WCA November 2010

Telecom news

Telecom Italia are joint owners of the holding company Sofora which has a controlling stake in Telecom Argentina. Telecom Italia had come under some pressure from the Argentine government to step out of Telecom Argentina to avoid antitrust issues. The deal, announced 6 th August and subject to the approval of regulators in Argentina, will presumably allow Telecom Italia a wider range of options for its future in the country. Telecom Italia’s move to strengthen its South American presence followed closely on the acquisition by its Spanish rival Telefónica SA of Portugal Telecom SA’s stake in Brazilian mobile operator Vivo Participações SA. With the $9.87 billion buyout, Telefónica claimed “undisputed leadership of the Brazilian telecommunications market, which has been a key market for the company since it entered there in 1999.” For its part, Portugal Telecom is believed to have agreed to buy a stake in Brazil’s biggest phone operator Telemar Norte Leste, known as Oi.

to offset sluggish demand and intense competition in Europe – said on 10 th August that it has been in talks to buy a stake in Morocco’s number 2 telecom operator Medi Telecom SA, or Meditel. The acquisition would be the first under CEO Stephane Richard, who took over at France’s biggest phone company (Europe’s third-biggest) in March with the intention of doubling revenues in emerging markets in five years, largely through acquisitions. Over the period to 2015, the company expects to spend up to $9.3 billion on such deals, Mr Richard said in April. Through its Orange brand, France Telecom already has a regional presence — in Egypt, Kenya, Senegal, Ivory Coast, Tunisia and Mali. ✆ ✆ America to European telecom operators is demonstrated by the agreement between Telecom Italia and Argentina’s Werthein family that will increase the Italian company’s interest in Telecom Argentina SA. The Wertheins and The importance of South

urged that a government minister be tasked with developing a coordinated plan to improve broadband reach and speed countrywide. France Telecom on 6 ✆ ✆ th September said that its Polish arm Tele- komunikacja Polska, in which it holds a 49.8% stake, has been ordered by an arbitration tribunal to pay $510 million to Danish Polish Telecommunications Group. As reported in MarketWatch by Simon Kennedy, the decision derives from a dispute over a fibre optic cable network and covers the period from February 1994 to June 2004. A second phase of the proceedings will cover the subsequent period through January 2009, unless the parties come to a settlement. France Telecom said Telekomunikacja Polska is examining its options with regard to taking further legal action. In other news of France Telecom, ✆ ✆ the company – seeking growth in Africa and the Middle East

31

Wire & Cable ASIA – November/December 2010