Lebanon’s interim telecom minister, Charbel Nahhas has confirmed that the country’s two mobile networks will launch their 3G services by the middle of this summer.

“No one can stop us from launching the 3G, and not even a new government, because we have already signed the contracts needed for that purpose,” Nahhas told local media.

There are concerns that legal action from an ISP, Cedarcom could delay the launch as it is claiming that the government does not have the authority to issue the 3G licences.

The company also says that the regulatory regime is blocking it from selling landline DSL based services, which it considers to be unfair competition.

Motorola Solutions has opened an office in Egypt to manage its operations in the Middle East and North Africa (MENA) region.

The company said it would also enhance the Cairo base of operations to be the newest Regional Engineering Centre supporting customers outside of Egypt.

“Egypt’s technology market is gaining significant momentum during this dynamic time of change, and with an enhanced local presence Motorola Solutions will be able to provide a sharp strategic and operational focus that is both clear and purpose-driven,” commented Motaz Hourani, VP, Motorola Solutions, Middle East and North Africa.

Microsoft is alleged to have agreed to a US$19 billion purchase of Nokia’s handset division – as was recently suggested by a blogger in Russia.

Talk of a sale to Microsoft has been rampant since Nokia tapped former Microsoft executive, Stephen Elop to head the company, and its subsequent decision to switch from its in-house Symbian operating system platform to the Windows Phone OS for its smartphones.

However, Nokia dismissed the report of talks between the two companies.

The current market capitalisation for all of Nokia is around US$25 billion.

Nokia has commented on factors impacting its business and updated its second quarter and full year 2011 outlook for Devices & Services. The handset manufacturer commented that during the second quarter 2011, multiple factors are negatively impacting Nokia’s Devices & Services business to a greater extent than previously expected. These factors include:

– the competitive dynamics and market trends across multiple price categories, particularly in China and Europe;
– a product mix shift towards devices with lower average selling prices and lower gross margins; and
– pricing tactics by Nokia and certain competitors.

Updated outlook for Devices & Services for the second quarter 2011:
– Nokia now expects Devices & Services net sales to be substantially below its previously expected range of €6.1 billion to (US$8.8 billion) €6.6 billion for the second quarter 2011. This update is primarily due to lower than previously expected average selling prices and mobile device volumes.
– Nokia now expects Devices & Services non-IFRS operating margin to be substantially below its previously expected range of 6 per cent to 9 per cent for the second quarter 2011. This update is primarily due to lower than previously expected net sales. While visibility is very limited, Nokia’s current view is that second quarter 2011 Devices & Services non-IFRS operating margin could be around breakeven.

Updated outlook for Devices & Services for the full year 2011:
– Given the unexpected change in our outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011. However, Nokia expects to continue to provide short-term quarterly forecasts in its interim reports as well as annual targets when circumstances allow it to do so.
– Nokia’s previous targets for the third quarter, fourth quarter, and full year 2011 were: 1) net sales in Devices & Services to be at approximately the same level in the third quarter 2011 as in the second quarter 2011, and seasonally higher in the fourth quarter 2011, compared to the third quarter 2011; 2) Devices & Services non-IFRS operating margin to be between 6 per cent and 9 per cent in 2011. These targets are no longer valid.

Nokia is taking immediate action to address the issues that are impacting its Devices & Services business. Nokia’s high-level strategic objectives and targets remain unchanged.

– Nokia is continuing to invest to bring new innovative capabilities to its Symbian line up. In addition, Nokia has taken price actions on its current smartphone portfolio, and Nokia is intensifying its focus on retail point-of-sales marketing.
– Nokia started shipping its new dual-SIM devices.
– Nokia remains pleased with its progress on its Windows Phone strategy, and has increased confidence that the first Nokia product with Windows Phone will ship in the fourth quarter 2011.

“Strategy transitions are difficult. We recognise the need to deliver great mobile products, and therefore we must accelerate the pace of our transition,” said Stephen Elop, president and CEO of Nokia. “Our teams are aligned, and we have increased confidence that we will ship our first Nokia product with Windows Phone in the fourth quarter 2011.”

Batelco is understood to be reconsidering its Indian expansion strategy following the intensification of operating conditions in the mobile market and regulatory restrictions that are pushing up costs.

Batelco brought a 49 per cent stake in Indian’s S Tel for US$225 million in January 2009, although it later sold an 11 per cent stake to Global Banking Corp. for an undisclosed amount.

Peter Kaliaropoulos, Batelco’s CEO was quoted as saying the market was proving to be far more challenging than expected and that the slashing of phone call tariffs had been worse than even the “worst case scenarios” the company modelled when analysing the initial investment.

Kaliaropoulos added that S Tel had also suffered as a result of restrictions that the Indian government imposed on the import of telecom equipment from China last year.

The ongoing telecom licensing scandal is also making it difficult to raise funds for the company, although it has not been cited in any of the allegations so far.

S Tel has licenses to operate in six Indian states – Bihar, Orissa, Jammu & Kashmir, Himachal Pradesh, North East and Assam.