America Movil looks to acquire stake in Telekom Austria (Austria)
Mexico based telecom operator, America Movil is said to be eyeing a stake in Telekom Austria as a means to extend its business in Europe, according to Reuters.
As per the report, billionare and America Movil owner Carlos Slim, has held initial talks with two of Telekom Austria’s largest investors: a group containing entrepreneurs Ronny Pecik and Naguib Sawiris (20 percent), and Austrian state holding company OeIAG, the largest shareholder with a 28.4 percent stake.
Earlier this month, America Movil announced plans to buy up to 28 percent of Dutch operator KPN in a deal valued at more than US$3 billion, its first major foray into Europe. It already holds a 4.8 percent stake in the Dutch incumbent. Reuters notes that the cash-rich firm would have enough money to fund its EUR8-per-share offer for the KPN stake, and still have a US$1 billion war chest available for further acquisitions. However, KPN has said the offer undervalues the company.
The report claims that if Slim joins forces with Pecik’s group it could fuel talk of a takeover at Telekom Austria, although this is thought to be difficult because of the Austrian government’s 28.4 percent ‘blocking’ stake in the firm. Pecik and Sawiris are also thought to be demanding seats on an expanded supervisory board at Telekom Austria.
Both entrepreneurs may end up holding their stake in Telekom Austria for up to two years before selling to a strategic investor, revealed the report citing Austrian magazine Format as its source.
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.
KPN Q1 results progressing in line with 2012 outlook (Netherlands)
KPN, the leading telecommunications and ICT service provider in The Netherlands, revealed its financial results for Q1 2012, with results progressing in line with the expected results for the transitional year of 2012.
As per the company report, the operator claimed that financial results were according to plan in first quarter of transition year and the EBITDA and FCF were impacted by phasing and accelerated investments in The Netherlands. Revenue growth was good with a good EBITDA margin in Germany, while operations in Belgium showed strong underlying growth.
KPN CEO, Eelco Blok said that the overall performance of the KPN Group in the first quarter of the 2012 transition year was according to plan. The implementation of the accelerated investment strategy for The Netherlands is on track, and they have made several key management appointments that will help them achieve their strategic ambitions.
In Consumer Mobile, they have made substantial improvements to their propositions and have expanded their distribution footprint. In Consumer Residential, their TV market share increased further and the implementation of the regionalization approach is starting. Results in Germany reflected revenue growth at a good EBITDA margin, while Belgium showed another strong quarter. They continued to invest in the high speed data network roll-out in Germany and Belgium and in new propositions to support growth. The roll-out of the high speed data network in Germany is on track to reach the target of 80 percent population coverage by the end of this year.
On the cost side, they continued to make progress with their FTE reduction program in The Netherlands of 4,000-5,000 FTE which they now intend to complete by the end of 2013, two years earlier than originally planned. Included in this, KPN has set a tough but achievable target for Group headquarters to reduce costs by 30-40 percent by 2013.
The current financial performance of the company is not in line with their medium to longer term ambition. The accelerated investment strategy in this transition year, combined with a focus on quality and simplification to drive customer satisfaction and reputation, will support a sustainable level of profit for The Netherlands from end-2012. Group profits and cash flow are planned to improve in the second half of 2012, driven by a better performance in their Dutch businesses. Therefore, he confirmed the 2012 outlook.
T-Mobile, Vodafone and KPN offices visited by NMa Authorities (Netherlands)
KPN, the leading telecommunications and ICT service provider in the Netherlands, along with T-Mobile and Vodafone were approached by the Netherlands Competition Authority (NMa) following an investigation regarding possible violations by the operators in the services provided.
According to reports, wireless carrier KPN has said that its headquarters were being investigated by the NMa over suspicions of concerted practice with regard to mobile telecommunications offerings on the Dutch consumer market and division of independent sales channels. Further, the company also said that five of its employees were being questioned with complete cooperation from the company.
As per sources, the regulator had imposed fines on these three operators in 2001 regarding unfair agreements on subsidies for mobile devices given to retailers, causing consumers to pay a higher price for the same.
Ortel Mobile ties up with Orange for MVNO services (France)
KPN owned virtual operator Ortel Mobile has reportedly tied up with Orange to use its network for new customers. According to reports, a spokesperson for KPN has said that they’ve added Orange as a network operator in an effort to reduce dependence on a single supplier – Bouygues Telecom. However, Orange has reportedly claimed that the move comes in an effort to improve the quality of the service offered.
As per sources, all the new SIM cards will be issued on the Orange network; however, there will be no change for the existing customers who will continue with Bouygues Telecom. Further, Ortel Mobile has been using Bouygues Telecom’s network since it launched services in France in early 2010. The SIM cards issued to the old customers are locked to the Bouygues network which is not expected to be switched to Orange.
Vodafone may be in talks to acquire KPN’s Spanish unit (Europe)
Telecom giant Vodafone may reportedly be in talks to buy the Simyo mobile virtual network operator (MVNO) Spanish business from Dutch telecom company, KPN. According to reports, KPN has been looking for prospective buyers, including Vodafone, for the sale of its Spanish operations.
As per sources, Elco Blok, CEO, KPN had said earlier in the year that they were looking to refocus KPN’s international mobile division, including expanding Ortel, its mobile phone business which targets immigrants, and would cut inefficient operations outside the Netherlands, Germany and Belgium.
Simyo is a low-budget, pre-paid mobile phone service, offered by KPN which is only obtainable online in the Netherlands, Belgium, Germany and Spain, while Ortel is available in all the countries where KPN operates. Reports suggest that there are around 800,000 mobile customers using pre-paid services offered by KPN’s Spain and France units.
KPN considers Telefonica’s O2 for in-country consolidation (Germany)
Dutch telecom company KPN has reportedly said that it makes sense to merge its E-Plus business with O2 in Germany, as both operators currently lag behind telecom giants Vodafone and Deutsche Telekom (T-Mobile). According to reports, Elco Blok, CEO, KPN has said there is value to be created in in-country consolidation in Germany and that merging O2 and E-Plus would give the opportunity to create a value of around US$ 4.05 billion.
As per sources, Bloc has reportedly said that neither they nor Telefonica are willing to sell their unit, but are convinced that with their strategy they can create value. However, he added that if the price is right and Telefonica are willing to sell, then it could be an interesting scenario as they have the management in Germany that has proven that it can run an asset far better than the others.
Regarding consolidation in the domestic market, Bloc said that Tele2 is a very attractive target but there are regulatory hurdles given their market share in the Netherlands and of course the price needs to be right. He added that the regulatory hurdles are there and they are not easy to solve.
KPN Group Belgium launches prepaid BlackBerry plan
KPN Group Belgium has introduced a prepaid tariff plan for BlackBerry customers. The tariff plan is set up for the customers of Base, JIM Mobile and Allo RTL.
The tariff plan comes with a price tag of US$21.43 for 30 days (up to 500 MB), the same price Base postpaid customers pay.
The tariff plan offers email services, BBM (BlackBerry Messenger), social networks and the internet. Customers also get access to BlackBerry App World, with a catalogue of over 25,000 applications specifically designed for BlackBerry smartphones.
Clients also get BlackBerry Protect, which offer wire backup and restore functions, plus the ability to locate a BlackBerry smartphone if it is lost. The operators under KPN Group Belgium offer a range of phones, including the BlackBerry Bold 9780, the BlackBerry Torch 9800, the BlackBerry Curve 3G, and the BlackBerry Curve 8520.
KPN terminates DVB-H mobile TV ( Netherlands)
KPN from June 1 will stop offering mobile TV via the DVB-H standard.
According to the operator, standard did not really develop into a global standard and so it was probably not worthwhile to continue supporting the technology. MobielTV made its debut on the Dutch market in 2008, with KPN offering three devices supporting the DVB-H standard: the Nokia N96, the Samsung P960 and the LG KB620. The devices made it possible for subscribers to watch live TV on ten channels and two pay-TV premium channels.
Within one year, KPN registered 40,000 customers for its mobile TV services; subscriber numbers began declining as no new phones were introduced. There are currently 20,000 customers. These customers will receive a letter informing them that KPN is ending the MobielTV service.
KPN selects ZTE for HSPA+, LTE trials in Belgium, Germany (Netherlands)
Dutch operator, KPN has announced a joint development programme with ZTE focusing on the application of LTE technology in Germany and Belgium.
KPN Mobile International and ZTE have scheduled a field trial program for 2011 to investigate the capabilities of ZTE’s commercial equipment.
The co-operation gives KPN the flexibility to upgrade quickly its network equipment to LTE in the future, depending on the demand. KPN has already worked with ZTE on its HSPA networks in Germany and Belgium, started last year.
Under the latest agreement, ZTE will help transform KPN networks in Germany and Belgium over a three-year period using ZTE’s SDR technology to provide HSPA+ data services. This will mean that customers at Base in Belgium and E-Plus in Germany will have access to mobile broadband at up to 21.6Mbps.
The initial agreement between ZTE and KPN involved the provision of access network technology, but the deal was extended to cover end-to-end solutions including core network and wireless access technologies and Android handsets. The packet-based core network equipment deployed in Germany is now in commercial use.
