Vimpelcom buys Orascom Telecom, Wind Italy

Vimpelcom buys Orascom Telecom, Wind Italy
(Telecompaper) Russian operator Vimpelcom has agreed to take over much of Orascom Telecom and Italian operator Wind. The agreement with Weather Investments will see Vimpelcom acquire 51.7 percent of Orascom Telecom and 100 percent of Wind Telecomunicazioni in exchange for 326 million Vimpelcom shares and USD 1.8 billion cash. The Orascom activities in Egypt and North Korea are excluded from the transaction, as is Wind Hellas in Greece. The Weather shareholders will have a 18.5 percent voting stake in Vimpelcom after the deal, while Telenor’s stake will dilute to 29.3 percent and Altimo will hold 36.4 percent. The takeover will create what the companies say is the world’s fifth-largest mobile carrier, with operations in 20 countries in Europe, Asia, Africa and North America and 174 million subscribers. Pro forma revenues for 2009 for the combined group were USD 21.5 billion and EBITDA was at USD 9.5 billion. Vimpelcom said it will earn around a third of revenues from Russia and Italy each, with the remainder from a range of emerging markets. The company also expects around USD 2.5 billion in synergies from operating and capital spending in the combind group. Vimpelcom said it has the financing in place for the acquisition and any required refinancing of Weather debt, with its net debt after the close of the deal estimated at USD 24 billion or 2.5 times EBITDA. Pending shareholder and regulatory approval, the acquisition is expected to close in Q1 2011.[Lees verder]

Skype names Cisco’s Bates as new CEO
(Telecompaper) Skype named Tony Bates, a senior vice president at Cisco, as its new CEO and a member of the board of directors. Bates has over 20 years of leadership experience in the communications and internet industries, most recently as general manager of Cisco’s Enterprise, Commercial and Small Business Division. Bates has also served as general manager of Cisco’s Service Provider Group. Bates holds nine patents and has served on the boards of a range of technology companies including YouTube, TokBox, BubbleMotion and LoveFilm. He replaces Josh Silverman as CEO.[Lees verder]

Verizon Wireless refunds mistaken charges to 15 mln clients
(Telecompaper) Verizon Wireless will apply credit to the accounts of around 15 million customers due to mistaken past data charges. The company said it will notify the customers in October and November through their regular bill messages and that it will mail refund checks to former customers. In most cases, these credits are in the USD 2-6 range; some will receive larger credits or refunds. The company explained that after reviewing customer accounts, it discovered that over the past several years, about 15 million customers who did not have data plans were billed for data sessions on their phones that they did not initiate. These customers would normally have been billed at the standard rate of USD 1.99 per megabyte for any data they chose to access from their phones. The majority of the data sessions involved minor data exchanges caused by software built into their phones; others included accessing certain web links, which should not have incurred charges. Verizon Wireless said it has addressed these issues to avoid unintended data charges in the future. Meanwhile the FCC said that it has been investigating Verizon for around ten months after its customers complained about the charges. Verizon Wireless has reportedly put the amount of the overcharges at more than USD 50 million in the past two years, the commission said. The regulator questioned why it had taken Verizon two years to disclose the problems and said it will consider penalties against the operator.[Lees verder]

LightSquared gets first wholesale deals, more financing
(Telecompaper) LightSquared announced closing of USD 850 million in new debt financing, to help the company build its plannned wholesale mobile and satellite network in the US. This is the initial round of a syndicated secured credit facility arranged and led by UBS. The term of the credit facility will be four years, non-callable in the first year. With this additional USD 850 million, LightSquared has obtained an aggregate of more than USD 2 billion in equity and debt proceeds and in commitments. LightSquared also announced it has signed its first wholesale agreements and is in advanced negotiations with numerous potential customers. The company did not provide further details on the customers. Given the early indications of strong demand for capacity on its LTE wholesale network, LightSquared said it intends to accelerate the implementation of Phase 2 of its agreement with Inmarsat to the fourth quarter of this year. By doing so, LightSquared will obtain increased access to spectrum controlled by Inmarsat as well as start lease payments to the satellite operator.[Lees verder]

LG names Jong-seok Park to lead mobile operations
(Telecompaper) LG Electronics has appointed new executives to lead its Home Entertainment and Mobile Communications companies, effective immediately. Executive vice president Havis Kwon was picked to lead the company’s Home Entertainment company, and the current head of mobile R&D, Jong-seok Park, will head-up LG’s Mobile Communications company. Furthermore, Skott Ahn, formerly president and CEO of LG’s Mobile Communications company, will take over the role of chief technology officer, while Woo Paik, the outgoing CTO, takes on a newly-created role at LG responsible for identifying and developing new business aligned with technology.[Lees verder]

Vimpelcom buys Orascom Telecom, Wind Italy
(Telecompaper) Russian operator Vimpelcom has agreed to take over much of Orascom Telecom and Italian operator Wind. The agreement with Weather Investments will see Vimpelcom acquire 51.7 percent of Orascom Telecom and 100 percent of Wind Telecomunicazioni in exchange for 326 million Vimpelcom shares and USD 1.8 billion cash. The Orascom activities in Egypt and North Korea are excluded from the transaction, as is Wind Hellas in Greece. The Weather shareholders will have a 18.5 percent voting stake in Vimpelcom after the deal, while Telenor’s stake will dilute to 29.3 percent and Altimo will hold 36.4 percent. The takeover will create what the companies say is the world’s fifth-largest mobile carrier, with operations in 20 countries in Europe, Asia, Africa and North America and 174 million subscribers. Pro forma revenues for 2009 for the combined group were USD 21.5 billion and EBITDA was at USD 9.5 billion. Vimpelcom said it will earn around a third of revenues from Russia and Italy each, with the remainder from a range of emerging markets. The company also expects around USD 2.5 billion in synergies from operating and capital spending in the combind group. Vimpelcom said it has the financing in place for the acquisition and any required refinancing of Weather debt, with its net debt after the close of the deal estimated at USD 24 billion or 2.5 times EBITDA. Pending shareholder and regulatory approval, the acquisition is expected to close in Q1 2011.[Lees verder]

Skype names Cisco’s Bates as new CEO
(Telecompaper) Skype named Tony Bates, a senior vice president at Cisco, as its new CEO and a member of the board of directors. Bates has over 20 years of leadership experience in the communications and internet industries, most recently as general manager of Cisco’s Enterprise, Commercial and Small Business Division. Bates has also served as general manager of Cisco’s Service Provider Group. Bates holds nine patents and has served on the boards of a range of technology companies including YouTube, TokBox, BubbleMotion and LoveFilm. He replaces Josh Silverman as CEO.[Lees verder]

Verizon Wireless refunds mistaken charges to 15 mln clients
(Telecompaper) Verizon Wireless will apply credit to the accounts of around 15 million customers due to mistaken past data charges. The company said it will notify the customers in October and November through their regular bill messages and that it will mail refund checks to former customers. In most cases, these credits are in the USD 2-6 range; some will receive larger credits or refunds. The company explained that after reviewing customer accounts, it discovered that over the past several years, about 15 million customers who did not have data plans were billed for data sessions on their phones that they did not initiate. These customers would normally have been billed at the standard rate of USD 1.99 per megabyte for any data they chose to access from their phones. The majority of the data sessions involved minor data exchanges caused by software built into their phones; others included accessing certain web links, which should not have incurred charges. Verizon Wireless said it has addressed these issues to avoid unintended data charges in the future. Meanwhile the FCC said that it has been investigating Verizon for around ten months after its customers complained about the charges. Verizon Wireless has reportedly put the amount of the overcharges at more than USD 50 million in the past two years, the commission said. The regulator questioned why it had taken Verizon two years to disclose the problems and said it will consider penalties against the operator.[Lees verder]

LightSquared gets first wholesale deals, more financing
(Telecompaper) LightSquared announced closing of USD 850 million in new debt financing, to help the company build its plannned wholesale mobile and satellite network in the US. This is the initial round of a syndicated secured credit facility arranged and led by UBS. The term of the credit facility will be four years, non-callable in the first year. With this additional USD 850 million, LightSquared has obtained an aggregate of more than USD 2 billion in equity and debt proceeds and in commitments. LightSquared also announced it has signed its first wholesale agreements and is in advanced negotiations with numerous potential customers. The company did not provide further details on the customers. Given the early indications of strong demand for capacity on its LTE wholesale network, LightSquared said it intends to accelerate the implementation of Phase 2 of its agreement with Inmarsat to the fourth quarter of this year. By doing so, LightSquared will obtain increased access to spectrum controlled by Inmarsat as well as start lease payments to the satellite operator.[Lees verder]

LG names Jong-seok Park to lead mobile operations
(Telecompaper) LG Electronics has appointed new executives to lead its Home Entertainment and Mobile Communications companies, effective immediately. Executive vice president Havis Kwon was picked to lead the company’s Home Entertainment company, and the current head of mobile R&D, Jong-seok Park, will head-up LG’s Mobile Communications company. Furthermore, Skott Ahn, formerly president and CEO of LG’s Mobile Communications company, will take over the role of chief technology officer, while Woo Paik, the outgoing CTO, takes on a newly-created role at LG responsible for identifying and developing new business aligned with technology.[Lees verder]

Comments are closed.