3 to acquire Swedish 4G frequencies from Intel (Scandinavia)
Telecom operator 3 Scandinavia Chief Executive Peder Ramel has stated that the company is seeking to purchase mobile spectrum from Intel Corp. as it plans the launch of 4G mobile broadband in Sweden.
According to Ramel, 3 which is controlled by Hong Kong-based conglomerate Hutchison Whampoa Ltd., is eager to buy frequencies in the Swedish 2.6 Gigahertz band from Intel, as part of its plans to launch Long Term Evolution (LTE) fourth-generation networks in Sweden and Denmark in 2011. 3 has already bought some spectrum for the planned launches in the two countries.
U.S-based Intel bought the frequencies for around US$23 million in a Swedish auction in 2008. As per Intel’s Nordic spokeswoman- Camilla Tornblom, the company has since evaluated the deal and concluded that it makes financial sense to sell the frequencies to 3.
Ramel added that 3 has applied for regulatory clearance from the Swedish Post and Telecom Agency (PTS), and expects the regulator to give its decision on the planned deal over the next few days.
TeliaSonera launches LTE in Denmark’s major cities
TeliaSonera has announced the launch of Denmark’s first commercial LTE services in the cities of Copenhagen, Aarhus, Odense and Aalborg.
The company, which operates in Denmark under the Telia brand, expects to cover 75% of the Danish population with 4G technology by end-2011. Telia Denmark’s LTE network has been supplied by Nokia Siemens Networks (NSN), while the USB dongles are provided by Samsung.
According to Jesper Brockner Nielsen, Head of TeliaSonera Mobility Services in Denmark, the company is proud of being the first operator in Denmark to offer customers 4G service. They are launching 4G in the largest Danish cities, where there is a high demand for fast mobile broadband services. They have an aggressive rollout plan for 4G and expect to cover 75% of the population during 2011. Telia Denmark’s LTE service is priced at US$70.9 per month.
TDC owners plans stake sale
The private equity owners of TDC have announced plans to raise US$$4.12 billion through an almost simultaneous sale and buy-back of shares at Denmark’s leading telecoms operator.
The share sale is to be launched on December 9 and would generate the first returns for the group of five US and UK private equity groups that bought an 88% stake in TDC five years ago.
When TDC was bought by Blackstone, Permira, Kohlberg Kravis Roberts, Apax Partners and Providence Equity Partners, it was Europe’s biggest leveraged buy-out and provoked an angry reaction from unions and politicians about job cuts at one of Denmark’s biggest employers.
Now the telecoms operator’s private equity owners plan to sell 210 million shares, plus overallotment option for a further 31.5 million shares, at a price between US$8.36 and US$9.96 each.
According to the company, it was also planning to buy back US$1.60 billion of shares at the same price as the share issue, in an offer to expire by December 8.
The private equity groups are set to achieve returns of 2-2.5 times their initial equity investment, including their retained stake of about 55-60%, thanks to rapid debt reduction at the company. They will be subject to a 180-day lock-up on their remaining stakes.
According to Henrik Poulsen, chief executive, TDC would have reduced its leverage from almost six times earnings before interest, tax, depreciation and amortization at the time of its buy-out to only 2.1 times after the share sale and buy-back. TDC is currently overcapitalized and they believe shareholder value will be created by returning capital to our shareholders by way of a share buy-back.
TDC’s profit margin at the level of earnings before interest, tax, depreciation and amortization has increased from 28% in 2004 and 2005 to 41% in the nine months to September 30.
Mr Poulsen added that this company has a leading position in all sections of the Danish market; their revenue has been quite resilient in spite of a challenging macro-environment. TDC’s board planned to recommend a generous dividend policy to distribute 80 to 85% of equity-free cash flow to shareholders.
TDC plans for $2.9 billion share issue
The private equity owners of TDC are set to announce their plans to sell about US$2.9 billion of shares in Denmark’s leading telecoms operator in what will be Europe’s biggest share issue of the year.
The transaction is expected to be announced on Friday which will be completed by next month and would value TDC at about US$12 billion including debt. It would generate the first returns for the group of US and UK private equity groups that bought an 88% stake in the company in a deal five years ago.
When TDC was acquired by Blackstone, Permira, Kohlberg Kravis Roberts, Apax Partners and Providence Equity Partners, it was Europe’s biggest leveraged takeover.
But as per Kurt Bj¶rklund, co-managing partner of Permira and spokesman for the private equity consortium, the fears have been allayed and, as private equity has done elsewhere in Denmark, they have shown their positive impact on the company.
Since the takeover, Mr Bj¶rklund claimed that TDC had increased its operating profit margins, investment in its network, cash generation and customer satisfaction. The private equity groups are set to achieve returns of 2 to 2.5 times their initial equity investment, including their retained stake of about 60%, owing to rapid debt reduction at the company.
Ericsson wins LTE contract from TDC (Denmark)
Ericsson, Swedish telecom equipment maker had won a contract to supply Danish operator TDC with a fourth-generation (4G) communications network.
According to the company’s statement, Ericsson will roll out a complete 4G/LTE solution, including radio access and core network equipment, as well as managed services. The company added that the network roll-out will start immediately
According to Industry analysts, the real breakthrough is not possible until 2012-2013.
LTE technology, which is to gradually replacing 3G, enables faster access to mobile Internet services and supports the development of television, videos and photos on mobile phones.
According to TDC, the company wants to introduce 4G in six cities, including Copenhagen, in January 2011.
3 Denmark awarded additional spectrum
3, the Danish unit of mobile group was awarded additional spectrum this week, a move that the company claims will aid to improve competition in the market.
According to the company, 3 Denmark will pay US$2.25 million for vacant spectrum in the 900-MHz and 1800-MHz bands. It grabbed the 2×5 MHz of 900 MHz spectrum and 2×10 MHz in the 1800-MHz band for US$1.21 million and US$60, 9720 respectively.
Since 3 was the only one in the management for the spectrum, it will pay the minimum rate set by regulator Telestyrelsen. Competitor operators TDC, Telenor and TeliaSonera were excluded from the process on the grounds that they already have 900-MHz and 1800-MHz licences. The award levels the playing field from a spectrum opinion.
According to 3 Denmark CEO Morten Christiansen praised Telestyrelsen for the way it handled the process, granting spectrum to 3 at the minimum price would have a positive impact on consumers and on the competitive landscape in the country. The company will continue to invest heavily.
Telenor and Telefonica inks a partner agreement for MNC
Telenor and Telefonica will support each other’s multinational customer (MNC) requirements in 22 countries. Telenor and Telefonica have together announced a partnership agreement that will help both companies to support the requirements of their multinational customers (MNC) in each other’s markets, with focus on mobile services.
Telefonica provides more than 800 MNC customers through Telefonica Multinational Solutions, many of which involve services in the Nordic countries. Similarly, Telenor supplies a number of MNC and Corporate accounts that have requirements in the countries where Telefonica operates.
As per the agreement, Telenor will support Telefonica in Norway, Sweden, and Denmark, and Telefonica will support Telenor in the 19 European and Latin American countries where Telefonica currently has mobile operations like UK, Germany, Ireland, Spain, Czech Republic, Slovakia, Mexico and many more.
The agreement classifies how Telenor and Telefonica will collaborate and support each other in the multinational market, covering rules of commitment, bid management, products and services, SLAs, and operational processes and systems.
According to Kristin Skogen Lund, Executive Vice President and Head of Nordic Region in Telenor Group, this agreement enables the company to be competitive and meet the increasing communications requirements from the big multinational customers. Telefonica is a strong global partner with a good geographical fit to Telenor, and together they can offer a combined global footprint for our Scandinavian MNC customers.
According to Jose Ram³n Vela, CEO of Telef³nica International Wholesale Services (TIWS), this new agreement extends the company’s current collaboration with Telenor to include corporate mobile services and therefore reinforce the company’s position in the multinational market segment. The innovative character of this partnership adds value and strengthens in relationship and the company is sure it will bring great benefits to both companies.
TDC & France Telecom merger called off
www.WirelessFederation.com/news: The proposed merger of the Swiss networks of France Telecom and Denmark’s TDC has been called off. Swiss Competition Commission (ComCo) has already blocked the merger and the two companies were considering their options. The merger was announced last November.
The appealed filed with the Federal Administrative Court has also been withdrawn. Together the merged entity would have got 3.4 million mobile and 1.1 million fixed and broadband customers and would have accounted for around 38% of the mobile telephony market and 13% of the fixed broadband connections.
France Telecom would have to pay at closing a net amount of EUR 1.5 billion to TDC, if the merger would have been materialized. Total pro-forma revenues of EUR 2 billion and EBITDA of EUR 534 million would have been generated by the combined entity for 2008.
France Telecom would have become a 75% shareholder in the combined entity, and TDC would have hold the remaining 25%.
Turk Telecom takes control over 100% of Invitel International
www.WirelessFederation.com/news: 100% of Invitel International has been bought by Turk Telekom in a EUR197 million (USD243 million) deal. Invitel International is a central and south European wholesale and data services provider.
The cash deal is hoped to help the operator to capitalize on its strategic position, sitting as it does at the gateway between Europe and Asia. As a result of the deal Hungarian altnet Invitel Holdings will offload its international wholesale business in order to focus on its domestic retail business in Hungary. Denmark’s TDC sold Invitel to the private equity firm Mid Europa Capital in 2009.
In other results of the deal, 27,000km fibre-optic network will be controlled by the Turk incumbent along with a network of operations in 16 countries, and Invitel International subsidiaries AT-Invitel (Germany), Invitel International Hungary and EuroWeb Romania. Currenlty, Invitel International is worth EUR221 million.
TeliaSonera wins Denmark’s 4G license
www.WirelessFederation.com/news: 4G license for the next generation’s mobile broadband services in Denmark has been won by telecom operator, TeliaSonera. The telco will launch the service in the country during the spring 2011.
According to H¥kan Dahlstr¶m, President of business area Mobility Services, TeliaSonera, the company is pleased to secured 4G licenses early in Sweden, Norway and Finland, and now also in Denmark and it is confident that within less than a year will be able to offer its Danish customers 4G mobile broadband services.
Effortless use of interactive TV, videos, advanced online gaming is offered by TeliaSonera’s 4G mobile networks. Even professional applications, services that require high speed and capacity is also offered. 4G offers speeds in mobile broadband services between 20-80 Mbit/s with a maximum speed of 100 Mbit/s.
