22nd June 2007
Huawei wins US$700 million GSM contract with China Mobile
Huawei Technologies has won a GSM expansion contract with China Mobile Communications Corporation. Valued at approximately US$700 million, the contract represents 23.6% of China Mobile's GSM group purchase project and is the second largest share. Huawei also doubled its share of this year's GSM group purchase project as compared to 2006.
Under the agreement, Huawei will expand China Mobile's GSM coverage in 30 provinces in China, including Guangdong, Zhejiang, Fujian, Jiangsu, and Shandong, with the deployment of thousands of GSM core and radio products and services. China Mobile selected Huawei's EnerG GSM solution which includes a new generation base station controller (BSC) based on an all-IP platform of advanced radio controller (PARC) platform and IP-based base transceiver station (BTS) family. The BTS family supports a unified 2G/3G platform that can help operators replace old equipment and form future-oriented networks so as to protect their long-term investments.
In 2004, Huawei deployed the world's largest mobile softswitch core network for China Mobile, which was the first step in transforming its mobile infrastructure into an all-IP based network.
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22nd June 2007
Deutsche Telekom agrees package to resolve labour dispute
The negotiating committees of Deutsche Telekom and the trade union ver.di have laid the foundations for T-Service and have agreed a package to resolve the labour dispute. "If ver.di's members agree to the compromise we will generate more competitive cost structures, promote service culture in the company, and therefore safeguard service jobs in the long term," said Chief Human Resources Officer and Labor Director, Thomas Sattelberger.
The key points of the agreement are the extension of weekly working hours from 34 to 38 hours without a salary increase and the socially conscious adjustment of salaries including increased performance-related elements. Of the additional four hours, each employee will invest half an hour per week in service qualification measures from 2008. This is part of a broad service drive. In addition, employees who stand out through performance, personal commitment and expertise will be encouraged with service careers in future.
The measures taken to make working hours more flexible to improve service include making Saturday a regular working day in future. The more flexible working hours and the 38-hour arrangement will save the Group costs amounting to hundreds of millions of euros as the outsourcing of work to external service providers can be reduced.
Service employees' salaries are being cut by 6.5% to a more competitive level. The cut in salaries is being cushioned step-by-step over a period of 42 months with funds set aside for the purpose, similar to a social plan.
The compensatory payments will be 100% in the first 18 months, 66% for the next twelve months, and 33% for the subsequent 12 months. The compensatory payments will cease on December 31, 2010.
The negotiating delegations agreed conditions for taking on junior staff from Deutsche Telekom's own apprenticeship programmes in particular as part of an "employment bridge". Starting salaries will be between €21,400 and €23,200 in future.
Deutsche Telekom said that the salary cut, the pay freeze and the lower level of starting salaries will allow the company to save hundreds of millions of euros. The result of the collective negotiations puts Deutsche Telekom well within its target range for planned savings of €0.5 billion to €0.9 billion in 2010 and means it can safeguard around 50,000 jobs within the Group.
Protection against outsourcing was agreed until the end of 2010, protection against redundancy until the end of 2012.
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22nd June 2007
Kazakhtelecom selects Alcatel-Lucent to extend broadband services across 11 regions in Kazakhstan
Alcatel-Lucent has been selected by Kazakhtelecom, Kazakhstan’s national incumbent operator, to extend its broadband services. The project will double Kazakhtelecom’s network capacity and further develop its 'Megaline' broadband access service across 11 regions in the country. Alcatel-Lucent’s IP-based solution will also facilitate high-speed Internet access for subscribers in less dense and remote rural areas. Commercial operation is scheduled by the end of the third quarter of 2007.
The Alcatel-Lucent solution is based on its ISAM (Intelligent Services Access Manager) product family including the 7302 ISAM and 7330 ISAM FTTN (Fibre to the Node). It addresses the demand for high-speed Internet access services and opens up opportunities for IPTV, triple play and other innovative broadband applications. The Alcatel-Lucent ISAM product family which is designed for 100% IPTV and NGN/IMS voice convergence in access, provides an IPTV experience with a five star rating for video support as well as cost effective migration to packet-based voice. The solution also includes the Alcatel-Lucent 5523 xDSL workstation for element management and the 5530 Network Analyser, which helps service providers manage their DSL infrastructure so that service requirements can be met and the roll-out of these services supported throughout all stages.
As the national communication operator of Kazakhstan, Kazakhtelecom provides the full range of telecommunication services. The company serves more than 2.2 million urban telephone subscribers and more than 560,000 rural subscribers of telephone communication services.
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22nd June 2007
3U TELECOM to sell LambdaNet
3U TELECOM AG has announced its intention to sell LambdaNet Communications Deutschland within the framework of its repositioning as a management and shareholding company. Following the takeover of LambdaNet in April 2004 and its successful development into one of the leading providers of transfer network solutions for telecommunications companies, Internet service providers (ISPs) and business customers, the company is now being sold for strategic reasons. In view of 3U's focus on the call-by-call and wholesale business since mid-2006 in the fixed-line telephony segment, LambdaNet, despite its ongoing excellent business development, is no longer necessary for the operations of the 3U Group. The sale is intended to provide 3U TELECOM with further liquidity for the development of the shareholding business in addition to its current available liquid funds of approximately €37 million.
3U TELECOM said initial offers have already been received from potential buyers.
'The objective of the negotiations currently being conducted on the sale is that of acquiring an investor for LambdaNet with a long-term orientation, who will continue and further expand the successful business activity. LambdaNet is successfully established in the market, and thanks to its individualised product portfolio based on state-of-the-art technology has numerous renowned customers under contract. In this regard LambdaNet is highly profitable, having attained an EBITDA of €8.3 million in 2006, with a planned EBITDA of €10.2 million for 2007, said Oliver Zimmermann, Chief Financial Officer of 3U TELECOM.
After the sale, 3U TELECOM will continue to use the telecoms network infrastructure of LambdaNet for its core business, call-by-call and wholesale.
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21st June 2007
AUSTAR and Nortel to deliver WiMAX for regional Australians
Following several months of competitive trials, AUSTAR United Broadband (AUB) has selected Nortel Networks Corp as the preferred vendor for its proposed WiMAX network in regional Australia. AUB and Nortel arrangements are subject to final negotiations.
The WiMAX network would provide regional Australians with an alternative for local access services, delivering true broadband speeds at comparatively low costs to regional residential and business customers, many of whom cannot currently access the Internet at speeds over 256kbit/s.
AUSTAR CEO, John Porter, said: "Austar's low-cost network can be rolled out quickly, with Nortel's WiMAX technology, at a cost-per-megabit and performance advantage that reflects a substantial improvement on the comparable costs, speed and quality of 3G mobile broadband offerings. 3G is voice-originated, not developed for data. If you want high-speed, portable, low-cost broadband, you need to go directly to 4G, and that's WiMAX."
AUB is a wholly-owned subsidiary of Austar United Communications (AUSTAR), a provider of subscription television services in regional and rural Australia. AUSTAR holds spectrum licences in regional Australia, representing around one third of Australian homes, which enables the company to rollout high-speed broadband networks. The company operates two trial markets in Wagga Wagga and Tamworth. Liberty Global Inc (LGI) holds an indirect controlling stake in AUSTAR.
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21st June 2007
BCE signs non-disclosure and standstill agreement with TELUS to explore possibility of a business combination
The Strategic Oversight Committee of the board of directors of BCE Inc has announced that TELUS Corporation has entered into discussions to explore the possibility of a business combination with the company. BCE and TELUS have entered into a mutual non-disclosure and standstill agreement on a non-exclusive basis.
BCE had previously announced its intention to review all strategic alternatives with a view to further enhance shareholder value. The review is currently expected to be completed in the third quarter of 2007.
BCE said that no assurances can be provided that any offer, if made, by any entity or group, now formed or to be formed in the future, will be accepted by the board of directors or that this review of alternatives will result in any specific action being taken by the company.
"TELUS believes the combination of the two businesses would represent a compelling strategic and financial opportunity for all BCE and TELUS stakeholders. It would be an all Canadian solution for both immediate and long-term value creation, whilst ensuring a vibrant player continues in this increasingly competitive industry," said Darren Entwistle, President and CEO, TELUS. "TELUS has a unique opportunity to create a truly national Canadian enterprise with the requisite balance sheet strength as well as scale and scope to continue TELUS' development as a global leader in the deployment of state of the art technology and innovative new services for customers."
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21st June 2007
France Télécom and Mid Europa Partners to acquire ONE GmbH
The consortium formed by France Telecom SA and private equity company Mid Europa Partners has been selected to acquire a 100% stake in ONE GmbH. The final acquisition document will be signed by the end of June 2007 at the latest. Moreover, the completion of the transaction is subject to the authorisation of the regulatory authorities which is likely to be obtained in the coming weeks. The current shareholders of ONE are TDC A/S (15%), E.ON AG (50.1%),Telenor ASA (17.45%) and France Telecom (17.45%).
The acquisition will be paid in cash on the basis of an enterprise value amounting to approximately €1.4 billion. The amount received by France Télécom for the sale of its current participation of 17.45% in the company and the reimbursement of its shareholder's loan will be partially reinvested in order to obtain a 35% stake in the company, which will be controlled by Mid Europa Partners with a stake of 65%.
The transaction will not lead to any cash outlay for France Telecom and will not have any impact on its net debt ratio targets.
Telenor said that the sale of its shares is currently expected to result in a gain of approximately €111 million. Telenor will receive total proceeds, including repayment of its shareholder loan to ONE, of approximately €190 million. Telenor has held its ownership share of 17.45% in ONE since 1997. The sale of ONE is in line with Telenor's strategy of gaining control of, or exiting, minority interests.
TDC’s share amounts to €213 million and the sale of the 15% shareholding is expected to result in a profit after tax of DKr1.4 billion to TDC.
“One is an attractive business in a strongly competitive market. To TDC ONE is a financial investment as our focus area is the Danish and Nordic market. We have found the timing rightto divest our shareholding in ONE and it is an obvious advantage for ONE that the company is now taken over by aligned investors that both can and will continue the development of the company,” said Jesper Theill Eriksen, Managing Director of TDC Mobile International.
This acquisition allows France Telecom to reinforce its position in a dynamic Western European market and to introduce in Austria the Orange SA brand, the flagship of the group which regroups its Internet, television and mobile activities.
ONE, which was established in 1995, is the third mobile phone operator in Austria being active under the labels One and Yesss!. In 2006, One achieved a turnover of €633 million and had a market share of approximately 20% at the end of 2006 with 1.8 million customers. One is also an important player on the Austrian broadband market via its mobile broadband offer.
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21st June 2007
Nigeria: Auction of three carriers in the 800 MHz spectrum band
The Nigerian Communications Commission (NCC) has issued a public notice to inform interested and qualified Nigerian licensed telecommunications companies that its has decided to offer three carriers (3.75 MHz) in the 800MHz spectrum band in 26 states and FCT – Abuja, to one licensee for commercial operation.
The spectrum on offer and the applicable states are specified as follows:
|
|
|
|
Rx MHz |
881.31 |
882.57 |
883.83 |
Tx MHz |
836.31 |
837.57 |
838.83 |
Applicable states: Ogun, Ondo, Osun, Oyo, Ekiti, Kwara, Edo, Delta, Benue, Kogi, Niger, Nasarawa, Taraba, Plateau, Bauchi, Gombe, Adamawa, Borno, Yobe, Jigawa, Kano, Kaduna, Katsina, Zamfara, Kebbi & Sokoto states and FCT – Abuja.
The spectrum is offered by the NCC on a technology neutral basis. However, the NCC intends to follow the International Telecommunication Union (ITU) recommendations for the provision of telecommunications services in the 800 MHz spectrum band.
The allocation process is open only to companies operating in Nigeria, who shall be required to fulfill a set of pre-qualification criteria.
Applicants are not required to submit financial or technical plans to pre-qualify for the auction. However, details must be provided in accordance with the compliance requirements laid out.
The deadline for the submission of a bid application and intention-to-bid deposit is July 9, 2007. The auction will be held on July 17, 2007.
More information on the pre-qualification criteria and the auction process is set out in the Information Memorandum as published on the NCC’s website: www.ncc.gov.ng
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21st June 2007
SonaeCom pursues Tele2 Portugal, bids for Austria's ONE due imminently
European consolidation frenzy continues, with established operators and private equity groups entering the fray for control of two key telecommunications businesses.
Portuguese alternative telecommunications services provider, SonaeCom SGPS SA, has revealed that it's in discussions to acquire Tele2 AB's Portuguese business for an undisclosed sum. These discussions are at a very early stage and SonaeCom is keen to stress that no agreement has yet been reached. Nevertheless, following SonaeCom's failed attempt to gain control of incumbent operator Portugal Telecom SA earlier this year, the company has been actively seeking potential consolidation opportunities in a bid to grow its telecommunications business. The company has already bid for control of OniTelecom, the fixed-line telecommunications business currently owned by the private equity group Riverside (US-based Riverside acquired OniTelecom from energy utility Energias de Portugal late last year for €160 million), and it may also put in offers for other struggling alternative operators in the Portuguese market, such as AR Telecom (formerly Jazztel Portugal), Claranet Portugal, and refertelecom.
Tele2 Portugal is a 100%-owned subsidiary of Tele2 AB of Sweden. The company began its operations in September 2003 and its primary offering is a carrier pre-selection service. By the end of 2006, Tele2 was claiming to have overtaken all of its new entrant rivals and, it believed, was the second largest fixed line operator in Portugal. According to the company, its market share had increased to nearly 10%, surpassing SonaeCom's Novis, cable TV operator Cabovisão, and OniTelecom. Besides its carrier pre-selection service, Tele2 also offers a dial-up Internet access service as well as a nascent broadband service.
OniTelecom has exclusive rights to access the 35,000km private fibre-optic network operated by its former parent, EDP, as well as the 6,250km fibre-optic network owned by Rede Eléctrica Nacional SA (REN). OniTelecom also holds two licences to provide fixed wireless access (FWA) services in the 3,600MHz-3,800MHz and 26.5GHz bands. The company began marketing fixed telephony services in late-1999 in anticipation of the liberalisation of the Portuguese telecommunications market on January 1, 2000. The company also offers a range of data communications to corporate customers, including X.25, frame relay, Internet protocol (IP) services, and Internet services (including dial-up and ADSL offerings).
Meanwhile, reports are circulating that a controlling stake in Austrian cellular and 3G operator ONE GmbH is about to be sold by German energy company E.ON AG for as much as €1,400 million. Other shareholders in the company are Orange SA (a France Telecom SA subsidiary), with 17.5%, Telenor ASA with 17.5%, and TDC A/S with 15.0%. France Telecom/Orange has the right of first refusal to buy E.ON's stake and is reportedly set to team up with one or more private equity groups including Cinven, Mid-Europa, and PAI to make an offer for the stake. Telenor and TDC are thought to be interested in bidding, but are hampered by complex shareholders' agreements that would likely render any such bids invalid. Meanwhile, it is reported that Netherlands-based Royal KPN NV is planning to outbid France Telecom for the stake. KPN, which already has successful mobile telephone operations in the Netherlands, Germany, and Belgium, is known to be seeking mobile opportunities elsewhere in Europe and views the ONE stake as a key purchase. It is also reported that the first round of bids will have to be submitted by the end of today (June 20). Neither France Telecom nor KPN had commented on these reports at the time of writing.
ONE secured a nationwide GSM 1800 licence in August 1997 and launched its Nokia-supplied network on a commercial basis in October 1998. Wireless Internet services, dubbed i-ONE, were launched over the ONE network in November 1999. ONE launched high-speed circuit-switched data (HSCSD) services in March 2000. Commercial general packet radio services (GPRS) were launched in February 2001; Nokia was the supplier of ONE's GPRS platform. In 2002, ONE began offering multimedia messaging services (MMS) over its network. In July 2003, ONE began to offer wireless local area network (W-LAN/Wi-Fi) services via more than 300 hotspots across Austria.
In November 2000, ONE secured a nationwide third-generation (3G) universal mobile telecommunications system (UMTS) licence. In March 2001, Ericsson and Nokia were awarded contracts to supply ONE with a 3G UMTS network. Rollout of this network began immediately and commercial 3G services were launched in late-December 2003. Ericsson is currently expanding and upgrading ONE's W-CDMA network with high-speed packet access (HSPA) technology over a three-year period beginning in December 2006.
At the end of 2003, ONE had approximately 1.385 million mobile customers, a figure that had increased to 1.544 million by the end of 2004, to 1.739 million by the end of 2005, and to 2.038 million by the end of 2006. Thus, the company's market share had increased from 19.37% at the end of 2003 to 19.89% at the end of 2004, to 20.71% by the end of 2005, and to 23.9% at the end of 2006. As of December 2006 (latest published data), ONE's GSM network covered 98% of the population of Austria, while its UMTS network covered 65%. By the end of 2008, it is expected that the UMTS network will be covering 90% of the population. As of December 2006, ONE had roaming agreements with some 304 operators in 133 countries.
Between 1997 and the end of 2006, ONE claims to have invested €1,900 million in building out and expanding its networks. Approximately €260 million is to be invested in its new HSDPA network during 2007 and 2008. ONE reports that, during the year ended December 31, 2006, it posted revenues of €617 million. The company claims it has been EBITDA-positive since 2000 and reached EBITDA break-even in 2002.
For more information on many of the companies mentioned in this article, please visit our website at www.itireports.com. In addition, ITI publishes profiles on key European telecommunications markets, such as Portugal and Austria.
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20th June 2007
BC Partners to acquire majority of Intelsat
Intelsat LLC has announced the signing of a definitive agreement for the purchase of a majority of the shares of its parent company, Intelsat Holdings Ltd, by funds advised by BC Partners (BCEC funds) and certain other investors. The BCEC funds-led group will acquire approximately 76% of the primary ownership of Intelsat Holdings in a transaction valuing the company’s equity at approximately US$5.03 billion. Taking into account approximately US$11.4 billion of debt as of March 31, 2007, the enterprise valuation implied by the transaction is approximately US$16.4 billion. The current shareholders of Intelsat, including funds advised by Apax Partners, Apollo Management, Madison Dearborn Partners, Permira and management, are expected to receive upon closing approximately US$4.6 billion in cash, and will continue to hold approximately 24% of the primary ownership of Intelsat Holdings.
The company will remain focused on serving its global customer base in the media, network services and government sectors.
Closing of the transaction is expected to occur within six to nine months, upon the satisfaction of customary conditions, including appropriate regulatory approvals.
As a result of the anticipated financings, the company’s debt is expected to increase by approximately US$3.85 billion at closing. BC Partners has obtained financing commitments from a group of financial institutions led by affiliates of Credit Suisse, Banc of America Securities and Morgan Stanley for US$5.11 billion, the proceeds of which will be used to fund the transaction, repay certain indebtedness and pay certain transaction fees and expenses. This debt will be assumed by a new entity junior to Intelsat (Bermuda). As part of the transaction, the company expects to retire approximately US$860 million of existing debt at Intelsat (Bermuda) and to defease or retire the US$400 million Intelsat 5.25% Senior Notes due 2008.
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20th June 2007
Qiao Xing Mobile's CECT unit announces 3G handset roll-out plans
Qiao Xing Mobile Communication Co, one of China’s leading manufacturers of mobile handsets through its subsidiary CEC Telecom Co (CECT), has announced its 3G handset strategy.
As a leading domestic handset manufacturer, CECT has focused on developing and integrating new technologies into handsets that specifically cater to the tastes of local Chinese consumers. In response to the testing and development of China’s TD-SCDMA 3G mobile telecommunications standard, the management of the company has determined that the time is right to start developing handsets that will be ready for the nationwide roll-out of China’s first 3G network.
The company plans to release its first TD-SCDMA handset soon. This handset will support new functions and features that will allow users to fully experience 3G content, such as video conferencing and high-speed Internet. In keeping with the company’s highly-focused strategy of developing value-added differentiated handsets, this product will also include other features, such as ultra-long standby, voice recognition, a multimedia player, a high-definition camera, and others. CECT also plans to launch a dual SIM card model that supports both TD-SCDMA and traditional GSM standards.
Qiao Xing Mobile, a subsidiary of Qiao Xing Universal Telephone Inc, manufactures and sells mobile handsets based primarily on GSM technologies. It operates its business primarily through CECT, its 93.4%-owned subsidiary in China. Currently, all of its products are sold under the "CECT" brand name. Through its manufacturing facility in Huizhou, Guangdong Province, China, and two research and development (R&D) centres in Huizhou and in Beijing, the company develops, produces and markets a range of mobile handsets.
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20th June 2007
PCTEL closes Dublin facility
US-based PCTEL Inc, a provider of wireless broadband solutions, has announced that it has exited operations related to its UMTS antenna product line. The company will close its research and development (R&D) facility in Dublin, Ireland, as well as a related satellite office in the UK. The company will also discontinue the UMTS portion of its contract manufacturing.
The UMTS antenna product line and the Dublin, Ireland facility were part of the company’s acquisition of Sigma Wireless Technologies made nearly two years ago. While the Public Mobile Radio (PMR) product line (public safety) has done reasonably well and the iVET technology has been successfully applied to the company’s emerging WiMAX product line, the UMTS antenna products have been disappointing, falling well short of forecasted sales. The majority of the development, inventory, and facility assets associated with the acquisition were related to the UMTS operation.
“It is time to move on,” said Marty Singer, PCTEL’s Chairman and CEO. “When we acquired Sigma, we had great expectations for the rollout of variable-tilt UMTS antennas. It is clear that our major customers have delayed their rollout, some opting to wait for 4G technology. We want to focus on the businesses – such as Wi-Fi, WiMAX, and GPS - that are growing robustly and delivering respectable gross margins. We will also continue to build our public safety and homeland security antenna business,” added Singer.
The company anticipates a total charge of US$4.5 million with a non-cash charge of US$2.2 million related to this action and maximum cash charges of US$2.3 million for severance and closing down the contract manufacturing operation. This amount may be reduced by the sale of related inventory and other assets. After the transition is complete, PCTEL’s headcount in Ireland and the UK will be five, down from 20. The remaining five employees will be dedicated to sales. The company’s operating expenses are expected to decline approximately US$0.3 to US$0.4 million per quarter from these actions.
The company is revising its revenue guidance for the second quarter of 2007 and the year. Revenue for the second quarter is now expected to be in the range of US$18.5 million to US$19.0 million, with gross profit in a range of 50% to 51%. Revenue for the second half of the year is expected to be in a range of US$41 million to US$45 million, with a gross profit range of 52% to 53%.
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20th June 2007
Nokia organises for the converging marketplace
Nokia Group has announced that it will introduce a new company structure from January 1, 2008. The move, driven by Nokia's strategy, is aimed at creating an organisation aligned with the opportunities Nokia sees for future growth, and to increase efficient ways of working across the company.
"The convergence of the mobile communications and Internet industries is opening up new growth opportunities for us, both in the devices business as well as in consumer Internet services and enterprise solutions. Growing consumer demand for rich, mobile experiences creates an opportunity for change. Nokia will bring these capabilities to the broadest range of devices and price points. This unleashes the power of Nokia's device volumes, now coupled with new services and business solutions. This distinctive approach sets Nokia apart from point solutions vendors," said Nokia CEO, Olli-Pekka Kallasvuo. "We believe this new organisation can capitalise on these opportunities while allowing us to increase the effectiveness of our investments and the efficiency of our operations."
Under the new organisation, Nokia's current business group and horizontal group structure in the device business will be replaced by three main units: Devices, responsible for creating the best device portfolio for the marketplace; Services & Software, reflecting Nokia's strategic emphasis on growing its offering of consumer Internet services and enterprise solutions and software; and, Markets, responsible for management of Nokia's supply chains, sales channels and marketing activities. In addition, Nokia will establish a Chief Development Office to optimise its strategic capabilities and growth potential and also provide operational support for integration across all these units in conjunction with the CEO.
From January 1, 2008 onwards, under the new structure, Nokia will have two reportable segments: Devices & Services, and Nokia Siemens Networks. Nokia will report on these two segments in its quarterly and annual results announcements.
The Devices unit will be headed by Kai Öistämö, currently heading the Mobile Phones Business Group; the Services & Software unit will be headed by Niklas Savander, currently heading Technology Platforms; and, the Markets unit will be headed by Anssi Vanjoki, currently heading the Multimedia Business Group. Mary McDowell, currently heading the Enterprise Solutions Business Group, will hold the position of Chief Development Officer.
Robert Andersson, currently heading Customer and Market Operations, will be responsible for finance and strategy in Devices and Nokia-wide strategic sourcing. Tero Ojanperä, currently Nokia's Chief Technology Officer, will have business responsibility for entertainment and communities services in Services & Software. Timo Ihamuotila, currently in charge of Mobile Phones' Sales and Portfolio Management, will be responsible for Nokia's global sales within the Markets unit. Other Group Executive Board members, Simon Beresford-Wylie, Hallstein Moerk, Rick Simonson and Veli Sundbäck will continue in their current positions.
Nokia expects that the new organisation will allow it to manage its device portfolio with greater effectiveness, speed up time to market for new products, and increase the efficiency of its marketing and productisation efforts. In addition, Nokia expects that having a new unit dedicated to consumer Internet services and enterprise solutions will build on the foundations established in the existing organisation to best position the company to offer its customers complete solutions.
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19th June 2007
AT&T selects vendors for U-verse G-PON fibre deployment in new residential construction areas
AT&T Inc has announced that Alcatel-Lucent and Ericsson AB have been selected to provide equipment for the planned deployment of Gigabit Passive Optical Network (G-PON) in "new build" areas of AT&T affiliates' local service territories as part of the overall U-verse network strategy. Financial terms of the awards were not disclosed.
G-PON is the newest standard for fibre-to-the-home (FTTH) technology, with capacity to deliver greater speeds than current generation Broadband Passive Optical Network (B-PON) technology.
With its U-verse strategy, AT&T is deploying FTTH technology, including PON, in new-build residential areas throughout the local telecommunications service territories and will deploy a fibre-to-the-node network infrastructure in existing neighborhoods. Both of these network infrastructures enable delivery of the U-verse portfolio of IP-based services.
AT&T U-verse offers customers a combination of next-generation digital television - including access to more than 25 High Definition (HD) channels - and high-speed Internet access.
The Alcatel-Lucent and Ericsson G-PON solutions consist of several passive-optical-network-based elements, including equipment for the central office and home terminals. Both suppliers will soon begin lab testing and certification by AT&T Labs prior to field testing, which will include configurations for general deployment in single-family residences, apartment and condominium complexes. Pending successful resolution of testing and certification, general deployment of G-PON is expected to begin in 2008.
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19th June 2007
NextWave Wireless to acquire controlling interest in WiMAX Telecom AG
NextWave Wireless Inc has announced that Inquam Broadband GmbH, a majority-owned NextWave subsidiary, has signed a definitive agreement to acquire a 65% controlling interest in WiMAX Telecom AG. The transaction is subject to standard closing conditions. The parties expect that the closing will occur early in the third quarter of 2007.
Based in Zürich, Switzerland, WiMAX Telecom has obtained nationwide wireless broadband spectrum concessions in Austria and Slovakia, and a major spectrum concession in Croatia. The spectrum concessions reside in the 3.5 GHz frequency band and cover approximately 16.8 million POPs. The Austrian spectrum concession authorises service providers to offer full mobility services. It is anticipated that regulators in Slovakia and Croatia will provide similar authorisation in the future.
The details of the spectrum concessions are as follows:
Country |
Licence POPs (millions) |
% Population coverage |
Spectrum |
Austria |
8.3 |
100 |
49 MHz |
Slovakia |
5.5 |
100 |
56 MHz |
Croatia |
3.0 |
68 |
39 MHz |
WiMAX Telecom operates WiMAX networks in Austria and Slovakia and currently provides wireless broadband service to 8,500 customers.
“We are very pleased with the addition of WiMAX Telecom, a true pioneer in the wireless broadband industry, to the NextWave family of companies. Our investment in WiMAX Telecom extends our European spectrum footprint which currently includes nationwide licences in Germany and Switzerland and will create an excellent opportunity for our customers to deploy next-generation mobile broadband networks in Austria, Slovakia, and Croatia,” said Allen Salmasi, Chairman and Chief Executive Officer of NextWave Wireless.
NextWave Wireless develops next-generation wireless broadband products and technologies for mobile device and network equipment manufacturers and for wireless service operators. Through its NextWave Broadband subsidiary, the company is developing a family of semiconductor and network component products based on WiMAX and Wi-Fi technologies. Its PacketVideo subsidiary provides device-embedded multimedia software for mobile phones and converged devices to many of the largest wireless carriers and handset manufacturers in the world. Its GO Networks subsidiary offers commercial and municipal service providers around the globe with carrier-class, mobile Wi-Fi systems optimised for wide-area deployment. Its IPWireless subsidiary is a global provider of TD-CDMA based mobile broadband and mobile broadcast products and technologies. NextWave has obtained a licensed spectrum footprint in the US that covers over 248 million people and nationwide WiMAX spectrum in Germany and Switzerland through a majority-controlled joint venture. The company intends to make its spectrum available to service providers looking to deploy next-generation wireless broadband networks that utilise NextWave’s wireless broadband products and technologies.
Germany-based Inquam Broadband was formed in 2006 for the purpose of investing in and operating wireless broadband assets in Europe. A majority-owned subsidiary of NextWave Wireless, Inquam has acquired nationwide wireless broadband license concessions in Germany and Switzerland.
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19th June 2007
Ericsson wins new business with Orascom Telecom's subsidiary in Bangladesh
Ericsson AB has been selected by Orascom Telecom to supply, install and commission network radio equipment for the access network of its Bangladeshi subsidiary, Banglalink. This will be the first time that Ericsson and Orascom Telecom have worked together.
Initially, Ericsson will supply a package of network technology including radio base stations and base station controllers for the network in the capital city, Dhaka, and its surrounds. Banglalink's network covers almost one third of the country's 20 million mobile subscribers. Work will commence on further sites, in other regions, later this year.
The installation of Ericsson equipment in Banglalink's network will allow the operator to offer advanced 2G functionalities to its customers, such as GPRS and greater network coverage during peak hours. The product range by Ericsson is tailor-made to suit the needs of operators in low ARPU markets such as Bangladesh. This is also expected to enhance the overall quality performance of the access network.
Orascom entered the Bangladesh market by acquiring local operator, Sheba, which began operations in June 1998. In September 2004, Orascom Telecom Holdings completed the acquisition and the subsidiary was relaunched under the Banglalink brand in February 2005.
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18th June 2007
ECI in discussions regarding potential sale of company for US$10 per share
Koor Industries Ltd, an Israeli holding company, has announced that ECI Telecom Ltd, in which Koor owns a 28% stake, has announced, in response to media reports, that it is currently in discussions with a group of investors led by Swarth Investments, an investment vehicle controlled by Shaul Shani, regarding a potential acquisition of all the shares of ECI by the group for a consideration of US$10.00 per share in cash.
The company said that there can be no assurance at this stage as to whether this transaction will be consummated, and if consummated what the actual consideration would be. Any potential transaction would be subject to the negotiation and execution of a definitive agreement and other related agreements, as well as to regulatory and other customary approvals and conditions.
ECI does not intend to make any further comment, or respond to any inquiries, until a binding agreement, if any, is reached with respect to a purchase, or talks have been terminated.
Koor currently estimates, based on the current US$/NIS exchange rate and ECI's results of the first quarter of 2007, that if a transaction is consummated at the above mentioned price per share, Koor will record capital gain of approximately NIS598 million.
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18th June 2007
DCITA announces Australia Connected initiative ... Telstra responds
The Australian Department of Communications, Information Technology and the Arts (DCITA) has announced that fast affordable broadband access will become a reality for all Australians under a landmark funding and legislative initiative called "Australia Connected". “The Australian government will ensure 99 per cent of the population has access to fast affordable broadband by June 2009,” said Minister for Communications, Information Technology and the Arts, Senator Helen Coonan.
“Australia has now entered into a whole new broadband era with speeds 20 to 40 times faster than those used by most consumers today, with the first Australia Connected broadband network services to be switched on immediately,” said Senator Coonan.
“Australia Connected will provide 12 megabit per second broadband services to quite literally thousands of rural and regional communities, including icon townships such as Birdsville, Bedourie and Windorah, and builds on the government’s success to date that has seen more than 4.3 million homes and small businesses connected to broadband across Australia,” Senator Coonan added.
“The centrepiece of Australia Connected is the immediate rollout of a new, independent, competitive and state-of-the-art national broadband network that will extend high-speed services out to 99 per cent of the population and provide speeds of 12 megabits per second by mid-2009.
“Beyond 2009, this new scaleable national network will have the capacity to provide vastly increased speeds as Australia’s demand for bandwidth grows, with funding already assured from the ongoing income stream provided by the government’s A$2 billion Communications Fund.
“This ongoing income stream is a critical ‘insurance policy’ for regional and rural Australians to ensure they are not left behind as telecommunications technology blasts into the Twenty-First Century.
“To this end, the government announces today that it will move quickly to protect this ongoing income stream with legislation in the next sitting period to ensure the Communications Fund’s A$2 billion capital amount cannot be squandered, thereby ensuring future generations of regional and rural consumers have access to affordable and metro-comparable broadband services,” Senator Coonan said.
“In parallel with the deployment of this new network, the government also announces a new commercial fibre-optic rollout via a competitive bids process and subsequent enabling legislation.
“With two commercial proposals already on the table to build an optical fibre network, there will be no delay in getting this underway so we can have an outcome as soon as possible. Once deployed, speeds will jump even higher to between 20–50 megabits per second under a new fibre network.
“Australia Connected maximises commercial investment and uses the very best mix of scaleable broadband technologies to deliver a new high speed network for all Australians regardless of where they live, without Labor’s A$4.7 billion taxpayer price tag, ” said Senator Coonan.
Australia Connected is a comprehensive and complete broadband solution for Australia that involves:
- A new national high-speed wholesale network: The awarding of a A$600 million competitive grant will deliver a mix of fibre-optic, ADSL2+ and wireless broadband platforms to rural and regional areas. This rollout has been boosted with an additional A$358 million in funding to ensure coverage to 99% of the population. The new national high-speed network will be rolled out by OPEL, a joint venture between SingTel Optus and rural group Elders, which has been awarded a total of A$958 million in funding from the Broadband Connect infrastructure programme, and an additional funding allocation. OPEL has agreed to make its own commercial contribution of over A$900 million to significantly upscale this new network. The new high-speed wholesale broadband network will be built immediately.
OPEL will use new 12Mbit/s WiMAX technology. In addition to WiMAX, a further 426 exchanges, representing more than three million premises, will be enabled with very fast ADSL2+ broadband for the first time. The switch on of the 426 exchanges to ADSL2+ will commence immediately across 426 outer metropolitan, regional and rural areas, according to Senator Coonan.
Senator Coonan said that the new OPEL network also includes 15,000 kilometres of fibre-optic backhaul to extend the broadband highways that link rural areas back to major city centres. It includes additional Bass Strait capacity and better wholesale arrangements across regional Australia and it will also reduce existing regional backhaul prices by 30%;
- A new commercial fibre-optic network: Facilitating a fibre network build in cities and larger regional centres via a competitive bids process and subsequent enabling legislation. The government will conduct an open and competitive bids process and legislate to enable a new high-speed broadband network for built-up areas, without the need for taxpayer funding. Senator Coonan said the government’s decision to proceed with a competitive bids process reflected the enhanced interest of commercial players that had recently become evident. To facilitate this process, the government will establish an Expert Taskforce to ensure an open and transparent process for assessment of bids to build a fibre-to-the-node network;
- Australian Broadband Guarantee: A safety net that ensures Australians living in the most remote or difficult to reach areas (the remaining 1%) are entitled to a broadband subsidy of A$2,750 per household;
- Creation of BroadbandNow: A new one-stop consumer help centre with telephone and web information to assist consumers understand the technology options available to them and provide ready information about how to get connected; and,
- Preservation of the A$2 billion Communications Fund: To ensure the funds are protected in perpetuity by legislation for the benefit of regional and rural Australians and to provide for an income stream for future upgrades.
Telstra responds to Australia Connected announcement...
Telstra said that the government's decision to award nearly A$1 billion of taxpayers' money to subsidise a foreign-owned competitor would do little to improve telecommunications because it relied on unproven technology and largely duplicated existing services.
Telstra Country Wide Group Managing Director, Mr Geoff Booth, said the government had missed a one-off opportunity to extend a proven terrestrial broadband service to over 250,000 additional homes and businesses in rural and remote Australia.
Mr Booth said the fears of people living in rural and remote Australia have been realised, with the bulk of the tax payer money not going to network extension, but on duplicating infrastructure and services that are already largely available and using technologies that are unproven in the rural and remote environment to do it.
Telstra said that the government's decision means:
- More than a thousand rural and remote communities will miss out on ADSL broadband access;
- A foreign-owned company will receive close to A$1 billion of taxpayers' money to build a broadband network to directly compete with services that Telstra has funded itself;
- Many rural customers will be served by a wireless technology that is unproven, unsuitable for rural areas and vastly inferior to Telstra's Next G network; and,
- Even if the technology does what they say it will, taxpayers will have spent A$1 billion extending broadband access from the 98.8% of the population now served by the Next G network to 99% - an improvement of just 0.2% or on average around A$23,000 per additional person or potentially over A$50,000 per additional household.
"This is strike two for country Australia - we went to the government in August 2005 with a proposal that would have provided high-speed terrestrial broadband to 98% of the population but were knocked back. Now they have knocked back our proposal to extend ADSL broadband to around 95% of the population."
"Telstra is the only telecommunications company with any serious commitment to serving customers in regional, rural and remote Australia. Yet the Government has handed over nearly A$1 billion of taxpayers' money to a company partly owned by the Singapore government," Mr Booth said.
Mr Booth added: "Based on this announcement, Telstra will be calling on the Federal Government to bring forward its review of the regulatory regime and for a raft of regulatory requirements to be immediately removed or reviewed - if the government is going to subsidise a foreign-owned company to deliver services in the bush, then that company should also carry some or all the obligations."
Telstra will call for an immediate review of the following regulatory requirements:
- The requirement to provide 64kbit/s terrestrial and satellite data services;
- The requirement to provide a 19.2kbit/s dial-up Internet service;
- A review of the USO, which is under-funded by at least A$500 million a year;
- Requirements like the Local Presence Plan, Network Reliability Framework and Priority Assistance should be extended to SingTel Optus;
- The requirement to make Telstra's transmission network available in regional areas (now obsolete with SingTel Optus being paid to build its own backhaul); and,
- Parts XIB and XIC of the Trade Practices Act (given that Singtel Optus is being paid by taxpayers to build alternative, competing networks).
Mr Booth said the government had ignored Telstra's bid altogether, refusing approaches to meet on the matter and not once asking for any further information or clarification on what Telstra could have achieved with the original A$600 million or the additional A$358 million of funding.
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