Alcatel-Lucent facilitates BlackBerry launch at Alfa

Alfa, the Lebanese mobile operator managed since February 1, 2009 by Orascom Telecom, Alcatel-Lucent and Research In Motion have announced the introduction of the BlackBerry solution for Alfa customers.

Alfa will offer customers various BlackBerry devices: the BlackBerry Bold 9000 smartphone and the BlackBerry Curve 8900 smartphone; along with unlimited MB for BlackBerry Service local usage.

Based on its distribution agreement with RIM, Alcatel-Lucent leveraged its local presence in the region to provide Alfa with end-to-end implementation, launch, delivery and support services for the BlackBerry solution in the Lebanese market.

“This project strengthens Alcatel-Lucent’s position as a global provider of communications. With this offering, Alfa will expand its business opportunities and enable its customers to benefit from the high flexibility offered by the BlackBerry solution, allowing them to stay connected anytime, anywhere,” commented Vincenzo Nesci, head of MEA business for Alcatel-Lucent.

MTN becomes stakeholder in Belgacom ICS

Belgium’s Belgacom ICS (BICS) and Sout African operator MTN have announced the closing of the transaction that results in a combination of their international carrier services and MTN taking a 20 per cent equity stake in BICS. The agreement was originally announced in June and received approval of all relevant government, regulatory and competition authorities in the meantime.

As of today, December 1, BICS began to progressively integrate MTN ICS, MTN’s international wholesale subsidiary, and will act as the official gateway for carrier services of MTN globally.

Belgacom will own 57.6 per cent of BICS, Swisscom 22.4 per cent and MTN 20.0 per cent with a board representation.

Through this transaction, BICS reinforces its footprint and will become the leading international wholesale operator in Africa. MTN will benefit from improved efficiencies and greater economies of scale while offering its customers in Africa and the Middle East an improved high quality international service offering.

Virgin looks to manage 3G network in India

UK MVNO Virgin Mobile has reportedly been short-listed by India’s MTNL to take over the management of the Indian mobile operator’s 3G network. The Spice Group, the sole other bidder was dropped due to lack of experience in running a 3G network.

Virgin Mobile already operates in India though a CDMA network partnership with Tata Teleservices.

“We are in discussion with Virgin. They have the necessary experience in offering 3G services in the international market through the franchisee route. Spice did not have the required experience,” MTNL chairman and MD R.S.P Sinha, said to local media in India.

MTNL is seeking an outside partner to take over the running of its 3G networks in Delhi and Mumbai after the company reported low levels of subscriber uptake.

The tender document blocked any company that is planning to bid for the private 3G licences, and will offer a revenue share deal to the contractor.

The networks in Delhi and Mumbai are being offered separately, although it is presumed that any winner would be asked to manage both markets. The contracts would be signed for a 10-year period, with a review after three years.

Zain/Paltel deal scuppered

Zain has issued a statement confirming that the merger agreement between Zain and Paltel announced earlier this year will not take place, because Zain did not receive the required government approvals that were a condition precedent to concluding the deal.

In May, Zain and Paltel signed an agreement for a share-for-share exchange, which was to see Zain take a majority interest in Paltel with an equity shareholding of 56.53 per cent in exchange for Paltel owning 100 per cent of Zain Jordan. Paltel was a publicly-listed entity on the Palestinian Stock Exchange and Abu Dhabi Securities Exchange. The merger would have set the current Paltel shareholders’ equity position in both Paltel and its newly acquired subsidiary, Zain Jordan at 41.43 per cent.

Samir Heleila, a Paltel board member, told the Palestinian news agency Ma’an that the dispute was based on conditions the Jordanian finance ministry had set for Zain and a refusal by Mahmoud Abbas, the president of the Palestinian National Authority, to approve the deal.

The merger was expected to generate more than US$1 billion in annual revenues and an estimated US$300 million in net income this year, Zain executives estimated.

Paltel owns and operates Jawwal, a mobile network with more than 1.5 million subscribers in the West Bank and Gaza Strip.

Ciena snaps up Nortel’s Metro Ethernet assets

Ciena Corporation, the network specialist, announced that it has been selected as the successful bidder in the auction of substantially all of the optical networking and carrier Ethernet assets of Nortel’s Metro Ethernet Networks (MEN) business. Ciena has agreed to pay US$530 million in cash and issue US$239 million in aggregate principal amount of 6 per cent Senior Convertible notes due 2017 for a total consideration of US $769 million for the assets.

A motion to approve Ciena as the acquirer was heard by bankruptcy courts in the US and Canada on December 2.

“These optical and carrier Ethernet assets bring exceptional technologies, talent and scale that will accelerate Ciena’s current strategy to deliver innovative network solutions to customers worldwide,” said Gary Smith, Ciena’s CEO and president.

“With this combination, we are bringing together complementary technologies in switching and transport to create an innovative powerhouse with the scale to challenge the industry status quo and offer customers a practical path for transitioning to automated, optical Ethernet-based networking. We will be intently focused on integration as we work together to deliver the benefits of this transaction to customers, employees and shareholders.”

The assets to be acquired generated approximately US$1.36 billion in revenue for Nortel in 2008 and US$556 million (unaudited) in the first six months of 2009. Ciena is expected to make employment offers to at least 2,000 Nortel employees to become part of Ciena’s global team of network specialists.

The transaction is expected to close in the first calendar quarter of 2010.