1,500 more staffs cut by Ericsson
www.WirelessFederation.com/news: Further 1,500 jobs will be cut and more combined services will be offered in 2010 by Ericsson in a bid to shake off the effects of a tough 2009. Due to the slashing of investment in network infrastructure by the carriers because of global recession, the net income of Ericsson plummeted 65% year-on-year to 4.1 billion kronor in 2009. Revenues for the year also fell 1% to 206.5 billion kronor.
Maximum decline came in Western Europe, central and eastern Europe and Middle East & Africa, and Latin America during the second half.
According to Hans Vestberg, Ericsson’s newly appointed president and CEO, the market will remain tough in 2010, but that the firm would look to stay competitive by offering more packages that combine the firm’s infrastructure, customer management and multimedia services.
Decision on Telecom Italia & Telefonica merger soon
www.WirelessFederation.com/news: In the next three months, decisions will be taken regarding the planned merger between Telecom Italia and Spain’s Telefonica. Telefonica has 46.18 percent stake on Telecom Italia which is a holding company that owns 22.5 percent of the Italian telecommunications operator.
The performance of Telecom Italia’s stock has made Telefonica and other telco shareholders unhappy. Telefonica’s presence in Telco has also limited Telecom Italia’s maneuverability, especially in Latin America where both the companies face antitrust issues.
Telecom Italia is under pressure in Argentina to sell its indirect stake in a telecommunications operator because of Telefonica’s investments in the same country.
Telefonica revenue might suffer due to Venezuela devaluation
www.WirelessFederation.com/news: The devaluation of the Venezuelan currency in relation to the US dollar by 50 percent by its president Hugo Chavez lead to the fall in the shares of telecom operator Telefonica whose in the Madrid stock exchange. The company is the second largest revenue generator of the Latin America and accounted for 7 percent of revenues in the first nine months of 2009.
Venezuelan president devalued the exchange rate for the Bolivar to VEF 4.3 per dollar from VEF 2.15 on January 8 and set a rate of VEF 2.6 per dollar for imports of essential items such as food and medicine. As a result of the devaluation, Telefonica may suffer a loss of EUR 2 billion in its revenue and EUR 1 billion by EBITDA.
In the absence of Venezuelan cash, it would become difficult for Telefonica to pay a dividend of EUR 1.40 this year. According to Telefonica spokesman Miguel Angel Garzon, the company is maintaining its earnings and dividend goals after the devaluation.
LTE deployment by Movistar to be launched in 2011
www.WirelessFederation.com/news: Second half of 2011 could encounter the deployment of LTE infrastructure in large cities across the country by the Venezuelan mobile operator, Movistar. However, the necessary wireless spectrum to launch LTE is still not allocated to the company.
According to company’s networks and infrastructure VP, Juan Comerma, low frequencies are required to achieve LTE deployment. Price and availability of LTE devices are the other factors affecting the commercial launch date.
Wimax trial started by Yota in Nicaragua
www.WirelessFederation.com/news: Wimax network deployment of Yota de Nicaragua, the local subsidiary of Russian state-owned corporation Rostejnologuii has been completed. A mobile Wimax pilot in the Nicaraguan capital of Managua has also been rolled out by Yota in partnership with Samsung Electronics. The network is scheduled for commercial launch at mid-2010
The operator is planning to concentrate on high-quality voice services provision and increase the number of services provided on the Nicaraguan market. VoIP devices and netbooks with embedded Intel Wimax/Wi-Fi module would soon be launched by the company. USB modems and routers will be provided by Yoto to individual and business users in Nicaragua.
The company has set the capex for 2010 at USD 1.5 billion in 2010, mainly directed towards international expansion projects. Yota’s planned investments funds for international expansion in 2009 top USD 500 million.
Apart from Nicaragua, Yota also operates on markets in Latin America, CIS countries, Asia and Africa.
$850 million investment to be made by America Movil in Mexico
www.WirelessFederation.com/news: $850 million investment is eyed by Latin America’s biggest mobile operator America Movil SAB in its domestic operations by 2010. Operating in the 18 countries of Americas, the Company had reported
194.3 million wireless subscribers at the end of September.
America Movil’s largest market is Mexico where its TelCel unit had a 72% market share at the end of the third quarter, with 58.4 million subscribers. According to Movil’s Chief Executive Daniel Hajj, the company invested about $850 million alone in Mexico which may remain same in 2010.
As part of the federal government’s 2010 budget, Mexico’s Congress approved a 3% special tax on telecommunications services and a one percentage point increase to the national value added tax, including other tax increases.America Movil is still evaluating the impact that higher taxes will have on TelCel next year.
Earlier this month, fixed-line carrier Telefonos de Mexico SAB and America Movil’s sister company announced that it will not pass on the cost of higher taxes next year to customers.
Bharti Airtel considering bid for Millicom SL
Bharti Airtel CEO, Manoj Kohli told reporters in India that Airtel may bid for Millicom’s Sri Lankan operation. Bharti already operates in SL.
Wireless Federation had earlier reported that Millicom/Tigo Laos has been sold to Russia’s Vimpelcom.
Bharti is actively considering acquisitions in Africa and the world over after the talks with MTN collapsed.
Bharti group CEO Sunil Mittal has said that the company won’t engage in dialogue with MTN for a third time, after inconclusive talks twice.
Nasdaq-listed Millicom provides prepaid cellular telephony services to over 30 million customers in 16 emerging markets in Latin America, Africa and Asia.
Asked if Bharti Airtel was also interested in Kuwait’s Zain Telecom, Kohli said they will continue to explore international acquisitions. (Airtel-Zain, See Here)
MTN & IMI announce partnership
Millions of mobile and online content users across Africa and the Middle East will reap the benefits of a landmark tie-up between MTN and IMImobile – an India-based software and managed services provider linked to 350 content providers worldwide.
The two companies have teamed up in a bold move to address the growing demand for content in emerging markets. This strategic partnership will entail providing MTN’s 21 markets access to a repository of current and globally popular content through enhanced delivery platforms. Content categories will include music (with local and international flavour), sports, games, entertainment, news and much more.
It will also enable MTN to launch new income-generating voice and data services across its global footprint, with revenues from mobile content and services estimated at around US$150.2 billion in 2011, up from US$89,3 billion in 2006, worldwide. (more…)
Motorola releases Android Cliq with T-Mobile
www.WirelessFederation.com/news: Motorola released its first Android mobile phone, The Cliq, which would be launched with T-Mobile USA later this autumn. This the first handset to feature Motoblur, the handset maker’s interface for threading communications on the phone.
Updates to contacts, posts, messages, photos and other features are synced from sources like Facebook, Twitter, MySpace, Gmail as well as work and personal e-mail. Motoblur delivers these updates to the home screen automatically so that there is no need to open and close different mobile applications. The Cliq is a 3G handset and has a slide-out qwerty keyboard and a 3.1-inch touch display. It also includes Wi-Fi, a 5 megapixel camera, a 3.5mm headset jack, music player with access to Amazon MP3 shop, Shazam, iMeem Mobile and support for up to 32GB memory. The phone will be available in titanium and white. The price details are said to be released closer to the launch date. Outside US, the handset would be sold under the name Motorola Dext. The first carriers for the Dext would be Orange in UK and France, Telefonica in Spain and America Movil in Latin America.
