South America

Brazilian telco Oi reports fall in revenue

On 03.16.10, In Mobile, By Editor

www.WirelessFederation.com/news: A heavy fourth-quarter loss of 365 million Brazilian reals ($207 million) due to non-recurring expenses and declining revenue has been posted by Brazil’s largest telecommunications company, Oi. A net profit of BRL13 million was generated by the company in the fourth quarter of 2008.

EBITDA of the company came down from BRL2.44 billion in the year-earlier quarter to BRL2.37 billion while the EBITDA margin dropped to 31.4% in the fourth quarter from 31.9% in the same period the prior year. Due to sliding fixed-line telephone usage, the fourth-quarter net revenue went down to BRL7.5 billion, from BRL7.6 billion a year earlier.

Due to the expenses on legal action related to the integration of rival operator Brasil Telecom and deferment of subsidies on prepaid phones, Oi recorded non-recurring costs of BRL305 million. A swallow increased costs has been suffered by the company because of the integration of Brasil Telecom and the entrance into the Sao Paulo mobile phone market last year.

The company’s debt level rose to 2.2 times earnings before interest, tax, depreciation and amortization, or EBITDA, in 2009 following the purchase of Brasil Telecom, a rival operator, and the campaign to enter into the Sao Paulo mobile market.

Brazilian telco Oi to invest $1.7bn-$2.3bn in 2010

On 03.16.10, In Mobile, By Editor

www.WirelessFederation.com/news: An investment of 3 billion to 4 billion Brazilian reals ($1.7 billion to $2.3 billion) in 2010 has been considered by Brazil’s largest telecommunications company, Tele Norte Leste Participacoes S/A. The focus of the investment is on expanding broadband Internet capacity for fixed and mobile networks.

BRL5.1 billion was invested by the operator in 2009 and 70% of that amount was pumped into networks. The investment will also allow the company to reduce debt levels. The company’s debt level rose to 2.2 times earnings before interest, tax, depreciation and amortization, or EBITDA, in 2009 following the purchase of Brasil Telecom, a rival operator, and the campaign to enter into the Sao Paulo mobile market.

The aim of the company is to reduce that debt amount to 1.7 times to 1.9 times EBITDA by the end of this year. There are probabilities that the Sao Paulo mobile operation reach break-even in April of this year, which will take some pressure off finances.

Tagged with: Brasil Telecom • Brazil • EBITDA • Oi • operator • South America

Tigo’s mobile TV services launched in Colombia

On 03.15.10, In Mobile, By Editor

www.WirelessFederation.com/news: The mobile TV services of Colombian mobile operator Tigo have been launched. Discovery Mobile, Discovery Kids, Nickelodeon, Tooncast and Cartoon Network channels could be accessed by the subscribers directly on their mobile phones through this service.

By sending a text message with the word ‘dia’ to a special short number, Tigo customers can easily subscribe to the new service.

COP 3,900 per day will be charged by Tigo Mobile TV users and the service is available for prepay as well as postpaid Tigo customers.

Tagged with: Colombia • Launch • operator • South America • Tigo

Telecom Argentina net profit rises 46%

On 03.11.10, In Mobile, By Editor

www.WirelessFederation.com/news: 15 percent year-on-year rise in the revenues has been reported by Telecom Argentina generating ARS 12.26 billion in 2009. With 46 percent rise in the net income for the period reached ARS 1.4 billion. The mobile revenues of the company rose 16 percent to ARS 8.06 billion while the fixed-line revenues increased 14 percent to ARS 4.1 billion.

17% improvement in OIBDA has also been noticed which reached ARS 3.9 billion. 1.9 million new customers has been gained by the company in the year 2009 for a total of 14.5 million and out of total, 69 percent are prepaid and 31 percent are postpaid.

Company’s Paraguay unit, Nucleo had 1.8 million customers at the end of the period, down 1 percent from a year earlier. 2 percent increase in the number of lines of the fixed division has been showed which reached up to 4.36 million and the number of ADSL customers rose 17 percent year-on-year to 1.2 million users at end-December.

With 1% rise, ARPU for fixed customers reached ARS 40 in 2009.

Tagged with: Argentina • ARPU • Europe • Net Income • Net Profit • OIBDA • Paraguay • South America • Telecom Argentina

America Movil plans to buy back share

On 03.11.10, In Mobile, By Editor

www.WirelessFederation.com/news: In a move to carry out Latin America’s largest acquisition, telecom operator, America Movil SAB has planned to pay a one-time dividend and buy back more of its stock, thus rewarding investors. The proposal for a payout of 32 centavos a share to shareholders by April 30 has been submitted by the board of the company.

50 billion pesos ($3.96 billion) would be added to the share buyback fund by the plan, which had 7.15 billion pesos remaining as of yesterday.

A debt has been issued by America Movil, to prepare for the cash and stock purchase of Slim’s Telmex Internacional SAB to add home-phone, Internet and TV service in Latin America. The two deals are valued at more than $20 billion. 14.9 billion pesos of bonds was sold by the largest wireless carrier in the region last week in the biggest corporate debt issue in Mexican history.

200 million Swiss francs ($186 million) of five-year bonds is also planned to be sold by the company while 50.4 billion pesos for dividends and buybacks in 2009 has also been paid by the company.

Tagged with: Acquisition • America Movil SAB • Latin America • operator • South America • Telmex

Telefonica purchase of ETB raises questions (Colombia)

On 03.09.10, In Mobile, By Editor

www.WirelessFederation.com/news: Several market implications might arise with the potential purchase of Colombian telecoms operator ETB by Telefonica as ETB also owns 25% of mobile operator Tigo.

Tigo which is controlled by Luxembourg-based mobile group Millicom International Cellular had 4.19 million subscribers at the end of the year while Telefonica operating under the Movistar brand had 8.96 million subscribers at the end of 2009. When combined, the total subscriber base of the company will become 13.2 million, making it a distant second from America Movil’s Comcel, which ended the year with 28.8 million subscribers.

The merger will also result into four million fixed line subscribers and 1 million internet customers of Telefonica. Telefonica might also sell its stake in Tigo after which the other two shareholders, UNE-EPM with a 25% stake and Millicom with 50%, would have the right of first refusal.

EUR700 million (USD962 million) would be invested by Telefonica to acquire a controlling stake in ETB. 86.59% of ETB is currently controlled by the Bogota municipality and minority shareholders have the remainder. In order to improve its situation in the highly competitive telecom market, a partner is needed by ETB. The telco plans to sell new shares, equivalent to a 36.6% stake.

Tagged with: Bogota • Colombia • Luxembourg • Millicom • Millicom International Cellular • Movistar • operator • South America • Telefonica • Tigo • USA

Chile’s antitrust tribunal fines Telefonica with USD4.4m

On 03.09.10, In Mobile, By Editor

www.WirelessFederation.com/news: The ruling of Chile’s antitrust tribunal TDLC has gone in favor of Chilean IP telephony enabler RedVoiss’ and has fined telecom operator Telefonica with USD4.4 million. The company had filed a complaint against Telefonica Chile alleging that it has participated in unfair pricing.

As per the finding, clients are required by Telefonica to contract bundled services. The price for these packaged services is significantly lower if they were to be contracted on their own.

According to RedVoiss CEO Alberto Mordojovich, after two and a half years of hard work with the TDLC… this decision will allow for the sale of naked broadband and he also hoped that the decision will mean a lowering of internet access prices for many Chilean families and companies

Tagged with: Chile • IP Telephony • operator • South America • Telefonica • Telefonica Chile

Portugal Telecom should buy Telefonica’s stake in Vivo: Vasconcellos

On 03.08.10, In Mobile, By Editor

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.

Tagged with: Acquisition • Brazil • Europe • operator • Portugal • Portugal Telecom • Santo • South America • Vivo

Claro Argentina plans investment of USD800m in 2010

On 03.03.10, In Mobile, By Editor

www.WirelessFederation.com/news: An investment of around USD800 million has been planned by Argentina’s leading mobile operator by subscribers, Claro. Claro’s total capital expenditure last year was around USD700 million.

Company’s third-generation and fibre-optic networks will receive roughly 70% of the CAPEX, in order to support increasing demand for advanced services.

According to Claro’s president, Carlos Zenteno, 3G subscribers comprise around 20% of Claro’s approximately 17 million wireless customers, while the 3G network reaches 450 cities, covering 80% of the population.

Tagged with: 3G • Argentina • CAPEX • Capital Expenditure • Claro • Fibre-Optic Network • operator • South America

Telefonica Brazil to invest USD 1.9b

On 02.23.10, In Mobile, By Editor

www.WirelessFederation.com/news: BRL 3.5 billion is planned to be invested by Telefonica in Brazil throughout this year. BRL 2.3 billion of the total amount will go to Telefonica’s Brazilian fixed-line operator, Telesp.

Telefonica’s other units in Brazil, including internet portal Terra, call centre services provider Atento and mobile phone company Vivo will receive the remaining CAPEX.

Tagged with: Brazil • CAPEX • operator • South America • Telefonica • Telefonica Brazil • Telesp