Telefonica aims better ties with Telesp & Vivo (Brazil)
www.WirelessFederation.com/news: In order to improve its weakening position in Brazil, Spanish telecoms behemoth Telefonica has reportedly expressed its desire to strengthen the relationship between its Brazilian fixed line unit Telefonica Brazil (Telesp) and Vivo Participacoes.
Vivo Participacoes is the Sao Paulo-based mobile operator it jointly owns with Portugal Telecom.
Earlier, the Brazilian unit was considered to be one of the most profitable zones for Telefonica but currently it is going through a very rough phase, struggling amid intense local competition. Telefonica has claimed to improve its trading position by seeking closer integration between Telesp and Vivo which in turn can generate improved cost savings.
No comment has yet been received from Telefonica and Portugal Telecom.
Mozambique govt issues tender for 3rd license
www.WirelessFederation.com/news: Long anticipated tender for a third mobile network operator license has finally been issued by government of Mozambique. US$25 million has been set as the reserved price for the license, with the last date for submissions due by July 6th 2010. After winning the license, the operator can begin operating within 30 days of the license being granted.
Earlier it was announced by Portugal Telecom that it would bid for a 3rd license, which at the time was expected to be offered around the middle of last year.
Last year, the country had 6.55 million subscribers, representing a population penetration level of 36%. With a market share of 65%, mCel is the dominant operator followed by Vodacom having 35% of the market share. No progress has been made in the government plans to sell a small stake in Mo§ambique Celular (mCel) which have been discussed in the past.
Telesp targets MVNO market via Vivo’s network (Brazil)
www.WirelessFederation.com/news: Backed by Spain’s Telefonica, Brazilian fixed line operator Telecomunicacoes de Sao Paulo (Telesp) has expressed its desire to enter the domestic MVNO market using Vivo’s network which also needs the necessary regulatory approval.
According to Telesp president Antonio Carlos Valente, the company has planned to operate the new MVNO venture over Vivo’s mobile network.
Telefonica also has control over 50% stakes in Vivo along with equal partner, Portugal Telecom.
Portugal Telecom should buy Telefonica’s stake in Vivo: Vasconcellos
www.WirelessFederation.com/news: Brazil has been described as “indispensable” to the Portugal Telecom future growth by the main individual shareholder, Nuno Vasconcellos. The shareholder has also said that that PT should focus on acquiring Telefonica’s participation in Brazilian mobile operator Vivo.
Nuno Vasconcellos currently owns a 6.74 percent stake in Portugal Telecom via the Portuguese investment fund Ongoing Strategy Investments. Telefonica is the largest shareholder of PT with 10 percent stake, followed by Brandes Investments Partners (9.48%), Espirito Santo (8.63%) and Caixa Geral (7.28%).
Selling the Vivo stake now “even at a great price has been described as throwing away the future of the company. Vivendi’s entry on the Brazilian market via the GVT acquisition has changed the things in the local market.
According to Vasconcellos, if Telefonica doesn’t act fast, the market may consolidate in a different direction and a hostile takeover from anyone is not welcome, but he had also not denied raising his stake in Portugal Telecom, explaining that “any shareholder happy with a company may consider” further increasing his stake.
Portugal Telecom’s net profit rises 18.7% in 2009
www.WirelessFederation.com/news: A net profit of EUR683.9 million (USD934.3 million) for the year ended December 31, 2009 has been posted by Portugal Telecom. The figure is up 18.7% year-on-year from EUR576.1 million in 2008.
In the year 2008, earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 0.9% from EUR2.48 billion in FY08 to EUR2.5 billion at end-2009. As a result of this rise, the revenue also grew from EUR6.72 billion in 2008 to EUR6.78 billion a year later.
The domestic fixed line customer base of the operator also saw an increase from 4.29 million at year-end 2008 to 4.58 million a year later. Even the ADSL subscribership topped 862,000 at the same date, up from 710,000 in 2008.
However, a continued decline in PSTN connections over the year has been reported by the company, down to 2.75 million from 2.84 million in 2008.
319,000 net new customers over the twelve-month period have been added by the company’s wireless arm Telecomunicacoes Moveis Nacionais (TMN). TMN ended 2009 with 7.25 million mobile subscribers in total.
Portugal Telecom acquires GPTI to boost Brazil prospects
www.WirelessFederation.com/news: The plans of Portugal Telecom to grow its presences in the Brazilian market has been boosted by its acquisition of local IS/IT provider GPTI. 100% equity stake in GPTI has been taken over by the 100% carrier which paid for by a share issue at its Dedic subsidiary.
Once regulatory approval of the deal is received, 12.5% stake in Dedic will be held by GPTI. However, the figure could hit 20% if performance targets for 2010 and 2011 are met.
hrough GPTI, PT plans to create an integrated IS/IT and business process outsourcing (BPO) company, while strengthening existing relationships in Brazil.
MTR plans opposed by Portugal Telecom
www.WirelessFederation.com/news: The plans to cut mobile termination rates (MTRs) have been opposed by Portugal Telecom (PT). According to the operator, such developments could threaten ongoing investment in next generation networks.
Plans to reduce MTRs by almost 50% had been previously revealed by market regulator ANACOM while ending inequalities between operators’ rates, in quarterly steps until April 2011.
PT, operating in the mobile market via its wireless arm Telecomunicacoes Moveis Nacionais (TMN) feels that proposal by ANACOM puts investment in new generation mobile networks at serious risk and the destruction of the operators’ investment capacity in the current economic context cannot benefit consumers.
Zambian government under pressure to release Zamtel valuation report
www.WirelessFederation.com/news: Zambia’s civil society organizations have pressurized the Government to release the valuation report it commissioned to sell its majority stakes in a fixed line incumbent Zambia Telecommunications Company (Zamtel).
According to Fackson Shamenda, former Zambia Congress of Trade Union president, there has not been much transparency in the sale of Zamtel and with the release of the information the potential concerns over the sales will be cleared.
Earlier this year the government had appointed RP Capital to evaluate the telco’s assets, after deciding to sell 75% stake in Zamtel. However they never released the report. This led to complaints saying that there has been no transparency in the process.
According to The Zambia Development Agency (ZDA), eight companies including Portugal Telecom, Orascom Telecom and Vimpelcom have pre-qualified for the stake sale, and those firms are due to complete due diligence today, with bids due by midday. The ZDA will release the identity of those companies that have submitted bids for the stake and after reviewing the bids announce the shortlisted candidates on January11.
Brazil’s SIM cards total reached 169m mark
www.WirelessFederation.com/news: According to the Brazil National Telecommunications Agency, or Anatel, 169.8 million registered SIM cards were recorded in the country last month. A total of 1.7 million net new additions with a rise of 1% were recorded in November.
Spain’s Telefonica and Portugal Telecom’s joint venture lead the market with a 29.6% market share at the month-end and was ahead of Telmex-owned Telecom Americas (Claro) with 25.4% and Telecom Italia’s TIM Brasil in third with 23.8%.
Timor Telecom gains 50,000 customers in a month; revises target
www.WirelessFederation.com/news: Gain of an additional 50,000 customers in just one month has made Timor Telecom (TT), a subsidiary of Portuguese telecoms company Portugal Telecom (PT) to revise its target for the end of 2009.
The company reached 312,000 mobile customers on December 13, raising TT’s year target from 320,000 subscribers to 330,000. The launch of seasonal campaigns and promotions played a significant role in the recent success of the telco.
However some of the promotions backfired when a recent campaign allowing customers to send SMS for free left many unable to use the service after the system could not handle the extra traffic. But the problems seems to be insignificant as the success is beyond expectation for the company.
