Telefonicawatch issue 2010.06 Executive Brief
2 July 2010
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Executive Brief from Telefonicawatch, issue 2010.06. Click through for: an Extract from this month’s report; the Issue Snapshot; or to contact us for more information about the full 50-page issue, this industry standard monthly report service, and ongoing subscription access.
- The bid to take control of Vivo was vetoed by the Portuguese government, leaving Telefónica accused both of desperately offering too much and being holed strategically. A legal appeal looks likely and to have a good chance of success. The Spanish incumbent had been accused of heavy handed tactics, but it had been assumed it would ultimately succeed in its bid. Portugal Telecom could return to the Brazilian market following any sale, although it may meet local government resistance. [pp.4-9.]
- Telefónica Global Technology is to be established as a new IT division to unify management and operation of worldwide information systems. Operations previously managed by individual country units will now be centrally-controlled from Spain. The new unit is another sign of Telefónica shifting resources in order to better target the multinationals, as well as trim costs. A contract for a new business support system solution from Convergys was also entered into, which should see real time billing and services for MNC customers. Further consolidation of functions within Telefónica Europe saw announcement of a central human resources centre in Dublin. [pp.12,32.]
- Potential deployments of near-field communication technology at Telefónica drew attention, with executives suggesting markets in Europe are particularly seeing signs of readiness for the services. There remains doubt about the availability of suitable handsets, however. Trials are underway in the Czech Republic and Spain. [pp.11,17,29.]
- Movistar España is aiming to expand its portfolio of “mini-tablet” devices, ahead of the Christmas 2010 market. Proposals for devices have been invited from vendors including Compaq, Dell, Huawei, and Samsung. The company is expected to offer the devices for less than EUR450, as part of the strategy to deliver affordable smart devices in order to drive mobile data use. The launch of the Huawei developed Movistar IVY handset also fits this strategy. [p.15.]
- O2 UK abandoned its strategy of offering unlimited mobile data downloads, in favour of capped services. The operator insisted most customers would not be affected, but commentators questioned the decision to make customers more conscious of potential costs rather than targeting the minority of heavy users. An upgrade of the London O2 network to cope with demand for data, by Nokia Siemens Networks, could be viewed as a reminder that heavy users may not be the biggest challenge faced by operators, but rather their density in metropolitan areas. Elsewhere, O2 Czech Republic is expanding its HSPA+ network and introducing new mobile internet tariffs, with the aim of prompting users to increase consumption of data, while flat rate mobile data tariffs were launched in Germany. [pp.28,30,34-35,36.]
- Telefónica claimed record levels of broadband growth in Brazil, and an upturn in its fixed line voice business. The improvements follow a lengthy period of service problems, which are greatly improved since the beginning of 2010. Deployment of door to door sales representatives is said to have contributed to the uplift. [pp.21,22.]
- GROUP: Telefónica sold Manx Telecom for EUR190m, to private equity firms HgCapital and CPS Partners. [p.10.]
- Telefónica was linked to a bid for a stake in Serbian state telco Telekom Srbija, although the reports have the look of overplayed speculation. Taking an increased stake in China Unicom in 2010 looks more likely. [pp.4,10.]
- Telefónica is working with Nokia and Intel on the development of MeeGo, a new Linux based smart device operating system that could support the delivery of converged services. [p.13.]
- MOVISTAR ESPAÑA‘s mobile business performed poorly in latest market statistics from the CMT, while broadband subscriptions were dominated by alternative providers in a market with slowing growth. Decline in fixed line numbers continued, but residential lines saw a slight increase month by month. [p.16.]
- Telefónica España agreed a timetable for the overhaul of systems managing wholesale access to its network. [p.18.]
- Telefónica and Tata Communications signed an interconnect agreement that will see the pair collaborate on telepresence services. [p.18.]
- Telsis highlighted provision of natural language text query solutions to Telefónica in Spain. [p.19.]
- Movistar España is set to launch the iPhone 4 in coming weeks, and is reportedly to introduce a high definition mobile TV service for the device. In Latin America, new mobile TV services were also launched in Ecuador, with a device from Samsung that also enables content to be recorded. [pp.14,19.]
- Further promotional offers on bundles were announced by Movistar España following its unified rebranding, with mobile broadband deals made available to fixed line customers. Discounts for expanding small businesses were also extended. Regulator CMT maintained line rental prices at current levels for the third year running. [pp.16,20.]
- LATINOAMÉRICA: The Movitalk push to talk service debuted in Argentina, following earlier launches in Colombia and Ecuador. [p.21.]
- Vivo is expanding its 3G network, with plans to reach 85% of the population by 2012. LTE trials were reportedly successfully undertaken by Telefónica del Peru and Alcatel-Lucent using the 700MHz spectrum band, which is believed to be well suited to the provision of next generation mobile services across the continent. [pp.22,26.]
- Movistar Chile is offering free online storage through a new cloud computing service, which is being linked with its Homestation home multimedia platform. [p.23.]
- Telefónica Mexico was a member of the consortium winning rights to use fibre across the country to expand network coverage, enabling more effective competition with the incumbent. Telefónica also appears most to win bidding for a significant stake in state-owned operator ETB, in Colombia, although the decision making process is taking longer than anticipated. In Peru, Telefónica is examining prospects for building out its network through agreements with national infrastructure owners, such as electricity and rail network owners. [pp.23,25,26.]
- TELEFÓNICA EUROPE: O2 Germany debuted an ad-funded mobile service offering minutes, text and data downloads for customers willing to receive advertising. The operator also launched a Huawei HSPA enabled router capable of linking five devices using Wi-Fi connectivity. [p.30.]
- A point-to-point wireless leased line broadband offering for O2 business customers in Ireland was unveiled, pitched as an alternative to existing fixed-line services. [p.31.]
- O2 Ireland was served legal papers that could see it compelled to provide information on customers alleged to be illegally sharing copyrighted material online. O2 UK is also to be required to share information on file sharing customers. [pp.32,40.]
- O2 UK received a licence to trial LTE on 800MHz spectrum, with testing to begin in the north west of England in the third quarter of 2010. However, the company is still battling the government over the future of its existing 900MHZ spectrum licence. Limited stocks saw O2 UK restrict availability of the iPhone 4 on launch to existing iPhone customers. [pp.36,37,39.]
- ASSOCIATES AND INVESTMENTS: China Unicom is building momentum with its 3G rollout, and expanding m commerce capabilities. Portugal Telecom is launching a new PC based TV service intended to complement existing Meo services. Telecom Italia continues to battle to decide on the future of its stake in Argentinean operator Telecom Argentina. [pp.41,42,44,45.]
About Telefonicawatch
Issue: 2010.06
Covering: June 2010
Published: June 2010
Next issue: July 2010
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