Ericsson acquires Nortel’s MSS business

Ericsson acquires Nortel’s MSS business
(Telecompaper) Ericsson has entered into an asset purchase agreement to acquire Nortel’s Multi-Service Switch business. This acquisition gives Ericsson access to a product portfolio and installed base in the data segment, while ensuring Ericsson’s access to the MSS platform for the CDMA and GSM units it recently acquired from Nortel. The purchase is structured as an asset purchase at a cash purchase price of USD 65 million on a cash- and debt-free basis, subject to adjustments. Ericsson will acquire the Data Packet Network (DPN) and Services Edge Router (Shasta) product groups, substantially all customer contracts and employees and certain intellectual property related to the MSS business. The acquisition follows the completion of the auction process initiated by Nortel, and the transaction is subject to court approval and customary regulatory approvals. Prior to the auction, Nortel announced a ‘stalking horse’ agreement with PSP Holding, a special purpose entity set up by Marlin Equity Partners and Samnite Technologies. The two agreed to acquire substantially all of the assets of Nortel’s MSS business for USD 39 million in cash. Consummation of the transaction is subject to approval by the relevant Bankruptcy Courts and the satisfaction of regulatory and other conditions.[Lees verder]

France Telecom to build submarine cable in Indian Ocean
(Telecompaper) France Telecom-Orange and the other members of the LION2 consortium have signed an agreement to build a submarine cable in the Indian Ocean. With this agreement, France Telecom-Orange enters the second phase of its Indian Ocean development plan for regional broadband internet. The 3,000km LION2 cable will extend the LION cable to Kenya via the island of Mayotte. The cable will provide Mayotte with access to a broadband internet network with a transmission capacity and service quality equivalent to those available in Europe. The project is being conducted by a consortium of France Telecom-Orange and its subsidiaries Mauritius Telecom, Orange Madagascar and Telkom Kenya, along with carrier companies Emtel, Societe Reunionnaise du Radiotelephone and STOI Internet. The construction of the LION2 cable represents a total investment of around EUR 56.5 million, about EUR 31.25 million of which will come from France Telecom. Service is scheduled to begin in the first half of 2012.[Lees verder]

EC rules Spanish broadcast tax on telecom operators illegal
(Telecompaper) The European Commission has ruled that the new RTVE funding tax imposed to telecoms operators is illegal. Back in March, the EC opened a formal investigation under the EU state aid rules into the new tax-based funding system for Spanish public broadcaster RTVE. Spain plans to abolish advertising and other commercial activities of RTVE, and replace this source of income by newly introduced taxes on TV and telecommunications operators. In addition to existing state financing of RTVE, the government plans a 3 percent tax on free-to-air commercial broadcasters’ revenues, 1.5 percent on pay TV broadcasters, 0.9 percent on electronic communications operators and an 80 percent share of the existing tax on radio spectrum use, up to a maximum of EUR 330 million. The EC does not object to the modification of the funding system as such, but has doubts concerning the compatibility of the new tax with EU law. In particular, it doubts whether the new taxes are in line with EU rules on electronic communications networks and services. The Commission has requested the Spanish government to modify the new RTVE funding system. The request was made through a reasoned opinion, the second stage of the infringement proceedings, reports ADSL Zone. If Spain does not comply with the request within two months, the EC could take the case to the European Court of Justice in Luxembourg.[Lees verder]

Ericsson acquires Nortel’s MSS business
(Telecompaper) Ericsson has entered into an asset purchase agreement to acquire Nortel’s Multi-Service Switch business. This acquisition gives Ericsson access to a product portfolio and installed base in the data segment, while ensuring Ericsson’s access to the MSS platform for the CDMA and GSM units it recently acquired from Nortel. The purchase is structured as an asset purchase at a cash purchase price of USD 65 million on a cash- and debt-free basis, subject to adjustments. Ericsson will acquire the Data Packet Network (DPN) and Services Edge Router (Shasta) product groups, substantially all customer contracts and employees and certain intellectual property related to the MSS business. The acquisition follows the completion of the auction process initiated by Nortel, and the transaction is subject to court approval and customary regulatory approvals. Prior to the auction, Nortel announced a ‘stalking horse’ agreement with PSP Holding, a special purpose entity set up by Marlin Equity Partners and Samnite Technologies. The two agreed to acquire substantially all of the assets of Nortel’s MSS business for USD 39 million in cash. Consummation of the transaction is subject to approval by the relevant Bankruptcy Courts and the satisfaction of regulatory and other conditions.[Lees verder]

France Telecom to build submarine cable in Indian Ocean
(Telecompaper) France Telecom-Orange and the other members of the LION2 consortium have signed an agreement to build a submarine cable in the Indian Ocean. With this agreement, France Telecom-Orange enters the second phase of its Indian Ocean development plan for regional broadband internet. The 3,000km LION2 cable will extend the LION cable to Kenya via the island of Mayotte. The cable will provide Mayotte with access to a broadband internet network with a transmission capacity and service quality equivalent to those available in Europe. The project is being conducted by a consortium of France Telecom-Orange and its subsidiaries Mauritius Telecom, Orange Madagascar and Telkom Kenya, along with carrier companies Emtel, Societe Reunionnaise du Radiotelephone and STOI Internet. The construction of the LION2 cable represents a total investment of around EUR 56.5 million, about EUR 31.25 million of which will come from France Telecom. Service is scheduled to begin in the first half of 2012.[Lees verder]

EC rules Spanish broadcast tax on telecom operators illegal
(Telecompaper) The European Commission has ruled that the new RTVE funding tax imposed to telecoms operators is illegal. Back in March, the EC opened a formal investigation under the EU state aid rules into the new tax-based funding system for Spanish public broadcaster RTVE. Spain plans to abolish advertising and other commercial activities of RTVE, and replace this source of income by newly introduced taxes on TV and telecommunications operators. In addition to existing state financing of RTVE, the government plans a 3 percent tax on free-to-air commercial broadcasters’ revenues, 1.5 percent on pay TV broadcasters, 0.9 percent on electronic communications operators and an 80 percent share of the existing tax on radio spectrum use, up to a maximum of EUR 330 million. The EC does not object to the modification of the funding system as such, but has doubts concerning the compatibility of the new tax with EU law. In particular, it doubts whether the new taxes are in line with EU rules on electronic communications networks and services. The Commission has requested the Spanish government to modify the new RTVE funding system. The request was made through a reasoned opinion, the second stage of the infringement proceedings, reports ADSL Zone. If Spain does not comply with the request within two months, the EC could take the case to the European Court of Justice in Luxembourg.[Lees verder]

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