Latin America's Business Information Leader
"The new BNamericas.com is already available for you, Get to know it here"
http://www.bnamericas.com/
Tuesday, January 19, 2010
Today's News Headlines
* Telecoms tax to slow penetration of mobile telephony - consultancy - Mexico
* Mobile telephony services expected to bill US$87bn in 2013 - Regional
* América Móvil drags down stock market on share dilution fears - Mexico
* Roundup: 3G Motion, WiFi, Indotel - Regional
* NewCom teams with Hispamar to use Amazonas 2 satellite - Brazil, Regional
* Mobile concession licenses to be awarded May 5 - Costa Rica
* Court puts brakes on govt plans to force TI out, govt threatens nationalization - Argentina
* GTD acquires 96.37% of shares in Telsur - Chile
* Gemini targets opportunities in Latin America - Regional
* Jiménez Belinchón expands with new offices - Costa Rica, Mexico
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
* Telecoms tax to slow penetration of mobile telephony - consultancy - Mexico
Additional taxation on telecommunications services introduced by the Mexican government this year will slow growth in penetration of mobile telephony as operators transfer the additional costs to the consumer, Gonzalo Rojón, director of ICT research at the Competitive Intelligence Unit (CIU) told BNamericas.
As part of its 2010 budget plans, Mexico's government introduced a 3% excise tax on telecom and upped VAT by 1%, bringing a total taxation of 19%.
Currently Mexico has a mobile penetration of 76%, behind countries such as Argentina, Venezuela and Chile which have penetration bordering on or over 100%. And the remaining 24% of the population that does not have a mobile device tends to be among the poorest segments of society, so an increase in prices is not going to help operators reach those people.
According to Rojón, Mexico had been seeing a trend towards a drop in prices in recent years, even though prices are still above those of most of Mexico's main trading partners which include the US, Canada, France and Spain.
But the CIU calculates the new taxes will set the country back at least 11 months in that respect.
"Definitively this is a step backwards for Mexico's telecommunications sector... if you add this tax, at the end of the day it's the same as increasing prices for the consumer, and you're slowing up our chances of reaching similar price levels as [those of] our main trading partners," Rojón said.
On top of that, one has to consider the increasing cost of telecoms equipment with the peso having lost 30% of its value against the dollar in the last 15 months. Mexico's economy was one of the hardest hit in Latin America because its economy is closely linked to that of the US, the analyst said.
Rojón sees consumers purchasing less as a result of price hikes. Telecoms operators are already hurting, with sector income having dropped 20% in the third quarter of 2009 in dollar terms. As such, operators are less likely to take a hit with the increased tax and will likely feel obliged to pass the tax onto the end user.
The analyst criticized the tax, saying it is contradictory with President Felipe Calderón's 2007-12 national development plan which aims to improve coverage, quality and competitiveness.
By Patrick Nixon
Business News Americas
* Mobile telephony services expected to bill US$87bn in 2013 - Regional
Mobile telephony services in Latin America are forecasted to reach US$87bn in 2013, British consultancy Informa Telecoms & Media research analyst Daniele Tricarico told BNamericas.
Of the total, revenues from mobile data services are expected to reach US$16.9bn in the next four years, Tricarico added.
"Growth in mobile data revenues will be largely driven by Brazil, with US$5.5bn in data revenue generated in 2013. This will account for almost a third of the entire date revenue in Latin America in 2013. After Brazil, Mexico will be the other country boosting growth, with US$4.7bn in data revenue in 2013, which will account for 27.9% of the region," Tricarico said.
According to the analyst, Argentina will generate US$3.4bn in data revenues, representing 20.2% of the total regional market. "Among these three countries, however, Argentina will have the highest data Arpu with US$4.82," the analyst said. Regionally, data Arpu is predicted to be US$2.14, he added.
The analyst also said that by end-2014, mobile data revenues will represent 39.3% of total revenues in Argentina, 22.1% of revenues in Brazil and 29.5% of revenues in Mexico.
By Juan Pedro Tomás
Business News Americas
* América Móvil drags down stock market on share dilution fears - Mexico
Mexican mobile giant América Móvil (NYSE: AMX) dragged down the local stock market BMV on Friday following its announcement it was seeking to take control of sister companies Carso Global Telecom (CGT) and Telmex Internacional (NYSE: TII) (Telint), local press reported.
The BMV fell 1.43%, its second consecutive drop. América Móvil's series L shares were down 1.85% as shareholders reportedly feared the move would be a dilution of AMX shares. According to Santander brokerage, if all of the shares are swapped as América Móvil plans, shareholders could see their share value drop 30%.
América Móvil launched on Wednesday (Jan 13) a US$21bn offer to take control of Carso, which controls Mexican fixed line incumbent Telmex (NYSE: TMX), and Telmex Internacional.
AMX 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.
América Móvil would have to issue 9bn new shares to consolidate the purchase of CGT and Telmex Internacional.
Analysts also reportedly said shareholders fear the new risks of integrating the fixed line, TV and other services of Telmex and Telmex Internacional with mobile of América Móvil.
As Telmex Internacional is growing rapidly, it would likely have to invest heavily to consolidate its presence, while the business of fixed line operator Telmex in Mexico has seen slower growth.
MOODY'S
Moody's affirmed América Móvil A3 global foreign currency and global domestic currency ratings and maintained the positive outlook. Simultaneously, Moody's de México affirmed América Móvil's Aaa.mx and MX-1 national scale ratings and maintained the stable outlook on these ratings.
The ratings affirmation was based on Moody's view that América Móvil's credit profile may benefit longer term from the integration of other telecommunications assets, but contemplates challenges that may exist, namely overcoming any regulatory hurdles as well as deterioration in credit metrics for the combined companies compared to América Móvil standalone.
To read Moody's full report, use this link (http://)
For a copy of the report in Spanish, use this link (http://www.bnamericas.com/research_detalle.jsp?idioma=E&documento=1011631&id_sector=0 )
BBVA Bancomer
According to local brokerage BBVA Bancomer, Mexican law requires a quorum of 75% of the total shares to hold an extraordinary shareholders meeting and resolutions must be passed with a 50% vote of all shareholders.
The brokerage said it believes Mexican and Colombian antitrust authorities could raise questions and place restraints on the new structure and requires that commercial operations in the landline and mobile businesses remain separate.
By Business News Americas staff reporters
* Roundup: 3G Motion, WiFi, Indotel - Regional
The Chilean chamber of commerce has named 3G Motion - a local company specializing in mobile services including mobile marketing and multimedia content - as one of the startups with the biggest potential for export, 3G Motion said in a statement.
3G Motion, which already has presence in Argentina, Peru, Colombia and Ecuador, was praised for the leadership it has shown in the mobile industry.
The company's business platform allows users to access ringtones, corporate applications, mobile banking, mobile marketing and mobile TV.
3G Motion is part of the Digevo group which also owns IT strategy consultant Change, telecoms services and critical applications management provider NCS Americas, web-based services platform AxonAxis, mobile software developer DNLabs and mobile applications company incubator Spinnovo.
***
The municipality of Chilean beach resort Los Vilos, located 200km north of capital Santiago, has implemented a public WiFi hotspot to boost tourism, local daily Diario del Día reported.
The hotspot, which promises speeds of 128kbps, was implemented in conjunction with the Los Pelambres mining foundation.
***
Some 20 technicians from Dominican Republic telecoms regulator Indotel are now working with representatives from local telcos to help restore telecommunications in disaster-stricken Haiti, Indotel said in a statement.
Indotel head José Rafael Vargas said engineers were installing three networks using VSAT for fixed line, mobile and internet communications in the Dominican Republic's embassy in Haiti.
Dominican telcos Viva of Trilogy International, incumbent Codetel of América Móvil (NYSE: AMX), Orange Dominicana of France Telecom (NYSE: FTE), as well as Tricom are working with Haitian operators Multilink, Cantel and Digicel to get communication back up and running in a fluid manner.
By Business News Americas staff reporters
* NewCom teams with Hispamar to use Amazonas 2 satellite - Brazil, Regional
Miami-based IP communications provider NewCom International has teamed with Spanish-Brazilian satellite operator Hispamar to use the latter's new satellite Amazonas 2 to offer services to the Latin American market, NewCom said in a statement.
The new satellite, co-located with Amazonas 1 at 61º west to double capacity at the location, provides coverage from the southern tip of South America to southern Canada. With a lifetime of 15 years, the satellite offers cost-efficient opportunities for high power, high quality communications with its 54 Ku band and 10 C band transponders and bandwidth of 36MHz Ku and 54MHz C.
"With Amazonas 2, we get the comprehensive coverage, capacity and intuitive advanced technology we need to deliver comprehensive communications services to the governments and corporate networks we serve," NewCom sales and business development director Dora Mejía said.
NewCom International is a global telecommunications firm, focused on the provision of customized solutions for governments, businesses and organizations worldwide. In addition to providing global transport of voice, video and data communications via satellite, IP and fiber, NewCom's solutions include video services, mobile maritime communications services, collocation and equipment sales.
By Business News Americas staff reporters
* Mobile concession licenses to be awarded May 5 - Costa Rica
Costa Rica's telecoms watchdog Sutel will publish bidding rules for a mobile concession on February 5 and could award three licenses on May 5, local daily El Financiero reported.
In a press conference, Sutel's president George Miley said technical offers would be received on March 19 and prequalified companies would present economic offers on April 16.
To prequalify, potential bidders need to have at least five years of experience in mobile operations in at least three other countries with no less than 3mn subscribers in total. Bidders should also have at least US$700mn in annual revenues and not have had concessions withdrawn in other markets.
Of the 160MHz available, 60MHz belongs to state-owned telco ICE and the remaining 100MHz will be up for grabs in three bands - 850MHz, 1,800MHz and 2,100MHz.
Costa Rica is due to be one of the last countries in Latin America and the Caribbean to liberalize its mobile telephony market as part of the Central America and Dominican Republic free trade agreement with the US (Cafta-DR).
Central American/Caribbean operators Digicel, Cable & Wireless and Millicom (Nasdaq: MICC), as well as América Móvil (NYSE: AMX) and Telefónica (NYSE: TEF), have all expressed interest in entering the market.
By Business News Americas staff reporters
* Court puts brakes on govt plans to force TI out, govt threatens nationalization - Argentina
An Argentine court of appeal has issued a ruling putting a stop to anti-trust body CNDC's order for European telecoms operator Telecom Italia (NYSE: TI) to sell its 50% stake in Sofora, a holding that controls Telecom Argentina (NYSE: TEO), local newspaper La Nación reported.
With this ruling, the court has suspended a timeline previously set by Argentine authorities for TI to sell its Sofora stake, which would see the Italian group leave Argentina. The court suspended the timeline until it can be determined if the entry of Spanish telecoms giant Telefónica (NYSE: TEF) in TI's shareholder structure affects competition in the local market.
"This [decision] shows that the judicial system in Argentina works," the paper quoted TI CEO Franco Bernabé as saying. "We are not forced to sell. Depending on the offers and the financial propositions presented by interested companies, we will evaluate the possibility of whether to sell," the executive added.
Last week, both TI and its controlling company Telco presented appeals 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).
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.
Planning minister Julio de Vido has said that the government will appeal the ruling and that full nationalization is possible if justice continues blocking government resolutions towards TI's exit. De Vido said the local telecoms market is under a monopoly scenario where "competition does not exist."
De Vido reportedly said congress could also intervene in this situation. The official added that the government could decide to withdraw TI's license to operate in the local market if necessary.
By Business News Americas staff reporters
* GTD acquires 96.37% of shares in Telsur - Chile
Chilean telco GTD has acquired 96.37% of shares in telco Telefónica del Sur (Telsur), local press reported the former as saying.
Chilean financial and industrial conglomerate Quiñenco agreed on December 2 to sell Telsur to GTD for 76bn pesos (US$156mn). Quiñenco held a 74.43% stake in Telsur.
GTD then announced a public share offering to try to obtain 100% control of Telsur, which serves the country's south with IPTV, fixed line, fixed wireless and internet.
GTD previously underscored the attractiveness of Telsur, which transformed itself from a fixed line operator into a multi services telco and which has been a pioneer in advanced technology, being the first to launch IPTV in the country and fixed wireless based on PHS technology.
GTD has focused its investments on deploying a GPON/FTTx network. It said the acquisition would enable it to expand its geographical coverage from Concepción to Coyhaique in the south.
By Business News Americas staff reporters
* Gemini targets opportunities in Latin America - Regional
Indian networking company Gemini Communication expects to expand its presence in several markets including Latin America, international press reported.
Gemini's wireless products division PointRed has made proposals to operators in various Latin American countries to deploy wireless telecoms infrastructure, Gemini Communication managing director B Sreekrishna was reported as saying.
The company is also looking to expand its business in Russia, the Middle East, Europe and the US, according to Dow Jones.
Gemini Communication offers a wide spectrum of networking, services and security solutions. The company's product portfolio includes solutions for networking, security, storage, supervision and IT services.
PointRed's products are engineered based on various standard-based technologies such as WiFi, fixed and mobile WiMax.
By Business News Americas staff reporters
* Jiménez Belinchón expands with new offices - Costa Rica, Mexico
Jiménez Belinchón, a Spanish group with interests in the telecommunications, energy and construction sectors, has opened a new office in Costa Rica and strengthened its presence in Mexico as part of a move to grow in the telecommunications sector in Latin America, newspaper CincoDías reported.
Currently, Jiménez Belinchón provides services to Spain's Telefónica (NYSE: TEF) in Latin America and Swedish telecoms equipment supplier Ericsson (Nasdaq: ERIC).
The company has also recently sealed deals in the US and Europe as part of its international expansion drive.
In telecommunications, Jiménez Belinchón specializes in supplying and mounting antennas, mobile telephony and network equipment and security systems, as well as telecommunications equipment for railways.
The company posted 80mn euros (currently US$115mn) in 2008, a 90.5% increase over 2007, and 50% of total revenue comes from telecommunications.
Jiménez Belinchón also specializes in the electricity segment, renewable energy (solar and wind power) and construction.
By Business News Americas staff reporters
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
In-deph interview
* Cloud-based communications solutions
Tim Marsden
Chief technologist, CMS division
HP
Regional
http://www.bnamericas.com/interviews/telecommunications/Tim_Marsden_,HP,/170504922
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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/170504922
* All America Cables & Radio Inc.
http://www.bnamericas.com/company-profile/en/All_America_Cables_*_Radio_Inc,-Trilogy_Dominicana_,Viva,/170504922
* Fitch México S.A. de C.V.
http://www.bnamericas.com/company-profile/en/Fitch_Mexico_S,A,_de_C,V,-Fitch_Mexico/170504922
* Orange Dominicana S.A.
http://www.bnamericas.com/company-profile/en/Orange_Dominicana_S,A,-Orange_Dominicana/170504922
* France Telecom Group
http://www.bnamericas.com/company-profile/en/France_Telecom_Group-France_Telecom/170504922
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Our Products
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Click Here to subscribe Now!
http://www.bnamericas.com/web_subscribe_now.jsp?idioma=I&login=atlantm1210@ukr.net&idForm=95
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Share the news, give your friends and colleagues a two weeks free trial
http://www.bnamericas.com/share_the_news.jsp?idioma=I&Act=
Business News Americas Ltda.
Latin America's Business Information Leader
eMail: info@BNamericas.com
© 1996-2010 All Rights Reserved.