T Mobile & Orange UK merger vital for competition: T Mobile
www.WirelessFederation.com/news: The 50-50 joint venture, between Deutsche Telekom’s T-Mobile and France Telecom’s Orange in UK announced on September 8, 2009 is crucial for the two companies to be able to compete against bigger rivals.
The announcement was made by T-Mobile UK Managing Director Richard Moat. According to Moat, the margin pressures are altering the competitive landscape and altering the ability to fund the future.
The joint venture proposal is waiting for the nod from European Commission, which will investigate whether there will be any adverse effect on the market, has until Feb. 15 to rule on the joint venture.
UK’s largest mobile operator with a 37% market share will be created if the propsed venture is successful.
India’s mobile market eyed by Vivendi France
www.WirelessFederation.com/news: Vivendi France may take over 51% of the India’s Datacom Solutions. Two rounds of talk have taken place between the officials of Vivendi and Datacom team and both the sides will meet again in a few weeks to take the discussion forward.
Owned by Videocon group, Datacom solutions has also attempted to sell a stake to Etisalat or Turkcell foundered during the credit crunch. Rumors were also there that America Movil or France Telecom could be interested in acquiring a stake in the company.
Datacom already has radio spectrum covering 21 of India’s 22 circles and have the advantage of its parent’s vast distribution network for selling phones and SIM cards, despite the late launch. Earlier, it was said that the firm is planning a US$2.8 billion GSM tender, but nothing seems to have happened since that was announced.
Chairman’s departure denied by France Telecom’s number two
www.WirelessFederation.com/news: France Telecom chairman, Didier Lombard will continue to hold the office until 2011, as scheduled. Earlier it was reported that the chairman will leave his post ahead of schedule in the face of tension between him and company’s second in command, Stephane Richard.
According to Stephane, he is not engaged in any kind of manoeuvre and there is no rivalry of any kind between them.
10% revenue loss incurred by Poland’s TPSA in Q4
www.WirelessFederation.com/news: 10% to 11% loss is incurred by Telekomunikacja Polska SA in its fourth-quarter with the revenue standing between 4 billion zlotys and 4.1 billion zlotys ($1.43 billion and $1.46 billion). Poland’s top telecommunication company, controlled by France Telecom, had the worst fourth quarter in a decade.
Cuts in regulated wholesale prices and competitive pressure are cited to be the reason behind this loss. PLN16 billion to PLN16.6 billion could be the revenue of 2009 which will be PLN1.5 billion lower than in 2008.
Shanghai Expo to be broadcasted by Orange in Europe
www.WirelessFederation.com/news: A deal has been signed between France Telecom’s Orange and Shanghai Media Group to broadcast content from this year’s World Expo in Shanghai on phones across Europe. Orange will work with BesTV, Shanghai broadcaster’s new media unit to develop Internet Protocol Television, or IPTV.
It is a technology that allows content to be watched on television, computers and mobile phones. According to France Telecom’s chairman and CEO Didier Lombard, new internet and digital technologies have opened an extremely large field of possibilities. The most spectacular allows customers to see the same images on three screens.
The six-month World Expo scheduled in China, this year, will give an opportunity to showcase the IPTV technology around the world.
Egyptian court’s verdict against France Telecom
www.WirelessFederation.com/news: With the blocking of France Telecom’s offer for minority stakes in the Egyptian mobile operator by Egyptian court, all hopes of the operator to take full control of ECMS were dashed. The decision was taken after the price of €1.5bn offered by France’s group to for outstanding stakes in ECMS, due to expire on Thursday was considered to be too low.
The decision is pronounced as victory of Orascom Telecom, locked in a lengthy battle with the former French monopoly for control of Egypt’s largest mobile company. The ownership and strategy of France Telecom, the largest mobile operator in the Middle East by subscribers will also loom in uncertainty because of the decision.
ECMS is controlled via Mobinil by France Telecom and Orascom in which France Telecom owns 71.25%, Orascom 28.75% and Mobinil owns 51%. The two owners have been at loggerheads for years over a strategy for the Egyptian operator.
T-Mobile and Orange in U.K merger to be reviewed by European Commission
www.WirelessFederation.com/news: A proposal has been filed by Deutsche Telekom AG and France Telecom to the European commission for a joint venture in the U.K. The step is taken four months after the announcement of the deal.
The deal for 50- 50 partnership between France Telecom’s Orange UK and Deutsche Telekom’s T-Mobile was announced on September 8. With 37% market share, the joint venture will create the U.K.’s largest mobile operator ahead of current leaders Telefonica SA’s O2 with its 27% share and Vodafone PLC’s 25%.
The European Commission has time until February 15 to complete the investigation of the adverse effect of the deal on the market. The joint venture may start working by the middle of 2010.
Verdict on MobiNil share decision to be issued this week
www.WirelessFederation.com/news: A verdict will be issued by an Egyptian court to stop the sale of any outstanding shares by Orascom Telecom in network operator MobiNil to France Telecom. It was after the rejection of three offers that the Egyptian Financial Supervisory Authority accepted the French company offer in early December at EGP245 (USD44.87) per share.
By appealing to the committee, Orascom tried to block the sale but its request was rejected last week. According to Orascom, FT should have offered EGP273 per share, equivalent to a price set by an arbitration court last April for the MobiNil shares Orascom held through a holding company.
Meanwhile, MobiNil has fallen behind its EGP750 million installment for its 3G license which was due on 1 January. This may result into financial penalty for MobiNil and at the same time it is believed that the operator may ask the regulator to exempt it from any possible charge as a result of the current ownership dispute.
Bonds worth around EGP1.5 billion is to be sold by MobiNil in an offer which closes on 24 January, and a portion of the proceeds raised by this sale are expected to go towards its overdue license fee.
No raise in Mobinil offer by France Telecom
www.WirelessFederation.com/news: Regulator-approved offer of 245 Egyptian pounds ($45) for each of the shares in Egyptian Company for Mobile Services won’t be increased by France Telecom SA.
The French telecommunications giant announced this regarding the shares that the company doesn’t control in Egyptian Company for Mobile Services, which operates the Mobinil brand mobile phone network in Egypt.
The statement came after Cairo-based investment bank Prime Capital recommended a tender price of EGP263 to EGP265 and independently valued ECMS shares at between EGP283 ($52) and EGP337 each.
Prime Capital appointed by ECMS to evaluate France Telecom’s offer did not follow standard valuation methodology and the average share prices and broker target valuations was not take n account.
Appeal to buy Ezypt’s Mobinil lost by Orascom Telecom
www.WirelessFederation.com/news: Orascom Telecom’s appeal against the ruling that could allow France Telecom subsidiary to buy up Egypt’s biggest mobile services provider has been turned down by an Egyptian regulator.
According to the Egyptian Financial Services Authority, it upheld Orange Participations offer to buy up OT’s shares for 245 Egyptian pounds ($45.40) per share in the Egyptian Company for Mobile Services.
An arbitration court ruling in March in favor of the French company is said to be the reason behind the dispute. The French company holds 71.25 percent stake in Mobinil and it has been authorized by the court to acquire Orascom’s 28.75 percent stake in Mobinil.
