Global Crossing acquires Genesis Networks

Global Crossing acquires Genesis Networks
(Telecompaper) Worldwide IP and Ethernet services provider Global Crossing has announced the acquisition of global video services provider Genesis Networks, which services major broadcasters, producers and aggregators of specialised programming worldwide. Global Crossing paid around USD 27 million, including USD 15 million in connection with the repayment of existing debt. Genesis has a network spanning 70 cities on five continents, linking important international media centers through 225 on-net locations.[Lees verder]

Telefonica plans no expansion beyond current footprint – CEO
(Telecompaper) Telefonica plans to strengthen the operations it already owns rather than expanding beyond its current footprint, group chairman and CEO Cesar Alierta told the Wall Street Journal. “Some investors believe that we are going to keep on buying things, but we are not,” he said. The group will concentrate on organic growth and increasing revenue from the internet data traffic market. Telefonica is present in 25 countries and has 277.7 million clients worldwide, compared to 68.2 million in 2000. Its annual revenue has doubled in ten years to EUR 57 billion, of which 65 percent is generated outside Spain. Its latest expansion was the purchase of Portugal Telecom’s 30 percent stake in Brazilian mobile operator Vivo for EUR 7.5 billion. Telefonica will also increase its 8 percent stake of China Unicom to 10 percent by the end of the year. In explaining why Telefonica wants to focus on the countries where it currently operates, Alierta said that the group did not have middle management able to run operations in sub-Saharan Africa, for example. He expects increased consolidation in Europe, which has over 150 operators, compared to more than a dozen in the US and only four in China, but he added “I don’t see us doing anything else in Europe”.[Lees verder]

NTT Data to buy Keane
(Telecompaper) NTT Data will acquire US-based IT services firm Keane. NTT Data and Keane’s parent company Keane International have signed a definitive merger agreement under which Knight Subsidiary, a wholly-owned subsidiary of NTT Data, will merge with Keane International, resulting in Keane becoming a wholly-owned subsidiary of NTT Data. The transaction is subject to customary closing conditions and regulatory compliance approvals. Keane International is majority owned by Citigroup Venture Capital International Technology. Terms of the deal were not disclosed. The transaction is expected to close in December, subject to approvals. Earlier reports suggested a price tage of JPY 100 billion (USD 1.2 billion) for Keane.[Lees verder]

Apple sues Motorola for patent infringement
(Telecompaper) Apple filed a patent-infringement suit against Motorola, alleging that the company’s smartphone lineup and the operating software it uses infringe on the iPhone-maker’s intellectual property. The two lawsuits came after Motorola sued Apple in October for patent infringement. Apple filed the suits in US district court in Wisconsin, the Wall Street Journal reported. Apple in its complaints alleges that Motorola smartphones, including those in its Droid lineup, violate six Apple patents covering touch-screen and multitouch technology, as well as ways to display, access and interact with information on the phone. Apple is requesting that a judge award damages and attorney’s fees and that the courts stop Motorola from selling the products. The suits single out the operating system as well. Motorola said it would contest the lawsuits.[Lees verder]

Fox extends Dish, Cablevision contracts, ends blackout
(Telecompaper) US pay-TV provider Dish Network and the cable operator Cablevision have reached agreements with News Corp unit Fox Networks to show Fox local television stations in major cities. No financial details were disclosed. The Dish agreement also includes carriage of FX, National Geographic Channel, and Fox’s 19 regional sports networks, which were restored for Dish Network viewers on 29 October. The agreement ensures that Dish Network viewers will continue to have access to Fox’s live national and regional coverage. Dish Network will continue to provide programming from the local Fox and MyNet television stations in the following markets: Atlanta, Austin, Baltimore (MyNet 24 only), Boston, Chicago, Cleveland/Akron, Dallas, Denver, Detroit, Gainesville (FL), Greensboro/Winston-Salem, Houston, Kansas City, Los Angeles, Memphis, Minneapolis, Milwaukee, New York, Orlando, Philadelphia, Phoenix, St. Louis, Salt Lake City, Tampa, and Washington, DC. The channels returning to Cablevision are Fox 5 (WNYW), Fox 29 (WTXF), My9, Fox Business Network, National Geographic Wild and Fox Deportes. Cablevision said it continues to pay an “unfair price” for retransmission of Fox, including many channels in which its customers “have little or no interest”, after the failure of the FCC to intervene in the dispute The Federal Communications Commission welcomed the contract extension, saying that the current agreement was set to expire on 31 October. The agreement means no interruption to Dish subcribers’ ability to view Fox programming and restores to those subscribers a number of cable networks they have been unable to see since 1 October, when the agreement covering that carriage expired. The FCC urged the companies to complete other negotiations in order to end the impasse that has resulted in disrupted service to users.[Lees verder]

Telkom’s nine-month profit slips 4%
(Telecompaper) Indonesian telecommunications firm Telekomunikasi Indonesia (Telkom) saw its nine month net profit slip on lower forex gains. Consolidated operating revenues rose 3.9 percent to IDR 52.1 trillion, from IDR 50.16 trillion a year earlier, owing to growth in data, internet, and IT services revenues of 15 percent to IDR 2.07 trillion. Mobile revenues rose 2.6 percent to IDR 552 billion and fixed-line revenue declined by 8.8 percent to IDR 952 billion. Telkom experienced a decrease in gain on foreign exchange of IDR 644 billion compared to the previous period, which led a sharp rise in other expenses. This reduced net profit by 3.9 percent to IDR 8.93 trillion, compared with a net profit of IDR 9.30 trillion in the year-ago period. EBITDA was flat at IDR 28.24 trillion. The company ended the period with 118.2 million customers, which comprise 8.33 million fixed customers, 16.76 million Flexi customers, and 93.1 million mobile customers, up 16.7 percent year-on-year. Telkom also had 1.53 million ADSL (Speedy) customers, up 56.3 percent.[Lees verder]

Eutelsat, Astra seek partner for Solaris – report
(Telecompaper) Eutelsat and SES Astra have hired Lazard Bank to find a new shareholder for their joint venture, Solaris, La Tribune reports. Solaris and UK company Inmarsat were both awarded licences by the European Commission in May 2009 requiring them to launch commercial satellite services such as mobile TV before May 2011. Although Solaris launched a satellite in April last year, it needs terrestrial transmitters to complete the hybrid network in cities, whose cost in France alone has been estimated at EUR 60 million. A few months ago, Eutelsat and SES Astra decided to not fund the terrestrial network themselves, tasking Lazard to find a new backer to finance the terrestrial network and sell the service to end users. Eutelsat and SES Astra want to limit their role to being wholesalers. The new investor will have to bring several tens of millions of Euros to the venture, compared to the EUR 133 million Eutelsat and SES Astra invested in the satellite. The new partner could even become Solaris’s main shareholder, La Tribune reports. Furthermore, a second satellite will be necessary for Solaris to meet a further obligation of covering the whole of the EU by 2016. The company blames its delayed service launch on a problem discovered with the satellite, which reduces its coverage capacity. Solaris was reimbursed the full EUR 133 million investment by its insurance providers in return for 10 percent or 28.75 percent of its revenues, depending on the insurer, up to EUR 30 million in total. Meanwhile Solaris has changed its strategy. Initially planning to offer mobile TV services, it now targets a larger market of providing radio, internet access, in-car or public safety services.[Lees verder]

Icasa confirms cuts to call termination rates
(Telecompaper) South African regulator Icasa issued its final decision on call termination rates, with the cut in rates to apply slower than originally proposed following strong lobbying by the mobile operators. The regulator identified two markets subject to regulation: wholesale voice termination on a mobile network and wholesale voice termination on a fixed network. Operators subject to the regulations will be those with at least a 25 percent market share as of mid-2009. This includes MTN and Vodacom in the mobile market and Telkom on the fixed market. Regulatory obligations include cost-oriented pricing, information sharing with the regulator and a reference interconnection offer. While Icasa has maintained its goal of an ultimate mobile termination rate of ZAR 0.40, the regulator agreed to slow the implementation schedule after operators already cut rates sharply earlier this year. Rates will fall from 1 March 2011 to ZAR 0.73 cents during peak hours and ZAR 0.65 at off-peak times, from 1 March 2010 to ZAR 0.56 peak and ZAR 0.52 off-peak and to ZAR 0.40 from 1 March 2013 regardless of the time of day. For the fixed market, Icasa set a rate from 1 March 2011 within a geographic area of ZAR 0.20 during peak hours and ZAR 0.12 off-peak and between geographic areas of ZAR 0.28 peak and ZAR 0.19 off-peak. From 1 March 2012, this drops to respectively ZAR 0.15/0.12 and ZAR 0.25/0.19, and from 1 March 2013, to ZAR 0.12 within a zone regardless of time and ZAR 0.19 between zones. Other operators will be able to charge higher rates, but are subject to a maximum increase on the regulated rates of 20 percent until 1 March 2012, 15 percent until March 2013 and 10 percent thereafter. Vodacom welcomed Icasa’s announcement, saying the agreed glide path gives it time to adjust its business model in order to accommodate the significant further revenue reduction that will result from the changes. MTN said it was not fair that the third mobile operator Cell C, as well as new entrant 8ta backed by Telkom, should be allowed asymmetric rates.[Lees verder]

Global Crossing acquires Genesis Networks
(Telecompaper) Worldwide IP and Ethernet services provider Global Crossing has announced the acquisition of global video services provider Genesis Networks, which services major broadcasters, producers and aggregators of specialised programming worldwide. Global Crossing paid around USD 27 million, including USD 15 million in connection with the repayment of existing debt. Genesis has a network spanning 70 cities on five continents, linking important international media centers through 225 on-net locations.[Lees verder]

Telefonica plans no expansion beyond current footprint – CEO
(Telecompaper) Telefonica plans to strengthen the operations it already owns rather than expanding beyond its current footprint, group chairman and CEO Cesar Alierta told the Wall Street Journal. “Some investors believe that we are going to keep on buying things, but we are not,” he said. The group will concentrate on organic growth and increasing revenue from the internet data traffic market. Telefonica is present in 25 countries and has 277.7 million clients worldwide, compared to 68.2 million in 2000. Its annual revenue has doubled in ten years to EUR 57 billion, of which 65 percent is generated outside Spain. Its latest expansion was the purchase of Portugal Telecom’s 30 percent stake in Brazilian mobile operator Vivo for EUR 7.5 billion. Telefonica will also increase its 8 percent stake of China Unicom to 10 percent by the end of the year. In explaining why Telefonica wants to focus on the countries where it currently operates, Alierta said that the group did not have middle management able to run operations in sub-Saharan Africa, for example. He expects increased consolidation in Europe, which has over 150 operators, compared to more than a dozen in the US and only four in China, but he added “I don’t see us doing anything else in Europe”.[Lees verder]

NTT Data to buy Keane
(Telecompaper) NTT Data will acquire US-based IT services firm Keane. NTT Data and Keane’s parent company Keane International have signed a definitive merger agreement under which Knight Subsidiary, a wholly-owned subsidiary of NTT Data, will merge with Keane International, resulting in Keane becoming a wholly-owned subsidiary of NTT Data. The transaction is subject to customary closing conditions and regulatory compliance approvals. Keane International is majority owned by Citigroup Venture Capital International Technology. Terms of the deal were not disclosed. The transaction is expected to close in December, subject to approvals. Earlier reports suggested a price tage of JPY 100 billion (USD 1.2 billion) for Keane.[Lees verder]

Apple sues Motorola for patent infringement
(Telecompaper) Apple filed a patent-infringement suit against Motorola, alleging that the company’s smartphone lineup and the operating software it uses infringe on the iPhone-maker’s intellectual property. The two lawsuits came after Motorola sued Apple in October for patent infringement. Apple filed the suits in US district court in Wisconsin, the Wall Street Journal reported. Apple in its complaints alleges that Motorola smartphones, including those in its Droid lineup, violate six Apple patents covering touch-screen and multitouch technology, as well as ways to display, access and interact with information on the phone. Apple is requesting that a judge award damages and attorney’s fees and that the courts stop Motorola from selling the products. The suits single out the operating system as well. Motorola said it would contest the lawsuits.[Lees verder]

Fox extends Dish, Cablevision contracts, ends blackout
(Telecompaper) US pay-TV provider Dish Network and the cable operator Cablevision have reached agreements with News Corp unit Fox Networks to show Fox local television stations in major cities. No financial details were disclosed. The Dish agreement also includes carriage of FX, National Geographic Channel, and Fox’s 19 regional sports networks, which were restored for Dish Network viewers on 29 October. The agreement ensures that Dish Network viewers will continue to have access to Fox’s live national and regional coverage. Dish Network will continue to provide programming from the local Fox and MyNet television stations in the following markets: Atlanta, Austin, Baltimore (MyNet 24 only), Boston, Chicago, Cleveland/Akron, Dallas, Denver, Detroit, Gainesville (FL), Greensboro/Winston-Salem, Houston, Kansas City, Los Angeles, Memphis, Minneapolis, Milwaukee, New York, Orlando, Philadelphia, Phoenix, St. Louis, Salt Lake City, Tampa, and Washington, DC. The channels returning to Cablevision are Fox 5 (WNYW), Fox 29 (WTXF), My9, Fox Business Network, National Geographic Wild and Fox Deportes. Cablevision said it continues to pay an “unfair price” for retransmission of Fox, including many channels in which its customers “have little or no interest”, after the failure of the FCC to intervene in the dispute The Federal Communications Commission welcomed the contract extension, saying that the current agreement was set to expire on 31 October. The agreement means no interruption to Dish subcribers’ ability to view Fox programming and restores to those subscribers a number of cable networks they have been unable to see since 1 October, when the agreement covering that carriage expired. The FCC urged the companies to complete other negotiations in order to end the impasse that has resulted in disrupted service to users.[Lees verder]

Telkom’s nine-month profit slips 4%
(Telecompaper) Indonesian telecommunications firm Telekomunikasi Indonesia (Telkom) saw its nine month net profit slip on lower forex gains. Consolidated operating revenues rose 3.9 percent to IDR 52.1 trillion, from IDR 50.16 trillion a year earlier, owing to growth in data, internet, and IT services revenues of 15 percent to IDR 2.07 trillion. Mobile revenues rose 2.6 percent to IDR 552 billion and fixed-line revenue declined by 8.8 percent to IDR 952 billion. Telkom experienced a decrease in gain on foreign exchange of IDR 644 billion compared to the previous period, which led a sharp rise in other expenses. This reduced net profit by 3.9 percent to IDR 8.93 trillion, compared with a net profit of IDR 9.30 trillion in the year-ago period. EBITDA was flat at IDR 28.24 trillion. The company ended the period with 118.2 million customers, which comprise 8.33 million fixed customers, 16.76 million Flexi customers, and 93.1 million mobile customers, up 16.7 percent year-on-year. Telkom also had 1.53 million ADSL (Speedy) customers, up 56.3 percent.[Lees verder]

Eutelsat, Astra seek partner for Solaris – report
(Telecompaper) Eutelsat and SES Astra have hired Lazard Bank to find a new shareholder for their joint venture, Solaris, La Tribune reports. Solaris and UK company Inmarsat were both awarded licences by the European Commission in May 2009 requiring them to launch commercial satellite services such as mobile TV before May 2011. Although Solaris launched a satellite in April last year, it needs terrestrial transmitters to complete the hybrid network in cities, whose cost in France alone has been estimated at EUR 60 million. A few months ago, Eutelsat and SES Astra decided to not fund the terrestrial network themselves, tasking Lazard to find a new backer to finance the terrestrial network and sell the service to end users. Eutelsat and SES Astra want to limit their role to being wholesalers. The new investor will have to bring several tens of millions of Euros to the venture, compared to the EUR 133 million Eutelsat and SES Astra invested in the satellite. The new partner could even become Solaris’s main shareholder, La Tribune reports. Furthermore, a second satellite will be necessary for Solaris to meet a further obligation of covering the whole of the EU by 2016. The company blames its delayed service launch on a problem discovered with the satellite, which reduces its coverage capacity. Solaris was reimbursed the full EUR 133 million investment by its insurance providers in return for 10 percent or 28.75 percent of its revenues, depending on the insurer, up to EUR 30 million in total. Meanwhile Solaris has changed its strategy. Initially planning to offer mobile TV services, it now targets a larger market of providing radio, internet access, in-car or public safety services.[Lees verder]

Icasa confirms cuts to call termination rates
(Telecompaper) South African regulator Icasa issued its final decision on call termination rates, with the cut in rates to apply slower than originally proposed following strong lobbying by the mobile operators. The regulator identified two markets subject to regulation: wholesale voice termination on a mobile network and wholesale voice termination on a fixed network. Operators subject to the regulations will be those with at least a 25 percent market share as of mid-2009. This includes MTN and Vodacom in the mobile market and Telkom on the fixed market. Regulatory obligations include cost-oriented pricing, information sharing with the regulator and a reference interconnection offer. While Icasa has maintained its goal of an ultimate mobile termination rate of ZAR 0.40, the regulator agreed to slow the implementation schedule after operators already cut rates sharply earlier this year. Rates will fall from 1 March 2011 to ZAR 0.73 cents during peak hours and ZAR 0.65 at off-peak times, from 1 March 2010 to ZAR 0.56 peak and ZAR 0.52 off-peak and to ZAR 0.40 from 1 March 2013 regardless of the time of day. For the fixed market, Icasa set a rate from 1 March 2011 within a geographic area of ZAR 0.20 during peak hours and ZAR 0.12 off-peak and between geographic areas of ZAR 0.28 peak and ZAR 0.19 off-peak. From 1 March 2012, this drops to respectively ZAR 0.15/0.12 and ZAR 0.25/0.19, and from 1 March 2013, to ZAR 0.12 within a zone regardless of time and ZAR 0.19 between zones. Other operators will be able to charge higher rates, but are subject to a maximum increase on the regulated rates of 20 percent until 1 March 2012, 15 percent until March 2013 and 10 percent thereafter. Vodacom welcomed Icasa’s announcement, saying the agreed glide path gives it time to adjust its business model in order to accommodate the significant further revenue reduction that will result from the changes. MTN said it was not fair that the third mobile operator Cell C, as well as new entrant 8ta backed by Telkom, should be allowed asymmetric rates.[Lees verder]

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