PT’s 4G network coverage extends to 80% population (Portugal)
Portugal Telecom has strengthened the coverage of its 4G network, which allows about 80 percent of the Portuguese benefit from a new mobile Internet experience.
This became possible following the termination of television analogue terrestrial system, which took place on April 26, freeing the frequency band of 800 MHz, in which PT acquired rights to use frequencies in the following the auction multitrack. The increased coverage will be significant (up to now stood at 20%) highlighting the quality of buildings and places in PT among the first operators at European level to provide 4G services in the frequency of 800MHz.
With the extension of coverage of the 4G network, the TMN and Meo 4G. 4G will benefit from greater speed, lower latency and better quality of experience. Together with the fiber optic network of PT, which reaches 1.6 million homes, these features enhance the supply of new multimedia services, mobility, until now only possible through fiber optics, especially television, gaming services online and mobile broadband access with speeds up to 100 Mbps.
PT offers two offers – TMN 4G and 4G MEO – diverse aspects that favor the use of the Mobile Broadband service, leveraging the potential of other existing offerings, such as the Meo and Musicbox This Go way, customers can access TMN and Meo transversely to an offer converged voice, video and Internet on multiple devices, with a quality experience and superior service and the most advanced in the world.
The 4G network in PT was recently recognized by manufacturers as a reference for operators in Europe to present the first European network qualified by the GCF (Global Certification Forum), the mechanism CSFB (Circuit Switch Back Fall), which allows voice communication 4G networks. This support, required to provide voice service for 4G smartphones, reinforces the status of the operator in terms of quality, reliability and robustness of its network of cutting edge technology.
Portugal Telecom acquires 25.3% stake in Brazil’s Oi
Portugal Telecom has acquired 25.3% of Brazilian carrier Telemar Norte Leste SA (Oi) for $5 billion claiming a bigger stake than Portugal’s largest phone company had originally planned to buy.
According to Portugal Telecom, the stake was built through direct investments in the company and indirect positions in its biggest shareholders. The acquisition includes 25.6% of Telemar Participacoes SA, the group that controls the Brazilian phone carrier.
Portugal Telecom is investing in Oi to tap growing demand for mobile-phone and Internet service in Brazil. The Portuguese carrier announced its plans in July to buy a stake in Oi after selling its half of Vivo Participacoes SA, Brazil’s largest mobile-phone company.
Under the agreement, Oi plans to purchase a stake of as much as 10 percent of Portugal Telecom. Oi is Brazil’s largest fixed-line phone company and its fourth-biggest mobile- phone carrier.
Portugal Telecom Namibia opposes plan to regulate rates
Portugal Telecom’s unit in Namibia (MTC) has stated that it opposes a move to force mobile-phone companies to charge the same rates when subscribers call other networks in the southern African nation.
According to MTC, a decision by the Namibia Communications Commission, which regulates telecommunications in the country, will block innovation in terms of products and service that are the engine of competition.
As per the company, a bid by the company to block the commission’s move was rejected by the High Court in Windhoek, the capital. MTC has about 1.5 million subscribers and is Namibia’s biggest carrier.
Portugal Telecom Q4 net profits drop by 83%
Portugal Telecom SGPS SA has announced that its fourth-quarter net profit dropped by 83% due to restructuring costs and a decline in domestic wireline and mobile revenue.
According to the company, net profit fell to US$75.05 million in the fourth-quarter from US$429.83 million a year earlier. PT’s fourth-quarter earnings were the first to not include a contribution from Brazilian mobile telephone company Vivo Participacoes SA after the company sold its stake in Vivo to Telefonica SA in September for US$10.32 billion.
PT restated its earnings for the rest of 2010 and for 2009 to remove Vivo’s operating results. The company’s 2010 net profit, however, was maintained by a first installment of the payment from Telefonica of US$7.57 billion. PT’s 2010 net profit rose to US$7.79 billion from US$942.96 million in 2009.
PT’s fourth-quarter wireline revenue dropped 5% to US$655.96 million, while mobile revenue fell around 11% to US$471.14 million. Total fourth-quarter revenue dropped to US$1.30 billion.
In the fourth quarter, PT was also hit by US$185.50 million in restructuring costs, mainly related to workforce reductions and other cost efficiency efforts.
Fourth-quarter earnings before interest, taxes, depreciation and amortization decreased to US$499.23 million.
Portugal Telecom supports 3G bid (Cape Verde)
If reports are to be believed, Portugal Telecom is bidding for a 3G licence in Cape Verde. According to reports, the bid on the tender was submitted on 31 January, but declined to disclose the value of the planned investments in the African country.
The offer was presented by Cape Verde’s mobile operator CV Movel, in which PT has a 40% stake. Other bidders taking part are T+ and Cabo TLC de Sao Vicente. Cape Verde’s telecommunications regulator ANAC will announce the result of the tender in March.
Portugal Telecom acquires $5 Billion stake in Oi of Brazil
Portugal Telecom has announced that it had inked a deal to take a 22.38% stake in the Brazilian telecommunications company Telemar Norte Leste, also known as Oi.
The stake represents $5 billion in cash and awards Portugal Telecom significant corporate governance rights over the Brazilian company.
A deliberate partnership between the two companies reveals Portugal Telecom’s continued interest in the Brazilian market even after it sold its 50% stake in the Cellphone operator Vivo to Telef³nica of Spain in July.
As per the terms of its investment, Portugal Telecom can nominate one member and one alternate member to the board at the Oi subsidiary, TmarPart, as well as two members and two alternate members to the board of TNL.
The stake will also give Portugal Telecom a say in the nomination process for the chief executive of Oi.
According to Portugal Telecom, it hoped to contribute significantly to the improvement of Oi’s performance, citing its successful experience in fixed-to-mobile convergence, mobile broadband and pay TV, as ways it might do this.
EU investigates Telefonica, Portugal Telecom deal (Europe)
Europe’s top competition regulator EU has stated that it has opened a formal investigation into a non-compete deal between Spanish and Portuguese telecommunications companies Telefonica SA and Portugal Telecom SGPS SA.
According to the European Commission, it will probe whether the two companies have broken EU law by agreeing not to compete with each other in their home markets. It states that the non-compete deal between the two companies was concluded last year when Telefonica acquired sole control over their Brazilian joint venture Vivo.
The Commission added that it will also investigate whether the non-compete agreement predates the Vivo deal, which is not concerned by this probe. A formal investigation does not imply that the companies have actually broken EU laws.
Vivo plans to integrate with Telesp (Brazil)
Vivo has revealed that it is planning to be integrated with its sister company Telesp.
In a securities filing the Brazilian mobile operator stated that merging with Telesp, a fixed line operator also owned by Telefonica, would cut costs and simplifies the shareholding structure.
Telefonica bought Portugal Telecom’s stake in Vivo for US$9.9 billion in July, becoming the controlling shareholder.
Portugal Telecom sustain plans to pay dividend in 2010
Portugal Telecom SGPS SA (PT), one of the country’s biggest companies claims that it will maintain its plans to pay the bulk of an extraordinary dividend in 2010, ahead of higher taxes on dividends that take effect in 2011.
According to Portugal Telecom, it will pay US$1.33 per share of the US$2.19 dividend on Dec. 28. The remainder of the dividend, paid with proceeds from the sale of the company’s stake in Brazil’s Vivo Participacoes SA (VIV), will be paid next year.
The decision to pay most of the dividend this year has been strongly criticized by Prime Minister Jose Socrates, whose government is raising taxes and cutting spending with the aim of closing one of the euro zone’s biggest budget gaps.
