Indian licence fallout continues as Telenor seeks restitution

Telenor Group has issued a notice to its Indian partner Unitech, that it will seek indemnity and compensation following the cancellation of Uninor’s 22 licences by the Supreme Court of India.

Earlier this month, India’s Supreme Court passed an order to revoke 122 licences issued to all operators on and from January 10, 2008. This included all licences issued to Uninor. The Supreme Court decision refers to actions that happened prior to Telenor Group’s entrance into India.

Telenor Group holds Unitech liable for the breach of warranties related to the cancellation of the licences – seeking compensation for all investment, guarantees and damages caused by the Supreme Court Order. Telenor Group also made an indemnity claim against Unitech for the failure to obtain spectrum in the strategically critical Delhi circle.

"The legality and validity of the licences was a fundamental term of the share subscription agreement between Telenor Group and Unitech Limited. We believe that the Supreme Court’s cancellation of the Unified Access Service Licences (UASL) conclusively demonstrates a clear breach of Unitech’s warranties," said Pål Wien Espen, group general counsel, Telenor Group.

In the share subscription agreement between the partners, Unitech had agreed to indemnify and hold harmless the Telenor Group from all damages which may be suffered as a result of breach of any of the agreed warranties.

"The fact is that Uninor as a consequence of the judgment will no longer hold any UASLs. Telenor will therefore exercise its entitled right under the share subscription agreement to hold Unitech Ltd. liable to indemnify and compensate Telenor Group for its investment in India," Espen said.

Telenor Group also said that it will consider every option available to secure the continued successful development of its mobile services in the country and the telco will start the process of looking for a new Indian partner.

Telenor Group invested INR 61 billion (US$1.54 billion) for 67.25 per cent ownership in Uninor, and additionally is also fully guaranteeing for INR 80 billion (US$1.4 billion) of short-term debt.

BT looks to double business across Turkey, the Middle East and Africa

BT has announced a series of initiatives aimed at doubling its business across Turkey, the Middle East and Africa.

These initiatives build on similar programmes in Asia Pacific and Latin America, where orders in the first nine months of this financial year were up over 50 per cent.

According to BT’s research, the addressable market in Turkey, the Middle East and Africa was worth a combined GBP5.4 billion (US$8.48 billion) in 2011. IT spending growth across the regions is expected to top 10 per cent in in 2012 according to IDC.

As part of the new programme, BT will hire around 170 new employees across the three regions, including highly skilled professional services specialists to provide local support to customers and deliver consulting, integration and managed services.

Customers in the regions will be able to access a wider range of “intelligent” network services provided by the BT Connect portfolio.

Network reach and access options are being improved in sub-Saharan Africa. These include the recently announced international routing facility in South Africa and a new network connection between Cape Town and Johannesburg. These will make BT the first global operator with its own network infrastructure in the country. Specific interconnection agreements with local partners extend BT’s network reach into Sub-Saharan Africa.

Three new network nodes are being launched in the Middle East, while additional network interconnections will be rolled out in Turkey.

Omantel looks to invest in LTE infrastructure

Omantel expects to invest around OR84 million (US$218 million) in its network during 2012, local media has reported.

Part of the investment will go on an LTE network upgrade, and the telco currently has a tender document with several infrastructure vendors.

FT confirms move to raise stake in Mobinil

France Telecom has confirmed reports that it is in talks with Egypt’s Orascom Telecom Media and Technology Holding regarding their interests in the local mobile network operator, Mobinil.

France Telecom and Orascom Telecom have signed a non-binding memorandum of understanding regarding their interests in Mobinil and Egyptian Company for Mobile Services (ECMS).

The Egyptian mobile network is owned by a holding company – ECMS – which is in turn 29 per cent listed on the stock exchange, 20 per cent owned by Orascom Telecom and the remaining 51 per cent is owned by another holding company – Mobinil – which is wholly-owned by France Telecom

The intention is for the sale of most of Orascom Telecom’s stakes in Mobinil/ECMS at a price of EGP 202.5 (US$33.57) per ECMS share.

The closing price for the shares was EGP 125.36.

France Telecom would then launch an offer to buy all the shares left on the Cairo stock exchange at the same offer price.

Following such a deal, Orascom Telecom would retain a five per cent interest in ECMS, and also retain similar voting rights and board representation as it currently has.

Orascom in advanced talks with FT over Mobinil

Orascom Telecom has confirmed it is in talks with France Telecom over the future of their Egyptian mobile network joint-venture, Mobinil.

Responding to queries from the Egyptian Stock Exchange regarding rumours of talks, Orascom Telecom Media and Technology Holding confirmed in a brief statement that it is "in an advanced stage of negotiations with France Telecom concerning Mobinil."

The company holdings are slightly complex. The Egyptian mobile network is owned by a holding company – called ECMS – which is in turn 29 per cent listed on the stock exchange, 20 per cent owned by Orascom Telecom and the remaining 51 per cent is owned by another holding company, also called Mobinil.

Following a legal dispute that was settled in 2009, the holding company is wholly owned by France Telecom, giving it 51 per cent of the company and effective control of the mobile network.

It was reported last year that France Telecom could trigger a put-option to buy Orascom Telecom’s 20 per cent stake in ECMS if certain conditions were not met as part of the parent group’s sale to Russia’s VimpelCom.

If that put-option is exercised, then France Telecom could theoretically increase its stake to 71 per cent.