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Analyst Insight
Nokia Restructuring: What Does It Mean?
By Svetlana Issaeva
Nokia has announced a new company structure, which will be put in place beginning January 1, 2008. A new unit will bring together consumer Internet and enterprise devices. The device manufacturer explains its move by the ongoing convergence of mobile and Internet technologies, and the need to realign the business with new growth opportunities. What are these new opportunities, and how do we see the changes affecting Nokia and the handset market as a whole? What justifies this move and how will Nokia benefit from combining different device units? Read more |
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Product Excerpts
Vodafone Goes Off-Portal with Mobile Internet
Vodafone's new Mobile Internet flat-rate plans represent an important change of tack for the operator. Launched in the Netherlands, UK, and Germany, and planned for introduction in other European markets, the Mobile Internet offerings are a natural progression of the company's Mobile Plus strategy and its recent series of exclusive agreements with Google, Yahoo, MySpace, YouTube, and eBay. The open model of Mobile Internet replaces the walled garden approach of Vodafone's live! portal, as Vodafone gives live! users access to off-portal content for a flat monthly or daily fee. Read more
Pyramid Prediction: It has been clear for quite some time that a new approach to providing mobile access to the Internet and Web 2.0 is needed. In its current shape, mobile Internet access remains unattractive to end users and a minor contributor to the revenue of Vodafone and other mobile operators.
Orange Acquisition of Ya.com: Stronger Competitor or Integration Problems?
On June 6, 2007, France Telecom, through Orange Spain, announced the acquisition of Ya.com for EUR320m including the EUR70m debt. Ya.com is Spain's third largest DSL broadband operator with an estimated 400,000 subscribers as of June 2007. It has been the target of interest from Vodafone, Orange, and Jazztel since its previous owner, Deutsche Telekom, announced that it was considering disposal of the unit in early 2007. The combined Orange-Ya.com operation has 18% of the DSL segment but still only 14.5% of the total broadband market, leaving it in third place behind cable operator ONO and Telefonica. Read more
Pyramid Prediction: While the move is a step forward in creating a strong challenger to Telefonica in broadband, this will only happen if Orange gets its execution right. Vodafone should seek asset-light partnerships to get into fixed broadband, rather than risking distracting management from its well-performing Spanish mobile operation.
Mobile Market in Honduras: Will the Din of the Battle Finally Sound Loud?
Six weeks ago, the government of Honduras announced it is preparing a spectrum auction for mobile services in the bands of PCS. According to regulator Conatel, the contest will take place during the second half of the year and the process will grant a fourth license in the mobile market. We believe that both events will move the mobile market into a more competitive space in combination with the entrance of state-owned operator Hondutel in a partnership with a foreign operator during the same period. With just 30% mobile penetration in 2006 and an outdated regulatory environment, Honduras offers great potential for growth and development subject to extensive reforms in both regulatory and supervisory entities. Pyramid Research estimates the mobile market subscription base could expand above 9% annually though 2012, reaching 6 million (up from 3.4 million at year end 2006).
Read more
Pyramid Prediction: We consider Telefonica and Caribbean-based Digicel potential bidders for the license as well as potential suitors for developing a partnership with Hondutel. By the same token, we believe America Movil may not compete for any of the options available as the company may be exploring different alternatives to extend its presence in Honduras by acquiring a cable provider to solidify its fixed line business and also announcing plans to invest heavily in its current mobile network.
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Research Update:
The following is a list of some of our most recent research. Please click on the following for more information:
Reports:
Can Video On Demand Save IPTV? (June 2007)
The Global Mobile Capex Index (June 2007)
Perspectives:
Why RCS & RDS Romania Has a Chance in 3G (June 2007)
Growing at breakneck speed, Bharti Airtel puts Capex pedal to the metal (June 2007)
Forecasts:
China Fixed-Mobile Convergence Forecast
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Pyramid Telecom Roundup - Powered by ITI Digest!*
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Swedish regulator proposes spin off of TeliaSonera's wholesale business
Sweden's telecommunications regulator, the Post-och telestyrelsen (PTS), has proposed that incumbent fixed line operator TeliaSonera AB spin off its fixed line wholesale services into a separate unit, according to local newspaper reports.
Read the full article in ITI Digest
Hutchison Whampoa raises its stake in HTIL
Hutchison Whampoa Ltd, through its wholly-owned subsidiary, Hutchison Telecommunications Holdings Ltd (HTHL), has acquired in the open market through the Stock Exchange, an aggregate of 12 million Hutchison Telecommunications International Ltd (HTIL) shares. The shares were purchased between June 6-14 and represent approximately O.251% of the current issued share capital of HTIL. As a result, Hutchison Whampoa's direct and indirect stake in HTIL has increased from approximately 49.75% to approximately 50.0036%.
Read the full article in ITI Digest
Saudi fixed-line licences to be awarded in July
Three consortia led by Bahrain Telecommunications Company (BATELCO), Hong Kong's PCCW Ltd, and Verizon Communications of the US will receive licences next month to provide fixed-line services in Saudi Arabia, according to business information company Zawya Ltd, quoting Muhammad Jameel Mulla, Minister of Telecommunications and Information Technology. Read the full article in ITI Digest
Orascom Telecom's offer for Telecom Italia's stake in Brasil Telecom expires
Orascom Telecom has announced that it is no longer pursuing discussion to acquire the stake held by Telecom Italia in Brasil Telecom Participações SA. Orascom Telecom's original interest was in line with its declared focus on emerging countries offering large markets with untapped demand and high growth potential, in which it can leverage its operating skills and scale. The company said that it will continue to evaluate and pursue investment opportunities that fit the aforementioned criteria. Read the full article in ITI Digest
EU clears Telefónica's bid for Telecom Italia stake
The European Union (EU) has cleared the proposed acquisition by a group of companies, including Telefónica SA of an 18% stake in Telecom Italia being sold by Pirelli & C SpA, according to reports. Read the full article in ITI Digest
Celtel to receive US$320 million loan package from IFC to expand African operations
On June 13, IFC, the private sector arm of the World Bank Group, announced its largest financing to date in Sub-Saharan Africa, a US$320 million package, to five operations of Celtel International BV to help expand and upgrade its mobile networks in the Democratic Republic of Congo, Madagascar, Malawi, Sierra Leone and Uganda. The investment will result in better quality mobile access in countries with extremely limited telephone services, creating new opportunities for businesses and consumers across the economic spectrum.
Read the full article in ITI Digest
Grupo Iusacell extending mobile broadband services to 10 cities in Mexico with Nortel 3.5G network upgrade
Nortel Networks Corp is expanding Grupo Iusacell SA de CV's wireless network to extend 3.5G mobile broadband services such as video, online gaming and TV to 10 new cities in Mexico. Iusacell, the first 3.5G network in Mexico, currently has four million subscribers across the country. Read the full article in ITI Digest
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About Analyst Insight Weekly |
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