Bezeq’s Pelephone to host virtual mobile operator
Israeli cellco Pelephone has agreed to allow an MVNO to operate over its network. The move follows efforts by the country’s Communications Ministry to boost competition and lower rates for consumers, including the issuing of licences for several MVNOs.
Pelephone has no pre-paid business and so was widely assumed to be the most likely candidate to host the country’s first MVNO, the identity of which has yet to be made public.
Pelephone is an Israeli-based telecommunications company, founded in 1986 as a joint venture between Motorola and Tadiran, today owned by Bezeq. It was the first company to offer mobile phone services in Israel. Due to this, the brand-name “Pelephone” became the genericized trademark for mobile phones in Israel, regardless of service provider.
Motorola to acquire ZumoDrive Developer
Motorola Mobility is acquiring Zecter, a company that offers synchronization and streaming technologies for on-demand digital media consumption.
Terms of the transaction were not disclosed. Zecter’s solutions connect users to their content giving them on-the-go access to music, video, photos and documents from their smartphones, tablets, PCs and web-portals.
Zecter currently has two products commercially available: ZumoDrive – for cloud-based content sync, access and sharing; and ZumoCast – for personal media streaming to any device. Both products use virtual file system technologies to make any personal content available even if it is not stored locally.
According to Motorola Mobility, it plans to integrate Zecter’s wireless syncing, desktop integration, video transcoding and thin-file retrieval technologies into its smartphones to provide consumers with real-time access to their content.
According to Christy Wyatt, Corporate Vice President of software and services, Motorola Mobility, consumers want seamless access to their content and media from wherever they are, while content providers want to ensure that content remains protected and secure. They believe that Zecter enables that seamless experience with the necessary security measures, and they are delighted to be able to work with this team.
Wyatt added that Zecter’s robust team brings multi-platform expertise along with compelling solutions for continuous digital media access across multiple platforms. Zecter is an exciting addition to our MOTOBLUR service platform and we welcome their highly skilled personnel to the Motorola Mobility team.
As part of the transition, the distribution of Zecter’s ZumoCast software will be suspended while enhancements are made. Existing ZumoCast users may continue to use the service without interruption. Motorola Mobility will provide regular updates for ZumoCast users as well as future plans for this service. The ZumoDrive solution will be unaffected.
Sprint Nextel inks 3-Year IDEN deal with Motorola (USA)
Sprint Nextel has confirmed that it will continue to buy iDEN services from Motorola for at least the next three years. The company lately announced that it will be planning, migrating its iDEN subscribers over to an upgraded CDMA network, but the timeline for the migration is a lengthy one.
The new agreement will formally extend Sprint and Motorola Solutions’ contractual iDEN relationship through 2013 and covers the supply of software and services.
According to Mike Fox, General Manager, iDEN Products and Solutions, Motorola Solutions, Motorola has been a proud partner with Sprint in delivering the industry’s best PTT service for more than 17 years. They are pleased to continue partnering with Sprint to support their iDEN network through 2013, and they are equally excited about the launch of additional iDEN devices for Sprint PTT customers.
Sprint has also announced that several new iDEN handsets will be available in the first quarter of 2011.
According to Mark Shockley, Senior Vice President, Motorola Mobility, in line with Motorola Solutions’ ongoing support of the iDEN network, Motorola Mobility is committed to working with Sprint. They look forward to bringing exciting new devices to market, including compelling next-generation push-to-talk solutions in the coming year.
Motorola sidequel companies, begin trading
Motorola Inc. is all set for a formal split of the company early next year, the ‘when issued’ shares of its spinoff companies opened for trading Friday.
Motorola Mobility Holdings Inc., the spinoff smartphone division, opened at $27.50, then fell 2.8% to $25.20 in the first 90 minutes of trading.
Motorola Solutions Inc., the business that makes public safety radios, handheld scanners and telecommunications network gear, opened at $39.25 and increased to $39.75.
Motorola shares fell 1% to $8.79 after the stock raised to its highest level in over a year during Thursday’s session.
The ‘When-issued’ trading allows market participants to seek out the market value for spinoff stocks ahead of the official split.
HTC challenges Samsung for first LTE smartphone
The Android smartphone competition is increasingly focused on a two-way conflict between HTC and Samsung, and they have shifted their rivalry to LTE.
Samsung has already created an LTE feature phone for MetroPCS and is tipped to summarize with a full smartphone in the first half of next year, but HTC is also planning a 2011 launch.
This shows LTE handsets coming to market well ahead of expectations, and the two vendors will be particularly keen to gain the initial slot at Verizon Wireless, given the high profile that first movers get in the US. HTC benefited from having the first with Android device at T-Mobile, Motorola with the first Droid device at Verizon, and HTC again with the first WiMax smartphone at Sprint.
Samsung has been too late into the open smartphone sector to claim first prize, but is catching up fast with Galaxy S.
Taiwan WiMAX Network looks to share network purchase
Taiwan’s five WiMAX network operators are reportedly planning joint procurement of WiMAX infrastructure to try to drive down cost though bulk purchase discounts.
According to reports, citing Chairman of Vee Telecom Multimedia, the five networks would aim to jointly spend US$83 million during 2011.
The other four networks are Tatung InfoCom, First International Telecom, Global Mobile and Vmax Telecom.
However, in light of the reality that these carriers’ working towers are from different equipment suppliers, including Motorola, Samsung, NEC and Alcatel-Lucent, Lai suggested that each of these carriers internally integrate its backend equipment with software before they integrate the systems for joint procurements. Vmax is planning to buy 700-800 of the towers in the joint procurement in 2011. Since the five carriers are members of the Consortium of Mobile Broadband (CMB), in which Lai is the chairman, the organization will become the platform of their joint-purchase operation.
Motorola to Complete Separation on January 4, 2011
Motorola, Inc. today announced that its board of directors has approved the separation of Motorola Mobility Holdings, Inc. (Motorola Mobilityâ€) from Motorola, Inc. through a tax-free dividend involving the distribution of all Motorola Mobility common stock held by Motorola to Motorola stockholders and has also approved a reverse stock split of shares of Motorola common stock following the distribution. As a result, the following will occur:
- The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21, 2010.
- Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold.
- Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, Motorola will effect a 1-for-7 reverse stock split of Motorola common stock, which will become effective prior to the market open on Jan. 4, 2011.
In a joint statement, Greg Brown, Motorola co-CEO and CEO of Motorola Solutions, and Sanjay Jha, Motorola co-CEO and CEO of Motorola Mobility, said: Today’s announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company’s respective customers and employees. We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies.â€
On Jan. 4, 2011, Motorola, Inc. will change its name to Motorola Solutions, Inc. and will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol MSI, and Motorola Mobility Holdings, Inc. will begin trading on the NYSE under the ticker symbol MMI.
Please refer to http://www.motorola.com/investors for additional information, including Frequently Asked Questions, regarding the spin-off of Motorola Mobility and the reverse stock split of Motorola common stock described in this release.
Distribution of Motorola Mobility Shares to Motorola Stockholders
As stated above, prior to the opening of the markets on the distribution date of Jan. 4, 2011, Motorola stockholders of record as of the close of business on Dec. 21, 2010, the record date for the distribution, will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold.
No action is required by Motorola stockholders to receive the shares of Motorola Mobility common stock. Stockholders who hold Motorola common stock on the record date will receive a book-entry account statement reflecting their ownership of Motorola Mobility common stock or their brokerage account will be credited with the Motorola Mobility shares.
Fractional shares of Motorola Mobility common stock will not be distributed to Motorola stockholders. Instead, the fractional shares of Motorola Mobility common stock will be aggregated and sold in the open market, with the net proceeds distributed pro rata in the form of cash payments to Motorola stockholders who would otherwise hold Motorola Mobility fractional shares.
Motorola has received an opinion of counsel that the distribution of Motorola Mobility common stock to Motorola stockholders qualifies as a tax-free distribution for U.S. federal income tax purposes, except with respect to cash received in lieu of fractional shares. Non-U.S. stockholders may be subject to tax on the distribution in jurisdictions other than the U.S. Motorola stockholders are urged to consult their tax advisors regarding the particular consequences of the distribution in their situation, including the applicability and effect of any U.S. federal, state, local and foreign tax laws.
Reverse Stock Split of Motorola Shares
As stated above, immediately following the distribution Motorola will affect a 1-for-7 reverse stock split of Motorola common stock, prior to the market open on Jan. 4, 2011. As previously announced, immediately following the reverse stock split Motorola, Inc. will change its name to Motorola Solutions, Inc. As a result of these actions, every 7 shares of Motorola common stock will be converted into one share of Motorola Solutions common stock. Motorola’s stockholders authorized the board to implement the reverse stock split at a Special Meeting of Stockholders held on Nov. 29, 2010.
Stockholders will not receive fractional shares in connection with the reverse stock split. Instead, the transfer agent will aggregate all fractional shares and sell them as soon as practicable after the effective time of the reverse stock split at the then prevailing prices on the open market, on behalf of those stockholders who would otherwise be entitled to receive a fractional share. Stockholders will receive a cash payment from the transfer agent in an amount equal to their respective pro rata shares of the total net proceeds of that sale.
A letter of transmittal relating to the reverse stock split will be mailed to holders of physical certificates representing Motorola common stock once the reverse stock split is effective. All Motorola stockholders ultimately will receive their replacement shares of Motorola common stock in book-entry form along with a cash payment for any fractional share.
Trading of Motorola Common Stock
Shares of Motorola common stock will continue to trade regular way†on the NYSE through the period leading up to the distribution date of Jan. 4, 2011. Any holders of shares of Motorola common stock who sell Motorola shares regular way†on or before the close of business on Jan. 3, 2011, also will be selling their right to receive shares of Motorola Mobility common stock in the distribution. Motorola Mobility common stock is expected to begin trading on a when-issued†basis on the NYSE under the ticker symbol MMI WI†(when-issued) on Dec. 17, 2010. On Jan. 4, 2011, Motorola Mobility will begin trading regular way†under the symbol MMI†and Motorola Solutions will begin trading under the symbol MSI.†Investors are encouraged to consult with their financial advisers regarding the specific implications of buying or selling Motorola common stock on or before the distribution date.
The completion of the Motorola Mobility distribution is subject to the satisfaction or waiver of a number of conditions, including the Registration Statement on Form 10 for the Motorola Mobility common stock being declared effective by the Securities and Exchange Commission (“SEC”), the Motorola Mobility common stock being authorized for listing on the NYSE and certain other conditions described in the Information Statement included in the Form 10 and in the agreements filed as exhibits to the Form 10. The condition relating to the authorization of the Motorola Mobility common stock for listing on the NYSE has been satisfied, and today Motorola Mobility is sending a letter to the SEC requesting that the Form 10 be declared effective. Motorola and Motorola Mobility expect all other conditions to the Motorola Mobility distribution to be satisfied on or before the distribution date.
Kyrgyzstan and Kazakhstan heading towards 100% penetration
Mobile penetration in two central Asian countries is nearing 100% following healthy growth over the past decade. New information from Research and Markets details the telecommunications sectors in Kyrgyzstan and Kazakhstan.
The telecommunications sector in Kyrgyzstan is characterized by an open market that has welcomed both foreign and domestic investors. This has been effectively done in accordance with the requirements set down by the WTO.
Under the terms of the country’s accession to the WTO (which took place in 1998), full liberalization of the telecoms market had been expected to be achieved by end-2006. According to the ITU, Kyrgyzstan had implemented full competition across all segments of its telecoms sector by 2007.
The telecom sector has been part of the final phase of a large scale privatization program that has been steadily progressing in the country since 1992. The start of market reforms in 1991 saw the state telecommunications agency, Kyrgyztelecom, begin to expand and upgrade its legacy telecom network, which at the time was outdated and poorly distributed. With the expansion of the telecoms sector, upgraded standards have been adopted.
At the same time, a new regulatory authority – the National Communications Agency which later became known as the National Agency for Information Resources, Technologies and Communication – was set up to oversee the sector.
At an early stage, Kyrgyztelecom was restructured as a public corporation and the government moved towards a partial sale of the operator to the private sector. Around 10% of the company quickly passed into private hands. By mid-2010, after a series of failed attempts to sell off the government shareholding, the government was still holding almost 78% of Kyrgyztelecom.
Private operators, which actively operate in the mobile market and in the provision of Internet services, have been investing heavily in the relevant infrastructure. Whilst there are four mobile networks in operation, the two big GSM operators, Bitel and MegaCom, have been dominating the market, between them claiming 86% of the total mobile subscriber base by March 2009.
Since the first GSM network was launched in 1998, the number of mobile subscribers has grown rapidly from a few thousand in 1999 to around 4.3 million in early 2010. By this stage it was heading for 100% penetration (probably achieving this in early 2011). Growth in the country’s mobile market into 2010 remained moderate compared with the general growth in recent years. Nonetheless, there are positive indications that the market will continue to steadily expand for some time yet.
Meanwhile, Kazakhstan has been experiencing a booming telecom market that included almost 100% mobile penetration by early 2010, despite growth slowing in 2009. This has come about on the back of a growing economy and a program of positive regulatory reform in the telecom sector. Legislation adopted in 2004 laid the foundation for the liberalization and development of the telecom sector and put an end to the monopoly enjoyed by Kazakhtelecom, the state-controlled telecom operator.
The rapid and successful development of telecommunications in the country encouraged several foreign suppliers to establish a presence in this emerging market. Since 1992, international operators and manufacturers have been active in Kazakhstan in providing services and installing state-of-the-art equipment, especially as part of the country’s international telecom network. Companies such as Motorola, Lucent, Siemens, Alcatel, Nokia, Daewoo and Nortel Networks have all been active in the market. Recognizing the long-term potential of this market, many foreign telecom companies were looking to invest and form partnerships with local telecom companies.
By 2005 four private operators had been licensed to provide international and long-distance services in competition with the incumbent Kazakhtelecom. They were state-railway subsidiary TransTelecom, KazTransCom (a subsidiary of the national oil company), Ducat and Astel. Up to 1,500 new telecoms service providers of various kinds had been licensed by end-2005.
The key drivers in the telecom sector included:
- the deployment of Kazakhtelecom’s fully-digital national telecom network based on local and long-distance switches and fibre optic lines linking all major cities in the country;
- efforts to improve international connectivity and increase both mobile and fixed-line subscribers;
- the continuing digitalization of exchanges;
- the further reform of telecommunications legislation;
- the process of accession to the World Trade Organization. Kazakhstan had a relatively strong fixed-line penetration (24 telephone lines per 100 inhabitants by end-2009), with six operators providing fixed-line telephone services to about 3.8 million subscribers.
There had been long waiting lists for fixed-line telephone services over the years. The country’s mobile market entered a boom phase in 2000, no doubt boosted to some extent by the long delays in obtaining fixed-line services. The number of mobile services had exceeded fixed-lines by late 2004. Demand for mobile services was so strong that in 2006 that the government went on to auction a third GSM license (and fourth mobile operator license), which was duly awarded to NeoTelecom, a subsidiary of Kazakhtelecom. NeoTelecom then launched its mobile service in early 2007.
Of particular note has been the recent healthy growth in Internet activity in Kazakhstan, with the move to broadband access in particular taking place at a rapid rate. Broadband subscribers as a proportion of the population had reached 10% by early 2010, with the market likely to continue its expansion by 100% annually.
After Kazakhstan’s mobile market delivered annual growth of 36% in 2008, the 2009 year saw a major slowdown in the market with net growth almost negligible. With a mobile penetration approaching 100% in early 2010, the country’s mobile market was continuing to grow but was expected to start saturating in the not too distant future. Broadband Internet was quickly expanding on top of a general upturn in demand for Internet services, with the number of broadband subscribers increasing tenfold from a relatively small base in 2006/07, then doubling in 2008 and again in 2009.
There had been a significant shift to broadband access in 2009 as the proportion of Internet subscribers using broadband shifted from 43% to 76% in that twelve-month period. Kazakhstan, despite the considerable presence of incumbent Kazakhtelecom across the market, was continuing to benefit from a diversified market that offered an energetic and competitive environment, especially in respect of the mobile market.
On the economic front, after an eight-year period in which GDP had been growing at an annual rate in excess of 8%, 2008 saw a major slowdown in the Kazakhstan economy with GDP growth falling to 3%. 2009 saw growth fall even further (to around 1%) as the full impact of the global financial crisis hit.
Motorola to launch Charm in the Indian market
Motorola is all set to launch Charm smartphone in India. The handset is equipped with Android 2.1 and 2.8 inch TFT touch screen with a QWERTY keypad.
According to Faisal Siddiqui, country head of India, Motorola Mobility, Motorola strives to excite the Indian consumer with the three-way navigation capability touch screen, QWERTY keyboard and the Backtrack making messaging, browsing, social networking fast and easy. Charm offers a compact design, easy handling and all the features you would expect from a smartphone. Enjoy sophistication and business functionality, effortless navigation with intuitive gestures with the Charm’s large display and keyboard.
The Motorola Charm sports a 3 megapixel camera with Kodak Perfect Touch technology and digital zoom. Audiophiles might appreciate the fact that the music player is connected via internet. It supports additional storage of up to 32GB and comes with a 2GB memory card included in the box. The handset provides users with talk time of up to 357 minutes and a standby time of up to 365 hours. It integrates stereo Bluetooth and a GPS as well as CrystalTalk Plus technology for augmented audio and call quality. The Motorola Charm is being launched via Aircel for US$304.19.
Apple increases legal team for Patent Showdowns with Nokia, Motorola, HTC
Apple’s iPhone, one of the best-selling smartphones on the market is adding lawyers to the company.
Apple is squaring off against Nokia Oyj, the world’s largest mobile-phone maker, before the International Trade Commission. The dispute, in which each side alleges intellectual property violations, is also a precursor to Apple patent battles with Motorola Inc. and HTC Corp.
Cupertino, California-based Apple is trying to protect its right to import the iPhone, while shutting out rivals, particularly those whose phones are powered by Google Inc.’s Android operating system, the world’s most popular smartphone software. Android-based phones also are made abroad.
According to Lyle Vander Schaaf, an attorney at Brinks Hofer Gilson & Lione in Washington, who handles cases before the commission, these are very well-known, deep-pocketed, high-end manufacturers, usually you have one 800-pound gorilla going after a new entrant. Here you’ve got 800-pound gorillas fighting each other.
Apple has been the most-sued technology company since 2008; the year after the iPhone was introduced, topping Microsoft Corp., Hewlett-Packard Co. and Dell Inc., according to LegalMetric Inc., a compiler of litigation data based in St. Louis.
