Talks on Borusan’s takeover by Vodafone Turkey about to conclude
www.WirelessFederation.com/news: Negotiations for the purchase of a controlling stake in Turkish alternative fixed line telco Borusan Telekom by Vodafone Turkey is on the verge of successful conclusion. Earlier, India’s Dhanus Technologies bought Borusan for USD30 million.
The two parties have three options- a partnership giving the UK-backed mobile operator management control of Borusan, 100% stock takeover or a majority stake purchase.
Vodafone Turkey’s acquisition of Borusan would help it to offer converged fixed, mobile and broadband services, and develop its corporate sector presence. Turkcell and Avea, rival telecom operators have already drafted the converged strategies. ISP unit, TTNet of PSTN operator Turk Telekom, which cross-markets mobile broadband and Wi-Fi packages owns Avea.
Turkcell, a fixed broadband operator Tellcom (Superonline), on the other hand, is aiming at extended high speed internet service coverage both with HSPA mobile and fibre-optic technologies.
Vodafone improves outlook for Turkish operation
Vodafone Group has improved its forecasts for its Turkish operations citing higher-than-expected cost reductions. The mobile operator targets an EBITDA margin in Turkey in the high 20s in the medium term, up from an outlook of mid-20s when it first entered the Turkish market last year. The revenue outlook was maintained at a compound annual growth rate of 20 percent in US dollars for the next five years. Vodafone Turkey is also now expected to reduce group earnings per share for only two years, versus an expectation of three years previously. The capital expenditure budget in Turkey has been reduced to USD 850 million from USD 1 billion, and Vodafone now expects to fund the spending from operating cash flow rather than seeking additional funding. The new forecasts will be given at an analyst meeting on the company’s EMAPA activities.The lower capex outlook is partly thanks to a new contract with Motorola to upgrade and expand the 2G radio access network in Turkey. The eight-year deal will also see Motorola take over operational management of
the network and ensure readiness for 3G at key sites. Financial details of the contract were not released.
Source- telecompaper Wireless Mobile Telecom
