included in the list following its potential acquisition of Zain’s African assets for around US$10.7 billion.

The potential costs associated with any bid for a 3G license and related CAPEX can further downgrade the rating. The uncertainties surrounding the targeted turnaround of the loss-making operations of Zain’s African assets have been taken into account by RWN.

Fitch expects the combined entity to assume the net debt of US$1.7 billion present at end-September 2009 on Zain’s balance sheet at end-September 2009 relating to its African operations.

Tagged with: 3G • Acquisition • Africa • ASIA • Assets • Bharti Airtel • CAPEX • India • RWN • Zain

Telefonica Brazil to invest USD 1.9b

On 02.23.10, In Mobile, By Editor

www.WirelessFederation.com/news: BRL 3.5 billion is planned to be invested by Telefonica in Brazil throughout this year. BRL 2.3 billion of the total amount will go to Telefonica’s Brazilian fixed-line operator, Telesp.

Telefonica’s other units in Brazil, including internet portal Terra, call centre services provider Atento and mobile phone company Vivo will receive the remaining CAPEX.

Tagged with: Brazil • CAPEX • operator • South America • Telefonica • Telefonica Brazil • Telesp

Canadian telco Rogers reports 4% rise in revenue

On 02.18.10, In Mobile, By Editor

www.WirelessFederation.com/news: Due to the growth in the mobile and cable operations, 4% increase from a year earlier to CAD 3.06 billion in the fourth quarter revenue has been reported by Canadian operator Rogers Communications. 14 percent increase to CAD 1.10 billion has also been recorded in operating profit.

As a result of cut in CAPEX, the free cash flow for the full year rose 29 percent to CAD 1.9 billion and 10% hike in the dividend to CAD 1.28 per share. A net 128,000 new customers in the quarter has been gained by Rogers Wireless, for a total 8.49 million, up from 7.94 million a year earlier.

Revenues rose 5 percent to CAD 1.73 billion, and operating profit was up 16 percent to CAD 744 million. The company also renewed its share buyback, for up to CAD 1.5 billion over the next year.

Tagged with: Canada • CAPEX • North America • Operating Profit • operator • Rogers Communications • Rogers Wireless

Indian telco MTNL to invest INR13 billion in 2010-11

On 02.17.10, In Mobile, By Editor

www.WirelessFederation.com/news: A CAPEX of approximately INR13 billion (USD281.7 million) has been expected by state-owned Indian telco Mahanagar Nigam Telephone Ltd (MTNL) for its 2010-11 fiscal year.

The fund will be mainly used to enhance its footprint and upgrade its network and the major expenditure will be on GSM expansion and bringing fibre to home, among other things besides increasing capacity on its network.

According to Peeyush Agrawal, principal general manager of MTNL, the telco can add about 200,000 more wireline subscribers because the existing capacity is about 600,000 and the company has about 400,000 users.

Tagged with: ASIA • CAPEX • GSM • India • MTNL

Turk Telekom’s net profit rises 4.6% year-on-year

On 02.15.10, In Mobile, By Editor

www.WirelessFederation.com/news: 4.6% year-on-year rise in net profit from TRY1.75 billion (USD1.16 billion) in FY2008, to TRY1.83 billion has been announced by Turk Telecom, for the year ended December 31, 2009.

Revenues for the period increased 3.7% to TRY10.57 billion in 2009, rising from TRY10.19 billion a year earlier. Operating expenses grew by 8% year-on-year while CAPEX jumped by 40.7%, up to TRY6.3 billion and TRY2.47 billion respectively.

According to Paul Doany, CEO of Turk Telekom, in 2009 the primary focus for Turk Telekom Group was improving the basic communication infrastructure to launch an 8Mbps standard speed internet service across the whole of Turkey and over the next year the firm will continue to add more innovative services and offerings, such as IPTV, and add more focus to the exporting of the services and products.

Avea, the mobile arm of the company, posted revenues of TRY2.5 billion for the year ended December 31, 2009, up from TRY2.11 billion in 2008

Tagged with: AVEA • CAPEX • Eurasia • Launch • RIM • Turk Telekom • Turkey

Millicom subscriber base rises by 22% in Q4 2009

On 02.12.10, In Mobile, By Editor

www.WirelessFederation.com/news: 22% rise in the subscribers base going to 33.9 million has been reported by Millicom International – a holding company that owns networks in Africa and Latin America. 10% rise in the revenues and 13% in EBITDA has also been announced.

Due to the disposal of its networks in Cambodia, Sri Lanka and Sierra Leone, the one-off gains has been US$309 million taking the net income to US$454.2 million. Capex for the year was $737 million or 22% of revenue while the growth in value-added services continued to be encouraging, and now represents over 21% of recurring revenue.

According to Mikael Grahne, CEO of Millicom, Millicom has had a good fourth quarter, and its consistent performance throughout 2009 demonstrates the strength of the business model and the ability to react quickly to changing market conditions.

Tagged with: Africa • CAPEX • EBITDA • Latin America • Sierra Leone • Sri Lanka

Tele2 Q4 sale down by 1%, dividends boosted

On 02.09.10, In Mobile, By Editor

www.WirelessFederation.com/news: Due to sale of fixed-line operations in Norway earlier last year, 1 percent loss in the fourth-quarter sales to SEK 9.889 billion has been reported by telco Tele2.

However, the improvements at the fixed broadband activities offset by higher spending for the expansion in Russia improved the EBITDA slightly to SEK 2.188 billion from SEK 2.162 billion a year earlier.

Net profit rose to SEK 865 million from SEK 690 million, Capex declined to SEK 1.017 billion from SEK 1.328 billion, and free cash flow jumped to SEK 1.653 billion from 704 million a year earlier.
1.149 million New customers were also added by the operator last year.

Tagged with: ASIA • CAPEX • EBITDA • Europe • Net Profit • Norway • operator • Russia • Tele2

Orascom extends management contract with Alfa (Lebanon)

On 02.05.10, In Mobile, By Editor

www.WirelessFederation.com/news: The management agreement between Orascom Telecom Holding (OTH) and Lebanon’s Alfa Network has been extended by the former for a period of 6 months ending on July 31, 2010.

A monthly sum of US$2.5 million in addition to 8.5% of total revenues is received by OTH under this contract. All the operational expenses (OPEX) of the network are OTH’s liability which is also entitled to keep the remainder as management fees. The Republic of Lebanon is fully responsible for the CAPEX during the contract period.

According to Khaled Bichara, Orascom Telecom’s CEO, the company is glad of the achievements made in the Lebanese mobile market through its management of Alfa during the past year, and are hoping to secure a presence for OTH within the long term plans of the Republic of Lebanon for its mobile communication market.

Tagged with: Alfa • CAPEX • Lebanon • Orascom • Orascom Telecom Holding • Western Asia