3rd August 2007
TCNZ to merge Australian assets...take 10% stake in Hutchison Australia
Telecom Corporation of New Zealand (TCNZ, or Telecom) is to attempt to improve its earnings by merging its two main Australian assets, AAPT and the recently acquired PowerTel Ltd.
TCNZ CFO, Marko Bogioevski, said that the merger with AAPT would allow TCNZ to significantly cut Telstra and Optus out of the loop, migrating customers on to its own network and avoiding lease rates. The new strategy is designed to revive the ailing division, and means plans to offload AAPT have now been shelved.
TCNZ acquired PowerTel for A$357 million in April 2007. The network provider owns a fibre-optic network spanning the business districts and some metropolitan parts of Brisbane, Gold Coast, Newcastle, Sydney, Canberra, Melbourne, Adelaide, and Perth.
In a separate deal, TCNZ announced that it was to take a more direct stake in Hutchison Telecommunications (Australia) Ltd, agreeing to exchange its 19.94% stake in Hutchison's 3G subsidiary for a 10% interest in Hutchison itself. The deal, which remains subject to shareholder and regulatory approval, entails TCNZ assigning its high-quality digital spectrum licences in Brisbane, Adelaide, and Perth to Hutchison and retaining an option to increase its investment to a further 9.94% of Hutchison at any time before the end of 2008 at prices between A$250 million and A$300 million. "By extending our investment to the listed parent company (from the 3G network), Telecom will benefit from a greater involvement in the developments in 3, as well as from the returns we expect from Hutchison Telecoms in years to come," Bogoievski said.
Hutchison Telecommunications, currently 57% owned by Hong Kong-based Hutchison Whampoa Ltd, said in a separate statement that TCNZ will be issued with shares and convertible preference shares. The 10% stake taken by TCNZ will reduce Hutchison Whampoa's stake in the company to 87.86% when all convertible preference shares are converted, under the 90% ownership threshold where a company has the right to force minority shareholders to sell their shares.
[back to top] |
3rd August 2007
IFC invests in landmark project to improve telecommunications access for 250 million in Africa
The International Finance Corp (IFC), a member of the World Bank Group, has announced plans to invest in the East African Submarine Cable System, a landmark fibre-optic cable project that will connect 21 African countries to each other and the rest of the world with high-quality Internet and international communications services. The cable will transform the telecommunications landscape in the region as it improves access for 250 million Africans and substantially reduces costs for consumers and businesses. Construction is expected to begin in the next few weeks, with the EASSy cable fully operational by the beginning of 2009.
Consumers along the east coast of Africa typically pay between US$200 and US$300 a month for Internet access. These prices, some of the world’s highest, have an adverse economic impact. Estimates suggest that reducing the price of international communications by 10% would benefit consumers in the region by more than US$2.5 billion. As a result of this project, prices for international connectivity will drop by two-thirds at the outset, and the number of subscribers will triple. Because the project gives open access to service providers, prices will fall further as volume and competition increase.
The IFC’s board has approved an investment of up to US$32.5 million in the cable, known as EASSy. It will run 10,000 kilometres from the continent’s southern tip to the African horn, connecting South Africa, Mozambique, Madagascar, Tanzania, Kenya, Somalia, Djibouti, and Sudan. Another 13 adjoining countries will also be linked to the system as terrestrial backbone networks are completed through a broader World Bank Group initiative. These include Botswana, Burundi, the Central African Republic, the Democratic Republic of Congo, Chad, Ethiopia, Lesotho, Malawi, Rwanda, Swaziland, Uganda, Zambia, and Zimbabwe.
To expand the benefits of the new cable and stimulate traffic, the IFC is co-ordinating its efforts with the World Bank, which is financing a complementary system of terrestrial backhaul and backbone networks through the Regional Communications Infrastructure Programme.
Capping years of collaboration between the World Bank Group and other global and regional development institutions, governments, and the region’s private sector, the project establishes an innovative public-private partnership to expand access to communications. It addresses a major gap in the global communications infrastructure and is expected to have a profound impact on the region’s economical integration and cooperation. The fibre-optic cable will also improve the quality of service.
“Despite the recent growth in connectivity in Africa, there remain severe bottlenecks in the availability of affordable international communications and Internet services,” said Mohsen Khalil, IFC’s Director of Global Information and Communication Technologies. “The EASSy cable will facilitate the effective entry of East Africa into the global economy and
allow its countries to compete on a more level playing field, creating significant opportunities for people throughout the region.”
The new cable is a partnership among 26 telecommunications operators, the majority of which are African firms. The IFC’s involvement reflects a long-standing commitment to Sub-Saharan Africa, where IFC’s annual investments doubled in fiscal 2007 to a record US$1.4 billion from US$700 million the previous year. The IFC’s financing will be channeled through the West Indian Ocean Cable Company (WIOCC), and will consist of an US$18.2 million senior loan and a US$14.5 million standby loan. The total cost of construction is estimated at US$235 million. Other financing will come from private operators and development institutions.
[back to top] |
3rd August 2007
VIVO confirms deal to acquire Telemig and Tele Norte
VIVO Participações SA (VIVO) has confirmed that it has signed a stock purchase agreement with Telpart Participacoes Ltda to acquire control of Telemig Celular Participações SA (Telemig Participações) and Tele Norte Celular Participações SA (Tele Norte Participações) comprised of 22.72% and 19.34% of total capital, respectively, for an aggregate amount of R$1.2 billion, subject to certain price adjustments. In addition, Vivo will acquire from Telpart certain subscription rights for R$87 million. The conclusion of the transaction is subject to Anatel approval and ratification by general shareholders meetings of VIVO and Telpart, among other customary closing conditions.
Upon closing of the transaction, in accordance to Brazilian Law, VIVO will launch mandatory tender offers for the acquisition of common shares held by non-controlling shareholders at 80% of the price paid for the controlling stake. The mandatory tender offers will be extended to Telemig Participações, Telemig Celular, Tele Norte Participações and Amazonia Celular SA. Telemig Participações is the controlling shareholder of Telemig Celular SA (Telemig Celular), which is the SMP provider in Area 4 of Region 1 of the Plano Geral de Autorizações of the SMP that
covers the State of Minas Gerais and Tele Norte Participações is the controlling shareholder of Amazônia Celular SA (Amazônia Celular), which is the SMP provider in Area 8 of Region 1 of the Plano Geral de Autorizações of the SMP that covers the States of Amazonas, Roraima, Amapá, Pará and Maranhão.
Additionally, VIVO intends to launch voluntary tender offers for up to one-third of all classes of preferred shares held by the non-controlling shareholders in the holding and operating companies, at a 25% premium to the weighted average price of the last 30 trading days until August 1, 2007.
Assuming full acceptance in all offers, VIVO will have acquired a beneficial interest of 58.2% in Telemig Celular and 54.6% in Amazônia Celular, for an aggregate consideration of approximately R$2.9 billion (including the value of the subscription rights).
With this transaction, VIVO adds two attractive assets to its portfolio reaffirming its leadership in the wireless market with 35 million subscribers and a 33% national market share:
Telemig Celular, the leading wireless operator in the Minas Gerais region, with 3.5 million subscribers and a 31% market share. For the 12 months ended March 31, 2007, net revenues amounted to R$1,232 million, with an EBITDA of R$383.3 million. In the first quarter of 2007, Telemig Celular achieved a 38.2% margin, being one of the most profitable operators in Brazil.
Amazonia Celular, the third largest wireless operator in the Amazonia region with 1.3 million subscribers and a 22% market share. For the 12 months ended March 31, 2007 net revenues amounted to R$454 million, with an EBITDA of R$46.3 million and reaching a 24.3% margin in the first quarter of 2007.
VIVO Participações is the controlling shareholder of VIVO S.A., which is the mobile service provider of SMP in areas 7 and 8 of Regions I and II, in area 7 of Region II and in Region I (areas 3 and 9), in Region II (area 6) and in Region III (areas 1 and 2). VIVO is controlled by Portugal Telecom SA and Telefónica Móviles SA.
As a result of this transaction, VIVO will expand its commercial operations, reaching 84% of Brazil’s total population and 93% of the country’s GDP, expanding its activity to the strategic state of Minas Gerais which represents 9.4% of Brazil’s total GDP. VIVO believes access to this key region will strengthen its commercial and competitive position in the country.
[back to top] |
This free news service is provided by ITI, the leading supplier of telecoms news, competitor profiles, country analyses, financial databases, and off-the-shelf and custom telecoms market research studies.
Please feel free to visit our website at http://www.itireports.com to see the full range of our products and services. |
3rd August 2007
Fourth cellular licence to be auctioned in Portugal
Portugal's ICP-Autoridade Nacional de Comunicações (ICP-ANACOM) has announced plans to auction a fourth mobile operator licence in December, according to Dow Jones Newswires. ANACOM said the new GSM licence aims to "promote more competition in the supply of telecommunications services, by stimulating the access of new operators".
According to the report, ANACOM plans to look into launching other GSM licences in the first quarter of 2008.
Existing mobile operators, TMN - Telecomunicações Móveis Nacionais SA, Optimus Telecomunicações SA and the Portuguese unit of Vodafone Group plc, are barred from expanding their spectrum by applying for the fourth licence.
[back to top] |
3rd August 2007
Nortel readies for mobile WiMAX push with UK partnership
Nortel Networks Corp has announced a cross-market collaboration with UK-based wireless broadband operator, Urban WiMAX, ostensibly to demonstrate the viability of mobile WiMAX services and applications ahead of a planned auction of 2.5-2.7GHz spectrum next year. More likely, however, Nortel is simply taking proactive steps to secure its share of the nascent WiMAX market while continuing to develop its WiMAX product range.
The collaboration will result in the construction and trial of a "user-ready" WiMAX service, which Nortel and Urban WiMAX are dubbing '4G' technology - something of a misleading statement as no standard has yet been agreed upon for 4G services. The companies are to work with Macropolitan, said to be the largest owner of exclusive telecommunications rights at urban sites in the UK.
The initiative will involve the pre-assembly and testing of an end-to-end WiMAX technology supply chain and the execution of user trials on the network. Ahead of the Office of Communications (Ofcom) auction of 2.5-2.7GHz spectrum in early-2008, the collaboration also seeks to explore the business case for national wholesale and retail mobile WiMAX networks against a range of new value chain business models.
The collaboration marks Nortel's first major foray into the WiMAX market at a time when many of its competitors (including Motorola, Nokia Siemens Networks, Redline Communications, Alvarion, and Airspan) have been securing commercial WiMAX supply contracts for some time. Nortel has focused a substantial amount of time and money (approximately US$100 million over the last 12 months) on developing its own WiMAX products, few of which have been unveiled so far, at the cost of its core traditional business. So, this collaboration with Urban WiMAX is a real gamble for the Canada-based company which has long been viewed as a potential take-over target. Winning a healthy share of the WiMAX market would go some way towards ensuring the company's future.
It is a gamble that may not pay off, however, as success is contingent on Urban WiMAX securing spectrum in next year's auction, when it will likely compete with industry giants such as BT, Vodafone Group, British Sky Broadcasting (BSkyB), Virgin Media, and others with deeper pockets. Furthermore, the UK is a relatively mature market as far as broadband services are concerned and a start-up WiMAX operator may not be able to compete effectively with the more established fixed-line, wireless, and ISP operators already serving millions of customers via older technologies.
Privately-owned Urban WiMAX provides business customers with secure high-quality connections for data, voice, and video services. It can deliver ubiquitous, scalable non-line-of-sight WiMAX services in dense urban markets, with the widest addressable market in a low capital expenditure and operating expenditure modular fashion.
With Tiscali having agreed to acquire UK-based WiMAX operator Pipex Wireless, the race is on to establish a full-capable nationwide wireless broadband network.
[back to top] |
2nd August 2007
Telenor wins New York arbitration against Alfa ... Altimo responds
Telenor ASA has won a New York arbitration proceeding against Alfa Group subsidiary, Storm LLC, in connection with Storm's violations of the Shareholders Agreement relating to the parties' joint investment in Ukrainian mobile operator, Kyivstar GSM. Among other things, the arbitration tribunal has ordered Alfa to sell its Kyivstar shares within 120 days to an unaffiliated entity or divest itself of its holdings in competing Ukrainian wireless operators, Turkcell and Ukrainian High Technologies, above 5%.
The three-member arbitration tribunal has issued an arbitration award which held that Storm has breached and continues to breach the Kyivstar Shareholders Agreement by: failing to appoint candidates for election to the Kyivstar board and failing to cause Storm-nominated board members to attend board meetings; failing to attend Kyivstar shareholders meetings; owning or controlling, directly or indirectly through affiliates, more than 5% of the shares of Turkcell and Ukrainian High Technologies, which are competing wireless telecom operators in Ukraine; and, by failing to settle any and all disputes relating to the Kyivstar Shareholders Agreement by arbitration.
The tribunal's award orders Alfa subsidiary Storm to: organise its Kyivstar shareholding so that it can nominate four candidates for election to the Kyivstar board; take all steps necessary to elect its candidates to the Kyivstar board and ensure they attend all future Kyivstar board meetings and participate in good faith in the direction and management of Kyivstar's business; attend all Kyivstar shareholders meetings; take steps to cause Kyivstar's charter to be amended to conform to applicable Ukrainian law and the Kyivstar Shareholders Agreement; and, within 120 days, sell its Kyivstar shares to a person other than a Storm affiliate unless prior to that time Storm and its affiliates divest their shareholdings in Turkcell and Ukrainian High Technologies that exceed 5%.
In addition, the tribunal has enjoined Storm and anyone acting in concert with it from: pursuing any litigation in Ukraine relating in any way to the Kyivstar Shareholders Agreement, including any existing litigation; attempting to enforce certain Ukrainian court orders; and, taking any action to prevent Telenor and Ernst & Young from exercising their rights under the Kyivstar Shareholders Agreement or other agreements with Kyivstar.
Telenor commenced the arbitration proceeding, which is governed by the United Nations Commission on International Trade Law (UNCITRAL) arbitration rules, in February 2006. Both Telenor and Alfa had agreed in the Kyivstar Shareholders Agreement to resolve any disputes in such an arbitration proceeding.
Telenor also announced it has applied to the US District Court for the Southern District of New York to confirm the arbitration award so that Telenor can begin to enforce it against Alfa. "We will seek to enforce this award wherever Alfa has assets, including in Ukraine," said Telenor Executive Vice President and Head of Central and Eastern Europe, Jan Edvard Thygesen. "We are confident Ukraine will comply with its international treaty obligations and its own laws concerning enforcement of such arbitration awards."
Telenor is the majority owner of Kyivstar, holding 56.5% of the shares, while Storm holds a 43.5% interest.
Altimo believes NY Arbitration Tribunal award will not influence Kyivstar dispute...
Altimo, which owns a 43.5% stake in Kyivstar, has announced that it believes the award issued by the New York Arbitration Tribunal will not have any impact on the legal situation around Kyivstar.
The company said that following earlier decisions by Ukrainian courts, Telenor did not have the right to proceed with the New York Arbitration on the disputed issues around Kyivstar. Moreover, according to Ukrainian law, it is impossible to recognise and enforce the arbitration award in Ukraine since the New York arbitration lacked jurisdiction for the proceedings and for the issuing of the award.
Both Altimo’s Ukrainian affiliate Storm and Telenor were banned by the court from taking part in the NY Arbitration proceedings. Still, Telenor chose not to follow this prohibition.
Altimo said that it reconfirms its legal position that all disputed issues between Kyivstar shareholders can only be resolved within the Ukrainian national jurisdiction.
Alexey Reznikovich, Altimo’s CEO, said: “The New York Tribunal award cannot change the legal situation around Kyivstar which is to be resolved by means of Ukrainian laws. We will proceed in defending our minority shareholder’s rights in Kyivstar and are confident in it both legally and morally. We also urge Telenor to cease ignoring decisions made by courts in Ukraine.”
[back to top] |
ITI Online
ITI Online is our premium web-based database service which uniquely provides, via a single access point, full access to the vast wealth of ITI's telecommunications industry knowledge base, including much material not published elsewhere.
It is the easiest, fastest and most efficient way to find and access telecoms industry business intelligence. We have over 20 years experience in telecoms intelligence research and with ITI Online this can all be at your fingertips.
| The ITI Online service includes: |
- Communications Markets Analysis (CMA)
Database of telecoms market reports on over 50 countries
- Network Operators Worldwide (NOW)
Database of Company profiles for over 60 major Network Operators
- ITI News
Database of telecoms industry news that is updated several times daily
- Other telecoms news and information not found in other ITI products and services.
|
For more information please visit our website at
http://www.itireports.com/iti_online.htm |
2nd August 2007
J:COM Kanto becomes largest cable TV operating company in Japan
Jupiter Telecommunications Ltd (J:COM), the largest multiple system operator (MSO) in Japan, has announced the merger of its three subsidiary companies: J:COM Kanto Co, Chofu Cable Inc and J:COM Setamachi Co. This strategic consolidation will strengthen group competitiveness and improve management efficiency. It also creates Japan’s largest cable TV operating company, with a total of approximately 520,000 subscribing households. J:COM Kanto is now positioned to become the main cable TV operator in the Kanto area, with plans to broaden its operations.
Established in 1995, J:COM is Japan’s largest MSO based on the number of subscribing customers, serving 2.69 million subscribing households (as of June 30, 2007) in the Sapporo, Kanto, Kansai, and Kyushu regions. Based in Tokyo, J:COM is a corporate entity that provides cable television, high-speed Internet access, telephony and mobile services to customers through 21 managed franchises (as of August 1, 2007) operating at the local level. The number of serviceable households in J:COM franchise areas is approximately 9.85 million (of which Cable West group has approximately 1.4 million as of June 30, 2007). J:COM’s principal shareholder is LGI/Sumisho Super Media.
[back to top] |
2nd August 2007
SkyLink and Alcatel-Lucent launch high-speed mobile broadband network in Volgograd
SkyLink and Alcatel-Lucent have announced the deployment of an Alcatel-Lucent-supplied, 3G CDMA2000 1хEV-DO network that will support mobile high-speed data services at speeds of up to 2.4Mbit/s in Volgograd, Russia. With this deployment, ZAO Volgograd Cellular Communications, a SkyLink subsidiary that will operate the new network, will be able to transform its service offerings, providing voice and data services, including mobile video, mobile office solutions and more, to local and roaming subscribers.
"The launch of commercial services in Volgograd is yet one more significant step to the establishment of the unified federal CDMA450 network under the SkyLink brand," said Gulnara Khasyanova, SkyLink General Director. “We are committed to expanding mobile Internet and other advanced and cost-effective mobile services throughout Russia. We selected Alcatel-Lucent for the deployment in one of the largest cities in Volga region because it is a reliable partner able to provide innovative technology solutions to serve as the basis for our ambitious project."
Alcatel-Lucent is supplying its CDMA2000 solution for the 450МHz frequency band, including its mobile switching centre (MSC) and Modular Cell 4.0 Compact base stations, which offer a smaller footprint and reduced power consumption. Alcatel-Lucent Services Group has provided network deployment, integration, and training and support services.
SkyLink claims to be the largest CDMA operator in Russia and CIS countries with the licensed territory covering 65 regions of the Russian Federation with 104 million inhabitants - more than 72% of the country's population. SkyLink was established in July 2003 to create a federal cellular communications network based on IMT-MC 450 (CDMA450) technology.
[back to top] |
1st August 2007
Nextel and América Móvil awarded mobile licences in Peru
ProInversión, Peru's state agency for promoting private investment, has announced that Claro Perú, a subsidiary of America Móvil SAB de CV, and digital trunking operator, Nextel Perú, a subsidiary of NII Holdings Inc, have won mobile concession licences.
Claro has reportedly picked up the B band licence, equating to 835-845MHz, 880-890MHz, 846.5-849MHz and 891.5-894MHz spectrum blocks, for US$22.2 million, which was US$20,000 more than the minimum bid, a ProInversión official told BNamericas.
Nextel Perú has been awarded the D and E bands for US$27 million, which was US$1.5 million more than the minimum bid, according to the report. The D band covers the 1,865-1,870MHz and 1,945-1,950MHz blocks, and the E band covers 1,882.5-1,895MHz and 1,962.5-1,975MHz.
The B band concession requires Claro to install 500,000 lines outside Lima and Callao; it must also cover 200 districts which currently have no coverage. The operator of Bands D and E must put 500,000 lines in service, in total.
According to the BNamericas report, Nextel was also pre-qualified for the B band, but did not make a bid. Movistar Perú, the local unit of Spain's Telefónica SA, was pre-qualified for the D and E band, but did not make a bid since it would have had to return spectrum to the Ministry, the official said.
[back to top] |
1st August 2007
United States: FCC revises 700MHz rules
In a Second Report & Order (Order), the US Federal Communications Commission (FCC) has revised the 700MHz band plan and service rules to promote the creation of a nationwide interoperable broadband network for public safety and to facilitate the availability of new wireless broadband services for consumers.
The 700MHz band spectrum, which runs from 698-806MHz, is currently occupied by television broadcasters and will be made available for other wireless services, including public safety and commercial services, as a result of the digital television (DTV) transition. The Digital Television and Public Safety Act of 2005 (DTV Act) set a deadline of February 17, 2009, for the completion of the DTV transition. The DTV Act also requires the FCC to commence an auction of the previously unauctioned commercial spectrum in the 700MHz band no later than January 28, 2008.
The Order establishes a framework for a 700MHz Public Safety/Private Partnership between the licensee for one of the commercial spectrum blocks and the licensee for the public safety broadband spectrum. As part of the partnership, the commercial licensee will build out a nationwide, interoperable broadband network for the use of public safety. This network will facilitate effective communications among first responders not just in emergencies, but as part of co-operative communications plans that will enable first responders from different disciplines, such as police and fire departments, and jurisdictions to work together in emergency preparedness and response. Under the partnership, the Public Safety Broadband Licensee will have priority access to the commercial spectrum in times of emergency, and the commercial licensee will have preemptible, secondary access to the public safety broadband spectrum. Many national and local public safety organisations have expressed support for a public safety/private partnership approach. Providing for shared infrastructure will help achieve significant cost efficiencies, while maximising public safety’s access to interoperable broadband spectrum.
In order to promote broadband competition and the development of wireless services for consumers, the Order also makes several changes to the rules governing the commercial services portion of the 700MHz band. Most notably, the FCC determined that licensees for one of the spectrum blocks to be auctioned – the large, 22MHz Upper 700MHz C Block – will be required to provide a platform that is more open to devices and applications. These licensees will be required to allow customers, device manufacturers, third-party application developers, and others to use any device or application of their choice on their networks in this band, subject to certain conditions. The FCC also adopted several changes to the 700MHz band plan, the build-out requirements for licensees, and the auction procedures, as follows:
700MHz Band Plan:
- Under the new band plan, 62MHz of spectrum, divided into five spectrum blocks, will be auctioned for commercial uses;
- The commercial spectrum will be made available at auction in a mix of geographic area sizes, including Cellular Market Areas (CMAs), Economic Areas (EAs) and Regional Economic Area Groupings (REAGs);
- The 10MHz Upper D Block will be licensed on a nationwide basis and will become part of a 700MHz Public Safety/Private Partnership;
- Within the 24MHz of public safety spectrum, the public safety wideband spectrum is being redesignated for broadband use to allow for nationwide interoperable broadband communications by public safety users;
- The public safety broadband spectrum is placed in a 10MHz Block at the bottom of this band and the existing public safety narrowband spectrum is consolidated in a 12MHz Block at the top of the band. Internal guard bands are placed in between the broadband and narrowband segments;
- There will be a single, nationwide licence for the public safety broadband spectrum, assigned to a Public Safety Broadband Licensee, which will work with the adjacent commercial D Block licensee as part of the 700MHz Public Safety/Private Partnership;
- The Public Safety Band is shifted by downward by 1MHz from 764-776/794-806MHz to 763-775/793-805MHz in order to protect public safety narrowband operations in the Canadian border areas; and,
- To accommodate the shift in the Public Safety Band, the Guard Band A Block is being relocated to a new location between the Upper C and D Blocks, and, to further protect the public safety narrowband operations from potential interference, the Guard Band B Block is being placed above the narrowband block at the top of the 700MHz band.
Public Safety/Private Partnership:
- The Upper D Block commercial licensee and the Public Safety Broadband Licensee will form a Public Safety/Private Partnership to develop a shared, nationwide interoperable network for both commercial and public safety users; and,
- The terms of the Partnership will be governed both by FCC rules and by the details of the Network Sharing Agreement (NSA) to be negotiated by the Upper D Block commercial licensee and the Public Safety Broadband Licensee. The NSA is subject to FCC approval, and must contain certain provisions such as service fees and a detailed build-out schedule for the network.
Performance Requirements for Commercial Spectrum:
- New, more stringent performance requirements were adopted for commercial licences that have not yet been auctioned in order to promote better access to spectrum and the provision of service, especially in rural areas;
- For licences based on CMAs and EAs, licensees are required to provide service sufficient to cover at least 35% of the geographic area of their licence within four years, and 70% of this area by the end of the license term;
- For licences based on REAGs, licensees must provide service sufficient to cover at least 40% of the population of their licence area within four years, and 75% of the population of the licence area by the end of the licence term;
- If licensees fail to meet the four-year, interim geographic or population benchmark, the licence term will be reduced from 10 to eight years, thus requiring these licensees to meet the end-of-term benchmark at an accelerated schedule. Interim reporting requirements have also been adopted to ensure that build out is timely; and,
- If licensees fail to meet the end-of-term buildout requirements, the FCC will automatically reclaim the unserved portions of the licence area and make them available to other potential users.
Open Platform:
- The licensees of the Upper 700MHz Band C Block of spectrum will be required to provide a platform that is more open to devices and applications. This would allow consumers to use the handset of their choice and download and use the applications of their choice in this spectrum block, subject to certain reasonable network management conditions that allow the licensee to protect the network from harm.
Auction Procedures:
- In the upcoming 700MHz auction, the FCC will use “anonymous” bidding procedures, in which any information that may indicate specific applicants’ interests in the auction, including their licence selections and bidding activity, is withheld until after the close of the auction. These procedures will be used irrespective of any pre-auction measurement of likely competition in the auction;
- The FCC will use “package bidding” procedures when auctioning the 12 licences in the Upper 700MHz Band C Block in order to assist bidders that are seeking to create a nationwide footprint; and,
- The Order directs the Wireless Telecommunications Bureau to establish reserve prices for the upcoming 700MHz Band auction.
For additional information on the commercial services portion of the 700MHz Band, contact Paul D’Ari (00 1 202 418 1550) or Paul.Dari@fcc.gov. For additional information on the public safety portion of the 700MHz Band, contact Jeff Cohen (00 1 202 418 0799) or Jeff.Cohen@fcc.gov. For additional information on the 700MHz Guard Bands, contact Paul Moon (00 1 202 418 1793) or Paul.Moon@fcc.gov.
[back to top] |
1st August 2007
China Unicom to bid for CDMA licence in Hong Kong
China United Telecommunications (China Unicom) plans to bid for a 3G mobile licence based on CDMA2000 1xEV-DO technology in Hong Kong, according to a report by the China Business News , quoting China Unicom’s Vice President, Li Zhengmao.
Li said the company was currently in talks with several potential partners and was evaluating operating requirements.
The report said that some Hong Kong operators, including City Telecom and Wharf T&T Ltd, are also interested in obtaining 3G licences.
Hong Kong has issued four 3G licences based on the WCDMA standard. This would be the first licence based on CDMA2000.
[back to top] |
1st August 2007
WINDy Weather picks up in Greece with Tellas buy, merger with wireless unit predicted
Greece's Public Power Corporation SA (PPC) has agreed to sell its 50% less one share stake in alternative fixed-line operator Tellas AS to Weather Investments, the holding company owned by Egyptian technology tycoon Naguib Sawiris. Weather Investments owns WIND Telecomunicazioni, the Italian wireline and wireless operator that partnered with Tellas in 2001 and which already holds 50% plus one share of Tellas. Effectively, Tellas will now be 100%-owned by Weather and WIND. It's reported that Mr Sawiris will pay €175 million for the outstanding shares of Tellas.
The deal comes after many months of negotiations, with PPC reportedly having sought payment of as much as €350 million for its stake in Tellas. The deal should allow Mr Sawiris to combine Tellas with Greece's third-largest mobile telecommunications operator, TIM Hellas Telecommunications SA (in the process of being rechristened WIND Hellas), which his Weather Investments company acquired in April 2007 for approximately €3,400 million.
Should this merger go ahead, it will create one of the largest alternative operators in Greece, with the ability to offer a broad range of bundled services, particularly fixed-line and mobile offerings. At present, only incumbent Hellenic Telecommunications Organisation (OTE) is able to offer such a broad range of services to both residential and business customers. The merged Tellas/WIND Hellas would be able to call upon Tellas' extensive fixed infrastructure, particularly its 2,000km fibre-optic backbone as well as its series of metropolitan area networks deployed in 21 prefectures across Greece. Tellas is also offering broadband access services via wireless local loop (WLL) and ADSL-based platforms. It serves nearly one million customers and accounts for around 10% of the total market for fixed-line telecommunications traffic.
WIND Hellas will bring to the entity its extensive GSM 900/1800 digital cellular telephone network as well as its more recent third-generation (3G) offering, launched in early-2004. Including its subsidiary Info-Quest SA (acquired in January 2006), WIND Hellas served 3.904 million mobile telephone subscribers at the end of 2006, as well as around 100,000 customers served by its fixed wireless access offering. This gave it a 27.7% share of the Greek mobile telephone market, behind second-placed Vodafone-Panafon's 35.2% market share and leader CosmOTE's 37.1% market share. CosmOTE is a subsidiary of OTE.
WIND Hellas had revenues of €1,112.6 million for the year ended December 31, 2006, up from €995.2 million in 2005. Tellas had revenues of €117 million in 2005, which is believed to have increased to around €130 million by the end of 2006.
Weather Investments also controls and owns 50% plus one share of Egypt-based Orascom Telecom, a company operating mobile telephone networks in seven high-growth markets in the Middle East, Africa, and South Asia. Orascom has long coveted the European market for its next phase of expansion and it is possible that WIND/Weather will eventually transfer the combined Tellas/WIND Hellas business to Orascom. With the additional revenues from the combined entity, Orascom will gain additional financial resources with which it could expand into other markets previously beyond its reach.
ITI has published company profiles on OTE and Orascom Telecom, as well as a profile on the telecommunications market in Greece. For more information, please visit our website at www.itireports.com to download executive summaries and tables of contents as well as online ordering details.
This is just one free article selected
from the huge telecoms news database at ITI.
For more information on access to daily news updates
as well as the entire back catalog
via our online ITI News service,
please visit : http://www.itireports.com/iti_news.htm
[back to top] |
31st July 2007
Verizon Wireless agrees to acquire Rural Cellular Corporation
In a move to expand its wireless service coverage in rural markets, Verizon Wireless, a joint venture of Verizon Communications and Vodafone Group plc, has entered into an agreement to acquire Rural Cellular Corporation (RCC) for approximately US$2.67 billion in cash and assumed debt.
The acquisition will further enhance Verizon Wireless' network coverage in markets adjacent to its existing service areas. The combination will increase Verizon Wireless' coverage by 4.7 million licensed POPs (population), and increase its customer base by more than 700,000.
Lowell McAdam, President and CEO of Verizon Wireless, said: "The addition of Rural Cellular's markets will enable us to expand our services into areas where previously we had little or no presence, and will give Rural Cellular's Unicel customers access to the nation's most reliable network and a broader range of voice and data services."
RCC's network served 716,000 customers as of March 31, 2007, spread across five regional territories. Its networks are located in the states of Maine, Vermont, New Hampshire, New York, Massachusetts, Alabama, Mississippi, Minnesota, North Dakota, South Dakota, Wisconsin, Kansas, Idaho, Washington, and Oregon.
RCC utilises both CDMA and GSM technology separately across its five regional markets. Verizon Wireless plans to deploy CDMA service in RCC's existing GSM markets and convert the GSM customers to CDMA service. Verizon Wireless, however, anticipates maintaining RCC's existing GSM networks to continue serving the roaming needs of other GSM carriers' customers.
Verizon Wireless expects to realise more than US$1 billion in synergies in reduced roaming and operations expenses. The addition of the new markets will also offer the company additional upside growth opportunities.
Under the terms of the agreement, approved by the boards of both companies, holders of RCC's common stock will receive US$45 per share in cash for a total equity price of US$757 million on a fully diluted basis. Including net debt as of the first quarter of 2007, the total transaction value is approximately US$2.67 billion. The US$45 price per share represents a 16% premium to the average closing price over the last 10 trading days and a 41% premium to the last closing price of US$31.88 on Friday, July 27, 2007.
The acquisition, which is subject to governmental and regulatory approval and approval of RCC's shareholders, is expected to close in the first half of 2008.
[back to top] |
31st July 2007
Nokia Siemens Networks to extend GSM and 3G WCDMA network for Telekom Serbia
Telekom Serbia's mobile unit has chosen Nokia Siemens Networks for the supply and implementation of its GSM network extensions and 3G WCDMA network with HSPA functionality and associated services.
Nokia Siemens Networks started the deliveries in July, allowing Telekom Serbia to expand its mobile broadband network and to offer advanced 3G WCDMA services to its more than five million customers. The contract is the result of a successful partnership with Telekom Serbia.
The contract covers equipment delivery and installation, commissioning and integration of the system, comprising such solutions as a high-speed radio network, next-generation mobile core equipment and an extension of the prepaid system. The contract will also consolidate Nokia Siemens Networks’ leadership position in the Serbian market, as well as in other South-East European countries in which Telekom Serbia operates.
The tailor made package includes 3G radio and core equipment (mobile softswitching solution consisting of MSC servers and media gateways), as well as an extension of the prepaid system. Due to this fact, Telekom Serbia can continue to offer new and advanced GSM and 3G WCDMA services to its customers and will be able to further increase network capacity.
[back to top] |
31st July 2007
BskyB agrees to acquire Amstrad
The boards of British Sky Broadcasting (BSkyB) and Amstrad plc have announced that they have agreed the terms of a recommended cash offer to be made by Sky Digital Supplies, a wholly-owned subsidiary of Sky, for the entire issued and to be issued share capital of Amstrad. The offer is 150 pence in cash for each Amstrad share, valuing the entire issued share capital of Amstrad at approximately UK£125.0 million. The Amstrad directors consider the terms of the offer to be fair and reasonable and unanimously recommend that Amstrad shareholders accept the offer.
Amstrad makes and supplies telecommunications, audio, TV, video and digital satellite products, including set-top boxes. It makes about 70% of its revenues from BSkyB.
The acquisition of Amstrad will provide BSkyB with an in-house design and development capability, which BSkyB believes will deliver significant operational and financial benefits and enable the BSkyB Group to source some of its products directly from specialist electronics manufacturers.
BSkyB said Sir Alan Sugar, Chairman and Chief Executive of Amstrad, would continue to lead the business as part of BSkyB.
Commenting on the offer, Sir Alan Sugar said: "Amstrad has worked closely with Sky for many years and I cannot imagine a better home for the Amstrad business and its talented people. Our companies share the entrepreneurial spirit of bringing innovation to the largest number of customers. Sky is a great British success story. I’m proud to have worked so closely with it, and I look forward to continuing to play a part in this exciting business."
[back to top] |
30th July 2007
Gobility purchases Kite Networks and other wireless operating business units from MobilePro
Gobility Inc of Richardson, Texas has announced that it has, by virtue of a material definitive agreement dated July 8, 2007, acquired Kite Networks Inc, Kite Broadband, LLC and NeoReach Inc from their former parent company, MobilePro Corporation.
Kite Networks, originally founded in 2000 by its former President & Chief Executive Officer, Jerry Sullivan, claims to be one of the leading pioneers in municipal WiFi networks in the US. Currently, Kite Networks provides service to over 17,000 customers across 21 markets in 11 states. The company also operates and manages first generation 2.5GHz licensed broadband networks utilising the Sprint trademark.
Gobility brings a variety of wireless broadband data and voice services to Kite Networks. These enhanced services include mobile content delivery, mobile Internet solutions, mobile business applications, mobile infotainment and voice telephony. These services will compliment Kite's current offerings as well as generate new revenue from our current customer base in various municipalities, including Chandler and Tempe, Arizona (Arizona State University), Farmers Branch, Texas, and Longmont, Colorado.
Gobility will be seeking private equity funding to complete and expand Kite Networks' 21 markets in the US.
[back to top] |
30th July 2007
Tiscali and Telecom Italia sign virtual mobile operator agreement
Tiscali SpA and Telecom Italia have signed an agreement enabling Tiscali to become a virtual mobile operator (VMO). For the first time in Italy, an alternative fixed-line operator will
offer mobile and integrated services across the whole country and including residential customers. With this agreement, Tiscali will be able to compete in all mobile services on the market, through pre-paid cards and subscription, using its own brand, and with its own dedicated numbers. The service will be available in Italy and abroad thanks to the international roaming coverage guaranteed by Telecom Italia’s network.
Tiscali will set its own tariff policies and commercial prices, directly acquiring and managing customers who will be assisted via a specific service.
The offering of mobile services will allow Tiscali to develop integrated fixed-mobile products, for both voice and data services. With this agreement, Tiscali intends to complete its telecommunication services proposal with a quadruple play prospective with the aim to integrate its own fixed-line services (mail, portal, VAS) with a mobile offer. Thanks to the experience gained as ISP, Tiscali is positioned as a leading alternative fixed-line operator committed to extending mobile Internet access and developing it. In addition, the terms of the agreement will allow Tiscali to formulate fixed-mobile on-net offers for its residential customers and corporate clients, in competition with Telecom Italia and the other mobile operators.
Riccardo Ruggiero, Chief Executive of Telecom Italia, said: “The agreement with Tiscali is a concrete response to the expectations of both institutions and consumers as it will allow a fixed-line operator to offer integrated fixed-mobile services to its customers, making the telecommunications market even more competitive that it already is. Telecom Italia is convinced that such a strategy will enhance the value of its infrastructure.”
[back to top] |
30th July 2007
KPN to make cash offer for Getronics
Royal KPN NV has announced that it intends to make a recommended cash offer of €6.25 per ordinary share for Getronics, or €766 million in total; KPN is able to finance the offer from its existing financial resources, whilst remaining within the boundaries of its self-imposed financial framework. The offer price represents a 23% premium to Getronics’ closing price on July 27, 2007. Getronics’ Supervisory Board and Management Board unanimously support the intended offer.
The combination of KPN and Getronics is expected to result in outstanding capabilities in both IT and telecommunication services and provide the skills to become a prime contractor for converged Information and Communication Technology (ICT) services.
The transaction fits with KPN’s stated ICT strategy of transforming its business segment into an end-to-end ICT services provider.
Mr Scheepbouwer, CEO of KPN, said: “Telecommunications and IT services are increasingly becoming two sides of the same coin. More and more companies are converging their telecoms and IT requirements, sourcing all services from a single end-to-end vendor. Combining Getronics’ business with our own will immediately add value and be transformational for our existing ICT business. It will give us in one step real critical mass and significant expertise, enhancing our opportunity to become the ICT partner of choice for our widened client-base in our key territories.”
Mr Wagenaar, CEO of Getronics, said: "This creates an unique opportunity to implement a joint complementary strategy that will provide instant financial stability to our business and a strong platform to further strengthen our position as a successful provider in converged ICT services in our key geographies. This proposal puts fair value on our craftsmanship, our rich client base comprising of many multinational and national clients, the high level of client satisfaction that we consistently achieve, our global service delivery and our outstanding competences in workspace management and application services."
KPN intends to continue Getronics’ global delivery capability for future-ready workspace management and related consulting and transformation services, supported by international partnerships. KPN will retain the international infrastructure required to service multinational customers. To optimise the benefits of the combination, KPN intends to integrate its own ICT and corporate solutions business into Getronics. It is expected that the Getronics brand name will be maintained. Going forward, KPN will review activities that are insufficiently linked.
Getronics’ Dutch and Belgian activities are at the core of KPN’s ICT strategy because KPN has significant activities in these countries already. As a consequence, KPN intends to rationalise central and group functions post-closing of the offer. Redundancies are currently expected to be limited. KPN will also maintain Getronics’ sales and delivery capabilities in the UK and North America, which in turn supports serving Getronics’ international client base.
KPN intends to evaluate, in due course, non-core operations outside of the Netherlands, Belgium, the UK and North America, while maintaining the strong global delivery capability for multinational customers. Furthermore, KPN intends to continue the intended transactions of the Iberia and Hong Kong/China operations that Getronics currently has in process, to the extent such transactions have not been completed upon the closing of the intended offers.
If the offers are declared unconditional, KPN intends to terminate Getronics’ listing on Euronext Amsterdam NV as soon as possible. Furthermore, subject to the necessary threshold being reached, KPN expects to initiate the statutory squeeze-out procedure in accordance with the Dutch Civil Code in order to acquire all shares held by minority shareholders or take such other steps to terminate the listing and/or acquire all shares that will not have been tendered, including effecting a legal merger (juridische fusie). Upon closing of the proposed offers, KPN intends to appoint a new Getronics Board of Management and Supervisory Board, as the existing Boards will step down in mutual agreement on settlement.
The commencement of the offers is subject to the satisfaction or waiver of certain pre-offer conditions customary for a transaction of this kind, such as no revocation of the recommendation of the offers by the Boards of Getronics, the absence of a material adverse effect on the business of the Getronics group, obtaining regulatory approvals, obtaining the advice of Getronics’ and KPN’s works councils and concluding the discussion with the trade unions. The launch of the offers is further subject to the (waivable) condition precedent that the holders of depositary receipts in respect of the cumulative preference shares commit irrevocably to the offer or not to exercise conversion rights and to tender the depositary receipts (all under the condition precedent of the offers being honoured).
The honouring of the offers will be subject to certain customary conditions for a transaction of this type including, but not limited to the conditions that: at least 80% (on a fully-diluted basis but excluding conversion of Bonds 2008, Bonds 2010 or of the cumulative preference shares) of Getronics’ issued and outstanding ordinary share capital has been tendered; approval by the relevant competition authorities has been obtained; and, no material adverse change with respect to the business of Getronics has occurred.
KPN is entitled to a break fee of €7 million in the event that the Getronics board recommends a competing proposal.
KPN and Getronics expect to reach full agreement on the intended offers over the next weeks. The offer memorandum is currently expected to be published in September 2007, and the offers will thereafter be discussed in an extraordinary general meeting of shareholders of Getronics.
Getronics has around 24,000 employees in 25 countries and reported revenues of €2.6 billion in 2006. The company's headquarters are in Amsterdam, with regional offices in Boston and Singapore.
[back to top] |
30th July 2007
Maroc Télécom confirms suspension of Gabon Télécom acquisition
Maroc Télécom has announced that it has been informed that following a request introduced by seven employees of Libertis to cancel the privatisation process of Gabon Télécom SA and its mobile unit, Libertis Telecom, the Gabonese Supreme Court (Cour Constitutionnelle) has ordered an interim measure suspending the transfer and sale agreements.
Maroc Télécom said that this interim measure was cancelled on July 24, 2007 by the President of the Supreme Court.
Maroc Télécom said that pending the decision of the Supreme Court, it will continue to follow this matter with the greatest attention and shall take all necessary action in order to protect its rights and those of its shareholders.
[back to top] |
|
