Wireless Federation

Bernabe to be Executive Chairman of Telecom Italia

On 03.14.11, In Mobile, By Editor

If sources are to be believed, Telecom Italia SpA’s biggest investors have agreed to appoint Franco Bernabe, the current Chief Executive Officer, as Executive Chairman.

According to sources, Marco Patuano, who manages the company’s Italian operations for Bernabe, will be promoted to CEO and given a board seat. Luca Luciani, head of Telecom Italia’s Brazilian business, will become director general with responsibility for all of Latin America and report to Bernabe. Bernabe’s term expires next month.

Telco SpA, the company that owns 22.4% of Telecom Italia, will hold a board meeting to approve the reorganization. Telefonica SA, Mediobanca SpA, Intesa Sanpaolo SpA and Assicurazioni Generali SpA own Milan-based Telco.

Portugal Telecom Q4 net profits drop by 83%

On 02.28.11, In Mobile, By Editor

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.

Filed under:Mobile Tagged with: Brazil • depreciation and amortization • domestic wireline • earnings before interest • fourth quarter • Mobile • Mobile Revenue • Net Profit • Portugal • Portugal Telecom • Portugal Telecom SGPS SA • PT • Taxes • Telefonica SA • Vivo • Vivo Participacoes SA

China Unicom grows to highest after Telefonica deal

On 01.25.11, In Mobile, By Editor

China Unicom Ltd. has gone up to the highest level in more than two years after Telefonica SA agreed to increase its stake in the company.

According to reports, China Unicom gained as much as 3.9% in Hong Kong to $12.82, the highest intraday level since Sept. 8, 2008.

According to company’s statement, Telefonica has agreed to increase its stake in China Unicom to about 9.77% while the Chinese company will increase its holding in the Spanish operator to 1.37%. Each company will buy $500 million of shares in the other, with China Unicom buying treasury shares from Telefonica at $23 each. Telefonica will buy the China Unicom shares from third parties over the next nine months.

Filed under:Mobile Tagged with: China • china unicom ltd • Hong Kong • Mobile • Spain • Telefonica SA

O2 to shut 40 U.K. Stores

On 01.17.11, In Mobile, By Editor

Telefonica SA’s mobile-phone unit O2 is reportedly aiming to close 40 of its 490 U.K. stores in the next three months, resulting in about 400 job cuts.

According to reports, O2 is planning to close the company’s smallest stores.

According to the company, retail numbers will be the same at the end of the forthcoming redundancy process as current levels, and up on present numbers by the end of the year. It will recruit 250 technology advisers, or Gurus, at the same time, bringing its number of Gurus to 400 in total.

It is unclear whether O2 will seek to have, broadly, one Guru per store, or focus technical resource on tier-one shops.

The move is to expand its portfolio of devices and services and increase investment in technical support for customers.

Filed under:Mobile Tagged with: Job Cut • Mobile • O2 • Telefonica SA • UK

Telefonica De Argentina expects 45% increase next year

On 12.18.10, In Mobile, By Editor

Telefonica de Argentina, the local unit of Spain’s Telefonica SA is expecting a sharp 45% jump in its number of fixed, Internet and cell phone lines in service next year.

Telefonica de Argentina is expecting its number of broadband internet connections to rise 20% from 1.4 million and its cell phone lines to grow by 10% from 16.5 million. Mobile Internet services are expected to double.

According to the company’s new President Luis Blasco Bosqued, in total, the company has 22.5 million voice and data connections after growing by 1.1 million in 2010. The company also has 4.6 million fixed lines in service.

Telefonica de Argentina is the largest telecommunications provider in Argentina and shares a virtual duopoly on fixed-line services with Telecom Argentina SA. Both companies have seen a sharp rise in sales in recent years as Internet and cell phone use has surged amid brisk economic growth.

Filed under:Mobile Tagged with: Argentina • broadband internet connections • Fixed • internet • Mobile • new President Luis Blasco Bosqued • Spain • Telefonica de Argentina • Telefonica SA

Vodafone, O2 plans to Bid for U.K. Frequencies in 2012

On 11.17.10, In Mobile, By Editor

Vodafone Group Plc and Telefonica SA’s O2 unit will be able to bid for additional frequencies for high-speed data services in the first quarter of 2012, after a U.K. regulator set a timetable for spectrum auctions.

According to Chief Executive Officer Ed Richards, Ofcom, the telecommunications regulator, will publish a consultation and proposals for the auction at the end of February 2011. Bidding will take place in the first quarter of 2012 and the frequencies will be available for use in 2013 after the auction.

The timetable comes after the sale was delayed by more than two years. In July, the U.K. government has stated that the auction would take place at the end of next year. Ofcom had initially planned to award some spectrum in September 2009, followed by an additional award of frequencies made available by the ending of analog television signals.

The U.K. auction will follow the sale of spectrum in Germany and India this year. The German auction raised US$5.96 billion, while frequencies for third- generation mobile networks in India were sold for $14.6 billion.

Filed under:Mobile Tagged with: Bid • Chief Executive Officer Ed Richards • Germany • Germay • India • Mobile • O2 • Ofcom • Telefonica SA • U.K • U.K. Frequencies • Vodafone

Telefonica Net Profit More Than Doubles on Latin America (Spain)

On 11.11.10, In Mobile, By Editor

Spanish telecoms giant Telefonica SA (TEF) said Thursday its third-quarter net profit more than doubled as revenue growth in Latin America offset weak Spanish operations.

Madrid-based Telefonica, Europe’s second-largest telecommunications company by market value after U.K.-based Vodafone Group PLC (VOD), said net profit grew to EUR5.06 billion, slightly below forecasts from 16 analysts of EUR5.29 billion, due to higher taxes.

Telefonica also said operating income before depreciation and amortization, or Oibda, rose 65% to EUR9.46 billion during the same period, while total revenue increased 7.3% to EUR15.23 billion.

The appreciation of Latin American currencies against the euro also boosted revenue growth abroad.

Telefonica recently purchased Portugal Telecom SGPS SA’s (PT) stake in Vivo Participacoes SA (VIV) in order to take full control of the Brazilian cellular company. Telefonica plans to merge the company with fixed-line telecommunications company Telesp (TSP) to bulk up its operations in the high-growth Brazilian market.

The acquisition also boosted profits due to asset valuation adjustments, Telefonica said.

Filed under:Mobile Tagged with: Brazil • Latin America • Mobile • Portugal • Portugal Telecom SGPS SA • Spain • Telefonica SA • Telesp • U.K • Vivo • vodafone group plc

Vodafone to sell iPhone In Germany

On 10.22.10, In Mobile, By Editor

Germany’s second-largest mobile operator by subscribers, Vodafone will be selling Apple Inc.’s iPhone 4 in its German shops from Oct. 27.

The minimum monthly fee including payment for the iPhone is set between US$34.75 and US$139.23, depending on the contract type subscriber selects.

Telefonica SA’s O2 and Vodafone PLC both last week confirmed that they will sell the iPhone 4 within the next few weeks in Europe’s largest economy, ending the exclusivity of incumbent telecom provider Deutsche Telekom AG ahead of the crucial Christmas holiday season.

The iPhone 4 will be available in over 1,600 Vodafone shops. The company isn’t expecting any delays in delivery.

The iPhone features: Glass front and back, Front facing cam for video conferencing, 5 megapixel camera with LED flash, 720p HD video recording, Apple A4 chip, 32 GB of Storage, Dual mic suppression, 802.11n Wi-Fi and iOS 4.

Filed under:Mobile Tagged with: Apple Inc • Deutsche Telekom AG • Germany • iPhone • Mobile • O2 • Telefonica SA • Vodafone

Hong Kong Operators Planning combined LTE Network

On 10.20.10, In Mobile, By Editor

If reports are to be believed, Hong Kong’s PCCW is close to announce plans to build a new wireless network as a joint-venture with rival network, Hutchison Telecommunications.

As per reports, citing an interview with PCCW Managing Director, Alex Arena, details about the 4G network are expected to be announced within a few weeks.

The move would build on the strategy by Hong Kong’s richest family to fend off competition from China Mobile Ltd. and Australia’s Telstra Corp. in offering wireless services for smartphones such as Apple Inc.’s iPhone. PCCW and Hutchison would follow companies including Vodafone Group Plc and Telefonica SA in sharing networks to save costs.

According to Tucker Grinnan, head of Asian telecommunications research at HSBC Holdings Plc in Hong Kong, there is a broader trend globally for carriers to share networks. Companies focus less on network coverage and focus more on services and branding.

A joint-venture between PCCW and Hutchison Telecommunications won a license to offer LTE services in Hong Kong during a government auction last January. The planned network would share infrastructure, but would retail products to customers under their existing network brand names.

Filed under:Mobile Tagged with: 4G • Australia • China • China Mobile Ltd • Hong Kong • Hutchison Telecommunications • LTE network • Mobile • PCCW • Telefonica SA • Telstra Corp. • vodafone group plc • Wireless network

TIM Chief Luciani believes Mobile Data Sales will double in 3 Years

On 10.16.10, In Mobile, By Editor

As per Tim Participacoes SA Chief Executive Officer Luca Luciani, Brazil’s third-biggest wireless carrier will double its revenue from data services such as text messages and Internet access over the next three years, helping discourage rivals Telefonica SA and America Movil SAB.

According to Luciani, the carrier, controlled by Telecom Italia SpA, is betting that high-speed Internet service over mobile devices will be more attractive to Brazilians than the landlines connections its bigger rivals have acquired. Tim is spending US$4.21 billion this year through 2012 to improve its network for data service.

He further explained that to encourage users to spend more on data, Tim is offering its users Web access on mobile phones for 30 cents a day. That might help Tim compete against landlines Internet providers, who only offer high-speed service over about 20% of the nation’s fixed phone connections. The company is already offering, even to prepaid customers, access to the Internet for everybody. It is a much more competitive platform.

According to Luciani’s estimates, Tim, based in Rio de Janeiro, will have about 50 million customers by the end of the year, including 10 million possessing handsets compatible with its 30-cents-a-day Internet access plan.

Filed under:Mobile Tagged with: Brazil • Chief Executive Officer • Luca Luciani • Mobile • Rio de Janeiro • Telecom Italia SpA • Telefonica SA • Tim Participacoes SA