Deutsche Telekom may discuss T-Mobile deal with MetroPCS (USA)
Telecom operator Deutsche Telekom AG is said to be in discussions with MetroPCS Communications for a possible merger of its T-Mobile USA, in an attempt to find a solution for the customer-losing business, according to a report by BN.
As per the report, Deutsche Telekom is considering a stock-swap transaction that would give the German company control over the combined entity, which would be publicly listed. Following the cancellation of the $39 billion merger between T-Mobile and AT&T, Deutsche Telekom has been on the lookout for other options to protect its business.
MetroPCS rose as much as $1.89 to $8.45 and was up 24 percent as of 12:28 p.m.
ALBTelecom and Eagle Mobile merge business operations (Albania)
ALBTelecom and Eagle Mobile have merged their business stating that this strategy will offer users even greater benefits. According to company reports, Orhan Coskun, Director General, Albtelecom and Eagle Mobile, has said that the two companies have created a long-term development strategy, where the focus is total modernization of infrastructure and service delivery much more qualitative. He added that that they would provide all kinds of services to the client through a single structure.
He said that one of the advantages offered in this case is the possibility for a One-Stop-Shop, where they wish that through a single structure to provide all kinds of services to the client. Now the user does not care about the technology used, what they want is to access the Internet. They want to increase the amount of communication. They want to follow television channels no matter where they are.
Further, the market is becoming more demanding. So operators have to offer better prices to the consumer. The need is for companies to reduce operational costs and other related costs and this will directly affect the provision of better tariffs to consumers.
Vodafone terminates merger with Wind Hellas (Greece)
World’s leading mobile communications company Vodafone has terminated plans of a potential business deal with Wind Hellas. According to reports, the decision was taken after the British firm faced opposition by the European Union regulators. Sources claim that the merger, if allowed to go through, would result in a market having only two operators, which was the prime reason for the opposition.
As per sources, Vodafone had reported a US$ 710 million loss in November 2011 for its unit in Greece owing to discounted tariff plans and declining cash flow. The merger between the two firms would have helped Vodafone to significantly cut costs and compete better with rival OTE.
Vodafone is yet to make an official statement regarding the reason for terminating the deal.
AT&T terminates bid for T-Mobile merger (USA)
Wireless carrier AT&T’s long lasting battle to acquire Deutsche Telekom’s T-Mobile has finally come to an end, with both operators having mutually agreed to terminate the deal. The news, while being a setback for AT&T, has been greatly welcomed by the industry as a whole which believes that this outcome is beneficial for the consumers. As per the agreement, AT&T will be required to pay Deutsche Telekom a pretax breakup fee of US$ 4 billion in the fourth quarter of 2011. Further, company reports reveal that the operator is planning a mutually beneficial roaming agreement with Deutsche Telekom.
According to reports, Randall Stephenson, Chairman and CEO, AT&T has said that the operator will continue to be aggressive in leading the mobile internet revolution. He added that over the past four years they have invested more in their networks than any other U.S. company. As a result, they deliver best-in-class mobile broadband speeds connecting smartphones, tablets and emerging devices at a record pace and are well under way with their nationwide 4G LTE deployment.
Stephenson also said that policy makers would be required to enact legislations to meet the country’s long term needs as well as allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry.
Justice Department delays trial for AT&T and T-Mobile merger (USA)
U.S. telecom giant AT&T, along with T-Mobile, has reportedly approached the Justice Department to delay the trial for their US$ 39 billion merger, which was initially scheduled for February 13. According to reports, AT&T has said that they are evaluating other options for the merger so as to achieve the required regulatory approvals from the government.
As per sources, U.S. District judge Ellen Segal Huvelle, has approved the request to delay the proceedings and has given AT&T until January 12 to register its report with the court regarding its future plans with respect to T-Mobile. Industry analysts believe that the extension gives AT&T the chance to modify its proposal for the merger or pay T-Mobile the breakup fee and move on, as the judge may have moved to dismiss the case.
Further, sources claim that this may be AT&T’s last chance to convince the government authorities for any deal with T-Mobile, as the case is not expected to be carried out over a long period of time.
AT&T to record a cost of US$ 4 billion in the 4Q if T-Mobile merger fails (USA)
US mobile operators AT&T and T-Mobile have reportedly withdrawn their petition from the Federal Communications Commission (FCC) in an attempt to first win approval for the clearance of the deal from the Justice Department. Further, according to reports AT&T will record a charge of US$ 4 billion in the fourth quarter as pretax accounting costs to be paid to Deutsche Telekom as breakup fees in the event that the merger is not permitted to go through.
Sources claim that this move reveals that this move is AT&T’s way of taking charge for the cost in the likelihood of the merger failing. As per sources, AT&T has said that the $4 billion accounting charge includes $3 billion in cash and $1 billion in book value of wireless spectrum.
Company reports suggest that AT&T has said that both the operators are continuing to pursue the sale of Deutsche Telekom’s U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice.
Telefonica,Vivo to own Telesp total shares (S Africa)
Telefonica and Vivo have approved the exchange ratio for their planned merger. Each Vivo share will be exchanged for 1.55 new Telesp shares.
The transaction awaits for approval by Vivo and Telesp shareholders. Following the completion of the merger, Telefonica will own 73.8 percent of the total share capital of Telesp.
Smart Mobile and Star-Cell merge their operations in Cambodia (Asia)
Smart Mobile and Star-Cell will combine their operations in Cambodia under Latelz Co., Ltd. and its brand Smart Mobile.
Smart Mobile will become with this combination one of the market leaders with more than 850,000 subscribers and aims to be a market leader both in subscriber base and new subscriptions through its further aggressive growth and strong market presence.
The enlarged Smart Mobile will give the joint subscriber base of Smart Mobile and Star-Cell great value by a substantially larger within-network community, a nationwide coverage as well as a superior service portfolio combined with Smart Mobile’s known premium customer service level.
Smart Mobile subscribers will enjoy the benefits of the merger without any change of telephone numbers and SIM cards. Further, Smart Mobile’s network will, after both networks have been combined, serve 23 out of 24 provinces of Cambodia and will extend to the remaining province in the course of 2011.
Russian Government to check valuations in Rostelecom merger
The Russian government has ordered an independent audit firm to keep a check on how the seven regional telecom companies, which are to be merged with OAO Rostelecom in the upcoming year has valued the deal.
According to reports the Russian Economic Development Minister Elvira Nabiullina wrote a letter to Prime Minister Vladimir Putin that the share swap ratio was more favorable to the shareholders of the regional companies than to Rostelecom’s owners.
The regional companies, currently controlled by state-run OAO Svyazinvest, will merge with Rostelecom, Svyazinvest’s main unit, in a share swap deal planned for closure by March. The merger is the part of Russia’s plan to restructure its fixed-line sector.
According to the company, the state will not lose control in Rostelecom as a result of the merger. As for the fairness of the ratios, the swap coefficients have been approved by Rostelecom and the regional companies’ shareholders.
MTN denies talks of tie- up with Reliance Communication (India)
www.WirelessFederation.com/news: South African wireless communications firm MTN Group Ltd has declared its desire to continue expanding its footprint in emerging markets but denied its talks of tie up with Reliance Communications Ltd. This has also put a halt to the news that revisiting plans to push into the giant Indian market.
However, there are speculations that it might look again at a merger with Reliance, India’s second-largest mobile company by subscribers, since controlling owner Anil Ambani scrapped a pact with his brother that had quashed a deal with MTN in 2008.
According to Nozipho January-Bardill, MTN executive for corporate affairs, the company is not in discussions to merge with or buy a stake in Reliance Communications and nor is it interested in beginning such talks now. Earlier it was reported that Reliance has received proposals from international telecommunications companies interested in buying a strategic stake but the names of the firms were not taken.
In April, the MTN has also revealed that it was considering the acquisition of some or all of Egyptian operator Orascom Telecom Holding.
