Despite earlier reports that at least 18 different parties had bought bid documents for the two triple-play licences being offered in Egypt, only two consortiums submitted bids to the country’s telecoms regulator by the deadline of April 15. It is believed that limitations in geographic range and dependency on landline operator Telecom Egypt are reasons that have discouraged further bidders.

“We have received two bids from consortiums and will study them technically and the NTRA board will make a decision sometime in May,” president of the National Telecom Regulatory Authority (NTRA) Amr Badawi commented. The names of the bidders were not disclosed.

The government said it plans to take eight per cent of operator revenue as a royalty. It also expects the licences to prompt investments of around US$1 billion over the next five years.

Handset maker Sony Ericsson climbed back into profitability in the first quarter of 2010, posting a net profit of EUR 21 million (US$28.3 million), compared to losses of EUR 167 million in Q409 and EUR 293 million in the first quarter of last year.

Although revenues declined 19.7 per cent to EUR 1,405 million quarter-on-quarter from EUR 1,750, profitability was met through an aggressive cost reduction programme. The transformation programme commenced in mid-2008 with the aim of reducing annual operating expenses by EUR 880 million. To date the firm has reduced its global workforce by 3,150 employees to reach a total of 8,450 by the end of March 2010. Total restructuring charges came to EUR 342 million.

“Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for our business organisation and strategy,” stated Bert Nordberg, president of Sony Ericsson. “We will continue to work through the transformation programme to ensure that we are competitive.”

The number of units shipped dropped from 14.5 million in Q1 2009 to 10.5 million a year later. However, a shift to higher-end handsets resulted in a higher average selling price of EUR 134 (US$181) compared to EUR 120 in the previous quarter. New devices shipped include the Xperia X10, the manufacturer’s first Android-based smartphone.

Pakistan’s Wateen Telecom has announced an initial public offering (IPO) for the issue of 110 million ordinary shares at PKR10 (US$0.12) each. This represents 20.85 per cent of the enhanced paid up capital of the firm of PKR5.275 billion.

If the original issue is oversubscribed, a Greenshoe option exists for the additional issuance of up to 90 million ordinary shares at the same price.

The subscription list will open on April 20 at the commencement of banking hours and will close on April 21 at the close of banking hours.

The Gujarat telecoms circle has surprisingly overtaken Delhi and other metro areas in the bidding for a 3G spectrum slot, during day four of India’s two-week 3G auction. It reached INR4.6 billion ($104 million) on April 13, ahead of Delhi with a bid price of INR4.37 billion and Mumbai with INR4.16 billion.

Gujarat is India’s western-most province, is located on the coast, and has one of the country’s fastest growing economies. Approximately 40 per cent of the state’s population live in urban areas.

Bidding for a pan-India licence has so far risen 31 per cent above the base price of INR35 billion, to currently stand at INR45.8 billion. Three nationwide licences are being offered in the auction, with government-run operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) sharing the fourth.

India’s government hopes to earn around US$10 billion from the proceeds of both the 3G and Broadband Wireless Access (BWA) auctions once they are completed.

Orascom Telecom Holding (OTH) confirmed its Algerian subsidiary Orascom Telecom Algerie (OTA), operating as Djezzy, has paid US$113 million to the Algerian tax authority. The figure represents the remaining balance of the principal amount of the authority’s tax reassessment claim for the years 2005-2007, equivalent to US$597 million, excluding penalties which amount to US$74 million.

Algerian tax authorities ordered the outstanding payments in November 2009 after an audit found Djezzy had earned US$5.25 billion, US$830,000 more than it had declared for the 2005-2007 period.

OTA had previously paid US$49 million from the total penalties of US$74 million. Payment of the remaining US$25 million has been suspended until final ruling from the Administrative Court. All monies paid will be recoverable if OTA’s case against the tax authority is successful.