Telecom operator TeliaSonera will acquire a 49 percent stake in Kcell for US$ 1.5 billion. According to company reports, the operator will sell 25 percent of the shares minus one share in Kcell in an Initial Public Offering (IPO), which is expected to be completed in the first quarter of 2012.

Company reports reveal, Tero Kivisaari, President, TeliaSonera Eurasia, this agreement is another step in the execution of their strategy of increasing ownership in core holdings. Through this transaction TeliaSonera increases its ownership in Kcell, a company where they already have management and operational control. Kcell is a clear market leader in Kazakhstan, the largest market in Central Asia, and has shown remarkable growth over the years. The fact that part of the company will be sold in an IPO will make it even more attractive.

The company hopes to finalize the agreement, subject to regulatory approvals by the first quarter of 2012.

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Azerbaijan’s second largest mobile operator in terms of subscribers, Bakcell, has reportedly launched its 3G services in 62 cities under the brand ‘sur@’. The operator which received the 3G licence from the Ministry of Communications and Information Technology (MCIT) earlier this month reportedly plans to extend its 3G services to the country’s rural areas during the next year.

As per sources, the mobile broadband service provides users access to a maximum download speed of up to 14.4 Mbps across all coverage cities, with the speed reaching up to 28 Mbps in the capital, Baku. Further, reports reveal that Bakcell plans to launch Dual Carrier HSPA+ services over the network, which would raise the download speeds to 42Mbps.

Bakcell is the third operator in the country to offer its users 3G services. Mobile network operator Azerfon was the first to launch 3G in December 2009, followed by Azercell, subsidiary of TeliaSonera, which launched its 3G services last week.

 

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Sweden based telecom firm, Tele2 is reportedly looking for acquisition opportunities in Central Asia, in an attempt to better compete with rival operator TeliaSonera. According to reports, Tele2 had acquired a majority stake in Kazakhstan’s wireless operator NEO, in March 2010.

As per sources, Lars Nilsson, CFO, Tele2 has said that countries in the vicinity of Kazakhstan can always be of interest as long as the market is not too small. He added that the target markets need at least 1 million potential customers for Tele2 to make an investment worthwhile. Further, reports suggest that Tele2 has more than 1 million Kazakh customers and expects to reach as many as 2.5 million by the end of 2012.

TeliaSonera currently operates in the regions of Azerbaijan, Georgia, Moldova, Tajikistan and Uzbekistan. As per reports, it is looking to increase its stake in partially owned companies and is currently investing more in Kcell.

Sources claim that Telenor has been focusing on India and regions in Southeast Asia for opportunities in the emerging markets. According to reports, Richard Olav Aa, CFO, Telenor said that he expects Indian authorities to create more transparent rules for mergers and acquisitions within the next three years, and the company would be able to engage in mergers if it meets its 2013 breakeven goal.

 

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TeliaSonera, a leading telecommunications service provider, expects lower operator bills for users surfing the web through smartphones, tablets and laptops outside their home countries. As per reports, Lars Nyberg, President and CEO, TeliaSonera, has said that the industry has been shooting itself in the foot for years with the kind of prices they’ve had and that it has been a major mistake. He added that people turn off their roaming at the airport and don’t like to use their phones due to sky high prices.

Mr. Nyberg believes that lowering the data roaming prices would help improve the company’s overall profitability by encouraging more users to access data at affordable rates.  TeliaSonera had cut its data roaming prices by 90 percent this year for users travelling within the Nordic and Baltic countries and aims to extend this to almost 30 countries. As per reports, customers were able to access 20 megabytes of data at a charge of only $7.6 each day, significantly lower than the proposed ceiling of $1.24 per megabyte by the European Commission. Further, users are also sent a text message if they are required to top up their account.

While industry insiders feel that this move may negatively affect the company’s profits, Mr. Nyberg believes that this would infact better their earnings as compared to before.

 

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In order to safeguard good corporate governance in Turkcell, to the benefit of all shareholders, and protect its legal rights as minority shareholder, TeliaSonera takes legal action against the Chairman of Turkcell, Mr. Colin J. Williams.

TeliaSonera has for years argued that the number of independent board members in Turkcell has to increase in order for Turkcell to follow requirements by the Turkish Capital Markets Board and the U.S. Securities and Exchange Commission. Such actions have however been blocked by Cukurova and the Chairman of the Board, Mr. Colin J. Williams.

TeliaSonera has lately put forward formal requests to the Board of Turkcell to add the possibility for Turkcell’s shareholders to address the board composition at the upcoming Annual Shareholders’ Meeting (AGM). The right for a minority shareholder, with more than 5 percent of the shares in a listed company, to address an issue at the AGM is a basic and clear right under Turkish law. TeliaSonera has now, through the actions of a minority of the Turkcell board members, been denied this legal right. The actions are clear violations of the law. It is particularly troubling that the Chairman of the Board, Mr. Colin J Williams, who is the only independent board member and whose vote would have altered the Board’s decision, has acted against the law.

Following the law is a minimum requirement for a Chairman of a major listed international company. We also believe that issues regarding corporate governance should be openly discussed and decided by all shareholders at the AGM and not be blocked behind closed doors by a minority of the Board,” says Cecilia Edstr¶m, Senior Vice President and Head of Group Communications.

We take the fact that Mr. Colin J. Williams has been blocking certain vital corporate governance issues as evidence that he is not acting as an independent member and impartial Chairman of the Board of Turkcell. He should therefore be removed from his duties, in order not to cause the company and its shareholders any further damage,” Cecilia Edstr¶m continues.

TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act.

Opposition politicians in Sweden have blocked plans by the minority government to sell stakes in state-owned companies, including the government held stake in TeliaSonera. The government lost the vote 172-170 with seven members declining to vote in the debate.

The government had also planned the sales of stakes in mortgage lender SBAB, postal service company Posten Norden and utility Vattenfall – but lost its working majority in the Parliament in last September’s elections.

The government recently raised US$3 billion from the sale of a third of its 19.8% stake in Nordea Bank, and was expected to raise a further US$15 billion from selling stakes in the other companies.

The Swedish government owned 37.3% of TeliaSonera at the end of last year, according to the figures on their website. The Finnish government also owns a 13.7% stake in the company, with the rest floated on the stock exchange.

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TeliaSonera’s Norwegian subsidiary NetCom has won a contract from The Norwegian Broadcasting Corporation (NRK) to become NRK’s new supplier of voice and mobile broadband.

Covering a period of 4 years, the contract is worth US$10.65 million and includes 3,600 mobile subscriptions, transfer of fixed voice traffic, mobile broadband and several thousands 4G subscriptions.

Over the coming two years, NetCom is planning to invest US$177.61 million on increased network coverage, mobile broadband speed and quality. 4G next generation mobile broadband with speeds of up to 80 Mbps will be launched in large parts of Norway during the period.

 

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Seven companies have been reportedly shortlisted to buy Polish cellco Polkomtel. According to reports, the list includes TeliaSonera, Telenor, four private equity fund consortia led by Blackstone Group, KKR, Prudential and Bain Capital, as well as Polish media mogul Zygmunt Solorz-Zak.

According to reports, Solorz-Zak had placed the highest bid -worth more than US$6.32 billion. The amount is above the highest valuation of Polkomtel, prepared by BZ WBK brokerage for one of the cellco’s shareholders. Reports added that a shortlist of bidders will be selected to conduct due diligence within the next few days.

Polkomtel’s current shareholders are Vodafone Group, Polish oil refiner PKN Orlen and copper mining group KGHM Polska Miedz, each with 24.39% stakes. Polish power utility PGE Polska Grupa Energetyczna owns a 21.85% stake while coal miner Weglokoks holds 4.98%.

 

TeliaSonera’s subsidiary, the mobile operator EMT in Estonia, has created a world’s first mobile identification service which makes it possible to vote via a mobile phone. The service enabled the citizens of Estonia to cast their vote to yesterday’s parliamentary elections via their mobile phone for the first time in the world.

Estonia has become the first country in the world to allow its citizens to cast their votes in the parliamentary elections with their mobile phones. TeliaSonera’s subsidiary EMT has created a Mobile ID-service that enables verification of people’s identity over the Internet, digital signature, and now casting votes electronically as well.

It is a technological breakthrough that a mobile phone could be used for giving legally binding digital signature replacing handwritten signature on paper. We are very proud to be able to use this kind of innovative mobile service for voting in elections. Additionally all kind of other e-services can be used with the Mobile ID in Estonia”, says H¥kan Dahlstr¶m, President of Mobility Services.”

Electronic voting by ID card has been used in Estonia already for six years since the local elections in 2005. The number of e-voters has grown constantly from 1.9% to 15.8% of total voters in 2009 local elections.

Estonia has stood out with adoption of innovative e-solutions in the past as well and I’m pleased that voting with Mobile ID becomes the next step in our pro-tech development, said Juhan Parts, Minister of Economic Affairs and Communications.

2011 Parliamentary elections will take place in Estonia on March 6th, 2011.

EMT is TeliaSonera’s subsidiary in Estonia. EMT launched Mobile ID service in May 2007. Mobile ID service was initially available only for EMT customers for using e-services created by both private (e-banking, e-service environments) and public (state portal eesti.ee, e-Tax Board, etc.) sectors. Other Estonian mobile operators joined the service platform created by EMT at a later time. In February 2011, new wording of Identity Documents Act that makes Mobile ID a state-approved electronic document as of February 1st 2011 entered into force. In addition to verification of an identity and digital signatures, new state-approved Mobile ID enables to cast votes in elections as well.

TeliaSonera provides network access and telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain. TeliaSonera help people and companies communicate in an easy, efficient and environmentally friendly way. Our ambition is to be number one or two in all our markets, providing the best customer experience, high quality networks and cost efficient operations. TeliaSonera is also the leading European wholesale provider with a wholly-owned international carrier network. In 2010, TeliaSonera’s net sales amounted to SEK 107 billion, and at the end of December 2010 the total number of subscriptions was 156 million in 20 countries. The TeliaSonera share is listed on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Read more at www.teliasonera.com

 

Sweden’s TeliaSonera said Friday it had acquired new frequencies through a government telecommunications licence auction after bidding SEK854 million which it would use to further expand its growing next-generation 4G network.

The telecommunications firm said it had been awarded a licence by the Swedish Post and Telecom Agency within the 800 MHz band. TeliaSonera said the licence award will enable it to further expand the first and “most extensive” 4G network in Sweden.

“Together with the company’s investments in fixed broadband and other mobile networks, this will give our customers the best Internet access wherever they are,” the president of TeliaSonera’s Mobility Services division, Hakan Dahlstrom, said in a statement.

TeliaSonera has aggressively developed its 4G capabilities since it became the first global operator to launch commercial next-generation mobile broadband in December 2009 by opening 4G networks in Stockholm and Oslo.

Last year, the company launched 4G networks in Denmark, Finland and Estonia and it has also deployed pilot 4G networks in Lithuania, Latvia and Uzbekistan.

The government licence granted to the telecommunications group is valid for 25 years and covers the frequency blocks of 2×10 MHz in the 800 MHz frequency band. TeliaSonera will make the SEK854 million payment to the government for the licence in the second quarter of 2011.

The company also has operations in Russia, Turkey and Spain and reported net sales of SEK107 billion in 2010.