TeleGeography CommsUpdate

Viettel eyes international sales of USD1.2bn

Mon, 20 May 2013 12:00:00 +0000

In an interview with Vietnam Investment Review, Viettel’s deputy general director Duong Van Tinh said that the military-owned telecoms company is aiming to widen its international footprint to between ten and 15 countries by 2015, and has named Myanmar, Kenya, Venezuela, Tanzania, Burkina Faso, Argentina, Cuba and Swaziland as potential new markets. Viettel currently serves over 60 million customers in six markets across three continents. Last year, the company generated total revenue of VND141 trillion (USD6.6 billion), 10.6% of which was accounted for by the firm’s overseas operations, and this year the group is aiming to boost international sales by 68% to VND25 trillion. Amid slowing growth of its domestic mobile operations, the Hanoi-based company has significantly increased its international presence in recent years, placing a particular focus on emerging markets, notes TeleGeography’s GlobalComms Database. Outside of Vietnam, Viettel has launched services in neighbouring Cambodia (via its wholly owned Metfone unit) and Laos (Unitel, in which it holds a 49% stake), as well as further afield in Haiti (Natcom, 60%), Mozambique (via majority owned unit Movitel) and Timor-Leste (Telmor), and the group has also secured telecoms licences in Peru and Cameroon. Viettel is also among twelve pre-qualified applicants for two nationwide telecoms licences in Myanmar, and according to Duong Van Tinh the company will submit its bidding dossier to the country’s government by 3 June 2013, with the winning bidders expected to be announced on 27 June 2013.

KPN reportedly sells Ortel Mobile

Mon, 20 May 2013 12:00:00 +0000

According to Spanish business newspaper Expansion, KPN has sold its Spanish mobile virtual network operator (MVNO) Ortel Mobile. Orange Spain has been named as the buyer, after talks with Vodafone reportedly failed. No financial details were disclosed. The move follows KPN’s sale of its other Spanish MVNO Simyo last year, also to Orange.

Optus begins TD-LTE trials

Mon, 20 May 2013 12:00:00 +0000

Australian operator Optus has announced it has begun Time-Division Long Term Evolution (TD-LTE) network trials with customers in Canberra. The new network uses the 2.3GHz band, and the pilot stage will see two new TD-LTE compatible products tested, a 4G dual band dongle and a Wi-Fi modem, with both available for sale early next month, according to ZDNet. The cellco has twelve TD-LTE base stations in the city, with a further 20 to be added in the next few months. Optus also operates an FD-LTE network using 1800MHz spectrum, and secured spectrum in the 700MHz and 2.5GHz bands in April this year.

BH Telecom and Aneks sign MVNO deal

Mon, 20 May 2013 12:00:00 +0000

Bosnian telco BH Telecom has signed a wholesale agreement with fellow operator Aneks. Under the terms of the deal, Aneks, a fixed line voice, broadband and pay-TV operator, will provide mobile virtual network operator (MVNO) services over BH Telecom’s mobile network. No financial details were disclosed.

Cofetel eyes public-private partnership for 700MHz network

Mon, 20 May 2013 12:00:00 +0000

Mexico’s telecoms regulator Cofetel has put forward the idea of a public-private partnership to make optimum use of frequencies in the 700MHz band, reports TeleSemana. The watchdog said in a report that if the auction of 700MHz spectrum was directed solely at the private sector, there would be a risk that any new network would reach only 85% of the population, whereas under a public-private partnership the network would reach 98% of the population within ten years. According to Cofetel’s study, a new entrant to the market would reduce America Movil’s market share from 70% to 50%, as well as helping mobile broadband prices to fall between 16% and 20%.

Alfa launches commercial LTE in Beirut

Mon, 20 May 2013 12:00:00 +0000

Lebanese cellco Alfa has commercially launched its LTE 4G mobile broadband network, with coverage initially in central Beirut, offering data services for USB dongle modems, tablets and Wi-Fi routers for post- and pre-paid users, with support for 4G mobile handsets ‘coming soon’. Alpha built its 4G network in cooperation with European vendors Ericsson and Nokia Siemens Networks, and according to the operator’s press release, its planned deployment of around 300 active LTE base stations by the end of 2013 will cover roughly 40% of the population, representing approximately 25% of a 1,200 base station network necessary for nationwide coverage. The LTE coverage footprint will be expanded to Jounieh and Kesrouan by November this year, while other cities are scheduled to receive coverage in 2014, including Tripoli, Sidon and Zahle. Alfa, which is state-owned by managed by Egypt’s Orascom Telecom Media and Technology Holding (OTMT), is offering consumers (post- or pre-paid) several new data packages aimed at 4G usage, including 10GB, 20GB and 40GB bundles (costing USD99, USD119 and USD149) whilst business customers can purchase packages up to 100GB (USD249). Voice call support for 4G handset users (via the 3G/2G network) is expected by the end of June 2013, Alfa has disclosed, whilst it estimates that voice-over-LTE (VoLTE) will be available on the network by the end of 2014. *Users outside of 4G coverage zones will automatically access 3G data services. At the launch, Lebanon’s minister of telecoms, Nicolas Sehnaoui, said that further 3G coverage improvements would also be going ahead to provide comprehensive high speed data services (whilst stating that the 4G launch will take some of the data traffic pressure away from 3G networks). Sehnaoui noted that Alfa and rival cellco Touch would complete respective projects to deepen 3G indoor reception, strengthening their 3G coverage in many locations, ‘between the end of August and the end of this year.’

Sercomtel expands fixed line footprint with Cascavel launch

Mon, 20 May 2013 12:00:00 +0000

Brazilian regional fixed and mobile operator Sercomtel has reportedly rolled out fibre-optic fixed telephony services in the municipality of Cascavel, in partnership with domestic electricity distribution company Copel (which has a communications arm, Copel Telecom). According to Telecompaper, which does not cite its sources, the pair will target business users in Cascavel with voice and data services, with Copel also providing broadband access. In January this year, TeleGeography’s CommsUpdate reported that Sercomtel had submitted a request to the national regulator Anatel, for permission to offer local and domestic long-distance (DLD) fixed telephony services in Sao Paulo, Rio de Janeiro, Brasilia, Porto Alegre and Belo Horizonte. According to an unconfirmed report at the time, the operator aims to provide fixed telephony services in cities and towns where its existing customers are already known to make DLD calls – therefore evening out any additional cost implications where it concerns interconnection fees.

Vodafone dips toe in fibre broadband segment

Mon, 20 May 2013 12:00:00 +0000

Vodafone Ireland will today inaugurate its fibre broadband services in the Republic, offering customers a range of bundled voice telephony and broadband products, or standalone high speed internet access. Commenting on the launch, Vodafone Ireland director Marcel de Groot, said: ‘Customers can now choose from a range of new fibre-powered broadband packages. You only pay for what you need and most packages come with unlimited broadband usage. Keeping the plans simple allows the customer to be in control, choosing a plan that fits their needs without compromising on quality or speed’.

Nepal considers plan to expand fibre coverage

Mon, 20 May 2013 12:00:00 +0000

Nepal’s minister for information and communications Madhav Prasad Paudel has said the government is committed to improving its fibre-optic links in the country, specifically through the deployment of optical networks along highways and trunk roads. e-Kantipur notes that the state’s backing of the plan comes at a time when its efforts to roll out the district optical fibre project are faltering. Speaking last Friday, Paudel called for an increase in activity concerning fibre-optic networks, saying that ‘the government will arrange the required funds’. The national regulator, the Nepal Telecommunications Authority (NTA), has been aiming to roll out fibre-optic networks along the country’s Mid-Hill Highway for several years, using monies supplied by Nepal’s Rural Telecommunication Development Fund – thought to be worth NPR7 billion (USD80.9 million). However, efforts to connect around 75 administrative districts have so far stalled due to what have been termed ‘procedural’ delays. The minister has called on the domestic telecoms industry to re-galvanise efforts to boost ICT in education, heath, rural development, and in its import and export markets.

Digiweb acquires London-based Viatel

Mon, 20 May 2013 12:00:00 +0000

Irish alternative telecoms operator Digiweb has purchased UK-based Viatel for an undisclosed sum, creating an enlarged pan-European group with revenues of USD78 million, profits of USD10 million and a workforce of more than 200 people. The Digiweb Group now boasts operations in the UK, Ireland, France, Germany, the Netherlands, Belgium, Switzerland and Italy, and from its base in Dublin claims to be able to provide enterprise, wholesale and government customers with multi-site, multiprotocol label switching (MPLS) networks, IP and traditional voice services, cloud computing, and data centre services. The group will now be able to deliver managed voice and data services via metro fibre in a dozen of Europe’s major cities and financial centres, and via 185 points of presence (PoP) by dint of its 100% owned fibre-optic networks, spanning eight countries. Under the tie-up, it is understood that some Viatel investors (e.g. Morgan Stanley) will roll their investments into the enlarged operation, as well as providing additional equity for the venture. Commenting on the move, Digiweb chief executive officer Colm Piercy said: ‘We see a strong opportunity for cross border consolidation in the telecoms sector in Europe in parallel with the explosion in high bandwidth connectivity demand, and this transaction is the first step in positioning our group to take advantage of those trends … Digiweb has always had a philosophy of challenging the status quo and we plan on stepping that up following this marriage of Digiweb's entrepreneurial culture with Viatel's service and network excellence, and the combined expertise of our enlarged team.’

LGI in hunt for O2 Ireland, paper says

Mon, 20 May 2013 12:00:00 +0000

US-based Liberty Global Inc (LGI) is rumoured to be mounting a bid to take control of Irish mobile network operator O2 Ireland, owned by Telefonica of Spain, the Sunday Independent reports. To that end, the paper claims that Bank of America Merrill Lynch is involved in the process, while Telefonica’s advisors are thought to include Citi and BNP Paribas.

Mid Europa Partners assesses T-Mobile CR exit

Mon, 20 May 2013 12:00:00 +0000

TMTFinance reports that Mid Europa Partners has hired Credit Suisse and Deutsche Bank to conduct separate sale processes of some of its telecoms and media assets in central and eastern Europe, with the German banking group advising on the sale of Mid Europa’s minority stake in T-Mobile Czech Republic – held through holding company Falcon. Given that Deutsche Telekom (DT) is the majority shareholder in T-Mobile CR, it is widely seen as the likely buyer.

COAI calls for TTSL licences to be cancelled

Mon, 20 May 2013 12:00:00 +0000

Industry lobby group the Cellular Operators Association of India (COAI) is planning to approach the Department of Telecommunication (DoT) to request the cancellation of 19 licences held by Tata Teleservices (TTSL), reports NDTV. The COAI holds that TTSL’s licences were cancelled as part of the Supreme Court’s controversial February 2012 order that invalidated concessions allocated after January 2008, over suspicions of corruption. The DoT revoked 122 concessions invalidated by the order, although the COAI contends that 19 of TTSL’s licences, issued in January 2008, should have been included – bringing the total to 141. The COAI’s protests may be too late, however: as previously noted by CommsUpdate, India has since attempted to reauction the concessions, with limited success. The first round of sales in November 2012 saw airwaves in the four busiest circles left unsold, bringing in less than a quarter of the target INR400 billion (USD7.25 million) whilst a second attempt in February 2013 involved just one bidder.

LTE trials ramped up in Shanghai

Mon, 20 May 2013 12:00:00 +0000

China Mobile is stepping up trials of its 4G Time Division Long Term Evolution (TD-LTE) network in Shanghai, inviting 5,000 users to test mobile handsets, tablets and data cards on the new platform. Shanghai Daily writes that the cellco has deployed 1,000 4G-enabled base stations – 700 outdoors and 300 indoors – covering the inner ring area, and plans to extend coverage city-wide by the end of the year. Xu Da, the general manager of China Mobile’s Shanghai unit said that users can expect real download speeds of between 10Mbps and 60Mbps on the 4G network. China Mobile is one of the most vocal proponents of the TD-LTE standard, above sister technology Frequency Division Duplex (FDD) LTE and has begun trials of the platform in 15 cities.

Investment hits USD964m for 2012

Mon, 20 May 2013 12:00:00 +0000

Peruvian telecoms watchdog Osiptel has announced that investment in the sector reached USD964 million in 2012, up by 10% compared to 2011. The lion’s share, some USD636 million was spent on wireless network infrastructure, representing around 65% of the total. Movistar Peru, the local unit of Spain’s Telefonica, invested the largest sum, shelling out USD529.6 million, USD281 million of which was spent on extending and improving its fixed line networks. Rival operators Claro and Nextel del Peru invested USD296.8 million and USD80.6 million respectively on their mobile networks. *Osiptel also called for subscribers to recycle their used phones, following reports from the environment ministry that some 17,000 tons of waste electronic devices has built up from 2004 to 2013 with estimates that over the next two years the country would add a further 2,800 tons. The regulator has set up collection points for waste mobile phones, chargers and accessories.

Exito enters the wireless market

Mon, 20 May 2013 12:00:00 +0000

Retailer Exito Group has launched wireless services via a mobile virtual network operator (MVNO) agreement with Tigo Colombia, STNews reports. Carlos Mario Giraldo Moren, Exito’s president, noted that the MVNO will not look to compete with rivals on pricing but plans to differentiate itself through better customer service and by leveraging its chain of stores. Plans are currently limited to pre-paid tariffs, although contract offerings are understood to be on the horizon.

Vodacom Group FY revenues reach ZAR69.9bn

Mon, 20 May 2013 12:00:00 +0000

South Africa-based Vodacom Group has reported consolidated revenues of ZAR69.92 billion (USD7.43 billion) for the twelve months ended 31 March 2013, up 4.5% year-on-year. Vodacom’s domestic unit, Vodacom South Africa, continues to account for the lion’s share of sales, generating ZAR58.61 billion in the twelve-month period under review. Group EBITDA for the period grew 10.9% to ZAR25.25 billion, and net profit climbed 29.6% to ZAR13.22 billion. Meanwhile, CAPEX for the twelve-month period increased 9.2% on an annual basis, to ZAR9.46 billion.*In operational terms, Vodacom South Africa remains the firm’s largest unit by subscribers, with 30.348 million ‘active’ customers reported at 31 March 2013, of whom 24.404 million are pre-paid users. Elsewhere, Vodacom units in Democratic Republic of Congo (DRC), Mozambique and Lesotho all increased their active subscriber bases in the twelve months ended 31 March. Mozambique weighed in with 3.045 million customers (+9.4% year-on-year), the DRC contributed 7.706 million (+36.6%) and Vodacom Lesotho grew its mobile base to 1.108 million (+38.2%). However, the company’s Tanzanian operation saw its user base drop 2.0% y-o-y to 9.468 million.

TTK plots AKADO swoop; plans to extend coverage to 260 cities

Mon, 20 May 2013 12:00:00 +0000

Russian fixed line operator TransTeleCom (TTK), which is controlled by state-run Russian Railways, is said to be considering the acquisition of Moscow-based internet service provider (ISP) AKADO Telecom. Citing a company spokesman, the Prime Business news agency reports that ‘unofficial talks’ have taken place between the two parties, with both sides thought to be keen on a deal.*According to TeleGeography’s GlobalComms Database, AKADO Telecom is majority owned by US-based firm Moscow CableCom Corp (MOCC) which has itself been wholly owned by Russian private equity investor Renova Media Enterprises since July 2007. Renova holds a 67% stake in the business, while the telco’s chairman Yuriy Pripachkin is thought to hold the remaining 33%. In 2010/11 both Rostelecom and MegaFon lined up deals for AKADO, only to falter as negotiations progressed.*In other news, TTK, which started providing commercial broadband services in 2011, plans to cover up to 260 cities by the end of 2013, boosting its subscriber base to 1.5 million. The telco currently accounts for 1.3 million users in 180 cities. Going forward, TTK also plans to launch a mobile WiMAX network in selected towns later this year. Vice president Svetlana Shamzon claims that the construction of fixed line infrastructure in certain locations is ‘economically inefficient’.

MegaFon CEO buys additional 1.25% of company

Mon, 20 May 2013 12:00:00 +0000

Ivan Tavrin, CEO of Russian mobile giant MegaFon, has doubled his stake in the company to 2.50% Dow Jones Newswires reports. The shares, which were converted to global depositary receipts (GDR), were acquired at the company's initial public offering (IPO) price of USD20 per share, for a total of USD155 million. The seller was Cypriot affiliate MegaFon Investments, which saw its own shareholding reduced to 7.57%. The purchase forms part of a long-term incentive plan under which Mr Tavrin is given the option to purchase up to 5% of the company's share capital.

T-Mobile to expand MetroPCS footprint to 15 new markets

Mon, 20 May 2013 12:00:00 +0000

T-Mobile US plans to significantly expand the operational footprint of its newly-acquired MetroPCS brand over the next six quarters. Fierce Wireless quotes T-Mobile CFO Braxton Carter, who formerly held the same position at MetroPCS, as saying that the combined company’s focus is now on a ‘more aggressive expansion’ of the latter’s national footprint. Carter said that MetroPCS will be ‘expanding to 15 additional major metropolitan areas very quickly’, stopping short of naming them. However, previously MetroPCS executives have indicated that the company intended to expand into areas such as Houston, New Orleans, San Diego, Seattle, Washington DC and Baltimore. Carter said the expansion will accelerate in the third quarter and through to early 2014. Further, the CFO noted that the ‘back office integration’ between T-Mobile USA and MetroPCS is now essentially complete and said that T-Mobile is ‘weeks away’ from seeding HSPA+ and LTE smartphones into MetroPCS distribution channels.

Sprint closes deal for US Cellular markets; acquires fewer subs than anticipated

Mon, 20 May 2013 12:00:00 +0000

Sprint Nextel has confirmed that it has closed its USD480 million acquisition of a number of markets from regional carrier US Cellular. The deal included operations in Chicago, St Louis and a handful of markets in the Midwest, as well as spectrum assets in the 1.9GHz band. The deal was originally slated to include approximately 585,000 customers when announced last November, but at close Sprint Nextel said the deal included around 420,000 subscribers.

CableNet footprint expanded in Middle Region

Mon, 20 May 2013 12:00:00 +0000

CableNet, the Sint Maarten arm of US Virgin Islands based telco Innovative Telephone, has extended its cable broadband network to 15 new streets in the country’s Middle Region. The company’s 2Mbps/768kbps down/upstream broadband service is priced at USD99.75 per month for pre-existing cable TV subscribers, or USD131.25 per month for internet-only subscribers.

Saudi Arabia has some of the highest mobile charges in the world

Mon, 20 May 2013 12:00:00 +0000

According to a survey conducted by the Saudi Consumer Protection Association (CPA), mobile call charges in the Kingdom are among the highest in the world, with a rate of SAR35 (USD9.33) a minute, compared to an average of seven Saudi riyals per minute in the rest of the world. The CPA conducted the survey after the announcement of the decision to stop free international roaming calls for subscribers, Zawya reported. In the statement CPA urged communication providers to restructure charges for mobile calls in order to reflect real prices. The association also announced its plans to publish a fair price for calls, by taking into account details such as average income, inflation and the ‘real price’ of communications.

Digicel rolls out HSPA+ in Haiti

Mon, 20 May 2013 12:00:00 +0000

Haiti’s largest mobile operator by subscribers Digicel has announced the launch of the first HSPA+ network in the country, with the service available to both pre- and post-paid subscribers. Digicel advertised an average download speed of up to 3Mbps for the service, depending on the location, the device capabilities and the network traffic, whilst theoretical peak HSPA+ speeds reach 21Mbps. The Digicel group markets 3.5G W-CDMA/HSPA+ services under the ‘4G’ banner, in common with many operators in the Americas/Caribbean region. Previously, Digicel Haiti offered 2.5G data services on an EDGE network, whilst its rival Natcom (backed by Vietnam’s Viettel) was the first in the country to launch W-CDMA services and operates a 3.5G HSDPA/HSUPA network. According to Digicel’s Haiti CEO Damian Blackburn, ’with Digicel 4G we have now built the first and most reliable 4G cellular network in the country, giving customers the fastest mobile data speeds – all backed by Digicel’s best service and best value.’

ARCEP publishes the contributions to PMR systems’ consultation

Mon, 20 May 2013 12:00:00 +0000

French telecommunications regulator the Autorite de Regulation des Communications Electroniques et des Postes (ARCEP) has published the contributions to the public consultation on professional mobile radio (PMR) systems held from 8 October to 30 November 2012. PMR networks, which include public protection and disaster relief (PPDR) networks, are independent from the cellular mobile service and are used to perform government duties. ARCEP received an estimate of 20 contributions; with provision of a sufficient quantity of radio spectrum resources stated as the main point of emphasis. According to the contributors, Long Term Evolution (LTE) is the technology best suited to satisfy the impending broadband and ultra-fast broadband PMR network needs, with some contributors suggesting an overall estimate of about 2x10MHz duplex spectrum necessary for the purposes of civilian PMR.

Zimbabwe to institute compulsory infrastructure sharing

Mon, 20 May 2013 12:00:00 +0000

Zimbabwe’s government has announced plans to institute compulsory infrastructure sharing among telecommunication providers, in order to remove the duplication in investments, which saw an overinvestment in some areas of the country, resulting in environmental degradation while others have remained neglected. The permanent secretary of the Ministry of Transport and Infrastructure Development, Munesu Munodawafa, said the proposed legislation would help reduce costs and eventually lead to lower charges, All Africa reported. According to Munodawafa, the new policy would give government the latitude to influence the direction of the investments and the development of the telecommunications sector, as the current licensing regime does not involve mandatory infrastructure sharing. All Africa also reported that a discussion is currently underway between the ministry and the industry that would encourage players to share certain basic backbone and infrastructure while at the same time allow them to compete on the last mile and actual services provision.

Japanese ‘committed’ to TOT investment

Mon, 20 May 2013 12:00:00 +0000

Japan’s Softbank and the Sumitomo Group have ‘essentially committed’ to providing financial assistance to Thai state-owned telco TOT to support its second phase of 3G network rollout, reports the Bangkok Post. Both Japanese companies have reportedly agreed to provide soft loans to TOT in exchange for a joint venture stake in the telco. TOT’s CEO Yongyuth Wattanasin was quoted as saying that, before arranging a share acquisition by Softbank and Sumitomo, his company will appraise the value of its 2100MHz spectrum and existing 5,320 3G base station sites (4,200 currently active), which according to previous estimates is worth roughly a combined THB30 billion (USD1 billion). Mr Yongyuth said Softbank approached TOT with a financial offer last year, while Sumitomo showed intent this month. ‘We'll decide on the proposals by October,’ he declared, although added that TOT is considering other options for financial support for its second phase 3G rollout, including seeking local bank loans or entering a joint venture partnership with a private sector Thai mobile operator. TeleGeography's GlobalComms Database says that Softbank is in third place in the Japanese mobile subscriber market and also occupies second spot in Japan's fixed broadband sector, while the Sumitomo group has a 40% stake in Japan's Jupiter Telecommunications (J:COM) alongside ownership stakes in telecoms firms in a wide range of countries, including Russia, Mongolia, Uzbekistan and Guam.

AfricaOnline reports big demand for affordable satellite broadband

Mon, 20 May 2013 12:00:00 +0000

AfricaOnline has reported ‘overwhelming’ demand for its new ‘NawaSat’ nationwide low-cost satellite internet service in Namibia. Following the nationwide launch – which expanded on an earlier limited launch – the ISP said that it has a long waiting list of customers, which include rural lodges, farms, users in small towns, as well as big corporate clients in larger centres. The base price is NAD500 (USD52) per month, while out-of-bundle top-up rates ‘compare extremely favourably with other products on the market’, according to AfricaOnline’s general manager Marc Gregan, who added that, ‘We explored the product with a view to making internet affordable in small communities, isolated areas and at lodges, but this also competes in urban areas.’ NawaSat is provided in cooperation with satellite service provider SES.

Ukrtelecom signs 43,000 broadband users amidst fierce competition

Mon, 20 May 2013 12:00:00 +0000

Ukraine’s incumbent national PSTN operator Ukrtelecom reports that its number of fixed broadband subscribers increased by a net 43,000 in the first three months of 2013 to reach 1.584 million at the end of March, despite ‘ever increasing’ competition. The telco’s press service also claimed that Ukrtelecom’s ‘OGO’ branded fixed broadband services continued to reap the highest average revenue per user (ARPU) in the market, at UAH70 (USD8.50) per month, due to its ‘transparent tariff policy’.

Orange Slovakia 3G users get HD voice

Mon, 20 May 2013 12:00:00 +0000

Orange Slovakia has launched high definition (HD) voice services on its 3G/3.5G W-CDMA/HSPA+ mobile network, for all devices supporting the AMR-WB platform, including a range of handsets including Apple iPhone 5, Nokia Lumia, Sony, HTC, ZTE and RIM BB10 OS devices. While the cellco joins other France Telecom-Orange subsidiaries offering HD voice services, the company claims to be the first operator in Slovakia to launch commercial HD voice.