Pan-India 3G bids reach US$2 billion on day 16

The price for a nationwide India 3G licence peaked at INR 89.14 billion (US$1.99 billion) on day 16, following 94 rounds of bidding in the government–run auction. In comparison, when 2G spectrum across the country was awarded, a pan-India licence cost only INR 16.51 billion.

Mumbai dominated the metro circles today achieving a top bid of INR 13.83 billion, followed by Delhi with INR 13.49 billion.

The government will receive at least INR 350 billion from the proceeds of the 3G auction, which is what it had originally estimated for both 3G and broadband wireless access (BWA). The BWA auction begins two days after the completion of the 3G auction.

Nine operators are participating in the bidding for 3G spectrum.

LGE mobile revenues drop 19.4% year-on-year; profit falls 90%

LG Electronics’ Mobile Communications division has reported a 19.4 per cent fall in sales revenues year-on-year for the first quarter of 2010, which it attributes to the low season and a decline in mobile phone prices. For the quarter ending March 31, revenues reached KRW 3,422 billion (US$3.057 billion), down from KRW 4,245 in Q109. Operating profit was down 90 per cent to KRW 24 billion from KRW 239 billion a year earlier.

For the Handsets unit of Mobile Communications, sales declined 19.7 per cent to KRW 3,140 billion with operating profit dropping 88.8 per cent to KRW 28 billion.

In regards to handset shipments, the third-largest handset manufacturer after Nokia and Samsung reported 27.1 million devices shipped during the quarter. Shipments were down 20 per cent quarter-on-quarter but rose 20 per cent year-on-year.

Orascom confirms sale talks with MTN

Following recent speculation that MTN is interested in purchasing Orascom’s Algerian unit ‘Djezzy’ and which could extend to other subsidiaries, Orascom has confirmed the negotiations are taking place.

“Orascom is aware that its parent company, Weather Investments SpA, is in discussions with MTN Group which may or may not lead to a transaction relating to the acquisition of control of Orascom and/or its businesses by MTN,” said a press statement on the company’s website published today.

“A further announcement will be issued in due course as required. Accordingly, Orascom has requested from the Egyptian Exchange to restore trading on its stock.”

Additionally, Orascom had earlier informed the Algerian government of the talks and when asked if it would approve the deal, a source is quoted as saying "having the South Africans in the telecoms sector in Algeria instead of the Egyptians is a good solution for us".

Iran hands Tamin Telecom third mobile licence

Tamin Telecom has secured Iran’s third mobile licence, as well as the exclusive right to provide 3G services across the country for two years, according to the official IRNA news agency.

"The license was given on Saturday to (Tamin Telecom) along with its consortium, and we are hopeful its SIM cards will reach the market in the course of the current year," commented Iran’s communications minister Reza Taqipour.

This is not the first time Tamin has been awarded the title of third operator. Originally in January 2009 it was granted the concession as the local partner in a consortium with the UAE’s Etisalat for US$400 million, however, the licence was later revoked. Zain, the second placed bidder in the auction then entered negotiations in May, but when the Kuwaiti operator failed to comply with obligations, the licence was scrapped, with plans for a new tender to take place.

Neither the other parties in Tamin’s consortium, nor the price to be paid for the licence have been disclosed. Tamin is an affiliate of the Social Security Investment Company of Iran.

The Iranian market is currently served by state-owned Iran Telecommunications Company (TCI) and Irancell, which is 49 per cent owned by South Africa’s MTN Group.

It is estimated the nation has a mobile penetration rate of less than 60 per cent, and it is also the largest market in the Middle East with a population of 66.4 million.

NSN secures US$1 billion of contracts in China

Nokia Siemens Networks has secured €750 million (US$1,003 million) worth of orders for mobile equipment from China Mobile and China Unicom. China Mobile, the world’s largest operator by subscribers, has signed frame agreements for GSM and TD-SCDMA network equipment, as well as IP multimedia subsystem solutions. China Unicom has ordered GSM, WCDMA and HSPA solutions.

As part of the deals, the Finland-based company will provide networking services to support 3G services at both operators, including network planning, deployment, maintenance and training.

The agreements strengthen existing ties between NSN and the Chinese operators, building on similar contracts that were inked in 2009.