Softbank and PayPal form joint venture for mobile payment services (Japan)
Softbank and PayPal have come together to offer mobile payment services in the country. According to reports, the venture is worth $25 million and will be headed by the director of Softbank Mobile, Hiroaki Kitano.
As per a report by the register, John Donahoe, president and CEO of PayPal parent eBay, said that their Our Softbank partnership and launch of PayPal Here will make it easier for millions of merchants in Japan to grow their businesses and for consumers to easily pay anytime, anywhere.
Further, customers will receive the newest Japanese version of the PayPal app, which helps users locate shops that accept PayPal Here payments and transfer the cash with a quick tap on their phone. The business will then receive the customer’s name and picture so that it can verify the payment.
UK’s mobile wallet project under Commission review (UK)
The mobile payment platform to be jointly owned by UK’s mobile operators Vodafone, Telefónica UK, and Everything Everywhere, has come under the scanner of the European Commission. The joint venture titled ‘Project Oscar’ enables mobile users to pay for goods and services via their mobile phones.
According to reports, the commission has cited problems regarding the future for competition in UK’s wireless industry as the prime reason for the review. As per a statement made by the commission, the initial review has highlighted potential competition concerns as the joint venture would provide the companies with very high market shares.
As per reports, commission vice-president and competition chief Joaquín Almunia, said that the commission is in favour of any initiative that will develop the promising mobile commerce sector in Europe and bring new and innovative payment and interactive advertising experience to customers. At the same time, they need to make sure that competing services can keep emerging on this market, so that incentives to innovate remain and customers get the best mobile commerce services at the best cost.
The commission added that the joint venture and its three parent companies may have the technical and commercial ability to block future competitors from offering their own mobile wallet services to customers in the UK, or to degrade the quality of these competing wallets so that they become less attractive.
The three mobile operators participating in the mobile wallet service said that during the course of discussions with the commission it has become apparent that the embryonic nature of the mobile payments market in particular means that more time is needed to fully consider the proposed joint venture’s plans for a mobile wallet and engage with the views of other interested parties. They remain confident that an extended review will conclude that the proposed joint venture is pro-competitive and will provide robust competition to global players.
NZ telecom operators to offer mobile money services (New Zealand)
In an attempt to provide mobile money services to mobile phone customers in New Zealand, mobile operators Paymark, Vodafone New Zealand, 2degrees and Telecom have come together to launch a common platform. According to reports, the new initiative will enable mobile phone users in the country to purchase goods and pay for utilities, using their mobile phone.
The new service makes use of the near-field communication (NFC) technology. A NFC chip is inserted into the smartphone using which users can transfer information from one device to another, by keeping them close together.
According to reports, the companies have said that they will form a joint venture and launch a trusted service manager (TSM) for mobile wallet services. In a statement they said that this initiative will create the infrastructure necessary to enable many of the cards held in a wallet today to be replaced by applications securely stored in a virtual wallet on a mobile phone.
Unitech asks Telenor for US$ 150 million to end partnership in joint venture (Norway, India)
In an attempt to put an end to the dispute, Unitech has demanded a payout of US$ 150 million for its 32.7 per cent stake in the joint venture with Telenor, according to a report by ET. As per the report, the firm suggested this to the Company Law Board when asked if it would like to buy out Telenor’s 67.25 per cent stake or exit the venture.
The report reveals that a Telenor spokesperson has said that both parties have been asked by the Company Law Board (CLB) not to comment on the proceedings that took place within closed chambers. On their part, they will respect the directions of the CLB. What they have earlier stated it is that the partnership with Unitech is over, and it is their intention to form a new company to which Uninor’s assets can be transferred. This company will form the platform with which they will approach the upcoming auction.
Vodafone receives partial approval to raise stake in local venture (India)
Vodafone Group PLC had filed an application with the Indian government seeking permission to raise its stake in its local venture by buying out its local Indian partner. Latest reports state that the telecom giant had received partial approval from the government for the same.
As per reports, India’s Ministry of Finance has said that since the transaction is between non-resident companies, there is no foreign equity inflow. However, another application filed by Vodafone Essar Ltd. to transfer shares from a resident entry to a non-resident firm has been deferred.
According to the application, Vodafone agreed to buy out local partner Essar Group’s 33% stake in Vodafone Essar for about $5.46 billion. The Essar Group had held a 22% stake through Mauritius-based Essar Telecom India Ltd. and a further 11% through Indian-registered Essar Telecommunications Holdings Pvt. Ltd.
PTC, Orange Poland to launch JV in H1
Polish mobile operators, PTC and Orange Poland are planning to launch their network-sharing joint venture in H1 this year.
The operators estimate that they will save US$70.48 million due to the joint deployment of the network. The operators are still awaiting clearance from the national competition regulator UOKiK on the venture.
Vodafone Objects Essar Group attempt to Revalue Joint-Venture (India)
Vodafone has objected plans by its Indian partner, Essar Group to shuffle around its shareholdings in the Indian mobile network, as it could create a false market valuation for the company.
As per proposals, Essar Group wants to merge Essar Telecommunications Holdings Private Limited (ETHPL), which owns 11% stake in the mobile network, with another listed firm India Securities Limited (ISL) in order to find a “Fair Market Value” for its stake.
According to Vodafone, it objects to the merger as the declaration of a market value for the 11% stake would imply the valuation of the entire company, which it states would be misleading as the shares in the company are not freely traded.
Essar’s ISL responded by stating that Vodafone has no locus standi to raise such objections to the merger since it is neither a shareholder nor a creditor of both ETHPL and ISL.
The matter is significant as Vodafone recently wrote down the valuation of its 67% stake, the company by US$3.3 billion, which would affect how much Essar could earn if it were to trigger a put option that forces Vodafone to buy shares from the Essar Group at an independent valuation.
An updated valuation of the company as a result of the ETHPL-ISL transaction could be higher than what Vodafone currently values the company, and force it to pay more than it wants if Essar were to force a purchase.
The put option expires in May this year. There have been periodic rumours that the Essar Group wants to sell its stake in the joint-venture in order to invest in its own independent mobile network.
Tele2 Germany exits partnership with QSC in Joint Venture Plusnet
Tele2 AB (Tele2), today announced that it has decided to exit its partnership with QSC in joint venture Plusnet GmbH & Co KG (“Joint Venture”). Tele2 Germany will pay in net approximately SEK 280 million to get an early termination of the Joint Venture agreement and to sell its 32.5 percent ownership to QSC. Completion of the transaction is expected following approval from the national regulatory authority.
Tele2 Germany currently develops its network independent service portfolio for the residential market and has yearly paid an operational expenditure of approximately SEK 160 million and a capital expenditure of approximately SEK 20 million to the Joint Venture. By exiting the joint venture agreement Tele2 will save a total of approximately SEK 600 million, offsetting the cost for terminating the agreement early. As a result of the completion of the transaction Tele2 Germany will enter into a new vendor agreement based on commercial terms with QSC for xDSL and telephony services.
Henrik Ringmar, Market Area Director Western Europe, comments: “In order to provide our German customers with the best deal over the coming years we are convinced that the right way forward for us in Germany is to act as a pure service provider. Through the exit of the network company Plusnet, we achieve this objective while being able to enjoy the cost savings that the transaction will bring us. We are also very satisfied with the wholesale prices that QSC has offered us.
The transaction will result in a negative one-off item of approximately SEK 220 million.
TPSA, PTC to built mobile infrastructure joint venture (Poland)
Telekomunikacja Polska SA (TPSA) has announced that it has signed a letter of intent with mobile phone rival Polska Telefonia Cyfrowa SA to create a joint venture to manage mobile infrastructure and radio frequencies in Poland.
According to TPSA, the cooperation may allow TPSA to cut costs and capital expenditure by US$231.33 million in 2012-2017.
The companies filed to the Polish antitrust office UOKiK for approval of the joint venture, in which both would hold 50% of shares.
According to TPSA, the companies will continue to own their infrastructure and their current assets wouldn’t be transferred to the joint venture. TPSA and PTC aren’t considering wider cooperation and won’t jointly operate on the retail market.
TPSA is controlled by France Telecom SA. PTC is a unit of Deutsche Telekom AG.
Siemens AG and Nokia Corp in talks to sell 30% of NSN stakes
Siemens AG and Nokia Corp. are reportedly in talks to sell its minority stake of around 30% in their Nokia Siemens Networks joint venture.
According to reports, the proposed sale would be to a consortium which includes the private-equity firms Blackstone Group LP and the Gores Group. No price has been decided as telecom equipment vendor Nokia Siemens Networks has not yet completed the acquisition of part of Motorola’s network business.
Nokia and Siemens, which each hold 50% of Nokia Siemens Networks.
As per reports, the majority of other interested parties, which included the private equity investors KKR, Apollo, Bain Capital and Silver Lake Partners, are said to have pulled out of the bidding process.
