Svein Aaser elected new Chairman of the Board of Telenor (Norway)
Svein Aaser has been elected as the new Chairman of the board for mobile operator Telenor. Svein Aaser was CEO of Den norske Bank and DnB NOR from 1998 to 2007. He was previously CEO of Nycomed from 1987 to 1996. He has also been the CEO of Storebrand Skade, Nora Matprodukter and Stabburet Nora. He has served as president of The Confederation of Norwegian Enterprise (NHO) and as Chairman of Finance Norway (FNO). Today, Aaser is the Chairman of the Board of Statkraft and Det Norske Oljeselskap.
In a comment Svein Aaser said he is looking forward to working with the Board and management team at Telenor ASA. He said Telenor is among the largest mobile operators in the world and they have achieved a strong market position in a short period of time, both in Europe and in Asia. He looks forward to learning more about the organisation and its markets.
The Corporate Assembly also elected Anders Skjævestad to succeed Jan Erik Korssjøen as Chairman of the Corporate Assembly and thus Chairman of the Nomination Committee. Skjævestad has been member of the Corporate Assembly and the Nomination Committee since 2009.
Vodafone relies on Verizon as profit from Europe declines (USA, UK)
Telecom operator Vodafone Group Plc will have to rely on its U.S. wireless venture to meet profit estimates and cover up declining sales in the European markets, largely Spain and Italy, according to a report by BN.
Vodafone said that operating profit excluding some items may rise as much as 3.2 percent in the 12 months ending March 2013. Profit on that basis slipped 2.4 percent last year to $18 billion after the sale of a stake in its SFR French unit. Verizon Wireless, the largest U.S. mobile carrier, accounted for 42 percent of the total, an increase of 9.3 percent.
As per the report, Vodafone, which relies on western Europe for most of its revenue, is no longer the world’s biggest mobile-phone company as China Mobile Ltd. boosted sales last year to $81.7 billion. While profits and sales at Verizon Wireless are rising, Newbury, England-based Vodafone still needs to negotiate dividends every year with U.S. partner Verizon Communications Inc. (VZ), which controls 55 percent of the venture.
Telefonica launches single pan-European mobile data tariff (Europe)
Telefónica banishes bill shock with the announcement of its first standard pan-European data roaming tariff – giving smartphone customers 25MB of high-speed Internet usage anywhere across the 27 European Union member states for just $2.54 a day.
Telefónica’s EU-wide tariff means mobile customers – on Movistar or O2 networks – will no longer have to worry about the cost of sending or receiving emails, updating their Facebook status or browsing the web on their smartphones when travelling or holidaying abroad.
For $2.54 a day, Telefónica is giving its smartphone customers travelling in the EU a data volume of 25 Megabytes – which translates to 250 visits to essential websites like Facebook, Twitter, Google or BBC Online and up to 500 emails.
Additionally, customers will only pay for days they choose to use data, and will not be charged should they wish to switch off their phone.
The Telefónica tariff weighs in at a fraction of new price caps announced by the European UnionFacebook, Twitter, Google – which ruled that as of 1 July, one data megabyte should cost no more than $0.9, or $22.25 for 25 MB. On a per megabyte basis, Telefónica’s European tariff works out considerably cheaper than the EU’s regulated rate.
José María Álvarez-Pallete, Chairman and CEO of Telefónica Europe, said that users no longer need to switch off their smartphones when travelling within the EU, and neither do they need to worry about bill shock when they get home. Further, their European data tariff gives smartphone customers great value while allowing them to do what really matters – to stay connected wherever they are in a simple and transparent way and with complete peace of mind.
Smartphone customers use on average around 6MB in a day, but any Telefónica customers exceeding 25 MB will be immediately notified. The Pan-European tariff launched in Germany in May and will be available this summer to O2 and Movistar customers in Spain, United Kingdom, Ireland, Czech Republic and Slovakia.
Vodafone may be planning European reorganization (Europe)
Telecom giant Vodafone Group Plc may be planning a reorganization post the departure of European chief Michel Combes, according to a report by BN.
As per the report, one scenario involves separating Vodafone’s European operating companies into a group consisting of western Europe and a second entity made up of Turkey, central and eastern Europe. A third group would include Vodafone’s assets in southern Africa and India.
The report reveals Paolo Bertoluzzo, 46, who runs the Italian unit, and Serpil Timuray, the head of Vodafone Turkey, are among internal executives seen to take on greater responsibilities, alongside Michael Joseph, the former CEO of Vodafone’s Kenyan subsidiary who is now director of global payments, said Will Draper, an analyst at Espirito Santo Investment Bank in London.
Vodafone said Deputy Chairman John Buchanan will stand down from the board this summer. Buchanan, a Vodafone director since 2003, was appointed chairman of British semiconductor designer ARM Holdings Plc (ARM) this month. Luc Vandevelde, the former Marks & Spencer Group Plc chairman, will become a senior independent director.
America Movil may acquire a 28% stake in KPN for $4.2 billion (Latin America, Europe)
Telecom group America Movil has reportedly made an offer to acquire 28 percent of Dutch telecom company KPN for $10.37 a share. According to reports, the deal valued to be $4.2 billion would enable America Movil to enhance its presence in the Europe market, so as to make up for the stagnant growth in its domestic market.
Carlos Garcia Moreno, CFO, said that America Movil is a long-term investor and they think if the company executes the strategy well, it will perform well. It’s a company that should benefit for the long term.
He added that KPN is the target for their first investment. Europe is facing some times which are economically challenging. They have a long-term investment horizon. They have taken their time. This one seems to make a lot of sense. Further, KPN is a solid company and in the long term seems to be a good return on investment. This is a market they do not know. Being closer to the action through the likes of KPN can give a better view for them.
Telefonica faces writedown over alliance with Telecom Italia (Europe)
Telecom operator Telefonica may face writedown owing to its alliance with Telecom Italia, according to a report by BN. As per the report, Telefonica SA Chairman and Chief Executive Officer Cesar Alierta told investors in April last year that an alliance with Telecom Italia SpA (TIT) would generate $2 billion in cost savings. However, at the time, shareholders in the Spanish telephone operator weren’t warned of the downside.
The report reveals that with consumer spending falling and the two countries among the worst hit by Europe’s debt crisis, Telecom Italia’s stock has since slumped 21 percent, while Telefonica is down 40 percent. Analyst Andres Bolumburu says that the problem with the stake in Telecom Italia is that investors expected the Italian operator to reverse the negative trend in its domestic market and this hasn’t happened. It could continue to lose value.
As per the report, the outlook raises questions as to whether Madrid-based Telefonica, which paid around $3 billion for Telecom Italia shares in 2007, will ever recoup the investment and whether the holding is proving to be a distraction for Alierta as Spain’s largest phone company seeks to halt a slowdown in its domestic business.
ZTE debuts IMS application to smartphone users (Europe, America)
ZTE Corporation, a leading global provider of telecommunications equipment and network solutions, announces its latest IMS application for smartphone users in Europe and America at the IMS World Forum 2012 held in Madrid. The application enables quick and efficient access to mobile VoIP.
Based on ZTE’s successful IMS deployments in Europe with a dramatic increase of 100,000 new users per month on average, ZTE developed this innovative IMS application. It allows operators to offer a converged service combining internet applications and traditional telecom services, enabling them to expand their subscriber scale and increase revenues.
With this intelligent application, subscribers can download and install an IMS client onto a smartphone and use Mobile VoIP and other multimedia services immediately whilst still receiving incoming calls and SMS with their 2G/3G mobile numbers.
Focusing on user experience, ZTE’s solution not only supports VoIP and SMS, but also provides more abundant services, including IP Centrex, VMS, VPABX, Home Zone, Video Conference, Instance Messaging and Presence Services (IM/PS), File Transfer, and Image Sharing.
Xu Ziyang, Vice President of ZTE Corporation, said that to identify immense pressure on operators from the industry competition; ZTE is committed to offering differentiated services that will build up their competitive advantages. This IMS application realizes the combination of abundant services with easy use offering improved access to both phone calls regardless of location and the significant savings on the expense of making international and otherwise expensive calls.
As of the end of 2011, ZTE had more than 140 commercial and trial IMS deployments officially launched around the globe , with scores of commercial networks deployed in such countries as Italy, Poland, Spain, Turkey, Albania, Saudi Arabia, Philippine, Singapore, India, the USA and China.
Verizon Wireless launches new global data plan (USA)
American mobile operator Verizon Wireless is launching a new, easy-to-understand Global Data Plan. Starting April 23, the new Verizon Wireless Global Data Plan offers U.S.-based customers 100 MB of data for $25 a month. For one low cost, customers can access email, browse the Web and update social networks while traveling outside the United States in 120 countries and destinations, including all of Europe, South America, the Caribbean, Mexico and Canada.
With the new Verizon Wireless Global Data Plan, customers can purchase 100 MB of data for $25 a month. Prior to traveling outside the United States, customers should visit the website to determine their coverage needs. To purchase a Global Data plan, customers are required to have a domestic data package and international eligibility, which requires minimum payment history.
Customers who require more than 100 MB of data while traveling will receive a notification via text message when an additional 100 MB of data for $25 has been automatically made available to them once they exceed their initial allotment. Customers traveling to countries not covered under the Global Data Plan, but within Verizon Wireless global coverage areas, will be charged at Pay Per Use rates of $0.02 per KB.
Whether traveling to London for the big games this summer or Oktoberfest in Munich this fall, Verizon Wireless customers with global calling and data services can make and change hotel reservations on the fly, call for and download directions to local attractions and restaurants, and stay in touch with family and friends back home by sharing pictures via email and social networks.
Verizon Wireless customers planning international getaways can take advantage of first-class tools and resources to help manage their wireless travel needs, putting their minds and budgets at ease before they go and once they arrive, such as, Verizon Wireless Trip Planner provides customers information they can use to plan their travels before they leave home, including details about global calling, country-specific coverage and device functionality.
To help travelers get their wireless bearings, Verizon Wireless greets travelers to most overseas destinations with a free welcome text message featuring helpful information for the country they are visiting, including dialing instructions for calling within and to phones outside the country; voice, text and data rates; as well as the ability to reach Verizon Wireless Global Technical Support.
Free Global Data Roaming Usage Alerts help travelers keep an eye on their wireless usage. Verizon Wireless customers automatically receive free alerts via text message or email when Global Data Roaming charges exceed certain thresholds.
Verizon Wireless operates a dedicated, toll-free global support number that will put customers in touch with one of the company’s U.S.-based support centers 24 hours a day, seven days a week. Customers outside the United States can reach the Global Technical Support Team by dialing the appropriate exit code for the country they are in and then 908-559-4899 – a free call from their device. Customers may also reach Global Technical Support free of charge by using the Verizon Wireless Global Calling Card, provided with their global-ready device, if their device is not usable.
Roaming deal between France Telecom and lliad may result in $2.63 billion (Europe)
Mobile operator France Telecom’s Chief Executive Stephane Richard has said that the roaming deal with competitor Iliad could generate an amount of $2.63 billion in an interview with the Liberation newspaper.
Richard added that they had said the contract would bring $1.3 billion. However, it could be double depending on Free’s capacity to develop its network.
He said that Free quickly gained a significant market share as it offered fees as low as $2.6 a month. Free mainly sells pre-payment lines without handset, an offer that may convince as much as 15 percent of the market.
Telenor increases stake in VimpelCom (Europe)
Telecom operator Telenor has increased its stake in Russian operator VimpelCom to 35.7 percent from 31.7 percent, in an attempt to increase its presence in the Russian mobile market.
According to a report by Nasdaq, VimpelCom’s share price has come under pressure of late as the result of a drawn-out negotiation process over its merger with Egyptian Orascom Telecom and the Algerian government.
The report reveals that while uncertainty over VimpelCom’s North African ventures may pressure the stock in the short-term, investors with a longer time horizon could follow Telenor’s lead and take advantage of the attractive entry point.
Like other emerging market telecom firms, VimpelCom will continue to benefit from the increased penetration of smart devices and a concomitant rise in lucrative mobile data revenue. Given the positive macro trends in the sector, combined with a projected annual growth rate of 26 percent and a strong free cash flow position, VimpelCom could be a good buy at these levels.
