Rogers profit misses expectation on competition (Canada)
Canada’s largest wireless carrier, Rogers Communications Inc. has reported fourth-quarter profit that missed analysts’ estimates as new carriers and rival BCE Inc. hurt growth in new subscribers.
According to the company, profit excluding some items was 65 cents a share. Analysts predicted 67 cents, the average of estimates. Sales rose 3.1% to $3.15 billion, missing the average analyst estimate of $3.17 billion.
Rogers, led by Chief Executive Officer Nadir Mohamed, is facing the threat of new carriers Wind Mobile, Mobilicity and Public Mobile as well as a resurgent BCE. Bell, BCE’s main consumer brand and Canada’s second-largest wireless carrier, added 156,708 new mobile phone subscribers on contract last quarter, a 43 percent jump from a year earlier.
Rogers today renewed its share repurchase plan for as much as 39.8 million shares, worth up to $1.5 billion. The company raised its annualized dividend by 11% to $1.42 a share.
Federal Court of Canada overrules Globalive ownership decision
Canadian mobile operator Wind Mobile has stated that the Federal Court of Canada has ruled out the cabinet decision claiming that Wind Mobile’s ownership is fully compliant with Canada’s ownership. It further said that the control rules contained two errors and should therefore be quashed. The decision does not go into effect for 45 days.
The decision is the result of an application brought by rivals Public Mobile and Telus. According to Wind Mobile, it was very disappointed with the decision but noted that the court decision does not suggest that Cabinet got it wrong, only that it made errors in explaining their rationale and characterizing the decision.
The mobile operator is currently examining its options and is consulting with advisors to determine its next steps. Wind Mobile has attracted more than 250,000 subscribers since its 2009 launch.
Regulator CRTC initially rejected Globalive’s attempt to launch a mobile network in Canada. It ruled Globalive’s structure contravened foreign-ownership rules governing Canadian telecom companies because of its financial backing from Egypt’s Orascom Telecom.
The government subsequently overruled the CRTC decision, stating that it was satisfied that Globalive met the ownership rules since the voting control rested with Canadians and Canadians managed the company on a day-to-day basis.
According to Industry Canada Minister, Tony Clement, the government is studying the ruling and examining its options. As per reports, their government stands with consumers who want more competition.
Public Mobile launches service in Toronto
www.WirelessFederation.com/news: Public Mobile, a Canadian cellular newcomer switched on commercial services over its network in Toronto. Low-income users, including first-time handset buyers, as well as new immigrants are on the target list of the company.
According to company’s CEO, Alek Krstajic, the firm will consolidate the low end of the market and its stripped-down offers includes CAD24 (USD22.30) per-month unlimited local talk-only plan.
2G CDMA-based network using low-cost 1900MHz frequencies has been rolled out by Public Mobile unlike most rival start-ups in the country who purchased paired 1700MHz/2100MHz spectrum in 2008′s Advanced Wireless Services (AWS) concession auction.
Wataniya International highest bidder for second Palestinian mobile license
The company offered JD 251million (Two hundred fifty one million Jordanian Dinars) as an upfront license payment to install and operate a 2G/3G mobile telecommunications system and establish the second Palestinian mobile telecommunications service in Palestine.
Wataniya International will now begin negotiations to finalize the license terms and agree on the frequencies required to operate the network. Wataniya International will establish a new company in Palestine which will be 40% owned by Wataniya International where, as per the Request for Application, 30% will be offered to the Palestine Investment Fund (PIF) and 30% owned by the general population through an IPO.
‘We are grateful for the confidence of the Palestinian National Authority in proceeding with this privatization process. Wataniya has a proven track record at the Greenfield level, building and operating world class networks and delivering innovative services in discerning markets,’ said Mr. Faisal Al-Ayyar, Chairman of Wataniya International.
The license will authorize the building and operating of a GSM telecommunications
network and provide public mobile voice and data telecommunications services in
Palestine. It will also give the right to establish and operate a third generation (3G)
network and to provide international telecommunication services.
‘Wataniya is growing rapidly based on continued success in existing operations and our expansion into new, high growth markets. The company’s entry into Palestine represents a key step in continuing to reach our ambitious growth targets,’ said Ahmad Haleem, CEO of Wataniya International.
Source- http://www.ameinfo.com
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