Morocco plans 4G licence auction in 2012 (Morocco)
Morocco will launch a tender in the autumn to sell 4G licences in a move that may allow the entry of a fourth operator to the market, according to a report by Reuters.
As per the report, Azdine el-Mountassir Billah, head of the Telecommunication Regulatory National Agency (ANRT), said that the regulator plans to launch an international tender for 4G licences in fall, 2012.
He added that ANRT plans to award the licences at the start of 2013 and expects they will be operational by the end of that year at the earliest.
Morocco’s telecommunications market is dominated by Vivendi’s Maroc Telecom, France Telecom’s affiliate Meditelecom and Wana, owned by a holding controlled by the Moroccan monarchy and Kuwait’s Zain.
The report revealed that while mobile penetration hovers around 110 percent of the 33 million population, Internet subscribers reached only 3.2 million by the end of 2011, rising 70 percent from the previous year, as per ANRT data.
Vivendi appoints Michel Combes as Chairman and CEO of SFR (France)
Vivendi has appointed Michel Combes as Chairman and CEO of SFR and a member of the Vivendi Management Board. According to reports, Michel Combes is currently Chief Executive Officer of Vodafone Europe and a Board member of Vodafone PLC.
Jean-Bernard Lévy, Chairman of the Vivendi Management Board, said that they are very happy that Michel Combes has agreed to come on board to run SFR. His international management experience and his extensive knowledge of the telecoms sector will prove most valuable to lead the company in the challenges it faces. They have total confidence in his ability to mobilize the SFR teams and to build with them a successful future for the company.
Michel Combes said that he is very happy to be joining Vivendi and SFR. He has known the Group for many years and he is fully aware of both its potential and the quality of its teams, while recognizing the challenges ahead.
Jean-Bernard Lévy will continue as Chairman and CEO of SFR until the 1st August, the scheduled date for Michel Combes’ arrival.
Skype blocked in Morocco (Morocco)
The major Moroccan telecom company, Maroc Telecom, has blocked several sites that offer VoIP services, including Skype. It is speculated that the decision to block VoIP sites by Maroc has been taken, in an attempt to establish a monopoly in the telecom market.
According to sources, VoIP sites were not blocked by Maroc following any Government order, however, the telecom company is marketing its own VoIP service named MTBOX in the Moroccon market. Access to TeamSpeak and overseas call via VoIP were mainly hit by the block. Several complaints of difficulty in accessing VoIP sites were registered. Consumers complained about poor signals and dropped calls. It was speculated from thereon, that Marco might take the extreme step of banning the VoIP sites.
As per sources, the telecom operator has opted to block all the VoIP sites in order to erase the competition and to compel the users to stop using free calling services offered by sites including Skype, TeamSpeak, etc.
Being the default internet provider for a large number of Moroccan users, the company aims to compel the users towards paid calling, added sources. Maroc telecom was sold to the French Company Vivendi. The telecom operator was yielding high profits for Vivendi for several years and was fetching high revenues for the company on the grounds of its monopoly in the telecom market.
ARCEP receives bids from four operators for 4G spectrum (France)
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.
Vivendi to expand network in Middle East (France)
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.
Vivendi sets $9.6 bn limit for Vodafone’s SFR stake (France)
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.
SFR full year revenue rises by 5.8% (France)
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%.
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.
GVT plans to invest $1.04 bln for CAPEX expansion (Brazil)
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.
Nokia to end free music downloads in 27 Countries
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.
Vivendi receives $1.67 billion for PTC stake (Poland)
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.
