Yota announces plan for $2 billion LTE network (Russia)
Yota, Russia’s WiMAX to LTE network operator, has announced a its plans to build a US$2 billion LTE network covering 180 cities with a total population of more than 70 million citizens by 2014.
The network, which is being funded by bank loans, will then be offered on an MVNO basis to four of the country’s main mobile networks – Beeline, Megafon, MTS and Rostelekom.
The four networks have also been granted options to buy 20% stakes in Yota once the network is completed in 2014. State Corporation Russian Technologies, which currently owns 25.1% in Yota has supported the agreement.
According to Yota CEO Dennis Sverdlov, this deal is an endorsement of their vision for the future of the telecoms industry. They firmly believe in the separation of network ownership and service provision and believe that this ground-breaking agreement will drive innovation and benefit Russian consumers. Even more importantly, they believe that Yota can help all operators across the world to take advantage of the massive opportunity that 4G brings.
Yota currently operates networks in Russia, Belarus and Nicaragua and expects to launch in Peru shortly.
T-Mobile and Orange will sell Apple’s iPad 2 (UK)
T-Mobile in partnership with Orange will be stocking Apple’s iPad 2 when it will come to the UK later this month.
Apple’s latest device was revealed by the company’s CEO Steve Jobs yesterday as a thinner and lighter device that has a dual core processor, front and back cameras and a new version of IOS. A Wi-Fi and 3G model will be available that has got mobile operators interested, with T-Mobile and Orange saying they will both stock the 3G enabled iPad 2 when it arrives in the UK.
Jobs announced that the UK will be receiving the iPad 2 two weeks after the device makes its US debut, claiming prices will remain exactly the same as the first generation model. It is likely that mobile operators will heavily discount first generation iPads to clear their stock.
At present, only T-Mobile and Orange have confirmed that they will be flogging the iPad 2.
Vodafone Roaming Services teams up with BICS
BICS and Vodafone Roaming Services are pooling their resources to connect their two communities and achieve greater efficiencies.
BICS consists of Belgacom, Swisscom and South Africa’s MTN and it will initially use the partnership to manage their roaming traffic with Vodafone operators.
According to Daniel Kurgan, CEO of BICS, this cooperation is a major step for the mobile industry to guarantee seamless roaming for all mobile users when they cross national borders. It is a direct response to the expansion of the mobile environment globally in terms of subscribers, networks, technologies and applications.
Best Buy to shut Turkey subsidiary, revamp Chinese operations (US)
Best Buy, US electronics and phone retailer, has announced that it is closing its Turkey subsidiary, revamping its Chinese operations and reviewing the operations in its home market.
The company also announced its plans to improve efficiencies in its U.S. supply chain operations.
Overall, the company estimates that these restructuring actions will result in annual pre-tax net savings of US$60 million to US$70 million once fully realized in fiscal 2013. The company expects these restructuring actions to result in charges during fiscal 2011 and 2012 totaling $225 million to $245 million.
According to Brian Dunn, CEO of Best Buy, they are pleased to continue their investments in the Best Buy Mobile and Five Star business models, which are profitable and have significant growth opportunities. The actions the company is taking are consistent with their strategy of driving businesses that have earned the right to additional capital while curtailing activities that they believe will not meet their return on investment thresholds.
The company is planning to open approximately 150 Best Buy Mobile stand-alone-stores in the USA in fiscal 2012. These openings would take the total Best Buy Mobile stand-alone-stores to approximately 325 in the U.S. at the end of the financial year.
The company is also planning to open approximately 6 to 8 large-format stores in the U.S., resulting in square footage growth of less than 1% (which is a significant reduction when compared to the average square footage growth rate of 5 percent during the last three years). The company also plans to open a total of approximately 18 Best Buy-branded large-format stores in Canada, United Kingdom and Mexico during fiscal 2012.
The company also plans to open 40 to 50 Five Star stores in the growing markets in China, taking it to approximately 210 stores at the end of fiscal 2012. However, it will close the nine Best Buy-branded stores in the country. The exit from the Turkey market includes closure of all current operations in the country, including the company’s two Best Buy large-format stores.
Fiserv acquires Mobile Commerce (USA)
Fiserv, USA based mobile banking services provider has acquired Mobile Commerce (M-Com), an international mobile banking and payments provider.
M-Com, founded in 2000, is based in the USA, with an office in New Zealand. M-Com CEO Adam Clark and all employees of M-Com will join Fiserv as part of the transaction.
According to Steve Olsen, group President, Digital Payments, Fiserv, technology advancements and consumer usage patterns are converging across online and mobile channels. The acquisition of M-Com will enhance their ability to provide anywhere, anytime access to consumers who want their finances at their fingertips. Together, they will deliver best-in-class digital solutions for their clients, enabling a superior user experience for their customers.
Financial terms of the acquisition were not disclosed.
The two companies have been partners since 2008, developing and delivering Mobile Money from Fiserv to hundreds of financial institutions.
Tunisie Telecom CEO resigns (Tunisia)
Tunisie Telecom CEO, Raouf Chkir, has submitted his resignation from his post. Chekir had previously served among others as CEO of the National Broadcasting Corporation.
The resignation comes as the country continues the attempt to put itself back together after protests in January forced out the government and signaled a new era in Tunisia politics.
Steve Jobs’ Honorary Knighthood blocked
Apple’s CEO, Steve Jobs was reportedly blocked from receiving a Knighthood from the Queen after the former British Prime Minister, Gordon Brown blocked the application.
It is claimed by a former Labor Party politician that the offer of an honorary Knighthood was blocked by Downing Street after Steve Jobs declined an offer to speak at the Labor Party conference.
He was put forward for the Honor, which as an American citizen would not have allowed him to be known as Sir Steve – by the former Labor MP in recognition of the company’s consumer electronics.
According to reports, the proposal reached the final stages of approval at Downing Street before being blocked suddenly.
The former MP was told that the decision came as a direct result of his decision not to speak at the political rally. Having Steve Jobs appear as a speaker at the conference would have been a considerable PR coup for the Labour party, and Gordon Brown in particular.
Telekom Austria profit doubles on lower revenues
The Telekom Austria Group has reported a slight decrease in revenues for 2010 but has reported doubling of its net profits.
The company’s revenues for 2010 dropped by 3.1% to US$6.34 billion while profits increased by 106% to US$266 million. Net debt also fell by 9% to US$4.5 billion.
Austria (-4%), Bulgaria (-8%) and Croatia (-5%) showed a slight decline in revenues, whereas Belarus and the Additional Markets segments (Slovenia, Republic of Serbia, Republic of Macedonia and Liechtenstein) recorded a growth of 14% and 8% respectively.
According to Hannes Ametsreiter, CEO Telekom Austria Group, for the first time in 13 years, they were able to return to fixed line customer growth. This demonstrates the effectiveness of their convergence strategy, which they are currently dedicated to implementing in their two largest markets Austria and Bulgaria.
Hannes added that against the backdrop of a challenging market environment,they have adopted the necessary measures – such as the merger of their fixed line and mobile communication operations in Austria – to realize selective growth opportunities going forward. In the years to come, they will have to tackle a number of issues with regard to regulation and competition.
However, they are confident to achieve their targets over the mid-term. The main goal is to secure the Group’s market leadership in Central and Southeastern Europe and to become the most efficient and innovative telecom operator in this region.
At year-end 2010, the Telekom Austria Group had 22 million customers across its operations in 8 countries of Central and Southeastern Europe, a market with 41 million inhabitants.
Vodafone in $1bn network overhaul (Australia)
Nigel Dews, CEO of Vodafone Hutchison, Australia, has announced capital investments worth A$1 billion.
The funds will flow toward boosting both customer service and its network, in response to criticism over recent outages and the leaking of sensitive subscriber data.
Law firm Piper Alderman will bring a class action suit on behalf of 21,000 Vodafone clients affected by the service disruptions.
