Essar

Vodafone gives final submission in Indian $2 billion tax demand

On 03.15.10, In Mobile, By Editor

www.WirelessFederation.com/news: The final part of the submission expressing why Vodafone should not be held liable for a US$2 billion tax demand following its takeover of India’s Hutchison Essar in 2007 has been submitted by the company. A demand had been asked by the Indian government on the US$11.2 billion deal.

It was being argued that under Indian law, it is the buyer who pays transaction taxes, not the seller and that the jurisdiction that the transaction took place is irrelevant when relating to assets largely held in India.

Reply with 23 annexure had been given by Vodafone on January 29, 2010. The final reply was made on March 12, 2010 with a 24th annexure. According to a company’s spokesperson, Vodafone is confident that no tax is payable on this transaction and all of the taxation and legal advice the company has received remains consistent with this view.

The entire share capital of CGP Investments (Holdings) Ltd, a Cayman Islands based company from Hutchison International (HTIL) was acquired by Vodafone International Holdings BV, a company registered in the Netherlands. CGP, itself, owns 52 per cent stakes in Hutchison India.

Google rivals asked for declarations by FTC (USA)

On 03.11.10, In Mobile, By Editor

www.WirelessFederation.com/news: A sworn declaration has been seeked by US regulators from Google Inc. competitors and advertisers. The declaration is the part of the regulators probe of the Internet Company’s bid to buy AdMob Inc., indicating the government may challenge the deal.

Google’s proposed purchase of AdMob is under the Federal Trade Commission investigation to find out whether the deal would reduce competition in the market for Internet advertising on mobile phones.

AdMob sells ads that appear on Web pages and applications on mobile phones and the agency is assessing whether the purchase would let Google parlay its dominance in Internet searches on computers to phones.

Declarations are collected by Agency officials when they think there is some significant chance. The court will be asked by the agency to block a merger, or seek to modify a deal.

Google on the other hand has decided to continue the talk with the FTC and provide information. The deal between Google and AdMob will give rise to the largest mobile- advertising company in the USA reigning over 21% of the market in 2009.

According to Thomas Ensign, counsel in the antitrust, competition and trade practice of Freshfields Bruckhaus Deringer LLP in Washington, it is difficult to envision a scenario where this development, if true, is positive for Google-AdMob but it doesn’t necessarily mean the agency is going to challenge the deal.

Agency’s staff might be persuaded by the negotiation between Google and the FTC that the deal won’t harm competition but at the end of the investigation it’s up to the agency’s commissioners to decide whether to challenge the deal in court.

Tagged with: Admob • Essar • Federal Trade Commission • FTC • Google • Internet advertising • merger • North Amercia • USA

Zain Jordan considers LTE roll out

On 03.06.10, In Mobile, By Editor

www.WirelessFederation.com/news: A number of offers by international equipment vendors are currently being studied by Zain Jordan for the introduction of Long Term Evolution (LTE). Offers to build 4G infrastructure from companies like Motorola, Ericsson, Huawei and Nokia Siemens Networks is on Zain’s cards.

According to Zain CEO Abdel Malek Al Jaber, he is awaiting a decision by the telecoms watchdog, the TRC, on the award of the necessary licenses which will hopefully lead to the launch of a trial network later this year, ahead of an official launch in early 2011.

Tagged with: 4G • Ericsson • Essar • Huawei • Jordan • Long Term Evolution • LTE • Middle East • Motorola • Nokia • Nokia Siemens Network • Zain • Zain Jordan

Nokia to limit app publishers on its Ovi Store

On 02.19.10, In Mobile, By Editor

www.WirelessFederation.com/news: Only registered companies will be allowed to submit apps to Nokia’s Ovi store as a part of its screening process and to ensure mobile Ovi Store carries clean apps. However, a barrier is set up by this requirement for individuals interested in developing apps for the app store, as well as aspiring startups and entrepreneurs that may not have registered business licenses.

According to Marc Einstein, ICT industry manager at Frost & Sullivan, the move is an effort to avoid some of the controversies seen at competing stores, such as offensive content that had ended up on Apple’s App Store in the past and as such, Nokia’s move to limit app contribution is a necessary evil.

Nelson Wee, Nokia’s Asia-Pacific senior services marketing manager, explained that the company established the policy due to international tax complexities besides aiming at ensuring content on the Ovi Store is legal and authentic.

Tagged with: App Store • Apple • ASIA • Essar • License • Nokia • Ovi

Vodafone given time till March 12 to reply to Indian tax dept

On 02.18.10, In Mobile, By Editor

www.WirelessFederation.com/news: Vodafone Group Plc has been given time until March 12 to respond to the second attempt of the Indian tax department to examine if its acquisition of Hutchison Essar Ltd falls within the tax jurisdiction of Indian authorities.

The dispute arose after $11.2 billion (Rs51,500 crore) was paid by Vodafone for a 67% stake in Hutchison Essar (since renamed Vodafone Essar Ltd) in 2007 and the deal was approved by the government in May the same year.
According to the tax department, the Cayman Islands transaction was essentially a transfer of an Indian asset and Vodafone should have deducted tax at source when it paid Hutchison.

Consequently, in 2007 itself a show- cause notice was slapped on the company by the tax department asking why it had not done this and it was after this that the company approached the courts.

Tagged with: Acquisition • ASIA • Cayman Island • Essar • Hutchison • Hutchison Essar • India • Vodafone

Indian telco Idea to sell stake in Indus Towers

On 02.08.10, In Mobile, By Editor

www.WirelessFederation.com/news: 16% stake in Indus Towers valued at USD 600-800 million might be partially or wholly sold off by Indian telco Idea Cellular.

The stock of the company reached an all day high of Rs 58 and an all day low of Rs 56.60. In late 2007, Bharti Airtel, Vodafone Essar and Idea Cellular pooled in their resources into an independent firm, Indus Towers which became the world’s largest tower company with 1,25,00 towers.

Before this joint venture, 42% stake was held by Vodafone and Bharti and 16% held by Idea.

Tagged with: ASIA • Bharti Airtel • Essar • Idea Cellular • India • Joint Venture • Vodafone • Vodafone Essar

Deutsche Telekom seeks IPO for T-Mobile USA

On 02.05.10, In Mobile, By Editor

www.WirelessFederation.com/news: A number of discussions have been held by T-Mobile’s parent, Germany’s Deutsche Telekom with a number of banks about underwriting an IPO for the unit. Partial spinoff of the business which would carve it into a separate entity with its own balance sheet has been considered another option.

Since a past few years, there were continuous rumors regarding Deutsche Telekom’s intention to dispose of its US arm in some form or other. Merger talks with Clearwire and Sprint died off after Clearwire was able to raise the necessary funding for its own network independently.

T-Mobile would be able to raise the funds to boost its network quality, after the floatation of the stock market without Deutsche Telekom ceding management control.

Tagged with: Deutsche Telekom • Essar • Europe • floatation • Germany • IPO • Merge • North America • Sprint • T-Mobile • T-Mobile USA • USA

Orange Armenia reaches 200K subscribers in three months

On 02.05.10, In Mobile, By Editor

www.WirelessFederation.com/news: 200,000 subscriber marks has been crossed by Orange Armenia in less than three months after launching commercial services on 5 November 2009.The Company is owned by France telecom and hit the 100,000 subscriber mark in early December itself.

EUR100 million (USD148.5 million) has already been invested by Orange and is going forward to provide necessary expertise and investment to ensure the development of a high-quality 2G and 3G+ network offering nationwide coverage.
Before Orange’s entry in Armenia, the market was previously a duopoly of VivaCell-MTS and ArmenTel (Beeline).

However, a population of around 3.2 million people, including 1.1 million in the capital Yerevan, Armenia offered the FT group significant growth potential.

Tagged with: 3G • Armenia • Beeline • Essar • Eurasia • France Telecom • Orange Armenia • Vivacell-MTS

Base Stations closed in the Indian city, Noida

On 02.01.10, In Mobile, By Editor

www.WirelessFederation.com/news: Around a quarter of the base stations had been shut down by the authorities, resulting in the disruption of ¬mobile phone services over the weekend in the Indian city of Noida, Uttar Pradesh.

The action was taken after the phone companies failed to meet the authorities demand to seek the necessary authorization for the towers to be erected. Out of 400 to 572 towers in the city, 125 to190 towers have been shut-down. The authorities have also cut the electricity supply to the towers and have sealed the backup generators.

According to Sandeep Chandra, senior project engineer, Noida Authority, only 125 cellular service providers had submitted applications requesting an extension a few months ago and would be spared for the moment.

Tagged with: ASIA • Base Stations • Essar • India • Service Providers • Uttar pradesh

Application for 3G license submitted by Schutzengel Telecom

On 01.28.10, In Mobile, By Editor

www.WirelessFederation.com/news: National Telecommunications Commission (NTC) in the Philippines has received an application from market newcomer Schutzengel Telecom Inc to get provisional authority to build, install, operate and maintain a national 3G mobile network.

As per the application submitted by Schutzengel Telecom, the company is fully aware and cognizant of the vital need to provide the general public with an adequate, efficient and cost effective means of mobile communications and is open and amenable to operate within any of the frequency bandwidth which is presently available or may be made available for the 3G standard.

With NTC looking to award the country’s fifth and final 3G operating license through a ‘beauty contest’ style process, Schutzengel claims it is ‘legally, technically and financially capable to put up a 3G network’. Besides, it also possesses the requisite financial resources and capability to render the proposed service which shall be sourced from a combination of internally generated funds, supplier’s credit, loans and other forms of financing, and should it be necessary, from equity infusion

Tagged with: 3G • 3G license • ASIA • Essar • National Telecommunications Commission • Philippines • Schutzengel Telecom