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Monday, January 18, 2010
Today's News Headlines
* Telecom Italia lambasts government, appeals antitrust ruling - Argentina
* M-banking penetration still low despite increased offer - Regional
* S&P, Fitch put América Móvil on credit watch - Mexico
* Abinee expects telecoms market to expand 21% this year - Brazil
* Roundup: Iusacell, Subtel, RIM, Amnet - Regional
* Telcos, suppliers come together in earthquake response - Haiti
* Teleperformance launches local operation - Costa Rica
* InfoSonics, Samsung extend distribution agreement - Argentina, Uruguay
* Polycom plans new office, US$2.8mn investment over next 3 years - Brazil
* Will accuses Claro of dumping - Chile
* IN BRIEF Oi makes extra R$1.29bn BrT legal provision in Q4 - Brazil
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* Telecom Italia lambasts government, appeals antitrust ruling - Argentina
European telecoms operator Telecom Italia (NYSE: TI) has made an appeal against Argentine anti-trust body CNDC's order for TI to sell its 50% stake in Sofora, a holding that controls Telecom Argentina (NYSE: TEO), TI said in a statement.
Telecom Italia said it is unconnected with breaches of law allegedly committed by the parties involved in Telco's acquisition of Olimpia SpA, which was approved subject to the divestment of Telecom Italia's holding in Sofora.
"It is Telecom Italia's conviction that each and every ruling reached thus far by the Argentine authorities concerning the divestment of its assets is illegitimate and unjust," the company said.
Telco, the consortium which controls Telecom Italia and led by Spain's Telefónica (NYSE: TEF), has presented an appeal to CNDC's decision, according to press reports.
The CNDC ordered TI last August to sell on the grounds that Telefónica's indirect stake in TI violates Argentina's antitrust laws, given that Telefónica controls Telecom Argentina's biggest rival Telefónica de Argentina (NYSE: TAR).
The companies that make up Telco are Telefónica, Mediobanca, Sintonia, Generali and Intesa.
Earlier this month, the government published in the official gazette that it was giving TI until February 25 to sell its stake in Sofora. Otherwise, it would step in and take action against the telco, with threats ranging from fines to the cancellation of the concession contract.
TI holds a 50% stake in Sofora, while the remaining 50% is owned by Argentina's Grupo Werthein.
By Business News Americas staff reporters
* M-banking penetration still low despite increased offer - Regional
Penetration of mobile-banking services in Latin America remains low despite the increasing number of banks and financial institutions offering the service in the region, international consultancy Frost & Sullivan analyst Venessa Aznar told BNamericas.
The analyst said that during 2009, the number of banks offering m-banking services surged over 30% compared to the previous year.
Brazil and Argentina currently lead m-banking in the Latin American region in terms of m-banking transactions, Aznar said without providing hard figures.
The analyst added that the development of new applications - such as one developed for the iPhone - could boost adoption of m-banking across the region this year, for which the consultancy has "positive expectations."
Aznar called on banks to continue developing advanced applications for m-banking in order to make the service more massive. "Institutions should promote the use of m-banking services. If users are informed about the possibilities and advantages of the service, more people will use the service," she said.
According to a previous report by Frost, SMS continues to be the main channel for m-banking in the region, mainly because this service is less expensive for customers and does not require a sophisticated device.
With the evolution of m-banking services, people will also make more sophisticated operations such as deposits and transfers and not only basic operations such as consulting account balances, she said. "People also need to know that m-banking services are secure."
Aznar added that the increasing penetration of advanced mobile devices such as smartphones is contributing to the development of the m-banking segment.
By Juan Pedro Tomás
Business News Americas
* S&P, Fitch put América Móvil on credit watch - Mexico
Standard & Poor's (S&P) has placed the global BBB+ ratings of Mexican mobile phone giant América Móvil (NYSE: AMX) and sister company Telmex (NYSE: TMX) on credit watch after the former launched on Wednesday (Jan 13) a US$21bn offer to take control of Telmex and Telmex Internacional (NYSE: TII) (Telint), S&P said in a statement.
S&P said the credit watch move had positive implications as the ratings agency studies further details of the transaction. The rating could potentially be raised, the agency said.
Telint credit ratings and debt are also under observation.
América Móvil said it would offer to exchange 2.0474 of its shares for one share in Carso Global Telecom, which controls 59.4% of Telmex and 60.7% of Telint. All the companies are controlled by billionaire Carlos Slim.
The company will also seek to exchange or buy 39.3% of Telint shares that are not in the hands of Carso, offering 0.373 of its own shares or pay 11.66 pesos for every Telint share.
Following the stake swaps, América Móvil plans to delist Telint and Carso from all stock exchanges where they currently trade.
The move is designed to allow América Móvil to offer converged telecoms services of voice data and video across the 18 markets in which it operates.
"In our opinion, the transaction will bring important synergies [for América Móvil] to consolidate its existing operational structure, particularly its network operations," S&P said. "We believe that América Móvil's product portfolio will expand, giving the company the opportunity to offer integrated communications services on shared platforms."
However, S&P said there are still major challenges for fixed line telephony and regulatory issues in Mexico, which could have an impact on the risk levels of América Móvil's business. To read the agency's full report, in Spanish, use this link (http://)
FITCH
For its part, Fitch Ratings has placed the ratings of Carso and Telint on positive observation. América Móvil's move is expected to be good in the long term as it ought to strengthen the company's competitive position, allowing it to take advantage of all the companies' networks synergies.
Grupo Carso and Telint's ratings are expected to go up as a result. Telint will benefit in particular as it is currently dependent on the cash flow from its largest market, Brazil.
Fitch analyst Sergio Rodríguez told BNamericas that América Móvil might face regulatory obstacles in Mexico if it tries to merge its operations, given that both Telmex and América Móvil are being investigated by anti-trust authorities for dominance.
Outside Mexico, América Móvil is unlikely to see many regulatory hurdles in merging its operations, apart from possibly in Colombia, where in the past its local unit Comcel was investigated for dominance related issues, Rodríguez said.
Perhaps the biggest challenge in the future will be seen in Mexico where incumbent Telmex has been seeing increasing competition from cable operators that offer triple play services. Telmex is still not permitted to offer TV services.
To read Fitch's full report, in Spanish, use this link (http://)
By Patrick Nixon
Business News Americas
* Abinee expects telecoms market to expand 21% this year - Brazil
Brazil's telecommunications sector is expected to expand 21% this year, according to a study by the country's electronic goods association Abinee.
Abinee said the telecoms sector in Brazil experienced a decline of 19% in 2009 compared to the previous year.
Sector growth is expected to be driven by the national broadband program, which is being pushed by the government to provide universal access to broadband service.
Abinee said this federal broadband program expects to move approximately US$22.4bn within the next three years.
Abinee spokesperson José Carlos de Oliveira told BNamericas that the telecoms sector this year is expected to generate revenues of 21.1bn reais (US$11.9bn), compared to 17.5bn reais last year.
In 2008, the sector billed 21.5bn reais, the executive said. "The decline last year was due to the economic crisis. Recovery started in the second half of the year, but with the expected expansion for 2010 we will not yet reach 2008 levels," he added.
According to de Oliveira, sales of mobile phones will cool off this year when compared to previous years.
Abinee is a trade association representing the Brazilian electrical and electronic industrial sector. The association has approximately 600 members consisting of small, medium and large Brazilian and foreign companies.
By Juan Pedro Tomás
Business News Americas
* Roundup: Iusacell, Subtel, RIM, Amnet - Regional
Iusacell, Mexico's third largest mobile telco, aims to boost its market share of smartphone clients to at least 25% by year-end from the current 17%, Iusacell's 3G services director Marco Antonio Domínguez was quoted as saying by local daily El Financiero.
"In 2010, Iusacell is aiming to double its installed base of smartphone customers. We know this is an aggressive goal, but we're confident that we're going to get there," Domínguez said.
Launching the new BlackBerry Tour smartphone, Domínguez said Iusacell will target niche segments in the market.
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Chilean telecoms regulator Subtel has inaugurated 200 community access centers in poor areas of the Quinta Normal municipality in capital Santiago, Subtel said in a statement.
***
Research In Motion (RIM) (Nasdaq: RIMM) has launched the BlackBerry Bold 9700 in Chile, the company said in a statement.
The phone is 3G HSDPA capable, has a 624MHz processor, 256MB flash memory, embedded GPS and Wi-Fi, and a 3.2-megapixel camera.
***
Honduras' anti-trust body CDPC has fined cable TV operator Amnet 3mn lempiras (US$158,520) for monopolistic activities in the city of San Pedro Sula, Honduran daily El Heraldo reported.
According to the report, Amnet was denounced in 2007 by competitor Cable Sula, which is part of the Insetec group.
By Business News Americas staff reporters
* Telcos, suppliers come together in earthquake response - Haiti
There has been a comprehensive response to disaster-stricken Haiti from telcos to resolve one of the biggest problems facing the country in the aftermath of the 7.0 earthquake that hit on January 12, killing more than 45,000 people.
Swedish telecoms equipment supplier Ericsson (Nasdaq: ERIC) announced it will send four telecoms experts to aid relief work in disaster-stricken Haiti.
The experts will set up a container-based mini GSM-system to enable mobile communication in the area. Personnel and equipment will arrive in Haiti using UN transportation.
"We know from past experience how important it is for aid workers to coordinate the rescue operation using mobile communications. Aid workers can get their work done faster if we can provide them with the tools to get quickly in touch with the outside world, each other and those most affected by the emergency," Rima Qureshi, head of Ericsson's aid unit Response, said.
In 2009, Ericsson Response supported relief work in Kongo, Sudan, Indonesia and Philippines.
AT&T (NYSE: T) announced it is donating US$50,000 to Télécoms Sans Frontières (TSF), which is a French humanitarian agency that specializes in providing telecommunications in disaster situations.
From its base in Nicaraguan capital Managua, TSF has sent a support group to Haiti and is setting up satellite-based fixed and mobile networks.
In addition, AT&T has set up a hotline for users in the US to send donations of US$10 to the Red Cross international assistance fund.
Intelsat, a provider of telecoms services over satellite, said it established two communication networks - one in C-band and one in Ku-band - to provide critical communication links.
The two networks - established via Intelsat's satellite and terrestrial network infrastructure, including its GlobalConnexSM Network Broadband service - are supporting governments, non-governmental organizations, network service providers, media, telecommunication operators and humanitarian efforts.
"Satellite communications is often the first communications technology to provide restoration following unfortunate events such as the Haitian earthquake. In some cases, our customers using satellite links never lose connectivity at all," Intelsat's VP of network services Jay Yass said.
For its part, Telecom Argentina (NYSE: TEO) announced it was offering free calls from its fixed line residential phones to fixed and mobile networks in Haiti from January 12-31.
And France Telecom (NYSE: FTE), which owns Dominican Republic mobile operator Orange Dominicana, has sent a powerful mobile antenna to the Dominican Republic to be installed in the town of Jimaní, which is located on the border with Haiti, Dominican Republic telecoms regulator Indotel said in a statement.
The equipment will be used to direct and restore telecoms contact with Haitian capital Port-au-Prince.
Indotel head José Rafael Vargas said France Telecom technicians were also working on restoring the GSM network in Haiti.
Vargas added that Viva, which is a unit of Trilogy group and has operations in both of the countries that share the island of Hispaniola, has sent an airplane to Haiti with equipment to patch up its damaged network.
By Business News Americas staff reporters
* Teleperformance launches local operation - Costa Rica
European call center group Teleperformance has launched operations in Costa Rican capital San José, from which the company will serve clients in the US, the company reported in a release.
Teleperformance has already secured a multi-year agreement with an existing client that will be serviced by the newly launched Costa Rica operation. The initial project includes approximately 300 workstations supporting operations in the US market and an additional 100 workstations to support services to the Latin American market.
"This move strengthens our footprint in Central America and simultaneously extends our existing industry lead in providing the most flexible and effective delivery options to our US market clients," Teleperformance chair and CEO Daniel Julien said.
Teleperformance operates 82,000 workstations worldwide, with 268 contact centers in 49 countries.
By Business News Americas staff reporters
* InfoSonics, Samsung extend distribution agreement - Argentina, Uruguay
US wireless handset and accessories distributor InfoSonics (Nasdaq: IFON) has extended its distribution agreement with the Argentine unit of Korean manufacturer Samsung Electronics, InfoSonics said in a statement.
Under the terms of the agreement, valid until December, InfoSonics will continue to offer distribution solutions and services in Argentina and Uruguay for a variety of Samsung wireless telecommunication devices and accessories to carriers, retailers and agents.
"This mutually beneficial partnership was established over five years ago and we look forward to continuing this alliance," InfoSonics president and CEO Joseph Ram said.
The Argentine congress recently approved a law imposing heavy taxes on IT products imported or domestically manufactured outside Tierra del Fuego province. "InfoSonics currently sells products manufactured outside of Argentina, and thus will be subject to the 30% increase. InfoSonics is uncertain as to how this cost increase will impact consumer demand as well as our respective sales of Samsung products. We're uncertain as to how much of the production will flow through Tierra del Fuego due to logistical and production capacity constraints in that zone," the company said.
InfoSonics' Latin American headquarters, logistical and operational facilities are based in Miami. The company also has offices in Mexico, Argentina, Chile, Uruguay, Guatemala and El Salvador.
By Business News Americas staff reporters
* Polycom plans new office, US$2.8mn investment over next 3 years - Brazil
The Brazilian unit of US telecoms equipment vendor Polycom (Nasdaq: PLCM) expects to invest 5mn reais (US$2.8mn) within the next three years, local IT news site IT Web reported.
Through this investment, the company expects to open a new office, hire additional staff and develop sales through partners.
Polycom Brasil's head Roberto Ferreira said the company has been growing at rates of 33% over the last four years. The company is now looking to grow in the local market at rates of approximately 50%, for which the company is working on strengthening its channels program.
In Brazil, Polycom currently has 20 channel partners.
The executive said the company will focus on several markets this year including education, health, government, services providers, finance and energy.
Polycom provides telepresence and unified collaboration solutions with strategic partners that include Avaya, Cisco (http://), IBM and Microsoft.
The company manages its Brazilian operations from its São Paulo office.
In Latin America, Polycom also has an office in Argentina's capital Buenos Aires.
By Business News Americas staff reporters
* Will accuses Claro of dumping - Chile
Will, a Chilean telco that offers fixed wireless services, has filed a lawsuit with anti-trust body TDLC against mobile operator Claro, accusing it of dumping, local press reported.
According to Will, Claro, a unit of Mexican giant América Móvil (NYSE: AMX), has been charging its customers prices that are below costs for on-net calls.
Will claims that due to the low cost calls, users that previously used public telephony are migrating to Claro. It also says that Claro customers' off-net calls are five times higher than on-net, thereby affecting those who are not Claro customers.
Will serves 55,000 customers in 18 municipalities in the Metropolitan region.
By Business News Americas staff reporters
* IN BRIEF Oi makes extra R$1.29bn BrT legal provision in Q4 - Brazil
Brazilian telecommunications giant Oi announced on Friday it will make 1.29bn reais (US$730mn) in legal provisions in its fourth-quarter balance sheet regarding its acquisition last year of Brasil Telecom (BrT).
Oi explained that this means the total gross amount of provisions to this end will be 2.53bn reais, against the 1.45bn reais the company had expected immediately after the acquisition took place, on April 3, 2009.
For this reason companies in the Oi group have decided to freeze the incorporation of shares in BrT, while their swap ratio is reassessed.
Oi paid a total of 5.37bn reais for 61.2% of common shares in BrT's parent Brasil Telecom Participações.
http://www.aebrazil.comAgência Estado
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In-deph interview
* Cloud-based communications solutions
Tim Marsden
Chief technologist, CMS division
HP
Regional
http://www.bnamericas.com/interviews/telecommunications/Tim_Marsden_,HP,/170324105
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Main companies covered in today's news
* Subsecretaría de Telecomunicaciones de Chile
http://www.bnamericas.com/company-profile/en/Subsecretaria_de_Telecomunicaciones_de_Chile-Subtel/170324105
* Telecom Americas
http://www.bnamericas.com/company-profile/en/Telecom_Americas-Claro_Brasil/170324105
* Microsoft Corporation
http://www.bnamericas.com/company-profile/en/Microsoft_Corporation-Microsoft/170324105
* All America Cables & Radio Inc.
http://www.bnamericas.com/company-profile/en/All_America_Cables_*_Radio_Inc,-Trilogy_Dominicana_,Viva,/170324105
* Fitch México S.A. de C.V.
http://www.bnamericas.com/company-profile/en/Fitch_Mexico_S,A,_de_C,V,-Fitch_Mexico/170324105
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