South African incumbent operator Telkom has cancelled its planned sale of Nigerian subsidiary Multi-Links to Visafone. Having announced a done deal to the tune of $52m in April this year, Telkom CEO Nombulelo Moholi has said that a recent court ruling in Nigeria now means that the South African company is unable to go through with the deal. Consequently, Telkom will stop funding the subsidiary with immediate effect, leaving the future of the company in doubt.
India’s Tata Communications has upped its stake in South Africa’s second national operator Neotel, making the telco a subsidiary of the company. Tata’s stake has increased from 56 per cent to 61.5 per cent. It is not clear which of Neotel’s other shareholders has sold its stake; the Neotel website lists Communitel and Black Economic Empowerment (BEE) partner Nexus Connexion as the other shareholders.
One of the most attractive characteristics of the anticipated M2M explosion is that its applications and modules will be based on older network technologies. Speak to anyone looking to promote M2M and they’ll tell you that it offers operators the opportunity to carry on monetising networks that are nearing the end of their useful life as platforms for consumer services. But is this really the best approach?
South African incumbent fixed-line operator Telkom SA has sold off its CDMA operation at the embattled Nigerian Multi-Links network. The deal, worth $52m, will see the transfer of the network to operator Visafone; Multi-Links’ fibre and fixed-line elements are not included in the sale.
China Telecom is to buy the CDMA network it currently leases from parent company China Telecommunications. With fourth quarter profits up 42 per cent on the back of a tripling of smartphone users, China’s biggest fixed-line carrier is looking to build on that growth by reducing its 3G costs. Last year, the cost of leasing the CDMA network rose by 59 per cent – more than the depreciation of assets and other related costs – to CNY13.3bn ($2bn).
With shares rising on the back of speculation of a T-Mobile/Sprint merger in the US, Deutsche Telekom CFO Tim Hoettges declined to comment on “rumour and speculation” saying only that the company is “open to all options” and that it is “flexibly positioned.”
There was no great surprise to Tuesday’s announcement that US CDMA operator Verizon Wireless has finally managed to secure a CDMA version of the Apple iPhone 4. The news is a boon for the Verizon network, which is widely perceived as offering the best quality in the country. iPhone pioneer AT&T meanwhile, could lose subscribers to its closest rival.
If Apple decided to make a CDMA iPhone, the whoops of jubilation would be heard all the way from Verizon Wireless’headquarters in Basking Ridge, NJ, to AT&T’s HQ in Dallas, TX, where the news would no doubt be greeted with stunned silence. Latest reports cite unnamed sources as confirming that Verizon Wireless will offer the iPhone in January, when they say AT&T’s exclusive deal with Apple ends.
Google has announced on a blog posting that a version of its Nexus One handset that is compatible with US carrier Verizon’s CDMA network will now not be made available. When the handset was launched in January this year, Google said that it would be partnering with Verizon to distribute the phone “in the future”. The announcement raises questions over Google’s commitment to a CDMA-based version of the Nexus One.
An estimated 25 million GSM handsets are expected to have gone quiet in India on Tuesday, as legislation requiring phones without an IMEI to be disconnected came into play.
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