Algérie Télécom launches LTE commercially over NSN network

Nokia Solutions and Networks (NSN) has announced deploying North Africa’s first commercial LTE network in Algeria for the state-owned operator, Algérie Télécom.

Under the contract, NSN provided its Single RAN Advanced solution based on its high-capacity, scalable Flexi Multiradio 10 Base Station for the majority of the LTE network. In addition, it deployed its cloud-ready NetAct for efficient network management across technologies. The company’s comprehensive services including network planning and optimisation, network implementation, and care services such as hardware and software services ensured the speedy and smooth rollout. In addition, NSN provided a security solution, which included a solution from Juniper Networks, in order to protect both the operator’s network assets and end users’ privacy.

NSN counts 141 LTE and TD-LTE network references worldwide.

Somtel awards Alcatel-Lucent 4G contract

The Somalian mobile network operator, Somtel has awarded a contract to Alcatel-Lucent for the deployment of a LTE network.

The contact is understood to involve 70 locations that have been identified for the upgrade.

Somalia currently has an estimated 1.5 million mobile subscribers, while Somtel has 33 per cent market share in the country. Somtel is part of the Dahabshiil Group.

Vodafone results a mixed bag

Vodafone has reported record profits for the past year ended March 31 despite a further decline in revenues, thanks to the disposal of its 45 per cent stake in Verizon Wireless.

The company saw revenues for the year fall by 1.9 per cent to GBP43.6 billion (US$73.6 billion), while profits rocketed to GBP59.4 billion, thanks largely to a pre-tax gain of GBP45 billion from the Verizon Wireless sale, and the recognition of deferred tax assets of GBP19.3 billion.

The group’s emerging markets businesses have delivered strong organic growth this year. In particular, data usage in emerging markets is really taking off, providing further growth potential for the group. This has however been offset by significant on-going pressures in the European operations, from a combination of a weak macroeconomic environment, regulatory headwinds, and stiff competition.

As a consequence, the company wrote down the value of its subsidiaries in Germany, Spain, Portugal, Czech Republic and Romania by GBP6.6 billion as those markets continued to struggle.

As a result, the underlying EBITDA fell by 5.4 per cent to GBP12.8 billion. The underlying adjusted profit also fell, by 9.4 per cent to GBP7.9 billion.

Vodafone also expects EBITDA to fall this year, ending in the range of GBP11.4 billion to GBP11.9 billion, principally reflecting the impact of network investment and foreign exchange movements.

Neotel agrees to US$680 million valuation from Vodacom

Vodacom, the largest mobile operator in South Africa, reached an agreement with shareholders of Neotel – the second-largest provider of fixed-line services in the country – to take full ownership of the firm. The accepted offer gives Neotel an enterprise value (which includes debt) of ZAR7 billion (US$680 million).

Negotiations have been ongoing since last September, but the deal still needs regulatory approval before it can go ahead.

Vodacom, 65 per cent owned by Vodafone, agreed a cash payment to purchase Neotel.

India’s Tata Communications, which holds 66.5 per cent equity in the South African fixed-line provider, welcomed the terms of the arrangement.

Neotel has access to 2x12MHz at 1.8MHz; 2x5MHz at 800MHz; and 2x28MHz at 3.5GHz spectrum. Vodacom says the extra wireless frequencies will enable it to accelerate LTE rollout.

Vodacom expects to achieve cost and capex synergies with an annual run-rate of approximately ZAR300 million before integration costs in the full fifth year post completion (equivalent to a net present value of approximately ZAR1.5 billion after integration costs).

The savings are expected to come primarily from the joint utilisation of Neotel’s fibre network, the elimination of overlapping elements, joint procurement, and the combination of overlapping administrative functions.

Vodacom said it expects to close the deal before the end of its financial year (March 31, 2015).

Orange exits Uganda

Orange Group today announced that it has signed an agreement with Africell Holding for the sale of its majority stake in Orange Uganda.

The transaction is subject to approval from the relevant authorities. It will enable the company in Uganda to continue its development.

This transaction marks a new step in the Orange Group’s asset portfolio optimisation strategy for which Africa and the Middle-East remain a strategic priority.

Orange Uganda, which was created in 2008, is the third telecom operator in Uganda and had 620,000 clients at the end of December 2013.

Africell holds a leading market share in Gambia and Sierra Leone and was able to achieve a 20 per cent market share in the Democratic Republic of Congo in less than two years of operations facing well established operators. The group currently has over nine million active subscribers and forecasted to reach 11 million by year end.