Vietnam to privatise telecom groups next year
HANOI (AFP) – Vietnam’s three major telecom companies are expected to be partly privatised next year with the majority of the stakes remaining under government control, officials said.
State-owned Vinaphone, MobiFone and the army’s Viettel said earlier this year they would open their mobile activities to the public without providing any firm calendar dates.
“We plan to equitise them next year, according to a program approved by the government in 2005,” said Nguyen Khac Lap, office manager of Vietnam Posts and Telecommunications Ministry.
“We have set no specific date for each company. There are a lots of things to do before the plan is achieved,” he said.
Vinaphone and MobiFone, both subsidiaries of state-owned giant Vietnam Posts and Telecommunications Corp (VNPT), currently lead the market.
But the Vietnam Military Electronics and Telecommunications Co. has won widespread praise for its dynamic approach to business since it started operations in late 2004.
The country is considered the second fastest growing telecoms market in the world after China. There are about 13 million mobile phone users in the country of more than 84 million people.
Several foreign groups have shown interests in the sector, among whom French France Telecom, Swedish Comvik and Norwegian Telenor.
Vietnamese banks, investment funds and other local private companies have also followed the process closely, observers said.
But major details remain to be settled. The government has not yet decided on the size of a maximum stake foreign investors can acquire.
“We advised authorities to choose one strategic partner for each company, someone that would invest and bring methods, technology and know-how,” an industry insider said, asking not to be named.
“In a second phase, they could also list the group at the stock exchange and open it to other smaller investors.”
“The privatisation will be a long and progressive process,” he added saying the 2007 target was not impossible but might prove difficult to reach.
Vietnam’s telecom sector has experienced major changes over recent years and will face further pressure once Vietnam joins the World Trade Organization (WTO).
Privatisation of the sector has been fiercely negotiated with foreign countries, especially the United States, and is part of Vietnam’s commitment to join the world trade body.
“The integration of the equitised companies would lower the state’s investment burden, sharing the costs among investors,” said the English-language daily Vietnam News, citing the deputy minister of posts and telecommunications.
Internet and the landlines network will remain entirely controlled by the Vietnamese state.
Source- http://au.news.yahoo.com
Nokia and Plan Give a Voice to Africa’s Youth
ESPOO, Finland, October 10 /PRNewswire-FirstCall/ — Nokia (Nachrichten/Aktienkurs) and international children’s organisation, Plan, have joined forces to use modern communications technologies in Africa to raise children’s awareness of their rights and opportunities. Nokia has provided an initial donation of 1 million Euros for 2006. The first stage of this new joint effort will see Nokia focus on supporting Plan’s existing media and communications technology projects for Africa’s children and youth.
“We believe that we can have a positive impact through mobile technology as it is used to enable young people to realise their full potential. The aim of our cooperation with Plan is to fight poverty by empowering African youth and giving them a voice through the use of technology. Plan has a good existing network, positive track record and extensive experience in using technology for youth development in Africa and was therefore, a very good value fit for Nokia,” said Veli Sundback, Executive Vice President, Corporate Relations and Responsibility, Nokia.
“Plan is committed to working in partnerships, not only with local groups or governments in the countries where we work, but also with like-minded corporate organisations like Nokia. I believe that this cooperation will deliver long-term sustainable benefits for hundreds of communities in the developing world,” said Tom Miller, Plan CEO.
Access to and use of Information Communication Technologies (ICT) such as radio, the internet, mobile devices and television is a vital element in helping to tackle poverty and improve the respect, fulfilment and protection of children’s rights. In this cooperation, ICT becomes an important tool for children and youth to make their voice heard and to learn about issues that are relevant for them.
Involving children in digital media production either on the radio, in video productions or in music helps introduce the potential of ICT to communities affected by poverty in a non-threatening way and links remote communities to a much wider national audience. Producing their own digital media is often revolutionary for many children, providing them with the chance to gain self-confidence and further influence their own future.
About Plan
Plan is a humanitarian child-centred organization working in 46 developing countries, with families and their communities. Founded almost 70 years ago, Plan has no religious, political or governmental affiliation. Plan has 64 child media projects running in 31 countries at present. These projects include radio programs on child rights in West Africa; video projects in India, Kenya and Tanzania; radio and newspaper projects in Central America; TV production in Vietnam; internet projects for teenagers in Burkina Faso; and radio programs in Thailand, the Philippines and Malawi.
About Nokia
Nokia has a positive impact on society that extends beyond the advanced technology, products and services the company creates. Through its cooperation with non-profit and governmental organizations, the company prepares young people to embrace opportunities created by the global economy and new technological advancements. The company has been an active regional contributor to youth and education causes for many years, with Nokia employees making their own contributions as volunteers in a range of programs throughout the world.
Source- http://www.finanznachrichten.de
Research and Markets: China Mobile Limited – Has the World’s Largest Mobile Subscriber Base With Over 260 Million Users
Research and Markets (http://www.researchandmarkets.com/reports/c42991) has announced the addition of 2006 Asia Telco Company Profiles to their offering.
This report presents 12 profiles of selected major telecommunications companies in Asia. Each profile provides a descriptive overview of the business of the particular company as well as the latest available financial and operational statistics.
Topics Covered
1. BHARAT SANCHAR NIGAM LTD 2. CHINA MOBILE LIMITED 3. CHINA NETCOM GROUP 4. CHINA TELECOM CORPORATION 5. HUTCHISON WHAMPOA LTD 6. NTT DOCOMO 7. PACIFIC INTERNET LTD 8. PCCW LTD 9. SINGTEL 10. STARHUB PTE LTD 11. TELEKOM MALAYSIA 12. VIETNAM POSTS & TELECOMMUNICATIONS CORPORATION 13. GLOSSARY OF ABBREVIATIONS List of Tables & Exhibits
Summary
Bharat Sanchar Nigam Limited (BSNL) – India’s state-owned BSNL owns around 85% of the country’s copper wire local loop networks. The company is the largest telecom operator and the largest public sector enterprise in India, providing basic fixed-line services nationwide, except for the cities of Mumbai and Delhi. BSNL lost its exclusive rights to local access and national telephony in 2001. To compensate for reduced revenues, it built a national GSM network and entered the mobile sector, becoming one of the country’s biggest GSM operators. The company also entered the international telephony market in February 2003.
China Mobile Limited – China Mobile has the world’s largest mobile subscriber base (over 260 million) and the largest geographically contiguous mobile network. The company also has a strategic alliance with Vodafone. Listed on the New York and Hong Kong stock exchanges since 1997, China Mobile has been facing competition from cheaper city-based PHS mobile services offered by the country’s two big fixed-line operators. In preparation for 3G services in China, the company submitted its application for a WCDMA licence in July 2005.
China Netcom Group – China Netcom Group is the second largest fixed-line operator in China. The group owns 30% of the country’s fixed-line infrastructure and serves 35% of its fixed-line customers. As part of its infrastructure it has a 360Gb/s IP backbone network and the Asia Netcom submarine cable network. Its services include PSTN and VoIP telephony, the ‘Little Smart’ PHS service, broadband Internet access, leased lines and VPNs. With an IPO in November 2004, it was the last of the major telcos in China to go public.
China Telecom Corporation Ltd – China Telecom Corporation Ltd is the principal provider of local, domestic and international voice and data services, dial-up and broadband Internet access in 20 of the 31 regions in China. The company commenced operations in September 2002, then went public on the HKSE and NYSE in November of that year, after the government split the original state-owned China Telecom into the China Netcom and the current China Telecom. Revenue growth engines have included the company’s PHS mobile service and its broadband Internet service. In mid-2005, China Telecom signed a landmark cooperative agreement with ZTE to provide the world’s largest fixed-line Next-Generation Network (NGN) in China covering 30 provinces.
Hutchison Whampoa Ltd – Hutchison Whampoa, a huge Hong Kong based conglomerate, has become heavily involved in telecommunications and is now a serious global player. As well as its Hong Kong business, it has a presence in a growing number of countries throughout Asia, Europe, Australasia, the Middle East, Africa and South America. Specialising in mobile communications, the company has invested billions in Third Generation (3G) licences and infrastructure and has been at the forefront of the global 3G roll-out.
NTT DoCoMo – Listed on the Tokyo, London and New York Stock Exchanges, NTT DoCoMo is controlled by NTT Corporation and is the mobile arm of the NTT group. DoCoMo is one of the largest mobile carriers in the world. In 2001, it became the first operator in the world to launch a 3G service. The company provides 2G and PHS mobile telephony, FOMA 3G mobile communications based on the WCDMA standard, i-mode mobile Internet access and email messaging platform and satellite mobile communications. DoCoMo’s 3G service surged in sales in 2004/05 after three years of weak sales. DoCoMo was determined to launch its 4G services during 2006, several years ahead of its competitors.
Pacific Internet Ltd – NASDAQ-listed Pacific Internet Ltd is one of the largest Internet Service Providers (ISPs) in the Asia Pacific, providing Internet access and services in Singapore, Australia, Philippines, Hong Kong, Thailand, India and Malaysia. Pacific Internet provides end-to-end Internet services for corporate and residential customers, including dial-up access, DSL and wireless broadband access, leased line services, web hosting and e-commerce services. Listed on the NASDAQ, Pacific Internet Ltd no longer has the government-owned SembCorp Ventures as a major shareholder. SembCorp sold its remaining shares to an investment company, Kingsville Capital, in 2005. Some months later, Kingsville sold its shareholding to venture capitalist Vantage Corporation.
PCCW Ltd – PCCW has been Hong Kong’s dominant fixed-line telecommunications provider since it acquired the incumbent, Cable and Wireless HKT, in 2000. Since the takeover, the company has been struggling with debt and organisational restructuring in its effort to remain viable. In January 2005, China Netcom reached an agreement with PCCW on the purchase of a 20% stake in PCCW for US$1 billion.
Singapore Telecom (SingTel) – Listed on the Singapore and Australian Stock Exchanges, SingTel is majority owned by the Singapore government. SingTel is the leading provider of fixed-line, mobile and Internet services in Singapore. With a small, saturated and competitive home market, SingTel has significant offshore interests, which now contribute a majority of its revenue. Its main subsidiary is Optus in Australia. Others include Telkomsel in Indonesia, Globe Telecom in the Philippines, Bharti Telecom in India and AIS in Thailand. The company has significant investments in international submarine cable networks, satellite systems and data centres.
StarHub Pte Ltd – StarHub provides voice and data services over fixed, mobile and Internet platforms. After a period of strong growth, the company has passed MobileOne to take second position behind SingTel in the mobile market and is now closing in on the incumbent. StarHub has deployed an IP-based network to serve corporate customers and has been building a nationwide network to serve the residential market. In April 2001, the operator was awarded a 3G mobile licence and launched a 3G service in 2005. Singapore Cable Vision merged with StarHub in July 2002, renaming itself StarHub Cable Vision, providing cable TV and broadband services. The operator’s broadband base represented over 50% of the residential broadband market in Singapore by end-2005.
Source- http://www.redorbit.com
SingTel joint venture to provide managed network services in Vietnam
Vietnam Posts and Telecommunication Group or VNPT has appointed SingTel’s ASEAN joint venture, ACASIA, to provide managed network services in the region.
VNPT will work with ACASIA to supply a number of managed network services.
These include support, data transmission and value-added services.
VNPT will also invest in a service node in Vietnam to connect with the nodes of other network members.
It will then be able to provide a seamless end-to-end service to business customers.
SingTel customers who subscribe to ACASIA’s services will not have to coordinate with multiple operators and parties for their telecommunication needs.
Source- http://www.channelnewsasia.com
Solid revenues for Hutch from India
NEW DELHI: Hutchison Essar reverted to its first- half revenue, mainly through its
India operations, even as it is embroiled in a row with its Indian partner, over the merger of BPL (Mumbai) circle. The mobile telephony business has contributed almost 45 percent of its global turnover HK$15,666 million in the first half of 2006.Hutchison has attributed the improvement in its profitability to strong performance in the India and Israel markets.Declaring the results, Hutchison Telecom’s CEO, Dennis Lui maintained that the ties between Hutchison and its associate, Essar remained harmonious. “We are in control of Hutchison Essar since we own 67 percent of the company. So I think we have the ultimate say. I think both our interests are to grow the value of the business,” he stated.Hutchison Essar is Hutchison Telecom’s largest revenue contributor with its earnings before interest, tax, depreciation and amortization (EBITDA) increasing to 47 percent to HK$2,316 million.However, the sustenance of the profitability in the second half relies on the timing of the launch of operations in Indonesia and Vietnam, which are scheduled to happen in the second half of this year.
Source- Siliconindia
Technorati : EBITDA, Essar, Hutchison, India
Ice Rocket : EBITDA, Essar, Hutchison, India
Hutch returns to profit on better business in India, Israel
(Associated Press via NewsEdge) Hong Kong-based Hutchison Telecommunications returned to profit in the first half of this year, boosted by an improvement in its businesses in India and Israel.
Net profit for the six months ended June was HK$2 million ($257,100), a turnaround from a net loss of HK$370 million ($47.6 million) in the first half last year.
Hutchison Telecom, a unit of Hong Kong tycoon Li Ka-shing’s Hutchison Whampoa, said its first half revenue rose to HK$15.67 billion ($2.01 billion), from HK$10.59 billion ($1.36 billion).
The company attributed the improvement in its profitability in the first half to strong performance in the Indian and Israeli markets.
The company’s Indian operation, Hutchison Essar, was the largest revenue contributor. It reported a first-half revenue rise of 51% to HK$7.09 billion ($1 billion), while its subscribers doubled to 17.5 million.
In Israel, Hutchison’s Partner Communications had a 5% rise before taxes to HK$1.51 billion ($148 million), on a “healthy increase” in its customer base and average minutes of use.
“Customer growth in the first half was in line with our expectations and, provided there is no slowing of the momentum in India, we expect that to continue in the second half,” Hutchison Telecom said in a statement.
The company’s business in the second half will depend largely on the timing of operation launches in Indonesia and Vietnam, both of which are scheduled for the second half of 2006, the company said.
Source- http://www.telecomasia.net
Technorati : Hutch, India, Israel, Mobile
Ice Rocket : Hutch, India, Israel, Mobile
Hutchison Shows Small Profit
Hutchison Telecommunications’ (HTX) first half results show operating profit more than doubled and the company recorded ts first profit attributable to equity holders of the company.Commenting on the results, Dennis Lui, Chief Executive Officer of Hutchison Telecom said: “I am delighted to report record results for the first half of 2006, which includes a profit for the period of HK$644 million. This confirms that the strategies we implemented in 2005 have successfully resulted in sustained growth and improved performance during the period. Together with our stringent cost policies, aggressive network expansion plans and commitment to leading-edge customer service, we are driving profit improvements which position us to achieve our targets for 2006.”
The increase in turnover was driven primarily by the growth in India, which contributed 45% of the Group’s turnover of HK$15,666 million. EBITDA increased 61% to HK$4,759 million, while the EBITDA margin improved to 30.4% compared to 27.9% in the corresponding period in 2005.Operating profit for the period more than doubled to HK$2,302 million. This impressive performance was a result of greater contributions from the Group’s operations in India and Israel, the return to profitability for the mobile operation in Hong Kong and the reduction of loss from the operation in Thailand.Profit for the period was HK$644 million compared to a loss of HK$220 million last year.
Customer growth in the first half was in line with expectations and the company expects that to continue in the second half. Its network expansion is continuing at a rapid pace, particularly in India. The company says it maintains their outlook of capital expenditure of HK$13.5 billion to HK$14.5 billion for the full year although there may be some lag in booking capital expenditure that may result in some of the planned capital expenditure flowing over into 2007.The company achieved a small profit attributable to equity holders in the first half of 2006. The extent to which this is sustained in the second half of 2006 will depend on the timing of the launch of operations in Indonesia and Vietnam, both of which are scheduled for the second half of 2006.
Source- http://www.chinatechnews.com
Technorati : Hutchison, Mobile
Ice Rocket : Hutchison, Mobile
