Best Buy inks 4G wireless deal with Falcone’s LightSquared (US)
LightSquared Inc owned by billionaire Philip Falcone has signed a deal with Best Buy under which the retailer will offer 4G service via the LightSquared network.
According to LightSquared Chief Executive Officer Sanjiv Ahuja, Best Buy’s Connect mobile-broadband service will begin testing LightSquared’s network in next year’s first quarter.
LightSquared is planning to compete with AT&T Inc., Verizon Wireless and Clearwire Corp. in selling its 4G wireless service that offers faster Internet browsing.
As per Ahuja, LightSquared plans to spend $14 billion on its network over the next eight years. Last month, the company announced $586 million in new funding from UBS AG and JPMorgan Chase & Co. that will help its network build out.
According to LightSquared, it has agreements with five customers to provide wholesale 4G service, including two carriers, a national retailer, a device manufacturer and a website.
AIS partners with Jasmine for Wi-Fi service (Thailand)
Thailand’s Advanced Info Service (AIS) has partnered with telecommunications holding firm Jasmine International for Wi-Fi internet services.
According to Jasmine Chief Executive Officer, Pete Bodharamik , the joint Wi-Fi internet offers is priced at US$3.27 per month and offers unlimited internet access to AIS customers.
The service is provided at 15,000 hotspots across Thailand operated by Jasmine unit Triple T Broadband. Jasmine is targeting 1 million Wi-Fi subscribers within three years, up from the current 20,000. Jasmine spent US$39.66 million this year on business development with US$33.05 million earmarked for the broadband internet business and US$6.6116 million for the expansion of the Wi-Fi network to 50,000 hotspots by the end of this year.
Bernabe to be Executive Chairman of Telecom Italia
If sources are to be believed, Telecom Italia SpA’s biggest investors have agreed to appoint Franco Bernabe, the current Chief Executive Officer, as Executive Chairman.
According to sources, Marco Patuano, who manages the company’s Italian operations for Bernabe, will be promoted to CEO and given a board seat. Luca Luciani, head of Telecom Italia’s Brazilian business, will become director general with responsibility for all of Latin America and report to Bernabe. Bernabe’s term expires next month.
Telco SpA, the company that owns 22.4% of Telecom Italia, will hold a board meeting to approve the reorganization. Telefonica SA, Mediobanca SpA, Intesa Sanpaolo SpA and Assicurazioni Generali SpA own Milan-based Telco.
Android sales overtake Apple iPhones (UK)
Tesco Mobile, the UK based MVNO operated by the country’s largest food retailer has confirmed the trend being reported by most analysts – that Android based phones have overtaken sales of Apple iPhones.
Prior to Christmas, Tesco Mobile witnessed Apple iPhones outselling Android smartphones by two-to-one. However, January saw a rapid increase in Android smartphone sales which resulted in like-for-like sales. In February this year, Android smartphones overtook iPhone sales on the Tesco Mobile network.
According to Graham Harris, Chief Executive Officer of Tesco Telecoms and the Tesco Mobile MVNO, one of the UK’s leading operators, these sales are a useful barometer for smartphone trends. There is a lot of choice in the market and as a result, consumers are driving healthy competition between rival operating systems. Tesco Mobile prides itself on customer service and offering customers what they want, through a wide range of competitive deals on all platforms. However, they commend this healthy competition between operating systems as they observe that it offers consumer choice and flexibility.
Nepal telecom signs MoU with Qatar telecom
Nepal Telecom has signed Memorandum of Understanding (MoU) with Qatar Telecom on operation of international telecommunication service at a subsidized rate through inter-connectivity.
Though the service had already come into operation since December last year through establishment of inter connectivity between the two companies, the formal accord to this effect was signed on Tuesday.
Managing Director of the Nepal Telecom, Amarnath Singh and Chief Executive Officer of the Qatar Telecom, Dr Naser Marfiha signed the MoU amidst a function.
With the new agreement between the two telecom companies, Nepal Telecom customers can now make a call to Qatar at US$0.17 per minute as compared to US$0.28 per minute earlier.
The new provision is expected to benefit some 465,000 Nepalis currently working in Qatar.
Celcom Axiata plans to invest $330 mn on network (Malaysia)
The Malaysian mobile network operator, Celcom Axiata has announced that it is planning to spend US$330 million during 2011 network coverage, capacity and quality. Of the planned CAPEX, 60% will go to enhance its data network while 40% will be spent on maintaining its current network.
The company’s network modernization exercise will eventually move the mobile network towards an all-IP infrastructure, migrating all its sites to single-RAN architecture and be ready to deploy future LTE services.
According to Chief Executive Officer, Datuk Shazalli Ramly, they will embark on an aggressive network transformation exercise and the major single-RAN migration will be taken into execution as quickly as this quarter.
He added that the company would probably spend a slightly smaller amount over the next three years to prepare the network for a future LTE service, and confirmed that the company is in talks with other networks about sharing some of their network infrastructure.
Celcom has already started trials of LTE network kit supplied by both Huawei and Ericsson, while rival network, Maxis carried out trials with kit supplied by Alcatel-Lucent and Huawei.
France Telecom faces increased competition
France’s biggest phone company, France Telecom SA has announced that it faced a drop in profit margins this year as it prepares for a new mobile-phone rival in its home market in 2012.
The company has reported profits which were slightly better than analyst expectations. The company stated that it sees a 1% point slide in 2011 margins for earnings before interest, taxes, depreciation and amortization.
According to telecommunications sales specialist, the risk profile in both fixed and mobile is increasing in the French market.
Chief Executive Officer, Stephane Richard. is looking to guard market share and margins at home, where Iliad SA will start offering mobile services next year. France accounted for more than 51% of revenue for the former state-owned monopoly last year.
According to the Chief Financial Officer, Gervais Pellissier, the preparations for the fourth entrant will put some pressure on mobile prices in France in 2011.
According to the company, in 2010, EBITDA declined to US$21.5 billion from 21.21 billion a year earlier.
Consumer Reports confirm Verizon iPhone 4 defect (USA)
Consumer Reports have revealed that the Apple Inc. iPhone 4 carried by Verizon Wireless suffers from a problem similar to the one that plagued AT&T Inc.’s version — it may result in dropped calls in certain areas.
After testing the phone, which was released this month, Consumer Reports stated that it won’t include the device on its list of recommended smartphones.
According to Consumer Reports, published by Yonkers, New York-based Consumers Union, the Verizon iPhone 4 closely resembles the original AT&T iPhone 4 in many positive respects which includes offering great multimedia functionality, a sharp screen and the best MP3 player they have seen on a phone. Unfortunately, it also shares with its sibling the possibility of compromised performance in low-signal conditions when used without a bumper or a case.
The group added that the iPhone, which first hit stores in 2007, has become Apple’s best-selling product. It accounted for 39% of $26.7 billion in total sales in the most recent quarter. Calls may be dropped when the phone is gripped in a way that affects the phone’s signal strength.
Consumer Reports also stated that the device performs superbly in most respects and using a case can fix the signal.
Consumer Reports similarly didn’t recommend the iPhone 4 when it was released for AT&T last year, citing an antenna design flaw that led to dropped calls. Apple Chief Executive Officer Steve Jobs apologized and offered customers free cases to help fix the problem with the AT&T phones.
LightSquared announces additional financing
LightSquared, the nation’s first wholesale-only integrated wireless broadband and satellite network, announces today it has closed on $586 million of debt, led by UBS AG and JP Morgan. LightSquared will use the proceeds of the financing for general corporate purposes, which include constructing its world-class, 4G-LTE-wholesale network. Over the last seven months, LightSquared has raised more than $2 billion in debt and equity.
“We’re excited about our prospects of bringing the next generation of mobile broadband to millions of Americans, fulfilling the promise of the National Broadband Plan using exclusively private money,” said Sanjiv Ahuja, chief executive officer of LightSquared. “Our investors share our belief that now is the time for a wholesale model to succeed, as we will bring desperately-needed 4G capacity to businesses, consumers, government and public safety users through a wide variety of retail partners which will sell services based on our integrated terrestrial and satellite network. We are deploying the most advanced network while offering service at a lower price, because as a pure wholesaler, we will we will not have retail overhead.”
About LightSquared
LightSquared’s mission is to revolutionize the U.S. wireless industry. Through the creation of the first-ever wholesale-only nationwide 4G-LTE network complemented by satellite coverage, LightSquared offers people the speed, value, and reliability of universal broadband connectivity, wherever they are in the United States. Through its wholesale-only business model, those without their own wireless network or who have limited geographic coverage or spectrum can develop and sell their own devices, applications, and services using LightSquared’s open 4G network-at a competitive cost and without retail competition from LightSquared.
Telstra to expand online service and add more than 100 new stores
Telstra Chief Executive Officer Mr David Thodey announced a new online customer service unit to serve the company’s expanding customer base and improve customer satisfaction.
The unit will design and operate online self-service platforms that give customers the option of performing many transactions with Telstra online using their computer or mobile devices, rather than speaking to agents over the phone.
Telstra’s new online customer service unit will support our growing customer base, providing customers with the option of faster and more convenient ways of interacting with the company, including through social media,†Mr Thodey said.
It will give customers the option of using their computer or mobile devices to order new services, change their plans or activate features, for instance, without having to call to speak to company representatives,†he said.
Mr Thodey said the new unit would be headed by Gerd Schenkel, who joined Telstra from his role as general manager of UBank, an exclusively-online bank established by the National Australia Bank. Mr Schenkel will report to Gordon Ballantyne, Group Managing Director of Telstra Consumer & Country Wide.
We have recruited one of the best leaders in the field of online customer transactions. Gerd’s experience will help us establish online services that are comprehensive, relevant and integrated for our customers,†he said.
Telstra research reveals more than 85% of Australians find it convenient to perform simple self-service transactions using their computer or mobile devices. Telstra has a target to perform 35% of transactions using online self-service channels by 2013, compared to rates of more than 60% for many banks and airlines.
Mr Thodey also today announced an expansion of Telstra’s retail footprint over the next three years with more than 100 additional Telstra stores that will feature a simpler range of products and accessories tailored to suit local markets.
Our existing stores welcome around 30 million customer visits each year, and this initiative means our retail outlets will now appear in even more locations, making it easier and more convenient for customers to interact with us,†Mr Thodey said.
Mr Thodey said the new online customer service channel and additional stores would give customers a consistent, improved and integrated experience whether they dealt with the company by phone, in-store or online.
