France Telecom, a leading telecommunications service provider, is expected to receive the second round bids for its Swiss unit, Orange Switzerland, from five potential buyers. According to reports, some of the shortlisted investors include Providence Equity Partners, Apax Partners and EQT Partners. Sources claim that Naguib Sawiris, founder of Orascom Telecom may also bid for Orange Switzerland along with cable company Liberty Global Inc.

As reported by Wireless Federation earlier, the sale of Orange Switzerland was a strategic decision taken by France Telecom in an attempt to achieve sustained growth in a struggling industry and focus its attention on the emerging markets.As per sources, France Telecom hopes to receive between US$ 1.95 billion and US$ 2.60 from the sale.

The sale being advised by Perella Weinber Partners along with Lazard Ltd. is expected to be finalized in the beginning of 2012, wherein France Telecom will reportedly announce the company chosen to acquire its unit.

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According to reports, Naguib Sawiris, founder of Orascom Telecom is looking for partners in order to bid for Orange Switzerland valued at around $2.8 billion.  Other people who have shown their interest in acquiring the France Telecom SA mobile-phone unit, include Xavier Niel, founder of Iliad, and private equity firms Apax Partners LLP and EQT Partners. As per sources, when questioned about Mobinil, Sawiris said that he has no plans to sell his stake in Mobinil which belongs to Orascom and other shareholders.

As reported by Wireless Federation earlier, France Telecom is hopeful of finalizing a deal for its Switzerland unit by the end of this year and plans to target the emerging markets in the Middle East and Africa. Further, the group may also be looking to sell its units in Austria and Portugal.

 

Orascom Telecom (OT) has announced that it is planning to raise its capital to $2.35 billion from US$1.26 billion pounds and that it planned to divide the company into two.

Orascom will call a general meeting on April 13 to approve the company split as well as the capital increase, which it said it would use to fund its debt, but did not give any further details.

Shareholders of Russian mobile operator, VimpelCom earlier this month approved a $6 billion-plus purchase of Wind Telecom, which owns OT, creating one of the world’s biggest mobile operators by number of subscribers.

According to OT, the VimpelCom deal would improve its negotiating position with the Algerian government over the fate of its unit in the country.

The firm has been locked in a long-running dispute with Algeria over the unit, Djezzy, its biggest single source of revenue. Uncertainty over its future had complicated the VimpelCom deal.

Algeria’s government, which said it will nationalize Djezzy, has hit the unit with hundreds of millions of dollars in back taxes and barred it from moving profits abroad.

It also blocked Orascom from selling the unit to South Africa’s MTN.

 

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­Russia’s VimpelCom has announced that its shareholders have approved the previously announced combination of VimpelCom and Wind Telecom, although Telenor is still objecting to the merger of the two companies.

Shareholders representing 93.1% of the Company’s voting shares participated in the Special General Meeting. The resolutions at the Special General Meeting were approved by 53.3% of the voting shares that participated in the meeting. Of the Company’s public shareholders, actually present though, just 39.8% voted in favor of the resolutions and 60.2% voted against the resolutions.

According to Alexander Izosimov, CEO and President of VimpelCom, the approval of this transformative combination with Wind Telecom by their shareholders will lead to the creation a new global telecom player with over 173 million mobile subscribers covering a population of 838 million people. The combined group will have a significantly diversified revenue base, substantially larger scale of operations, and potential synergies estimated to be US$2.5 billion on a net present value basis. This transaction and the shareholder vote underscore the Company’s dedication to delivering substantial value creation for shareholders and their commitment to corporate governance excellence.

The completion of the Transaction is subject to certain conditions precedent, such as receipt of regulatory approvals and receipt of funds to finance the Transaction. Completion of the Transaction is expected to occur in the first half of 2011.

Following completion of the Transaction, VimpelCom will own, through Wind Telecom, 51.7% of Orascom Telecom and 100% of Wind Italy.

State-owned mobile operator NetOne’s MD Reward Kangai has revealed that the company is in talks with South Africa’s MTN and other African mobile firms about selling a 49% stake.

NetOne is the smallest mobile operator by subscriber numbers in Zimbabwe, lagging behind Econet Wireless and Telecel, a local unit of Egypt’s Orascom Telecom.

Reward Kangai valued NetOne at between $500 million and $800 million. He did not disclose the other African operators. The company expects an agreement during the second quarter of the year. It is expected that NetOne’s subscriber base will increase to 2.5 million this year from 1.6 million in 2010.

He added that the company was hindered by the country’s telecommunications laws from selling more than 49% of its shares to a strategic investor.

Zimbabwe has a low mobile penetration rate, which makes it attractive to large mobile operators seeking to expand their footprint on the African continent.

He also stated that NetOne’s turnover would double to $200 million in 2011 boosted by an increase in subscribers and a recovering economy. It (low mobile penetration) presents an opportunity for the company to grow, which also presents business opportunity for the strategic partner.

 

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Lebanon based mobile network operator, Alfa has signed a network expansion contract with Ericsson for the deployment of a 3G network in the country.

As per the contract, Ericsson will be responsible for the upgrade and modernization of the current Alfa mobile network to 3G/ HSPA+ technology across the country.

Alfa is a state-owned mobile network  managed by Egypt’s Orascom Telecom. Earlier this month, Orascom Telecom signed a one-year extension to its ongoing management contract to look after the mobile network. The contract, signed with the Lebanese Ministry of Telecom, will run until  February1, 2012.

 

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­Orascom Telecom has signed a one-year extension to its ongoing management contract with Lebanese mobile network, Alfa. The company has signed the contract with the Lebanese Ministry of Telecom and will run until 1st February 2012.

The renewal of the contract is an opportunity for Orascom Telecom to execute the long-term development plans and projects it is planning for the telecom sector in Lebanon, and on top of those, comes the introduction of 3G in Lebanon.

This is in addition to introducing a new variety of services, expanding Alfa’s coverage to new regions and spreading the outreach of information technology services to all over Lebanon.

According to Orascom Telecom Lebanon Chairman & CEO, Mr. Marwan Hayek, they are pleased to renew their management contract of the first Lebanese mobile telecom network with Lebanon’s Ministry of Telecom, which is an opportunity for them to re-emphasize their commitment towards the Lebanese mobile market. They are looking forward to the future, to accomplish new achievements within Alfa, and to support the Lebanese mobile sector in regaining its pioneering position in the region, in line with the ambitious plan set by the Lebanese Ministry of Telecom for the sector.

North Korea has reportedly suggested that foreign visitors to the reclusive country are being barred from renting mobile phones in the country. The country has already barred foreign visitors from bringing in their own phones, and offered to rent them 3G phones connected to the new Koryolink network built by Egypt’s Orascom Telecom.

The government controls all the media and tightly monitors information in the country. There has been almost no reporting of the ongoing democracy protests in North Africa and the Middle-East. It is thought that the bar on renting handsets is part of a more serious clamp-down on information about the protests getting to the North Koreans.

However, the rented handsets were unable to connect to North Korean phones owned by residents. Foreigners living in the country for business or diplomatic purposes are understood to be unaffected by the ban on renting phones.

­The Canadian government is all set to appeal over a court ruling that had declared that the launch of the Globalive (Wind Mobile) network was illegal.

At the time when Globalive was set up, it had the support from Egypt’s Naguib Sawiris, but Canadian law limits  the foreign shareholders to minority interests. Following complaints, the telecoms regulator investigated about the company and found out  that while the shareholding was within Canadian limits, the financial and technical backing offered by Sawiris’ Orascom Telecom had  pushed its effective interest above the level allowed by the law.

However, the government later overturned that decision and decided to allow the company to launch its services regardless, in a move which was seen as potentially heralding a revamp of the country’s restrictions on foreign investment.

A couple of weeks ago though, a federal court struck down that decision and the company faces a theoretical threat of being shut-down. The Court ruled that the Cabinet order contained two errors and hence that the order should be quashed. This decision does not go into effect for 45 days.

According to Canada’s Industry Minister, Tony Clement, said today that he would like to confirm that the Harper Government will be appealing the Court’s ruling. They believe that their decision was the right one for Canadian consumers and they will vigorously defend it. Globalive is a Canadian company and meets the Canadian ownership and control requirements under the Telecommunications Act. Globalive should, therefore, be able to continue to offer service in the wireless telecommunications market.

According to Anthony Lacavera, Chairman of WIND Mobile, they are pleased that the Government has decided to appeal the Federal Court’s decision. From the beginning, Industry Canada and then Cabinet, maintained, with a full knowledge and understanding of the facts of their structure, that they are fully compliant with the Telecom Act rules, and they are pleased that the Government is vigorously defending its decision.

The GSMA is welcoming a new version of Rich Communication Suite (RCS) that will enable mobile phone customers to use instant messaging (IM), live video sharing and file transfer across any device on any network operator.  Deutsche Telekom, Orange, Telecom Italia, Telefonica and Vodafone intend to commercially launch RCS across several European markets from late 2011, and additional operators are expected to launch later in 2012.

Once adopted, Rich Communication Suite – e* (RCS-e) will enable customers to use these enhanced communication services across mobile networks in a simpler and more intuitive way. It is based on a specification put forward by Bharti, Deutsche Telekom, Orange, Orascom Telecom, SK Telecom, Telecom Italia, Telefonica, Telenor and Vodafone which aims to lower the hurdle and speed up the market introduction and adoption of these services.

With RCS-e, customers will be able to use IM, share live video and share files such as photos simultaneously during calls, regardless of the network or device used. RCS-e will enable users to communicate in a very natural way, much like with GSM voice and text today, and will also offer the simplicity and security customers expect from mobile operator services.

As customers open their address book, they will be able to see which communication services are available to them. They can then choose their preferred communications option.  For example, a customer would see if their contact is in an area with 3G coverage and is able to receive video.

The participating operators will work with handset suppliers to ensure the service is integrated into the address books of devices, so that customers will not have to download any additional software or technically configure their handsets in order to benefit from the enhanced experience.

Mobile operators are committed to giving their customers greater choice in the way they communicate with one and other,” said Rob Conway, CEO and Member of the Board of the GSMA. “We welcome the pragmatic approach taken by these operators to accelerate the commercialisation of RCS and simplify the experience for mobile customers and we will work to adopt this specification within the RCS initiative.”

The RCS specification is designed to be interoperable between all operators and devices, giving customers greater choice in how they communicate. The new RCS-e is the result of extensive trials and is a subset of the current RCS 2.0 standard with enhancements. It is focused on extending the principles of voice and SMS calls to deliver an advanced set of interoperable data-centric communications services.

Available to all operators through the means of the GSMA, the RCS-e specification is available at www.gsmworld.com/rcs. In addition, visitors to the Mobile World Congress in Barcelona from February 14 to 17 will be able to see live demonstrations of the specification implemented on devices at the RCS exhibit in the App Garage, Stand 7APG, Hall 7.

* RCS-e is a new enhanced version of the RCS specification which is based on the use across networks of IP Multimedia Subsystem (IMS) technology, an architectural framework for delivering Internet Protocol (IP) multimedia services.

About the GSMA

The GSMA represents the interests of the worldwide mobile communications industry. Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organizations. The GSMA is focused on innovating, incubating and creating new opportunities for its membership, all with the end goal of driving the growth of the mobile communications industry.

For more information, please visit Mobile World Live, the new online portal for the mobile communications industry, atwww.mobileworldlive.com or the GSMA corporate website at www.gsmworld.com.