Wireless Federation

MTS acquires debt-ridden CJSC Sistema-Inventure for US$ 342 million (Russia)

On 12.09.11, In Mobile, By Editor

Russia-based telecommunications provider, Mobile TeleSystems (MTS) has reportedly acquired CJSC Sistema-Inventure, which owns 29 percent of Moscow City Telephone Network, for US$342 million and has also agreed to pay the company’s debt of US$ 331 million to AFK Sistema by this year end, causing its share price to decline significantly.

As per sources, industry analysts have said that while the acquisition as such is not a concern for the investors, the amount of debt which is almost equal to the amount paid to acquire the company has them worried. Further, with this news, the value of the American depository receipts (ADR) for MTS fell by 3.8 percent, the maximum decline in the past month, to US$ 16.

Rostelecom and MegaFon sign 4G service agreement with Scartel (Russia)

On 12.01.11, In Mobile, By Editor

Mobile operator MegaFon along with State-owned telecommunications company Rostelecom, have reportedly signed an agreement with Scartel to offer 4G services in Russia. According to reports, the agreement with Scartel, which operates under the brand ‘Yota’, will enable the two operators to act as mobile virtual network operators (MVNO) for offering 4G services.

As per sources, as part of the agreement, Yota would use Rostelecom and MegaFon’s infrastructure, in exchange for its 4G network. Further, industry analysts have reportedly said that as Scartel is the only company in Russia which has built a 4G network, the two operators will gain significant lead in providing users with 4G services as compared to TeleSystems and VimpleCom.

Filed under:Mobile Tagged with: 4G • MegaFon • MVNO • Rostelecom • Russia • Scartel • Telesystems • Vimplecom • Yota

Vimplecom and MTS offer joint proposal for Ukrtelecom’s 3G business (Europe)

On 11.25.11, In Mobile, By Editor

Russian telecom operators, Mobile TeleSystems (MTS) and Vimplecom may join forces in an attempt to offer a joint proposal for the 3G mobile operating business of Ukrtelecom, a Uknranian telecom operator.

According to reports, Ukrtelecom is looking for a buyer its 3G mobile operations after receiving the proposals in the second round. Further, sources claim that Ukrtelecom had announced that it was transferring all assets of its mobile business from its internal Utel division into a newly formed company, TriMob, for sale in September.

Vimpelcom and MTS operate in Ukraine’s mobile and fixed/broadband markets via their respective subsidiaries Kyivstar and MTS Ukraine.

Filed under:Mobile Tagged with: 3G • MTS • Russia • TriMob • Ukraine • Ukrtelecom • Utel • Vimplecom

MTS to offer upgraded technology for better management of mobile data traffic (Russia)

On 11.22.11, In Mobile, By Editor

Mobile TeleSystems (MTS), a leading telecommunication operator in Russia is reportedly deploying the Harmony Mobile Internet Services Gateway by Flash Networks in an attempt to better manage the mobile data traffic as well as increase the internet speed. According to reports, MTS has begun testing the technology and hopes to make the service available to all its users by the end of this year.

As per sources, Sergei Stepanyuk, Head of Data Transmission Department, MTS has said that the solution introduced by MTS will provide their customers with faster and more convenient Internet access as the up-to-date text and multimedia compression technology applied by Flash Networks optimizes data in a way practically imperceptible to the human eye. Further, Stepanyuk added that the data optimization platform allows them to reduce their mobile network data transmission load by almost 40 percent and their transit load by 30 percent, ultimately resulting in faster Internet speeds and better quality of data services for the users.

Filed under:Mobile Tagged with: Flash Networks • mobile data traffic • mobile internet • Mobile TeleSystems (MTS) • Russia

Any consolidation of mobile market in Russia to include Tele2 says VimpleCom (Europe)

On 11.21.11, In Mobile, By Editor

VimpleCom, the third largest telecom operator in Russia, has reportedly said that any consolidation in the telecom industry in Russia will have to involve Tele2 as there will be no consolidation among the top three wireless operators of the country.

Mobile TeleSystems is the leading operator in the country followed by MegaFon and VimpleCom. Tele2 is currently the fourth largest player serving over 20 million customers. As per sources, Jo Lunder, CEO, VimpleCom said that the outcome of the 4G spectrum auction would be crucial in deciding the future performance of the operators.

He added that VimpelCom’s biggest operational challenge is to improve its performance in its Russian home market. As per reports, the CEO also said that the focus of the firm, which also has operations in parts of Asia and Africa, as well as in Italy and Canada, is more on cash generation and less on building subscriber and revenue market share.

According to reports, Lunder also said that they are very optimistic with regards to Wind and the Italian market, having secured good spectrum for 4G in Italy, and expect it to develop into an advanced data market.

Filed under:Mobile Tagged with: 4G • Canada • Italy • Jo Lunder • MegaFon • Russia • Tele2 • Vimplecom

Android smartphones account for 52.5 percent of the global mobile market in Q3

On 11.17.11, In Mobile, By Editor

Google’s Android mobile software powered more than half of all smartphones sold across the world in the third quarter of 2011, doubling its market share as compared to last year, according to a research report by Gartner. The research giant said that smartphone sales by volume grew 42 percent even as some consumers delayed purchases in anticipation of Apple’s latest iPhone.

Roberta Cozza, analyst in Gartner’s European unit has said that Android benefited from more mass-market offerings, a weaker competitive environment, and the lack of exciting new products on alternative operating systems. According to the report, the global mobile handset sales during the third quarter totaled 440.5 million units, with smartphone sales reaching 115 million, representing a quarter-over-quarter increase of 7 percent and year-over-year increase of 42 percent.

Android smartphones led the way with sales of 60 million, up from the 20 million units sold last year, while Apple reported unit sales of 17 million, up from 13 million in the past year. Symbian based phones saw the biggest decline with sales falling to 19 million from 29 million in the past year resulting in its market share declining from 36.3 percent to 16.9 percent.

The report reveals that smartphone sales reached 115 million units in the third quarter of 2011, up 42 percent from the same period in 2010. Further, smartphone sales accounted for 26 percent of all mobile phone sales, gaining only a marginal one percent in the previous quarter.

Cozza also states that the strong smartphone growth in China and Russia helped increase overall volumes in the quarter, but demand for smartphones stalled in advanced markets such as Western Europe and the U.S. as many users waited for new flagship devices featuring new versions of the key operating systems. She added that slowdowns also occurred in Latin America and the Middle East and Africa.

Further, Ms. Cozza also said that some consumers held off upgrading in the third quarter because they were waiting for promotions on other new high-end models that were launched in the run-up to the fourth quarter holiday season, while other consumers were waiting for a rumored new iPhone and associated price cuts on older iPhone models which affected U.S. sales particularly.

Filed under:Mobile Tagged with: Android • Apple • China • iPhone • Mobile market • Russia • smartphone

Vimplecom blames forex loss for decline in Q3 results (Russia)

On 11.15.11, In Mobile, By Editor

Russian telecom operator, Vimplecom has reportedly listed the $400 million foreign exchange related losses as a key factor for the $356 million decline in the third-quarter net profit of the operator. According to reports, the network operator had said that its net profit was $104 million, down from $460 million on a proforma basis in the third quarter of 2010.

As per company reports, as much as $180 million was lost on movements in the euro/USD exchange rate. Further, the company also said that $110 million was attributable to the intercompany loan to Wind Mobile in Canada. Vimplecom has also reportedly claimed that it recorded a non-cash loss of around $110 million related to the fair value adjustment of embedded derivatives in Wind Italy.

Filed under:Mobile Tagged with: Canada • Italy • q3 • Russia • Vimplecom • Wind Mobile

Nokia’s new $6,800 diamond encrusted phone

On 10.17.11, In Mobile, By Editor

At the time mobile phones were introduced to consumers, there was one name that was dominant across regions – Nokia. Recently though, with players like Apple and Samsung bringing in new technology, users have shifted their allegiance to other manufacturers, causing Nokia to lose some of its market share. However, the luxury division of Nokia ‘Vertu’ is still going strong and has as much as 60% of the European market in its grip.

While all iPhone fans are awaiting the launch of Apples’s new handset next week, Vertu has captured the attention of the luxury phone users, with its latest handset complete with a diamond encrusted QWERTY keypad. The phone, priced at $6,800 has a gold frame, a diamond encrusted case and keys made of precious stones. While the handsets of the luxury segment have been accused of not being the most updated in terms of technology, Nokia’s latest handset boasts of a better operating system and a higher resolution built-in camera.

According to reports, services chief, Mark Izatt, says that a big draw for old and new Vertu customers is the company’s concierge function, provided free to the users for the first year and charged at about $3,000 annually thereafter. This function gives users a 24 hour access to the hotline staff, who speak nine languages including Chinese, Russian and Arabic, and take care of user requests such as restaurant reservations and travel planning, along with some exquisite requests like sending a box of live butterflies as an anniversary gift.

Filed under:Mobile Tagged with: Apple • Diamond phone • iPhone • Nokia • Russia

Russia’s network-sharing deal in trouble over pricing problems

On 08.31.11, In Mobile, Mobile Operators, By Editor

Russia’s leading mobile network operators MTS, VimpelCom (Beeline), Megafon along with Rostelekom, had signed a deal with Yota to provide mobile broadband services via its LTE network, earlier this year. In the first of its kind, competing service providers will come together to offer their consumers better services via a single network. The said network is expected to serve over 70 million people across 180 cities in Russia in 2014. The deal benefits the operators by saving costs required to build an individual network while at the same time providing users faster access to 4G services. Reportedly, Dennis Sverdlov of Yota says that this network sharing approach will not only help the entire telecom industry but also boost the Russian economy.

However sources claim that this deal may already be facing a few problems especially in relation to pricing. Skartel owned Yota has valued itself at $1 billion creating a cause for concern for the operators. As per the agreement, each operator has the right to buy 20% shares in Yota once the network is completed, in 2014. However, industry insiders claim that the valuation may cause the deal to end as it has been inviting objections by the network operators. Talk are said to be ongoing between Skartel and the network operators.

Filed under:Mobile,Mobile Operators Tagged with: 4G • Beeline • Dennis Sverdlov • LTE • MegaFon • MTS • Rostelekom • Russia • Skartel • VimpelCom • Yota

Enduring legal fight that involves Turkcell shares ends in favor of Russia’s Altimo

On 07.24.11, In Mobile, By Editor

turkcell-office

The Russia based Alfa announced the win with regard to a long standing legal tussle involving the ownership of shares in Turkcell, the Turkish mobile network. As per the judgment passed by the Court of Appeal of the Eastern Caribbean Supreme Court, it was valid on the part of Alfa in appropriating shares owned by Turkish conglomerate, Cukurova, in Turkcell in the wake of a number of defaults committed by Cukurova Group as stipulated in the loan agreement offered by Alfa to Cukurova Group in November 2005.

In view of a number of defaults by Cukurova Group, Alfa appropriated the shares representing the Cukurova’s stake in Turkcell which Cukurova charged to Alfa as security for its outstanding loan of $1.35 billion, in the year 2007

Currently, Altimo officially holds 26.9 percent stake in the Turkish mobile network, increased from 13.7 percent. The formal incorporation of the additional shares will only suffice once Cukurova’s 30-period for appeal at the UK’s Privy Council expires.

37 percent of Turkcell is also owned by TeliaSonera that has been struggling to gain control of the company.

Filed under:Mobile Tagged with: Caribbean • operator • Russia • Turkey