13th July 2007
Tiscali to acquire Pipex's Broadband and Voice dDvision for UK£210 million
Tiscali SpA and Pipex Communications plc have entered into an agreement for the acquisition of the Broadband and Voice division of Pipex by Tiscali UK Holdings Limited (Tiscali UK). The enterprise value agreed for the acquisition is UK£210 million. The final equity value, which will be determined at closing, is subject to adjustment for net debt position and the level of working capital. The acquisition is subject to the approval of Pipex’s shareholders and clearance by the UK Office of Fair Trading.
The Broadband and Voice Division was expecting 2007 sales of over UK£300 million and an EBITDA of over UK£20 million on the basis of first quarter 2007 results and of Tiscali’s own estimates. The Division has in the region of one million active customers, 650,000 voice customers and 570,000 broadband customers - of which, 250,000 are dual play - and 100,000 are SME business customers and approximately 1,400 employees.
Following the acquisition, Tiscali UK will have 1.9 million broadband customers. Tiscali UK has unbundled 800 exchanges, reaching 55% of UK homes with plans to extend this network to over 1,000 sites covering at least 65% of the UK's addressable DSL market. In addition, Tiscali UK has rolled out an extensive next generation high bandwidth network to support both its business customers and new IPTV triple play product.
Mary Turner, CEO of Tiscali UK, said: "The acquisition of Pipex's Broadband and Voice Division further cements Tiscali’s position as a fully integrated telecom and media operator in the top league of the UK market and underlines our reputation as a major investor and innovator in the full range of broadband services.
"Significant synergies and efficiencies can be achieved through this acquisition in particular through network integration, customer migration and indirect cost efficiencies. Over a four-year period, we estimate cumulated synergies in the region of UK£150 million at EBITDA level ca UK£50 million to secure the synergies and efficiencies. In addition, we will be able to offer our new Pipex customers the full range of Tiscali’s compelling and innovative services including broadband, telephone and TV. This acquisition provides us with an even greater opportunity in rolling out
our double and triple play offers."
The acquisition will be financed through a €650 million debt facility underwritten by Intesa Sanpaolo and JP Morgan. This facility will replace substantially all outstanding financial debt of the Tiscali Group and may be partially refinanced by debt capital market instruments of approximately €400 million and it could also be partially refinanced by an equity increase of up to €150 million which is
expected to be resolved upon in late-September 2007, in all events depending on market conditions.
"Upon completion of the Tiscali Group's strategic refocusing and delivery of the Group's financial targets, the acquisition of Pipex's broadband and voice division represents the first step in the new development phase. In the UK, our position will become even stronger as our growth accelerates. It will increase our broadband market share to approximately 15%, place Tiscali as one of the largest alternative broadband, voice and media providers in the UK, and further complement the recent acquisition of Video Networks Limited. Following the acquisition, the 2008 net income
and free cash flow generation targets are confirmed, with a net financial position to EBITDA ratio expected to remain under three times," said Tommaso Pompei, CEO of Tiscali SpA.
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13th July 2007
Reliance Communications awards Huawei all-IP NGN contract
Reliance Communications Ltd (RCOM) has announced the award of a network expansion contract, worth over US$200 million, to Huawei Technologies. The current network expansion undertaken by RCOM is the largest wireless network expansion undertaken by any operator across the world.
Under the agreement, Huawei will supply and provide services for CDMA and GSM base stations, including base station controller (BSCs) and switches, and help to create all-IP Next Generation Network (NGN) infrastructure.
The technology provided by Huawei is expected to bring down RCOM's total cost of ownership (TCO) by enabling a significantly faster and more cost-effective expansion of existing CDMA and GSM network services. It will also enhance the company's competitive advantage in attracting new subscribers.
The contract will play a significant role in RCOM's planned roll out of its pan-India CDMA and GSM network expansion, that seeks to extend its next-generation, integrated (wireless and wireline) convergent (voice, data and video) digital network to over 20,000 towns and 600,000 villages creating India's largest telecommunications network.
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13th July 2007
ictQATAR issues mobile licence application procedures
The Supreme Council for Information and Communications Technology (ictQATAR) has published on its website the 44-page document issued to 12 pre-qualified candidates for the second mobile telecommunications licence in Qatar.
The 12 potential applicants are among the largest telecommunications companies in the world and include: the ACE Consortium (including Airtel); the Argos Consortium (Verizon Wireless); AT&T Inc; Bahrain Telecommunications Company (BATELCO); Digicel Group; Emirates Telecommunications Corp (Etisalat); Jordan Telecommunications Company (JTC); Mobile Telecommunications Company (MTC); Orascom Telecom; the QUIC Consortium (including Oman Telecommunications Company (OmanTel) and Belgacom); Reliance Industries; and, Vodafone Group plc.
The companies received the mobile licence application procedures document, referred to as the "MAP", setting out the requirements, procedures, timetable and other terms and conditions for formally applying for the second mobile licence. The document can be found at http://www.ict.gov.qa/files/MAP.pdf.
ictQATAR must receive all applications by September 2, 2007. ictQATAR will then begin a two-stage application process: a commercial and technical evaluation; and, an auction. Only those pre-qualified candidates who meet the eligibility requirements established by the MAP during the commercial and technical evaluation stage will participate in the auction process. The auction process will lead to the selection of the party to whom the licence is to be awarded.
The winner, expected to be unveiled in October after the auction process, would be required to sell 40% of the company's shares in an initial public offering (IPO), the offer document said. It would also have to sell a 15% stake to the government, giving the winner a minority holding in the new company.
The launch of services by the second mobile licensee is expected to occur sometime in 2008, after the licensee has built its own network. Further details on the expected launch date will be announced as the licensing process progresses.
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13th July 2007
Nortel receives contract extension from T-Mobile USA to deliver mobile services
T-Mobile USA Inc and Nortel Networks Corp have signed a US$150 million multi-year extension to their contract to deliver mobile voice and data services. T-Mobile USA serves 26 million wireless subscribers across the US and is a wholly-owned subsidiary of T-Mobile International AG & Co. KG, the mobile arm of Deutsche Telekom.
Nortel will continue to upgrade T-Mobile’s network and supply GSM wireless equipment and associated professional services. The upgrades are designed to help boost T-Mobile’s network efficiency and capacity, and enable T-Mobile to continue to satisfy traffic growth while making the most efficient use of available spectrum.
As part of the new extended agreement, Nortel will provide GSM infrastructure equipment and services across T-Mobile’s nationwide network. This continues a long-standing relationship between the companies. Nortel has supported GSM network planning and deployment for T-Mobile USA since the company’s inception as VoiceStream Wireless in 1995.
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13th July 2007
Alcatel-Lucent and SHD sign contract to deploy first next-generation WiMAX network in France
Alcatel-Lucent and Société du Haut Débit (SHD), a corporate joint venture between Société Française du Radiotéléphone (SFR) and Neuf Cegetel, have signed a two-year contract for the supply and installation of the first next-generation WiMAX network in France, using equipment conforming to the 802.16e-2005 standard.
Alcatel-Lucent will equip the planned sites of SHD's WiMAX network in the Ile-de-France (IDF) and Provence-Alpes-Côte d’Azur (PACA) regions by mid-2009. The first sites are already operational in the Paris region due to a pilot network deployed at the end of 2006 and will be operational in the PACA region this summer, thanks to the second pilot network deployed by SHD and Alcatel-Lucent.
Based on the latest standard IEEE 802.16e-2005, the new radio network will use the 3.4–3.6GHz frequency band. It will enable professional and residential subscribers alike to connect to broadband Internet in fixed and nomadic environments in areas with little or no DSL coverage. Alcatel-Lucent will provide its complete next-generation WiMAX solution so that SHD's WiMAX network will benefit from one of the most advanced technologies in terms of radio frequency management.
SHD is a corporate joint venture held by SFR (66%) and Neuf Cegetel (34%), and partnered by the Group Groupe CANAL+. In July 2006, SHD received licences to use WiMAX radio local loop frequencies in the Ile-de-France and Provence-Alpes-Côte d’Azur regions.
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12th July 2007
Ericsson signs first GPON contract in Europe with CYTA in Cyprus
Ericsson AB and Cyprus Telecommunications Authority (CYTA), the leading operator in Cyprus, have signed a contract for a fibre-to-the-home (FTTH) network based on Ericsson's Gigabit Passive Optical Network (GPON) solution.
CYTA has started to provide advanced broadband services, such as high-definition TV (HDTV) (up to two channels per home), games, on-demand services, VoIP, while there is also the option of surveillance and security services.
The contract includes delivery of central office optical equipment and devices for the homes, EDA1200 and EDA1500, and passive infrastructure, such as fibre systems and cables. Apart from the GPON network (point-to-multipoint configuration), the pilot project also includes a point-to-point network, using Ericsson's equipment (switches and CPEs). The contract also encompasses a portfolio of services, such as education and knowledge transfer, business consultancy, network design and supervision.
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12th July 2007
NTT DoCoMo to support AT&T's 3G network deployment in Hawaii
NTT DoCoMo has reached an agreement with the wireless unit of AT&T Inc, the largest mobile operator in the US, under which DoCoMo will provide technical and financial support of up to US$24 million for the deployment of AT&T's 3G mobile phone network in the US state of Hawaii.
Under the tie-up with DoCoMo, AT&T plans to launch a 3G network based on W-CDMA technology on the island of Oahu by the end of 2007, expanding coverage to the rest of the state by early-2008. DoCoMo will also make necessary arrangements to provide customers traveling to Hawaii with enhanced 3G services. The agreement will facilitate provision of 3G roaming services to DoCoMo customers traveling throughout Hawaii, a major destination for Japanese tourists.
Given the growth in 3G services in the US and Japan, DoCoMo will in future seek to promote international roaming services between these markets.
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12th July 2007
Reliance awards Alcatel-Lucent all-IP next-generation, CDMA and GSM network expansion contract
Alcatel-Lucent has been awarded an IP-based next-generation, CDMA and GSM network contract valued at more than US$400 million by Reliance Communications Ltd (RCOM), India’s largest integrated telecommunications service provider. The contract will enable RCOM to expand its wireless network to more than 20,000 towns and 600,000 villages. This project represents one of the largest telecommunications expansions undertaken by a telecommunications operator anywhere in the world, according to Alcatel-Lucent.
“In our endeavor to build a best-in-class infrastructure in the country, offering better overall performance and a higher quality of service to many million Indians, our wireless network will cater to customers across 20,000 towns and 600,000 villages upon completion of the current phase of expansion,” said Anil Ambani, Chairman, RCOM. “The expansion of our wireless CDMA and GSM network would further enhance our competitive edge in effectively participating in the achievement of our national teledensity targets of 500 million by 2010, thereby contributing to economic growth.”
In the framework of the contract, Alcatel-Lucent will upgrade Reliance’s CDMA and GSM network with additional mobile switching centres and base stations. Alcatel-Lucent will also provide a suite of network integration services, including network optimisation, system support and general project management. The project substantially strengthens Alcatel-Lucent's position in the Indian mobile market and extends the range of wireless solutions that Alcatel-Lucent provides to RCOM.
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12th July 2007
TerreStar Networks selects Alcatel-Lucent for development of IMS-over-satellite network
TerreStar Networks Inc has selected Alcatel-Lucent to supply a next-generation solution for a significant test as TerreStar prepares to build an integrated mobile satellite and land-based communications network in North America, believed to be the first of its kind using the IP Multimedia Subsystem (IMS) to deliver universal access and personalised services over standard wireless devices, such as mobile phones and personal digital assistants (PDAs).
For the lab trial, Alcatel-Lucent will provide an IMS service delivery architecture that can enable TerreStar’s service provider customers to rapidly develop and integrate communications applications into the next-generation network. TerreStar and its channel partners will test the ability of this new platform to help provide some of the fastest service provider response in the industry to new commercial market opportunities through rapid provisioning and deployment of new applications.
TerreStar, which has begun deploying its network for commercial launch in 2008, expects to operate as a carrier’s carrier, providing integrated next-generation terrestrial and satellite mobility services to communications services providers - such as wireless carriers, satellite vendors, wireless operators, and electric and telephony cooperatives - and also providing services directly to companies and government entities.
Alcatel-Lucent’s solution for TerreStar will include key elements of its IMS portfolio, including IMS session controller, consolidated subscriber management system, IMS media server, presence server and IMS application server. The combined capabilities can allow TerreStar to deliver an advanced set of services with multiple flexible quality of service options including: location-based services, "push-to" technology that enables the convergence of voice, push-to-talk-over-cellular and push-to-view, to create personalised, presence-based services.
TerreStar, a majority-owned subsidiary of Motient Corporation, plans to build, own and operate North America's first 4G integrated mobile satellite and terrestrial communications network that will provide universal access and tailored applications throughout North America over conventional wireless devices. TerreStar expects to be the first to offer customer-designed products and applications over a fully optimised 4G IP network.
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11th July 2007
France Telecom acquires GTL's enterprise and managed services business units in India
France Telecom SA has announced the acquisition of the enterprise and managed services divisions of GTL, a company specialising in Information and Communication Technology (ICT), including integration and managed services.
The acquisition strengthens the local presence of Orange Business Services, the business communications arm of the France Telecom Group. It improves Orange Business Services' capabilities to better serve the needs of Indian and multinational corporations (MNCs) throughout the region, in particular in the following areas: PBX/IP voice solutions, WAN/LAN integration and optimisation; CRM solutions and CRM application integration capabilities; and, on-site and remote management of networks, servers, desktops and security services.
As a result of this acquisition, Orange Business Services in India will expand its geographical reach and increase its workforce to over 1,590.
The acquired divisions generated revenues of approximately €21 million in fiscal year 2006-07, growing 34% year-on-year. It counts 591 employees, including 200 certified engineers, and a customer base of 450 Indian and multinational clients.
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11th July 2007
Kuwait: KIA issues RFI as first step in establishing third mobile operator
The Kuwait Investment Authority (KIA) has issued a Request for Information (RFI) as the first step in the public auction process for establishing the third mobile operator in Kuwait.
The RFI documents: explain in detail the public auction process and timeline; introduce the proposed regulatory instruments; and, establish the pre-qualification criteria and invite interested investors to provide the required information that will be used to pre-qualify them for the next round.
To download the RFI documents, interested parties must first complete the registration form, which is available on the KIA's website.
Interested parties will be sent a confirmation email to the address provided during registration. The email will provide them with a bidder code and the details to complete the payment of the RFI fee.
Upon the receipt of the RFI fee, the Establishing Committee will notify the interested party via email of their official status as an RFI participant, and their eligibility to download the RFI documents from on a secure area on the website.
The RFI fee is KD10,000. The fee is non-refundable. Payment will not be refunded even if the party of interest chooses not to participate in the public auction process after the fee is paid, or if the interested party fails to pre-qualify according to the criteria set in the RFI document.
Details on the pre-qualification criteria are listed in the RFI documents. However, interested parties should note that while single investors or a consortium of investors may choose to participate in this process, the Establishing Committee will require that the interested party be, or is partnering, with an experienced foreign telecommunications operator.
The RFI clarification period will end at the Kuwait close of business time of 1800 on July 17, 2007, after which no further RFI clarifications will be accepted by the Establishing Committee.
The responses to the RFI should be submitted no later than the Kuwait close of business time of 1800 on July 31.
Contact: KIA, PO Box 64, Safat, Z. Code: 13001, Kuwait. Tel: 00 965 2485 600. Website: www.kia.gov.kw.
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11th July 2007
LPTIC selects Alcatel-Lucent to deploy Libya's largest fibre-optic backboner
Alcatel-Lucent has signed a contract with Libyan Post Telecommunications & Information Technology Company (LPTIC) to supply a nationwide fibre-optic backbone network that will serve all of Libya. This contract, valued at more than €90 million, is a major step forward for the Libyan telecommunications industry and underscores Alcatel-Lucent's commitment to the expansion of the Libyan market.
Under the terms of the contract, Alcatel-Lucent will deploy a fibre-optic network throughout the country, linking all major cities with more than 4,400 kilometres of infrastructure and will serve as the backbone network for Libya's telecommunication infrastructure.
The contract represents Alcatel-Lucent's largest agreement in Libya.
LPTIC is the national operator that provides fixed, mobile and Internet-related services throughout Libya.
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11th July 2007
Telefónica finally makes a move on VIVO, sparking further Brazilian consolidation
Spain's Telefónica SA has finally made a formal offer to buy-out its partner in its Brazilian wireless joint venture, VIVO Participações SA (VIVO), ending months of speculation that a deal was imminent. Although none of the parties involved had issued any public statements regarding the deal at the time of writing, it is believed that Telefónica has offered Portugal Telecom SA more than €3,000 million for its 50% stake in Brasilcel, the holding company that controls 63% of VIVO. It's believed that Portugal Telecom has about a month in which to respond to the offer. (See separate article on this issue.)
Brazil's cellular market is a particularly attractive proposition for Telefónica, which is also active in much of the rest of Latin America through its wholly-owned Telefónica Móviles SA subsidiary. Gaining full control of VIVO, which had net operating revenues of R$10,936.7 million in 2006, up from R$7,473.1 million in 2005, and first-quarter 2007 net revenues of R$2,850.8 million, up from first-quarter 2006 net revenues of R$2,577.0 million, would be particularly lucrative for the Telefónica Group. At this time, it is unclear whether VIVO would be owned by Telefónica SA or by the Telefónica Móviles subsidiary, if the deal goes through.
Telefónica is particularly attracted to the Brazilian market because it remains somewhat underserved by cellular operators. According to data sourced from the Brazilian government and leading industry trade associations, Brazil had 102.875 million cellular subscribers as of April 30, 2007, a figure that is believed to have increased to just under 106 million, based on operators' preliminary results for the quarter ended June 30. Thus, penetration of cellular telephones currently stands at around 58%, indicating that there remains considerable scope for expansion in the Brazilian market, even if much of the unserved population cannot actually afford to own a mobile telephone.
Both Telefónica Móviles and VIVO are known to have expressed an interest in buying one or both of the Citigroup-controlled Brazilian operators, Telemig Celular Participações SA and Tele Norte Celular Participações SA (the latter of which trades as Amazonia Celular), which are currently reviewing purchase offers and are expected to reach a final decision next week. The only other serious contender for these companies, particularly the more financially and operationally secure Telemig, is America Móvil SAB de CV (which trades in Brazil as Claro Digital). If either Telefónica Móviles or VIVO were to gain control of Telemig and/or Amazonia Celular, the group's combined market share would increase to nearly 40% and put increased distance between VIVO and its nearest rival, TIM Participações SA (an affiliate of Telecom Italia). TIM has, so far, not indicated any interest in buying Telemig or Amazonia Celular, though this does not rule out the possibility that it has actually submitted an offer.
As of March 31, 2007, VIVO served 29,030,000 cellular subscribers, TIM 26,306,700 subscribers, America Móvil 24,608,000 subscribers, Telemig 3,401,300 subscribers, and Amazonia Celular 1,233,100 subscribers.
The Telefónica/VIVO deal needs to be approved by Brazil's telecommunications regulator, Agência Nacional de Telecomunicações (ANATEL), as a matter of course. But ANATEL will also have to consider the implications of Telefónica's relationship with Telecom Italia. In April, Telefónica negotiated the purchase of a controlling stake in Olimpia, the holding company that owns Telecom Italia. Although this deal gives Telefónica a 6.9% indirect stake in Telecom Italia, there is the possibility that Telefónica could influence the Italian incumbent's strategy in Brazil. Were Telefónica-controlled VIVO and TIM to collaborate, this could lead to a case of anti-competitive behaviour. TIM Participacoes has recently been granted a fixed-line licence, allowing it to offer local telephony and (potentially) broadband services in Brazil, alongside its existing wireless operations. Meanwhile, Telefónica has an 86% controlling interest in Sao Paulo's incumbent fixed-line operator, Telecomunicações de São Paulo SA (TELESP), which does not currently have a wireless business of its own.
To complicate matters further, Telecom Italia has a stake in Solpart, a holding company that controls Brazilian fixed-line and wireless operator, Brasil Telecom Participações SA. Although the stake in Solpart was moved to an arm's-length and independently-managed subsidiary in 2006, to avoid causing a conflict of ownership between TIM Participacoes and Brasil Telecom's wireless business, some may now argue that increased co-operation between Telefónica and Telecom Italia, even marginally, gives the companies too great an influence over the Brazilian telecommunications market. Brasil Telecom's wireless business served 3,638,100 subscribers as of March 31, 2007.
ANATEL must now wait on Portugal Telecom's response to Telefónica's offer and will then have to wait until after its summer recess before it can begin to consider the implications of the deal.
As for Portugal Telecom, it seems unlikely that that company will want to exit the Brazilian market entirely and it is rumoured that it may enter into an agreement to acquire Telecom Italia's indirect stake in Brasil Telecom as part of the Telefónica/VIVO transaction. Portugal Telecom has previously been linked to reports that it was interested in buying significant stakes in Brasil Telecom and/or its rival, Tele Norte Leste Participações (Telemar). Telemar (trading as Oi) served 11,217,000 cellular subscribers as of March 31, 2007.
More information on Telefónica, Portugal Telecom, VIVO, America Móviles, Telecom Italia, and Brasil Telecom can be found in individual company profiles published by ITI. Furthermore, ITI has published a market report on Brazil, which is currently being updated; the revised version of this report will be available to order by the end of July 2007.
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10th July 2007
Pipex Wireless selects Airspan for the first phase of its nationwide UK WiMAX rollout
Airspan Networks Inc has been awarded a contract to supply its solutions to Pipex Wireless covering the Manchester region; the first phase of its nationwide WiMAX deployment. Pipex Wireless also intends to expand its market tests in Milton Keynes and Warwick, using Airspan’s equipment, with the objective of future commercial launches in these regions.
Airspan will supply its HiperMAX base stations together with its Easy indoor subscriber terminals. Airspan’s WiMAX solution will enable Pipex Wireless to offer a bundle of voice and data services which can be upgraded to 802.16e-2005 WiMAX from the same platform without any hardware change.
Airspan's flagship WiMAX HiperMAX base station and Easy indoor WiMAX modem combination support both fixed 16d and mobile 16e WiMAX system profiles. This, combined with support for 5, 7 and 10MHz channels, makes the solution highly scaleable, with up to 32Mbit/s per channel, and up to 12 channels per base station.
Pipex Wireless is a business formed in April 2006 by Pipex Communications plc and Intel Capital to develop and roll-out a WiMAX network into the UK market. Pipex Wireless owns a national spectrum licence in the 3.6 to 4.2GHz frequency range allowing it to deploy new broadband wireless services. Pipex Wireless is the first service provider in the UK to offer WiMAX using licensed spectrum and is pioneering use of the technology and its market applications for both data and voice.
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10th July 2007
Cricket Communications awards Nortel US$135 million contract for AWS market expansion
Nortel Networks Corp has signed a three-year, US$135 million agreement to supply Cricket Communications, a wholly-owned subsidiary of Leap Wireless International, with CDMA equipment to expand its network coverage. Cricket will use Nortel CDMA2000 1X and EV-DO Rev A equipment to expand its mobile voice and data services to new markets across the US using recently acquired Advanced Wireless Services (AWS) spectrum. This supports Cricket’s goal of enriching the mobile experience by offering customers and local businesses flat-rate, unlimited service over a high-quality, all-digital wireless network.
Cricket has been expanding its coverage and upgrading its US network with CDMA 1xEV-DO Rev A equipment. The data speed capabilities of Nortel’s Rev A solution assist operators in their efforts to serve more subscribers using the same spectrum and to deliver new bandwidth-hungry applications, such as VoIP, real-time video, interactive gaming, location-based services and rich media content, such as music and video.
Nortel’s Rev A solution allows users to receive data at burst speeds up to 3.1Mbit/s and send data at up to 1.8Mbit/s with significantly lower delay. These speeds are comparable to most fixed-line DSL connections.
Since choosing Nortel as a wireless infrastructure supplier in 2000, Cricket has deployed Nortel infrastructure in markets covering more than 26 million potential subscribers. This includes recent market expansions in Burlington and Raleigh-Durham, North Carolina; Charleston, South Carolina; and, Rochester, New York. As part of the US$135 million contract, Cricket will earn credits which can be applied to future products and services.
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10th July 2007
Telekom Austria announces new corporate structure in place
Telekom Austria has announced that its new corporate structure is now legally in place following approval by the Annual General Meeting on May 30, 2007; the spin off and commercial registration of the newly-established fixed-line company is also now complete. The new structure encompasses the publicly-listed holding company, Telekom Austria AG, an independent fixed-line subsidiary, Telekom Austria TA AG, and the mobile subsidiary, mobilkom austria AG.
The management board of the holding company of the Telekom Austria Group includes Boris Nemsic (CEO), Rudolf Fischer (Deputy CEO) and Hans Tschuden (CFO). The management board of mobilkom austria remains unchanged with Boris Nemsic as CEO, Hannes Ametsreiter as CMO and Deputy CEO and Alfred Gattringer as CFO.
In the newly-established fixed-line subsidiary, Telekom Austria TA AG, Rudolf Fischer has been appointed CEO, Gernot Schieszler CFO and Deputy CEO and Hannes Ametsreiter as CMO. With this new structure, Hannes Ametsreiter has taken on a double function as CMO of both operating companies, guaranteeing increased synergies in the development of fixed-line and mobile communication products and services.
Following the implementation of the new structure and the spin off of the fixed-line segment as an independent company, a new brand and a new corporate website for the Telekom Austria Group, www.telekomaustria.com, has been launched.
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9th July 2007
France: ARCEP sets directions on the introduction of 3G in the 900 and 1800MHz frequency bands
The rapid reuse by 3G mobile services of frequency bands currently used by 2G represents a major stake for the extension of 3G coverage. This is why the Autorité de Régulation des Communications Electroniques et des Postes (ARCEP) held a public consultation from May 4 to June 4, 2007 as part of the analysis and discussion process initiated in the spring 2006 with sector players to establish the means of reusing for 3G the 900 and 1800MHz frequencies which are currently used for 2G.
The ARCEP is now reporting the results of the public consultation and the directions it has chosen for the implementation of 3G in the 900 and 1800MHz bands. The ARCEP is providing visibility to the sector’s players - both operators and industrialists - on the regulatory approaches which may be chosen for the reuse of the 900 and 1800MHz bands for 3G, so that they can initiate preparatory technical works for the rapid introduction of 3G in these bands. Furthermore, the announcement aims to enlighten parties interested in participating in the application procedure launched on March 8, 2007 for the assignment of the fourth 3G licence regarding the availability timetable of 900 and 1800MHz frequencies for a new entrant. The ARCEP had announced this in the reasoning for its decision no. 2007-0177 describing the application procedure.
Nine players contributed to the public consultation. There were five electronic communications network operators, one equipment manufacturer, two companies using GSM services and one government administration. The contributions confirmed the major outlines proposed by the ARCEP in its public consultation in the two configurations corresponding to whether or not there will be a fourth 3G operator. Moreover, the contributors raised questions regarding fees and compatibility in adjacent bands which should be taken into account.
Given these elements, the ARCEP has decided on a number of directions. The main consequences of these measures are as follows:
- As early as 2008, 2G-3G operators wishing to do so may reuse 900MHz spectrum for 3G; and,
- Any 3G new entrant authorised following the application procedure for the fourth 2.1 GHz UMTS licence would also have access to the 900MHz spectrum once it has been returned by the existing 2G operators. The spectrum would be made available in late-2009 outside densely populated areas, and in late-2012 for the rest of the country.
Directions chosen by ARCEP for the reuse of 900 and 1800MHz bands for 3G...
This document describes the means which will be used for the reuse of the 900 and 1800MHz bands. These means will be different depending on whether the market will be composed of three or four 3G mobile operators.
Reuse of 900 and 1800MHz bands in a configuration with three 3G operators...
This case corresponds to the situation where the fourth 3G authorisation available in the 2.1GHz band is not assigned. In this situation, the current assignment of the 900 and 1800MHz frequencies would not have to be changed except for some minor adjustments regarding guard bands.
The frequency use authorisations of each of these three 2G/3G mobile operators would be modified when they would request it, to allow each of them to use the frequencies which are assigned to them in the 900 and 1800MHz bands according to their choice for 2G or 3G.
The use of the frequencies by 3G will be reviewed in March 2011, at the stage review on the frequency assignments planned for the renewed usage authorisations for the 900 and 1800MHz frequencies.
Reuse of the 900MHz band in a four 3G operator configuration...
This case corresponds to the situation where the fourth 3G authorisation is assigned. In this situation, the frequency usage authorisations for the 900MHz frequencies of the three existing 2G operators would be modified as quickly as possible.
The purpose of this modification would be to: authorise each of the three 2G/3G operators to use the frequencies assigned to it in the 900MHz band as it chooses for 2G or 3G; to plan for the return of frequencies in the 900MHz band in order to assign 5MHz duplex to the 3G new entrant as proposed in the public consultation and as reviewed below. The 2G/3G operators would then keep about 10 MHz duplex each.
The target distribution scheme of the frequency assignment in the 900MHz band on the entire Metropolitan territory would be as follows:
- The frequency return timetable for existing 2G operators will differ according to whether or not they are located in heavily populated areas, as defined in the specifications of the existing 2G operators.
If a licence is issued by the spring of 2008, the new entrant would have 5MHz duplex in 900MHz freed in late-2009 outside heavily populated areas for the operation of its 3G mobile network, then in late-2012 in heavily populated areas.
The reuse of the 1800MHz band in the four-operator configuration will be examined at a later date, with a timetable adapted to market demands.
The ARCEP has contacted the Minister of Electronic Communications regarding the question of applicable fees for the use of frequencies.
It is important to ensure that the introduction of UMTS does not create any interference prejudicial for applications in adjacent bands. The ARCEP wishes to remind players that electromagnetic compatibility studies mentioned in the consultation tend to show that emissions outside UMTS bands are equivalent to those of GSM. So, the ARCEP plans to impose the obligation that 3G maintain the maximum level of interference, which is currently authorised for 2G networks in the 900MHz band.
Full details of the directions are available on the ARCEP's website: www.arcep.fr.
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9th July 2007
TeliaSonera to acquire 100% of outstanding shares in MCT Corporation
TeliaSonera AB has signed an agreement to acquire up to 100% of the outstanding shares in MCT Corp, a US-based company with majority controlling shareholdings in three Eurasian GSM operators in Uzbekistan and Tajikistan and a minority interest in the leading GSM operator in Afghanistan. The closing of the transaction is pending fulfilment of certain conditions and TeliaSonera estimates that these conditions will be met during the third quarter of 2007.
The four GSM operators are: Uzbek-American joint venture Coscom, the third-largest mobile operator in Uzbekistan in which MCT has a 99.97% interest; CJSC Indigo Tajikistan and CJSC joint venture Somoncom, which combined is the second-largest mobile operation in Tajikistan. MCT has 60% interest in Indigo-Tajikistan and 59.4% interest in Somoncom; and, Telecom Development Company Afghanistan Ltd (TDCA), also known as Roshan, the largest mobile operator in Afghanistan, which is 12.25%-owned by MCT.
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9th July 2007
Reliance Communications and QUALCOMM collaborate on CDMA2000 expansion in India
Reliance Communications Ltd (RCOM) and QUALCOMM Inc have announced plans to grow CDMA2000 technology in India. At the same time, Reliance has announced its CDMA2000 network expansion, covering more than 20,000 towns in India.
The two companies will collaborate to leverage the capabilities of CDMA2000 technology in the world's fastest growing telecommunications market. They plan to address the increasing needs of rural, urban and enterprise consumers through the introduction of more affordable and feature-rich handsets, wireless Internet data cards and a host of data applications.
Reliance's network expansion is believed to be the world's largest and fastest infrastructure deployment project. Once completed, this project is expected to help India meet its ambitious teledensity targets and provide telecommunications services across tens of thousands of Indian villages which currently do not enjoy any connectivity. To address the needs of the enterprise segment, Reliance has launched Reliance Netconnect, which offers uninterrupted, anytime, anywhere wireless Internet connectivity in more than 8,000 towns, three lakh villages and along major highways and railway routes in India.
Reliance Communications is an integrated telecommunications service provider. The company has a customer base of more than 33 million, including more than one million individual overseas retail customers. It also has a corporate clientele, which includes 600 Indian and 250 multinational corporations and more than 200 global carriers. Reliance has established a pan-India, next-generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire Infocomm value chain, covering more than 8,000 towns and 300,000 villages. The company owns and operates what is claimed to be the world's largest next-generation IP-enabled connectivity infrastructure, comprising more than 150,000 kilometres of fibre-optic cable systems in India, the US, Europe, the Middle East and the Asia Pacific region. The company's subsidiary, FLAG Telecom, owns the world's largest private undersea cable system, spanning 65,000 kilometres and connecting business centres in developed and emerging markets across six continents.
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9th July 2007
Macedonia: Tender relaunched for fixed-wireless access licences
The Agency for Electronic Communications has announced the relaunch of public tender No. 02-1771/1 for granting authorisations for radio frequency utilisation in the radio frequency band 3.4–3.6GHz for fixed-wireless access (FWA) for six regions in the Republic of Macedonia.
1.1 Granting of three authorisations for radio frequencies utilisation in the radio frequency band 3.4–3.6 GHz for fixed-wireless access for each of the six regions in the Republic of Macedonia determined in item 1 sub-item 1.2 of this tender, i.e. in the following radio frequencies bands: 2 x 14 MHz: C (3445-3459 MHz) and C’ (3545-3559 MHz); 2 x 14 MHz: D (3462,5-3476,5 MHz) and D’ (3562,5-3576,5 MHz); and, 2 x 14 MHz: E (3480-3494 MHz) and E’ (3580-3594 MHz).
1.2. The authorisations for radio frequency utilisation of item 1, sub-item 1.2 of this tender shall be granted for six regions in the Republic of Macedonia covering the settlements and the territories of the communities as follows: Region 1: city of Skopje, Ilinden, Petrovec, Zelenikovo, Studenicani, Sopiste, Cucer, Sandevo and Aracinovo; Region 2: Kumanovo, Lipkovo, S. Nagoricane, Rankovce, Kriva Palanka, Kratovo, Stip, Vinica, Sveti Nikole, Lozovo, Probistip, Cesinovo-Oblesevo, Karbinci, Zrnovci, Berovo, Pehcevo, Delcevo and M.Kamenica; Region 3: Veles, Caska, Gradsko, Rosoman, Kavadarci, Negotino, Demir Kapija, Strumica, Radovis, Konce, Vasilevo, Bosilevo, Novo Selo, Gevgelija, Valandovo, Bogdanci and Dojran; Region 4: Bitola, Prilep, Demir Hisar, Krusevo, Dolneni, Krivogastani, Mogila, Novaci and Resen; Region 5: Ohrid, Struga, Debarca, Vevcani, Kicevo, M. Brod, Drugovo, Zajas, Oslomej, Vranestica, Plasnica, Debar i Centar Zupa; and, Region 6: Tetovo, Gostivar, Tearce, Jegunovce, Zelino, Brvenica, Bogovinje, Vrapciste, Mavrovo i Rostuse.
The authorisations for radio frequency utilisation subject to this public tender shall be granted for a period of 10 years, with the right of extention the validity of the authorisation in a manner and procedure determined in the Electronic Communications Law.
Bidders must submit a written statement that they will commence their operation within six months from the day of granting the authorisation and within a period of one year shall provide 20% coverage, within two years 40% coverage, within three years 60% coverage, and within four years 80% coverage of the population in the region referring to the bid and that at the end of the first year they shall offer services in 50% of the total number of communities in the region subject to the bid.
The minimum initial amount of the radio frequencies market value as a one-time fee for granting the authorisation for radio frequencies utilisation of item 1 sub-item 1.1 of this tender shall be €200,000.
The minimum initial amount of the radio frequencies market value as one-time fee for granting the authorisation for radio frequencies utilisation of item 1 of this tender per divided regions shall be: Region 1: €50,000; Region 2: €15,000; Region 3: €15,000; Region 4: €10,000; Region 5: €10,000; and, Region 6: €15,000.
The bidder shall be obliged to submit a bank guarantee for 10% of the offered amount of the one-time fee for granting an authorisation for radio frequencies utilisation.
The deadline for submission of the bids is 48 days from the date of publishing the public tender in the “Official Gazette of the Republic of Macedonia”.
Interested parties may obtain the tender documentation in the archives of the Agency for Electronic Communications from July 10, 2007 after payment of €500 in MK Denars denomination according to the average rate of the National Bank of the Republic of Macedonia to one of the accounts of the Agency for Electronic Communications as follows: Agency for Electronic Communications. Giro account: 300000002366739. Recipient bank: Komercijalna Banka AD Skopje. Tax number: MK4030005556148; or, Agency for Electronic Communications. Giro account: 210060052840142. Recipient bank: Tutunska Banka AD Skopje. Tax number: MK4030005556148.
Tender No: 02-1771/1.
Additional information is available upon written application via e-mail to: Mrs Liljana Denkovska (legal issues) and Mr Mile Veljanov (technical issues). E-mail: fwatender@aec.mk.
Full details of the tender are available on the Agency's website: www.aec.mk.
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