Telenor sees potential in Pakistan

www.WirelessFederation.com/news: It has been announced by telecom operator Telenor that the operators are not generating enough profit per phone user to have five mobile groups in Pakistan.  The operators would have to consider mergers or acquisitions to see significant growth.

Telenor made its entry into Pakistan exactly five years ago and currently it is the second largest cellular phone operator after Mobilink, a subsidiary of Egypt’s Orascom Telecom.Pakistan’s. The other mobile operators include Ufone, Warid Telecom and Zong.

Telenor is considering a broader expansion in Pakistan along with India, Thailand, Malaysia and Bangladesh. 26 per cent of revenues in 2008 by the company were generated in Asia. The rest of the income came from eastern and central Europe and the Nordic region.

Telenor’s has been concentrating its attention  on its 67.3 per cent investment in Unitech Wireless of India but big potential is also seen in Pakistan, which has seen a phenomenal increase in the number of mobile phone users over the past decade.

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www.WirelessFederation.com/news: A 30% growth in the revenue has been expected by Thailand’s sole satellite operator, Thaicom PCL due to its expansion into new markets. The company should start recognizing revenue from the markets in Japan and India where it had signed the agreement from the second quarter.

The company is also aiming to become a high-speed broadband provider in Australia. The firm’s revenue this year could grow as much as 80% to over the THB7.19 billion recorded in 2009 if the deal with the two countries goes according to the plan.

According to the company’s Chief Financial Officer Tanadit Charoenchan, Thaicom is in talks with Thailand’s state-owned telecommunication service provider TOT PCL to offer bandwidth service to support TOT’s 3G operations and it should swing to a net profit this year after posting a net loss of THB471.23 million last year.

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www.WirelessFederation.com/news: The way for the auction of four 3G licenses this year has been paved with the endorsement of the new board of Thailand’s regulator. National Telecom Commission (NTC) was advised by Thailand’s Cabinet Secretariat that the Royal Household has approved the appointment of four new NTC directors.

The Prime Minister’s Office was asked to “double check” the proposed NTC directors backgrounds by the Royal Household last month after it emerged that one of the nominees Col. Natee Sukolrat is under investigation by the National Anti-Corruption Commission (NACC).

2100MHz spectrum would be allocated for 3G. The government had intended generating 350 billion rupee for its budget coffers by March 31.

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www.WirelessFederation.com/news: Telenor’s Q4 profit grew 25% year-on-year despite quarterly and annual declines in revenue because of increasing subscriber numbers in Asia.  Net profit hit 2.5 billion kroner (€308 million) from 1.9 billion kroner even after sales fell from 29 billion kroner to 26 billion year-on-year.

The quarterly and annual growth of the operator is contributed by growing number of subscribers at Telenor’s operations in Pakistan which added 842,000, Thailand which added 386,000 users, and Bangladesh which added 1.2 million subscribers, thus ending 2009 with a total of 174 million subscribers.

According to CEO Jon Fredrik Baksaas, 2009 results reflect the firm’s focus on geographical presence and reorganization of its activities and he also predicted single digit growth in organic revenues for 2010, and EBITDA margin of 27%-28%, excluding other income and expenses.

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www.WirelessFederation.com/news: Thailand’s mobile market leader Advanced Info Service (AIS) will have to wait for another four to six months before beginning the proposed data roaming service on the state enterprise’s 2100MHz 3G networks.

The decision has been taken by the board of Thai state-run telco TOT in order to give its contracted mobile virtual network operators (MVNOs) some marketing leeway. AIS, operating as a small-scale 3G network using 900MHz frequency have been proposed to offer its users 3G data roaming on TOT’s 2100MHz network today for a trial period.

However, TOT has faced an outcry from the five MVNOs – Loxley, Samart I-Mobile, 365 Communication, IEC International and M Consultant Corporation, who are committed to reselling services over the TOT 3G networks which launched in Bangkok in December 2009.

According to AIS chief executive Wichian Mektrakarn, Shin Corp-owned cellco had told TOT that it would cease the voice roaming service pending consultation with the National Telecoms Commission (NTC), in addition to suspending a pricing agreement with TOT under which the latter’s customers are charged THB0.60 (USD0.018) a minute for roaming instead of THB1.10.

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www.WirelessFederation.com/news: Over 100,000 iPhones has been sold by Thai mobile operator TrueMove and to celebrate this milestone, the company is launching a Valentine’s promotion. Discounts and special phone numbers will be offered as a part of the promotions if a customer buys two devices at the same time.

In the offer, the 8 GB model priced at THB 19,900 costs THB 18,800, the 16 GB model priced at THB 24,500 costs THB 22,900, and the 32 GB model originally priced at THB 28,900 is offered for THB 26,400.

Further sales of 120,000 iPhone 3G mobile phones have been targeted by the company.

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www.WirelessFederation.com/news: Thailand will have to wait for its 3G auction, scheduled to take place in the second quarter, for another two years. According to Wichien Mektrakarn, CEO of the country’s leading cellular operator AIS, country’s 3G auction may not take place until 2012 since the ratification of NTC board is still unclear.

AIS has already rolled out 3G services using its existing 900 MHz spectrum in Chiang Mai, Chon Buri and Hua Hin and intends to further the rollout of its 3G service in partnership with the TOT.

The delay is caused due to the failure of Royal Household in appointing the four new directors to the NTC.

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www.WirelessFederation.com/news: Vietnam leading mobile operator, Vinaphone will start international roaming service by 2010. The decision came after the company joined Conexus, an alliance of international mobile phone providers. Through
this agreement, subscribers to one of the alliance’s members and VinaPhone’s users will be permitted to use the services provided by all the other members of the alliance.

A flat rate of 0.2 USD per SMS on roaming will be charged from the customers of Conexus’ 11 members. Other support services such as handset lending, SIM card replacements overseas, making free calls to 18001091 when in Vietnam will also be provided to the subscribers.

11 members of the Conexus Mobile Alliance networks is there in growing economies such as the Republic of Korea , Japan , Hong Kong , Taiwan , Macau , India , the Philippines , Indonesia , Singapore and Thailand and boasts a combined customer base of more than 240 million mobile subscribers across the region.

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TOT launches 3G network in Thailand

www.WirelessFederation.com/news: The launch of 3G network by Thailand’s state-controlled mobile network TOT got a cold response from the subscribers. However, initially the network will be available only in Bangkok and the areas surrounding it. Expansion of the network in the near future relies on the auction of the 3G license.

National Telecommunications Commission (NTC) will offer four licenses- three of 10 Mhz and a fourth with 15Mhz of radio spectrum while the reserve price will range between US$100-US$200 million. The process will not take place until next year as there is a lack of executives to form a quorum.

Small trials of 3G networks are already run by the current operators over their existing GSM radio spectrum, while CAT Telecom which is a CDMA operator, is seeking an overseas investor to assist in 3G rollout plans

The board of CAT Telecom has given the green light to sign a memorandum of understanding with Hutchison Telecom on CAT’s plan to buy four Thai cellular and related businesses from the Hong Kong telecom operator. Hutchison-CAT is a 75:25 joint venture of Hutchison Telecom and CAT.

The board has assigned CAT CEO, Jirayuth Rungsrithong to sign the MOU before the end of this week.

CAT will buy BFKT, a wholly owned subsidiary of Hutchison Telecom. CAT also plans to buy assets of Hutchison Telecom in the joint venture – its call centre and content businesses.

The CAT board also approved the plan to hire Allen & Overy for legal advisory services, Bualuang Securities for financial advisory services and Chulalongkorn University’s Chula Unisearch for HR advisory services.
CAT will transfer under itself a combined 1,000 employees of the four businesses it plans to buy.

Hutchison Telecom had invested about Bt30 billion in the CDMA business since Hutchison-CAT’s service debut in 2003.

Interestingly also, Krisda said CAT was concerned about a clause in the draft law governing the creation of the new broadcasting and telecom regulator in Thailand. The clause mandates that if CAT were to list shares in the stock exchange, it will have to either pay half of its revenue to the state or return to the state the spectrum it granted to private concessions.

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