Orascom Telecom Algerie awarded 15-year 3G licence

Global Telecom Holding says that its Algerian subsidiary Orascom Telecom Algerie (OTA) has been awarded one of the three provisional 3G licences offered in Algeria.

Final licences with the relevant coverage obligations are expected to be granted after payment of fees, satisfaction of the conditions indicated in the tender documents, and receipt of clearances and approvals from various governmental authorities. The 3G licence will cost DZD3 billion (US$40 million) and will be valid for 15 years, after which successive renewals will be in five year fixed terms.

OTA also received an exceptional approval from the Bank of Algeria allowing it to make foreign payments to acquire equipment exclusively dedicated to 3G technologies.

Made-in-Nigeria branded mobile devices set to go on sale in November

Two mobile phones produced in Nigeria should be launched shortly, the local Phone and Allied Products Dealers’ Association (PAPDAN) has disclosed.

The Made-in-Nigeria phone brand is the outcome of a joint venture among 20 Nigerian investors that have jointly invested in manufacturing a phone specifically designed for the local market.

Godfrey Iyke Nwosu, president of PAPDAN revealed that the two new phone brands will be called iQ and MaxTel, but did not elaborate on their specifications.

The new phones should go on sale in November.

Alcatel-Lucent set to slash a further 10,000 jobs

Alcatel-Lucent has announced plans to cut a further 10,000 jobs by the end of 2015 as it seeks to slash costs by €1 billion (US$1.4 billion) per year.

The cuts represent about 14 per cent of the total workforce of 72,000 employees.

All geographic areas where Alcatel-Lucent operates will see job losses, with the reduction of 4,100 positions in Europe, Middle East and Africa, 3,800 in Asia Pacific and 2,100 in the Americas.

The job losses are deeper than would initially appear, with a union claiming that 15,000 jobs are expected to be cut, but the company then expects to hire 5,000 staff in different roles, leading to the net loss of 10,000 staff.

The company said that it would be reallocating R&D investment to next-generation technologies that should represent 85 per cent of R&D spend in 2015, as opposed to 65 per cent today.

It will also be reducing R&D spend in legacy technologies by 60 per cent, and reducing administrative, sales and support functions to what it said were industry standards.

The latest round of job cuts is in addition to the 5,000 losses announced in July.

Business activities in France dealing with service providers will be concentrated in two main sites – Villarceaux, south of Paris, which will become Alcatel-Lucent’s primary R&D centre in Europe and one of the world’s largest R&D campuses, and Lannion, which will specialise in ultra-broadband mobile access and subscriber data management (SDM) technologies.

Vodafone considers buyout of its minority partners in India

Vodafone is expected to take advantage of relaxed foreign ownership rules to buy out the minority shareholders in its Indian subsidiary.

Industry sources said that Vodafone is expected to apply to the Foreign Investment Permission Board (FIPB) for authorisation to raise its stake in Vodafone India from 74 per cent to 100 per cent.

Technically, Vodafone Group owns a 64.4 per cent stake in a holding company, also called Vodafone India, and a further 20.1 per cent of the mobile network through other uncontrolled subsidiaries.

Other shareholders in Vodafone India include Piramal Healthcare with 11 per cent and Max India’s founder Analjit Singh owns around six per cent, with an unspecified stake owned by Vodafone India’s non-executive chairman.

Piramal Healthcare has said several times recently that it is looking to sell, and only saw itself as a short-term investor in the company. It also has a put option that would force Vodafone to buy its stake if a stock market listing does not take place by February 2014.

Vodafone’s buyout of its minority partners could cost an estimated US$2 to $2.7 billion.

The company had also previously said that it is looking to list shares locally. It is unclear if buying out the minority shareholders is simply a tidying up exercise before an IPO, or an intention to retain full ownership in the long term.

Ericsson enters managed services deal with Zain Bahrain

Zain Bahrain has signed a four-year managed services agreement with Ericsson, to manage its network and enhance its customer support services.

The new partnership will see Ericsson managing the day-to-day operations of Zain’s network across the country.

"At Zain, providing customers with advanced technologies that enhance their mobile experience is of a paramount importance. With that ultimate aim in mind, we selected Ericsson to manage our network operations," said Mohammed Zainalabedin, GM, Zain Bahrain.

Financial terms were not disclosed.