Vodafone terminates merger with Wind Hellas (Greece)

On 02.08.12, In Mobile, By Editor

VodafoneWind HellasWorld’s leading mobile communications company Vodafone has terminated plans of a potential business deal with Wind Hellas. According to reports, the decision was taken after the British firm faced opposition by the European Union regulators. Sources claim that the merger, if allowed to go through, would result in a market having only two operators, which was the prime reason for the opposition.

As per sources, Vodafone had reported a US$ 710 million loss in November 2011 for its unit in Greece owing to discounted tariff plans and declining cash flow. The merger between the two firms would have helped Vodafone to significantly cut costs and compete better with rival OTE.

Vodafone is yet to make an official statement regarding the reason for terminating the deal.

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Mobile bill payment history to reflect credit worthiness (India)

On 01.30.12, In Mobile, By Editor

Indian credit information bureau, Cibil, is planning to include an individual’s mobile and telephone bill payment history, when calculating their credit worthiness. According to a report by ET, Cibil has already begun working with Vodafone’s post-paid subscribers and is discussing a similar project with Bharti Airtel.

Arun Thukral, managing director, Cibil has said that their aim is to eventually link the telecom utility payment history to the banking and financial records of customers and make it available as a Cibil record to banks and other financial institutions. He added that the database can also be used by a telecom service provider when issuing a post-paid number to an individual. It will lower delinquencies and improve their quality of customers.

The implementation of this service may add to the list of verifications by a bank or financial institution to allow or deny a home or car loan. Further, even future credit cards and post-paid connections may be tougher for a customer with a poor credit rating.

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Vodafone’s victory in Indian tax case may speed up IPO plans (India, UK)

On 01.23.12, In Mobile, By Editor

VodafoneVodafone’s landmark victory in the Indian tax dispute may speed up the operator’s IPO (Initial Public Offering) plans. According to reports, the British telecom giant had been planning its IPO roll-out for quite some time now, but had not taken any step in that direction due to the legal case.

As reported by Wireless Federation last week, Chief Justice S.H. Kapadia ruled in favour of Vodafone citing that the government can’t seek capital gains tax from Vodafone’s purchase of Hutchison’s wireless assets because the transaction occurred between two foreign entities. Further, the court also asked for the US$ 495 deposit to be returned to the operator along with a 4 percent interest.

Vodafone, amongst the leading operators in India, hopes to strengthen its position in one of its biggest markets with the launch of the IPO. The company was initially planning to launch the IPO in 2013; however, industry sources claim that the favourable ruling may cause the operator to speed things up, with many expecting a launch this year itself.

According to reports, many industry analysts believe that the judgement is likely to encourage large investments by foreign investors in the Indian telecom sector.

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Vodafone wins legal case against Indian tax authorities (India, UK)

On 01.20.12, In Mobile, By Editor

VodafoneVodafone has emerged victorious in a long lasting legal battle against the Indian income tax authorities, as the nation’s Supreme Court ruled in favour of the British giant. According to reports, Chief Justice S.H. Kapadia has said that the government has no jurisdiction over Vodafone’s purchase of mobile assets in India as the transaction took place in Cayman Islands between foreign entities.

The legal battle began almost five years ago with Vodafone’s acquisition of Hutchison Whampoa Ltd’s Indian wireless business in 2007. The Indian income tax authorities had filed a legal claim stating that Vodafone owed taxes amounting to US$ 2.2 billion for the acquisition. However, the apex body has overruled the claim and has ordered the income tax department to return the US$ 495 million amount submitted by Vodafone during the trial, along with a 4 percent interest, within the next two months.

As per reports, the Supreme Court also said that during 2002-11, the Indian arm of Vodafone contributed US$ 4.01 billion towards direct and indirect taxes to India. Further, the offshore transaction was bonafide; hence it was non-taxable.

The judgment has been well received by members of the telecom industry who believe that the government’s positive response towards foreign investment could encourage more investors to enter the nation.

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Ofcom revises proposal for LTE auction plans (UK)

On 01.13.12, In Mobile, By Editor

Everything EverywhereTelefonicaVodafoneIndependent regulator and competition authority Ofcom, has reportedly made changes to its proposal for the upcoming LTE mobile spectrum auction in an attempt to provide better mobile internet services in many rural and underserved areas.

As per sources, Ed Richards, CEO, Ofcom, has said that they are proposing a significant enhancement of mobile broadband, extending 4G coverage beyond levels of existing 2G coverage – helping to serve many areas of the UK that have traditionally been underserved by network coverage.

Further, reports reveal that the competition authority had initially reserved some portion of the spectrum for Everthing Everywhere which is no longer a part of the revised proposal. Ofcom claims that because of their current spectrum holdings, and/or the much lower risk that these national wholesalers would fail to acquire further spectrum in the auction, they do not consider it necessary to reserve any spectrum for Everything Everywhere, Telefonica or Vodafone.

The regulator also believes it is more viable to reserve some of the available spectrum for a fourth national wholesaler, someone other than Everything Everywhere, Telefonica or Vodafone.

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Telecom Ministry classifies 3G roaming pacts as illegal (India)

On 12.23.11, In Mobile, By Editor

The Indian Telecom Ministry has asked mobile operators who have entered into the 3G roaming pacts to discontinue their agreements as they are illegal. As reported by Wireless Federation earlier, Bharti Airtel, Vodafone and Idea had provided each other with access to their networks in an attempt to provide their customers with 3G services in circles where they did not win the licence.

Industry analysts have reportedly said that this decision could have a negative impact on the mobile operators’ revenue, which altogether have paid around US$ 4.42 for the licences. The three telecom operators had jointly written to the Prime Minister claiming that in the event that the Government would not allow the roaming pacts, they would like a refund for the amount invested by them in acquiring the licences.

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Vodafone receives warning from ACMA to improve customer service (Australia)

On 12.23.11, In Mobile, By Editor

The Australian Communications and Media Authority (ACMA) has issued a warning to telecommunications giant Vodafone, for going against regulations designed for protection of consumer interests. According to reports, the regulatory authority has threatened to fine the operator a fee of US$ 252,852 after it found that Vodafone Pty Ltd as well as Vodafone Network Pty Ltd had breached the regulations in the Consumer Protections Code.

As per sources, Chris Chapman, Chairman, ACMA has said that these directions are intended to make sure Vodafone remains focused on improving outcomes for its consumers by increasing the regulatory consequences of any further breach. Reports reveal that Nigel Dews, CEO, Vodafone Australia, has responded to the warning saying that they have supported the ACMA throughout their thorough and lengthy assessment, and, while they respect the ACMA’s view of past events, they haven’t waited for their report to tell them what they need to do.

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3UK approached by Everything Everywhere, Vodafone and O2 to join m-payment venture (UK)

On 12.16.11, In Mobile, By Editor

Mobile operators, Everything Everywhere along with O2 and Vodafone, are reportedly talking with operator 3 UK to join them in their joint venture for mobile payment services. According to reports, Vodafone plans to submit the proposals for the venture by early 2012.

The operators have reportedly said that the proposal will provide the European Commission with the relevant details associated with the venture as well as highlight the benefits provided to customers. As per sources, the joint venture will offer customers and retailers a common platform for mobile payment services, in collaboration with the banking industry.

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T-Mobile, Vodafone and KPN offices visited by NMa Authorities (Netherlands)

On 12.09.11, In Mobile, By Editor

KPN, the leading telecommunications and ICT service provider in the Netherlands, along with T-Mobile and Vodafone were approached by the Netherlands Competition Authority (NMa) following an investigation regarding possible violations by the operators in the services provided.

According to reports, wireless carrier KPN has said that its headquarters were being investigated by the NMa over suspicions of concerted practice with regard to mobile telecommunications offerings on the Dutch consumer market and division of independent sales channels. Further, the company also said that five of its employees were being questioned with complete cooperation from the company.

As per sources, the regulator had imposed fines on these three operators in 2001 regarding unfair agreements on subsidies for mobile devices given to retailers, causing consumers to pay a higher price for the same.

 

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New Telecom Policy to bring major reforms to Indian telecom sector (India)

On 12.09.11, In Mobile, By Editor

The Indian telecom industry is expected to reach new heights and witness further changes with the new regulations to be announced by the government early next year. With a subscriber base of nearly 900 million users, the Indian telecom industry is one of the world’s largest and fastest growing economies.

The New Telecom Policy is expected to introduce new reforms for renewal of licences for telecom companies, sale of new licences to mobile operators, more transparent norms for mergers and acquisitions in the telecom sphere so as to maintain the competitiveness of the market and enhance growth.

In addition to its success, the telecom industry in India also faces a multitude of challenges which may be addressed by this policy. Concerns regarding network quality and 3G services have been raised by subscribers, while decreasing profit margins continue to worry the senior level management at major telecom companies. Further, scandals and cries of corruption have been keeping the regulatory authorities quite busy. As reported by Wireless Federation earlier, Bharti Airtel Ltd. and Vodafone India Ltd. were approached by federal officers on allegations of irregularities in the 2001 and 2002 spectrum allocation.

However, industry analysts believe that even with its fair share of challenges, an introduction of a favourable set of rules for telecom operators could see the Indian telecom sector emerge as a strong contender in the global mobile market.

 

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