MTN pens managed services agreement with Ericsson in Afghanistan

MTN Afghanistan has signed a managed services agreement with Ericsson to operate and optimise its mobile network as well as its charging systems and value added services such as mobile applications. The deal is part of an agreement that covers end-to-end managed services.

Under the managed services agreement, Ericsson will deploy its end-to-end solutions and systems to help MTN in Afghanistan achieve better network efficiency, simplify operations and ensure better quality network through 24/7 network monitoring. The agreement is in line with MTN’s growth strategy and its continuous focus to enhance customer experience through improved network capacity.

Ericsson signed more than 70 managed services contracts in 2011 and manages networks that together serve more than 900 million subscribers worldwide. More than 20,000 employees have been transferred to Ericsson from operators around the world.

Oger Telecom injects US$180 million into Cell C

South Africa based mobile operator, Cell C is reported to have received a cash injection of US$180 million from its majority shareholder, Dubai-based Oger Telecom.

In a statement sent to local media, Cell C’s CEO Alan Knott-Craig said: "This foreign investment into SA demonstrates the confidence our shareholders have in both South Africa and Cell C."

Local news publication, TechCentral said that it understands that Cell C’s black economic empowerment shareholder, CellSAf, which own 25 per cent of the company, is not contributing equity alongside Oger’s investment.

The cash injection is reported not to be set to reduce the stakes held by the other shareholders and is viewed as a cheaper option to raising funds on the debt market.

RIM loses its global head of sales

Research In Motion (RIM) has confirmed the resignation of its global head of sales, Patrick Spence, the latest in a series of high-profile executives to leave the BlackBerry manufacturer.

A RIM spokesperson said that Spence was leaving to take on a “leadership position in a different industry” when he steps down on June 15.

“The sales function will report directly into Kristian Tear, our newly appointed [COO] when he starts this summer. In the interim, the sales function will report to [CEO] Thorsten Heins,” said the spokesperson.

Spence’s resignation may have been due to him being passed over for the chief operating officer role in favour of Tear.

London-based Spence is a 14-year RIM veteran and was considered a rising star at the firm, promoted to the global sales role in July after previously serving as managing director for the EMEA region.

Bharti acquires stake in Qualcomm India licence-holding company

Qualcomm has sold a 49 per cent stake in its Indian broadband wireless licences holding company to Bharti Airtel for approximately US$165 million. The intention is that Bharti Airtel will take full ownership of the licences by the end of 2014.

Qualcomm paid just over US$1 billion for the concessions in the auctions of 2010, but has struggled to finalise their handover from the government, with final approval only being granted earlier this year. The company said at the time of bidding for the licences that it would roll out a 4G network then sell the company.

Due to foreign investment rules, Qualcomm owns a 74 per cent stake in the Indian venture, with the remaining 26 per cent owned by Global Holding Corp and Tulip Telecom.

Under the agreement, Bharti is buying the 26 per cent stake held by Global Holding and Tulip Telecom, and the balance by way of subscription of fresh equity in those entities.

Qualcomm’s licences cover Delhi, Mumbai, Haryana and Kerala, while Bharti has BWA licences in four circles – Kolkata, Karnataka, Punjab and Maharashtra – and 3G licenses in thirteen circles in India.

With this agreement, Bharti has secured a near nation-wide broadband capability in 18 circles.

Qualcomm expects to provide technical assistance to Bharti in connection with network architecture and optimisation, infrastructure and device testing, as well as continuing to develop and support the underlying technology and the LTE TDD ecosystem.

Vodafone reports an 11% fall in net profit in year to end-March

Vodafone Group has reported a slight rise in its full-year revenues which rose by 1.2 per cent to GBP46.4 billion (US$73.4 billion), while net profit fell by 11 per cent to GBP7 billion.

EBITDA was down 1.3 per cent at GBP14.5 billion; EBITDA margin 31.2 per cent, down 0.8 percentage points (0.6 percentage points before restructuring costs).

Operating profit fell by 2.4 per cent to GBP11.53 billion, with the decline in adjusted operating profit due to the sale of the company’s 44 per cent stake in the French mobile network, SFR.

For the year ahead, adjusted operating profit is expected to be in the range of GBP11.1 billion to GBP11.9 billion, reflecting the weaker euro offset by continued profit growth from Verizon Wireless.

The telco ended the period with a total of 404.7 million subscribers, up 33.81 million users, or 8.4 per cent. Inclusive of Vodafone’s stake in Verizon Wireless, its total subscriber base stood at 446.5 million at the end of March 2012, up from 410.7 a year earlier.

Vittorio Colao, Group CEO, commented: "Our focus on the key growth areas of data, emerging markets and enterprise is positioning us well in a difficult macroeconomic environment. Our commercial performance and our ability to leverage scale continue to be strong, enabling us to gain or hold market share in most of our key markets, and reduce the rate of margin decline."