TRAI orders Etisalat DB and S Tel to reactivate networks

The Telecom Regulatory Authority of India (TRAI) has ordered operators Etisalat DB and S Tel to reactivate their mobile services within three days, after they shut down their networks in response to a Supreme Court decision to cancel 122 2G licences, reports Business Line.

The regulator said that these firms illegally shut down their networks as they should have continued to deliver the services until the Indian government actually cancels the licences on June 2.

In response operators said the order from the TRAI is illegal as they were already complying with the Supreme Court’s order to cancel 2G licences after they were issued under controversial circumstances in 2008.

The regulator also said the operators failed to give the necessary 60 days’ notice to customers before terminating services.

Several other operators, such as Loop Telecom, have announced they will stop offering their services in India and the TRAI said it would issue similar orders to those companies.

Nokia issues warning over Q1 results impacted by competition

Nokia warned of a weaker than expected performance in the first quarter of 2012, stating that “multiple factors negatively affected Nokia’s Devices & Services business to a greater extent than previously expected.” The news sent its stock plunging 19 per cent, to their lowest level since 1997.

Stephen Elop, the company’s president and CEO, noted issues including competitive industry dynamics in markets including India, the Middle East, Africa and China (markets where Nokia has traditionally been strong); and gross margin declines, particularly in its Smart Devices unit, where the drop-off of the legacy Symbian OS business has not been fully offset by growth in its Lumia range of Windows Phone-powered handsets.

In order to address these challenges, Nokia said it will “increase investments in Lumia to bring more products to more consumers in more markets,” with the CEO highlighting that this is focused on driving device costs down. In the mass market Mobile Phones unit, Nokia said it is taking “tactical pricing actions in the near term,” ahead of new product introductions in Q2.

Nokia also said it will accelerate its already planned cost reductions and will look at additional “significant structural actions if and when necessary,” although Elop declined to comment on the form these may take, or what the trigger will be.

It was specifically noted that Nokia is facing increased competition in the “low-end, full touch space,” which has impacted both the high-end of its Mobile Phone and low-end of its Smart Device businesses. Competitors have been very aggressive in this market, Elop said, in order to capitalise on Nokia’s weakness.

The company is estimating that net sales for Devices & Services will be €4.2 billion (US$5.94 billion), compared with €7.1 billion in the first quarter of 2011. Unit volumes are expected to be 71 million for mobile phones and 12 million for smart devices, compared with 84.3 million and 24.2 million respectively in Q111.

Highlighting the positives, Nokia said that in the first quarter of 2012, it sold more than two million Lumia devices with an average selling price of around €220. It said that “Lumia has gained market share with both distribution partners and consumers.”

Bharti Airtel rumoured to be discussing BWA licence purchase from Qualcomm

Indian cellco Bharti Airtel is in "advanced discussions" to buy Qualcomm’s 4G licences in key markets such as Delhi and Mumbai, according to local press reports.

According to sources at the Times of India, Bharti is looking to pay INR60 billion (US$1.1 billion) for the US chipmaker’s 74 per cent stake in a local joint venture it set up to acquire Broadband Wireless Access (BWA) licences in a deal that could be tied up by June. Qualcomm paid more than US$1 billion in 2010 for 20MHz of TDD BWA spectrum in the 2.3GHz band covering the key circles of Delhi, Mumbai, Haryana and Kerala.

Bharti already owns BWA spectrum in four other circles and this week became the country’s first commercial 4G operator, launching services utilising TD-LTE technology in Kolkata.

Although neither firm was prepared to comment, a deal between Bharti and Qualcomm is thought to have been on the table for at least a year but has been delayed due to problems with Qualcomm receiving the airwaves – an issue now thought to be resolved. The US firm has consistently said it plans to exit the market once the venture is up and running.

TeliaSonera looks to raise stake in MegaFon

TeliaSonera has confirmed that it has been in talks with Russia’s AF Telecom and Altimo regarding the future ownership structure and governance of the Russian mobile network, MegaFon.

So far, these discussions have not led to any agreement.

There have been reports that the Russian shareholders may either float their stakes on the stock market, or possibly engage in some form of swap with the LTE network being planned by Yota.

A more recent rumour suggested that Altimo might sell its stake to AF Telecom, which would result in TeliaSonera becoming the de-facto minority shareholder in the company.

TeliaSonera’s current ownership in MegaFon is 43.8 per cent, of which it holds 35.6 per cent directly and 8.2 per cent indirectly through its 26.1 per cent ownership in Telecominvest. AF Telecom’s ownership is 31.3 per cent of which it holds eight per cent directly and 23.3 per cent indirectly through its 73.9 per cent ownership in Telecominvest. Altimo’s ownership is 25.1 per cent.

MTN gives notice to UTL for settlement of interconnect fees

MTN Uganda has given the incumbent landline operator, Uganda Telecom (UTL) 21 days to settle an outstanding invoice for Shs22 billion (US$8.8 million) otherwise it will seek to have the company declared bankrupt.

The invoice is for interconnection fees accumulated over three previous court cases.

MTN through its attorneys, Kampala Associated Advocates (KAA), say should UTL fail to pay the demand, the cellco will seek a court order to wind up the company.

"We have firm instructions to liquidate UTL, which has failed to pay judgment debts due to MTN," Joseph Masiko, a senior partner with KAA said.

UTL has downplayed the demand, saying it is an internal matter they are handling and that the company has paid all current dues and the debts will be paid in due course.