Greek authority EETT cancels Cosmoline WiMAX licence
Greek telecoms regulator EETT has canceled the 3.5GHz WiMAX broadband fixed wireless access licence owned by Cosmoline, after the operator failed to pay its licence fee in full.
According to reports, Cosmoline had defaulted on a payment of US$5.7 million due in August 2009, the final installment of the US$28.65 million asking price of its 3.5GHz licence won via a tender process launched by the EETT in August 2006.
The authority added that it had repeatedly issued written reminders to the operator, which also received an extension of the deadline to roll out a WiMAX network, but Cosmoline failed to launch the service. The EETT intends to pursue legal action to recover the outstanding licence fee amount.
OTE aims for $415.4 mn in cost cuts (Greece)
Greece’s incumbent telephone operator, Hellenic Telecommunications Organization SA, or OTE, aims to cut operating costs by US$415.74 million as the group struggles with flagging revenues in its fixed-line division.
According to reports, OTE’s management is eyeing cost cutting measures in all areas of the company, including possible layoffs in Greece and abroad.
The report comes just days after OTE announced US$44.34 million in cost-cutting measures and sacked 120 employees at its Cosmote mobile operations.
Deutsche Telekom posts net loss in Q4 (Germany)
Europe’s largest telecommunications company, Deutsche Telekom AG has reported a net loss in fourth-quarter, depressed by eastern and southern European operations and asset writedowns.
The company recorded a net loss of US$803 million, compared with a loss of US$4.12 million a year earlier while analysts had predicted a net income of US$750.47 million. Adjusted earnings before interest, taxes, depreciation and amortization dropped 10% to US$6.25 billion, trailing the US$6.46 billion average estimate of 19 analysts.
Profit was weighed down by US$1.78 billion in one-time costs including US$611.65 million to write down the value of assets in Romania and in Greece, where Deutsche Telekom owns 30% of Hellenic Telecommunications Organization SA.
According to the company, it needs until as late as early 2012 to solve U.S. structural†problems, whereas it struggled to keep AT&T Inc. and Verizon Wireless from winning over customers.
As per the analysts, while it was clear that there would be impairments in Greece given the situation there, the high amount came as a surprise.
OTE set to sell Telekom shares (Greece)
Greek telecoms company OTE has reportedly told the Serbian government that it is ready to sell its 20% stake in Telekom Srbija.
The sale is expected to take place during the upcoming international tender of the Serbian state-owned telecoms company.
According to reports, OTE has sent a letter to the Serbian government, confirming that it is ready to sell its shares as part of a package that will be offered to interested investors.
The new investor – according to plans will pay at least US$1.9 billion for a 51% stake in the company, with 31% coming from the government, and 20% from OTE. The deadline for submitting bids has been set for 21 March.
OTE to take $177 million for pension charge (Greece)
If reports are to be believed, Greek telco OTE has announced that it will take a US$177 million charge on 2010 earnings to settle a government claim over pension liabilities.
Greece’s cash-strapped government stated in January 2010 that it would claim more than US$138.56 million from OTE to plug a hole in public finances caused by the company’s 2005-06 voluntary pension schemes.
OTE, which disputes the claim, stated that it was taking the charge because of accounting rules.
Vodafone Greece upgrades Network
Vodafone Greece has announced the upgrade of its network to support a peak theoretical rate of 42.2 Mbps after deploying HSPA+ DC (High Speed Packet Access, Dual Carrier) network technology.
New upgraded Vodafone Mobile Broadband speeds are initially provided in selected areas of Athens, with plans to expand elsewhere in the country.
Customers will also need to buy an upgraded USB modem to access the higher speeds that are now available in the Capital City.
OTE eyes Serbian unit sale
Greek telecom incumbent Hellenic Telecoms Organization SA’s Chief Executive Michael Tsamas, said that the company is leaning towards a sale of its Serbian unit minority stake but needs more time to consider its strategy in Romania.
According to Tsamas, Hellenic Telecoms (OTE) is prepared to sell its 20% stake in Serbia’s Telekom Srbija, but only if the price is right.
The CEO added that as far as Romanian operations go, OTE needs another three months to decide whether it will raise its stake or acquire all minorities in Romania’s No. 1. Telecommunications company Romtelecom, since it needs to examine all its options before a final decision.
OTE owns 54% of Romtelecom. The remainder is owned by the Romanian state which in November clarified that it would like to quickly dispose of its 46% stake by a trade sale or an IPO listing on the Bucharest Stock Exchange.
The EGM also ratified the appointment of Tsamas as the new CEO. According to sources, the CEO’s contract expires in 2013 and his remuneration will be 15% lower than the previous CEO Panagis Vourloumis.
The Greek state has a 20% stake in OTE and Deutsche Telekom AG has 30%. Both the German company and the government appoint the firm’s management.
OTE is one of the largest telecom players in South East Europe with operations in Albania, Bulgaria, Romania and Serbia, in addition to Greece.
Vodafone Cuts European data roaming fees
Vodafone has introduced a flat-rate data fee for its smartphone customers roaming in Europe, offering new daily and monthly rates.
Those customers, who travel occasionally, can take a domestic data plan abroad for US$2.64 per day, which represents a cost reduction of up to 60% over existing plans and includes an increase to the data allowance. Alternatively, frequent travelers can select to take a price plan which includes data roaming within their monthly domestic package.
According to Vittorio Colao, Chief Executive Officer of Vodafone, this is the year of the smartphone and the company wants their 35 million European data users to feel free to use their devices in Europe in the same way as they do at home. They expect smartphone sales in Europe to grow from 32% today to more than 70% by 2013, and they want to drive that growth with what they believe to be the best value, market-leading roaming data packages.
The new plans are being launched in Vodafone’s major European markets during November and December 2010, in time for the winter holiday season, and across the Company’s entire European footprint by summer, next year.
All consumers on the daily offer will be able to access domestic price plans in Vodafone’s European countries plus France, Switzerland, Belgium and Austria. Business monthly customers will be able to include data roaming across the whole of Europe within their domestic monthly package and consumer monthly customers can use the new price plans in Vodafone countries as well as France, Switzerland, Belgium and Austria.
Vodafone’s European countries include: Czech Republic, Germany, Greece, Hungary, Ireland, Italy, Malta, the Netherlands, Portugal, Romania, Spain, UK.
3 telco Bought Documents in Telekom Sale
As per the Telecommunications Minister Jasna Matic, Deutsche Telekom AG, Telekom Austria AG and France Telecom SA bought tender documents as the government prepares to sell a 51% stake in Telekom Srbija DD.
According to Matic, the three potential buyers have acquired the documents recently in the ongoing tender that closes on Nov. 26.
Telekom Srbija is 20% owned by Greece’s Hellenic Telecommunications Organizations AS, or OTE, which has not yet decided if it would sell its stake. If it decides to divest the holding, the Serbian government would sell only 31% of the 80% it owns.
A sale arranger has valued the entire company at US$3.28 billion. The sale is to be completed in the first quarter of 2011. Telekom Srbija controls 60% of Serbia’s mobile- telephone market. It also has 40% and 26% of mobile-phone markets in neighboring Bosnia-Herzegovina and Montenegro, respectively, through subsidiaries.
