Wireless Federation

ARCEP receives bids from four operators for 4G spectrum (France)

On 09.19.11, In Mobile Technology, By Editor

French telecom regulator, Arcep, has received bids from four of the mobile operators in France for the fourth-generation (4G) mobile spectrum being auctioned by the country.

As per reports, regulatory authority ARCEP said that bids have been submitted by France Telecom, Vivendi’s SFR, Bouygues Telecom and Iliad in order to acquire some of the 4G spectrum being auctioned from the 2.6 gigahertz spectrum band. However, details regarding the share of the spectrum or the price required to be paid were not clarified. Further, ARCEP said that the outcome of the auction for the lower-quality band will probably be announced before mid-October 2011. Bids for the higher-quality 800 megahertz band, which will be sold for a greater price, are due by December 15, with licenses expected to be awarded in 2015.

France expects to raise at least $ 3.4 billion from the 4G spectrum auction. Operators seek to acquire 4G rights as it enables them to offer their subscribers faster download speeds and a better internet experience.

Filed under:Mobile Technology Tagged with: 4G • Arcep • Bouygues • France • France Telecom • Iliad • Vivendi

Vivendi to expand network in Middle East (France)

On 03.22.11, In Mobile, By Editor

Vivendi is currently in discussions with telecommunications companies and banks in the Middle East to expand its operations in the region, after opening an office recently in Dubai.

According to Jean-Bernard Levy, Vivendi’s chairman, they are working with partners that have not been disclosed. It’s a young office and they hope to announce more partnerships within weeks and months. They are working to make it happen.

The group, which among many assets owns Universal Music and a majority stake in French pay-TV company Canal+, also holds a 53% share in Maroc Telecom in Morocco. In 2010, Vivendi also signed a content deal with Qatar’s Qtel through Universal Music.

The company has a solid path to growth in the MENA region, Mr Levy added, confirming the music video website Vevo will launch in the Middle East by the end of June and the UK within weeks, as joint venture between Vivendi, Abu Dhabi Media and Sony Music.

Vevo has so far been limited to North American consumers, who are able to choose from 26,300 music videos uploaded by major artists so far. Unique viewers to the site which launched in December 2009 – had reached 43.7 million as of June 2010.

Mr Levy stated that it has been a tremendous success and this will help consumers from the Middle East to access thousands of videos and music content.

Filed under:Mobile Tagged with: Abu Dhabi Media • Canal+ • Chairman • Dubai • France • Jean-Bernard Levy • MENA region • Middle East • Morocco • North America • operator • Pay-TV • Qatar • Qtel • Sony Music • UK • USA • Vivendi

Vivendi sets $9.6 bn limit for Vodafone’s SFR stake (France)

On 03.14.11, In Mobile, By Editor

French telecommunications and entertainment conglomerate Vivendi is reportedly reluctant to pay Vodafone more than US$9.6 billion for its 44% stake in French operator SFR.

As per the analysts, at this price, SFR would be valued at US$29.1 billion, or 5.5 times its 2011 EBITDA, broadly in line with European telecom operators.

Analysts added that Vodafone investors who are seeking at least 6 times EBIDTA enterprise value for SFR, or US$9.33 billion will be disappointed with a US$9.6 billion sale price. The balance of power is skewed in Vivendi’s favor as it is the only likely buyer for the stake.

Talks between Vivendi and Vodafone also involve roaming conditions for Vodafone in France. Both groups’ CEOs have stated that in the past that they would not be forced into a deal at the wrong price.

Filed under:Mobile Tagged with: CEO • EBITDA • European telecom operators • France • French operator SFR • Mobile • Vivendi • Vodafone

SFR full year revenue rises by 5.8% (France)

On 03.02.11, In Mobile, By Editor

French mobile network operator, SFR – a joint venture between Vodafone and Vivendi – has reported a 1.2% rise in its full-year revenues for 2010 to US$3.57 billion. Excluding the regulated price cut impacts, revenues increased by 5.8%.

Mobile revenues reached US$3 billion, a 0.2% increase compared to the first quarter of 2009. Mobile service revenues decreased by 1.2% to US$ 2.86 billion. Excluding the impact of the 31% mobile voice termination regulated price cut made as of July 1, 2009 and of the 33% SMS voice termination regulated price cut made as of February 1, 2010, mobile service revenues increased by 4.3%.

In 2010, SFR added almost 1.29 million new postpaid net adds, in particular due to the success of smartphones and offers including an Internet remote access. 28% of SFR customers were equipped with a smartphone at the end of December 2010 (compared to 15% at end of 2009) allowing a data revenue growth of 16% in 2010. At the end of 2010, SFR’s postpaid mobile customer base reached 16.095 million, improving the customer mix by 3.0 percentage point’s year-on-year to attain 75.6%.

SFR’s total mobile customer base reached 21.303 million.

SFR’s EBITDA was US$5.46 billion, a 0.2% increase compared to 2009. This growth included US$79.79 million of non- recurring (“non-cash”) items related to the termination of some of SFR’s fixed network indefeasible right of use (IRU) by third parties.

Vodafone is widely expected to sell its 44% stake in SFR in the near future to Vivendi.

Filed under:Mobile Tagged with: EBITDA • France • full-year revenue • Mobile • postpaid • postpaid mobile customer • SFR • SMS • URU • Vivendi • Vodafone • voice termination

GVT plans to invest $1.04 bln for CAPEX expansion (Brazil)

On 02.01.11, In Mobile, By Editor

Brazilian fixed line and broadband operator Global Village Telecom (GVT), controlled by French media and telecoms conglomerate Vivendi, has revealed plans to invest US$1.03 billion in 2011 to expand coverage in Rio de Janeiro.

As per the plan, GVT will spend US$23.99 million in Brazil’s second largest city between now and 2013, to launch services covering half the city’s population. In addition, GVT intends to launch a pay-TV offer later this year in the city of Sao Paulo.

GVT also revealed that it expects full-year revenues for 2010 to be up 40% year-on-year and that EBITDA margin will most likely reach 40%. The telco will publish its official results for FY2010 when its parent Vivendi reports its earning on 1 March.

Filed under:Mobile Tagged with: Brazil • EBITDA • fixed line and broadband operator • Global Village Telecom (GVT) • Mobile • Rio de Janeiro • Vivendi

Nokia to end free music downloads in 27 Countries

On 01.18.11, In Mobile, By Editor

World’s top Cellphone maker, Nokia, is ending its bundling of free music downloads with cell phones in 27 countries, where it has gained little traction since its 2008 launch.

Nokia will continue to sell phones with 12-month subscription to free music downloads in China, India and Indonesia and with 6-month subscriptions in Brazil, Turkey and South Africa.

All four major labels – Vivendi’s Universal Music, EMI, Warner Music Group and the music arm of Sony, signed up for the service, which was seen at start as a major challenger for Apple’s iTunes.

Reasons behind the lackluster performance include use of older supporting handsets for the product at its launch and the use of DRM software that tied downloaded music to the device. The service was also said to be difficult to explain to customers in a simple marketing campaign.

According to Nokia’s spokesperson, the markets clearly want a DRM-free music service, the firm continues to offer DRM-free tracks through its music store in 38 countries.

The service will be closed down in a total of 27 countries, although it will continue until the current subscriptions expire.

Filed under:Mobile Tagged with: 27 Countries • Apple • Brazil • China • DRM software • EMI • free music downloads • India • Indonesia • iTunes • Mobile • Nokia • Sony • South Africa • Turkey • Universal Music • Vivendi • Warner Music Group

Vivendi receives $1.67 billion for PTC stake (Poland)

On 01.18.11, In Mobile, By Editor

Vivendi has confirmed that it has received US$1.67 billion payment from Deutsche Telekom, bringing to an end its long-running dispute over Polish mobile phone operator Polska Telefonia Cyfrowa (PTC).

According to Vivendi’s statement, the receipt of the funds effectively annuls the litigation surrounding PTC’s share capital ownership.

Late last year Deutsche Telekom and Vivendi had announced that they had settled their ten year legal battle over PTC, giving the German company sole ownership of the Polish company and freeing up more cash for Vivendi to spend on buying out minority stakes in its domestic subsidiaries.

The legal dispute in Poland had centered on a 48% stake in PTC that Germany’s Deutsche Telekom bought from a joint venture between Vivendi and its Polish partner. Vivendi had appealed a 2004 court ruling that granted Deutsche Telekom the right to buy the stake, arguing that the call option wasn’t valid.

Filed under:Mobile Tagged with: Deutsche Telekom • Germany • Mobile • Poland • Polska Telefonia Cyfrowa (PTC) • Vivendi

Vodafone in talks to sell minority stake in SFR to Vivendi

On 12.30.10, In Mobile, By Editor

Vodafone is poised to open negotiations over the sale of its US$10.85 billion minority stake in French mobile phone operator SFR to senior partner Vivendi.

According to sources, talks will begin over the coming weeks on the sale of the British firm’s 44% holding in the venture. It is understood a deal could be wrapped up quite quickly because of Vivendi’s long-standing ambition to take full control of SFR and Vodafone’s desire to cash in. Offloading: Talks will begin over the coming weeks on the sale of Vodafone’s 44% holding in the venture.

After offloading a raft of the company’s peripheral assets over recent months, Vodafone Chief Executive Vittorio Colao is widely viewed as a willing seller of the SFR stake.

Vivendi boss Jean-Bernard Levy, meanwhile, is flush with cash following the sale of the French media group’s 20% holding in US broadcaster NBC Universal for US$5.89 billion.

Levy recently stated – “all other deals would be put on the back burner”, when talks over the SFR takeover commence.

But negotiations may be complicated by a possible side deal that could see Vivendi and Vodafone continue to work together in the French market.

A sale would mark the latest in a series of moves by Colao to scale back Vodafone’s sprawling empire.

Filed under:Mobile Tagged with: Chief Executive Vittorio Colao • Mobile • Offloading • SFR • US broadcaster NBC Universal • Vivendi • Vivendi boss Jean-Bernard Levy • Vodafone

Deutsche Telekom takes over Poland’s PTC

On 12.16.10, In Mobile, By Editor

Deutsche Telekom AG has settled a long-running dispute with France’s Vivendi SA and a Polish corporation over the ownership of Polish mobile network PTC, allowing it to take full control of one of the country’s major operators.

According to Deutsche Telekom, it will pay a total of US$1.9 billion to Vivendi and Poland’s Elektrim under the agreement.

The dispute was focused on a 48% stake in Polish mobile network Polska Telefonia Cyfrowa (PTC) on which Deutsche Telekom claimed that it had exercised a call option in 2005. At that point, it already held 49%.

The agreement will help the German company take 100% ownership of PTC. The company is acquiring the final 3% by taking control of two holding companies owned by Vivendi and Elektrim.

According to Deutsche Telekom, Chief Financial Officer Timotheus Hoettges, the absolute legal certainty that is now recognized by all parties is a clear message regarding PTC’s strategic development and paves the way for the future. The company has untangled the knot.

As per Vivendi, it will receive some US$1.65 billion under the agreement and give up any rights to PTC shares. The deal also will allow Elektrim to exit bankruptcy, with all its creditors being repaid. The agreement is subject to the completion of several legal steps in Poland.

Deutsche Telekom stated that PTC is the third-biggest mobile operator in Poland, by far the largest of the once-communist eastern countries that have joined the European Union over recent years. It operates Cellphone services under the Era brand and has a market share of 29%, only just behind competitors PTK Centertel and Polkomtel.

Filed under:Mobile Tagged with: Chief Financial Officer Timotheus Hoettges • Deutsche Telekom • Elektrim • France • Mobile • Poland • Polkomtel • PTC • PTK Centertel • Vivendi

Vivendi to pay $87 million to settle GVT fraud case (South Africa)

On 12.13.10, In Mobile, By Editor

Vivendi has agreed to pay US$87 million to Brazil’s stock market regulator to settle allegations that it breached securities law when it took over GVT, a Brazilian broadband, operator in 2009. The French entertainment and telecoms group agreed the payment with the Brazilian regulator, the CVM, in settlement of claims that it had misled investors when it bought GVT.

The French group claimed that the agreement did not imply the acknowledgement of any wrongdoing by Vivendi. However, the settlement proved significantly more expensive than Vivendi had originally envisaged.

According to the French media and Telecoms Company, it had acquired 39.7% of GVT’s shares and had unconditional options to buy a further 19.6%.

As per Vivendi, it was launching a mandatory tender offer for 100% of the Brazilian operator’s capital.

The CVM alleged that to repel a rival bid, Vivendi might have breached securities rules by falsely implying to investors that it had already secured the 40% of GVT’s shares required for control.

The regulator also accused Vivendi of buying options contracts in GVT stock without giving investors, and rival bidder Telef³nica, full disclosure. Vivendi insisted that it had abided by Brazilian securities law.

Filed under:Mobile Tagged with: Brazil • Brazilian broadband • CVM • French entertainment and telecoms group • GVT • Mobile • South Africa • Telefonica • Vivendi