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.

 

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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.

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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 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.

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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. 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.

British Telecom (BT) Group has completed the sale of 5.5% (US$99.30 million) stake in Tech Mahindra. Following this sale, BT will have about 24.4% share holding in the joint venture. The sale accounts to about 6.9 million shares.

According to BT, Tech Mahindra remains a key supplier to BT and, while further sales may be considered in the future, BT expects to continue to have a shareholding in Tech Mahindra for some time.

Tech Mahindra which is formerly known as the Mahindra British Telecom (MBT) is a joint venture between the Mahindra Group and BT Group with Tech Mahindra holding 44% and BT holding 39% of the equity.

BT and M&M established a joint venture that became Tech Mahindra in 1986. Since that time, the Indian-listed business has grown to post annual revenues of above US$1 billion.

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­Qatar’s Qtel is reportedly in talk over a partnership with the country’s sovereign wealth fund to jointly fund the company’s expansion plans.

According to Qtel’s Chairman Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, the company is about to sign a partnership agreement between Qtel and the Qatar Investment Authority so that they become an investment arm of the authority. There is an agreement to establish a joint company to invest and seize appropriate opportunities in telecommunications and information technology (sectors) abroad.

Qtel is currently 55% owned by Qatari government.

Qtel owns shares in subsidiaries from Algeria to the Philippines including Iraq’s Asiacell and Tunisia’s Tunisiana. It recently confirmed plans to float shares in its Tunisian and Iraqi subsidiaries over the next couple of years.

­According to UK based network infrastructure joint venture, it has now delivered more than 12,000 consolidated 3G sites for T-Mobile UK and Hutchison 3G UK (Three). The company, Mobile Broadband Network Limited (MBNL) is a network joint-venture between Three and Everything Everywhere – itself the merged UK arms of Orange and T-Mobile.

The consolidation of the two networks has included the switching off of more than 5,000 sites – more than 2,000 of which have already been fully decommissioned.

Ericsson was the key service provider for the project and was responsible for network design and deployment, the acquisition and building of sites, capacity management, equipment swaps and vital upgrades. Millions of man-hours were committed by Ericsson to improve speeds and coverage for Three and T-Mobile customers.

Nokia Siemens Networks, MBNL’s sole 3G equipment supplier, provided the entire site installation work, third line operational support services, and spare parts and upgrades.

BT Wholesale provided the Ethernet backhaul to support delivery of mobile voice and data traffic to thousands of cell sites across the country. BT Wholesale’s work will also ensure the MBNL network continues to meet the capacity needs of the parent company’s customers. BT began work on delivering the managed service project in June 2009 and since then several hundred BT employees have been involved in delivering this project as planned.

Arqiva, the communications infrastructure and media services company, is MBNL’s planned cell site partner and has provided 5,100 sites to the consolidation project.

According to Emin Gurdenli, Vice President of Network Services at Everything Everywhere, network coverage and capacity is vital in providing a great customer experience so the success of MBNL in delivering 12,000 3G sites is great news for T-Mobile customers. The integration of a large number of former Orange cell sites into the network will also provide enhanced capacity and coverage to all of the company’s customers.

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As per Sony Ericsson’s spokesperson, Mattias Holm, it has started the upgradation of  its Xperia range of smartphones to version 2.1 from version 1.6 of the Android operating platform, hoping that this will improve the user experience and boost sales.

According to Holm, the company, a joint venture between Telefon AB LM Ericsson and Sony Corp., have started to roll out the upgrade, which lets Xperia device users download Android 2.1, beginning in the Nordic region. The upgrade will be available in all Sony Ericsson’s markets during November, and all new Xperia X10, X10 mini and X10 mini pro handsets will be sold with version 2.1 of the operating system.

Android 2.1 will make for a quicker and neater user experience than 1.6, and Sony Ericsson is also launching a couple of company-specific features for the phones, such as HD video recording for the Xperia X10, together with the platform upgrade, he added.

With the latest upgrade, Sony Ericsson’s Xperia phones should be well-suited to take on its competitors. the company will continue to upgrade its devices with either newer Android versions or more company-specific features.