European Market

Blocking of mobile VoIP: EU interrogates MNOs

Paul Rasmussen — Fri, 14 Nov 2008 11:11:37 -0500

Each European MNO is being questioned by the European Union (EU) as to how they treat mobile VoIP calls over their networks. The involvement of the EU has been driven by operator clauses in their contracts that either block or exclude mobile VoIP traffic and as a consequence of European competition laws.

Operators had been requested to supply the EU anti-trust authorities with answers as to what "tools they used to control, manage and block, slow down or otherwise restrict or filter Internet-based voice calls."

While some operators such as KPN and Hutchison 3G publicly support mobile VoIP calls, with 3 selling handsets specifically designed to work with the Skype service, other MNOs either obstruct or ban outright the use of the technology across their networks. Last year, VoIP provider TruePhone threatened to sue Vodafone after the operator was alleged to be blocking calls over its VoIP network.

For more on this story go to:
Cellular News

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Future mobile broadband services jeopardised by regulation

Paul Rasmussen — Fri, 04 Jul 2008 13:38:46 -0400

Europe's mobile industry is cutting back spending on new networks and services as a growing regulatory burden from the European Union puts profitability under pressure. To justify the imposition of retail price caps, the European Commission has claimed that mobile operators are making excessive profits, but the European mobile industry's return on capital employed was just 9 per cent in 2006 compared with more than 20 per cent in software, pharmaceuticals and several other sectors, according to management consultancy A.T. Kearney. article

T-Mobile cuts data roaming charges

Mon, 23 Jun 2008 06:59:58 -0400

The cost of data roaming across Europe will fall dramatically from July 1, at least for some customers. T-Mobile has announced it will slash roaming rates for Internet access and mobile broadband usage by 80 per cent from that date. Data calls using a USB dongle or data card will fall from £7.50 to £1.50 per megabyte. In addition, from August 30, T-Mobile will reduce the cost of sending an SMS from EU countries from 40 pence to 25 pence, a cut of 38 per cent. For international voice and SMS services, from August 1, T-Mobile will be introducing bundles comprising minutes and texts, structured to give customers control over the use of their allowances and the costs of roaming. Interestingly, July 1 is the date when EU telecoms commissioner Viviane Reding intends to introduce new regulations to cut the cost of data roaming within Europe.

For more on this story:
- go to Mobile News and Silicon.com

Related stories:
Call for EU to slash European data roaming costs. Article
EU launches inquiry into mobile data roaming fees. Article
European data roaming costs drop 25%. Article

Reding hints at called party pays for Europe

Thu, 19 Jun 2008 06:59:58 -0400

EU telecoms commissioner Viviane Reding has sent shivers up the backs of European mobile operators by suggesting that she was not opposed to the called-party-pays business model. In an interview with the Financial Times Reding said that the European cellular market was continuing to develop and there was no reason to stick with existing pricing models just for the sake of it. She did temper her remarks somewhat by adding that business models were for operators to decide rather than the European commissioner. It has always been an article of faith amongst the European mobile community that the rapid development of the European cellular market was mainly due to the use of the calling-party-pays business model. The alternative business model has been standard in the U.S. since the inception of the mobile market and called-party-pays has also been widely adopted across Asia. European operators would try to suggest that the slower development of the U.S. market was due to the implementation of called-party-pays but in reality there is little to support this thesis. Technology issues and differing market conditions are probably the reasons behind the slower growth of the U.S. market which in any event is now catching up fast. Industry watchers believe this latest statement from Reding is part of the EU's ongoing drive to cut the cost of using mobile phones whilst traveling. Voice roaming charges for mobile phone users have already been capped and data charges are due to meet the same fate from July 1st. It is claimed that introducing called-party-pays would further reduce mobile phone charges to end users.

For more on this story:
- go to The Register and TelecomTV

Related stories:
EU launches inquiry into mobile data roaming fees. Article
EU operators jack up roaming fees. Article
European operators slash data roaming charges. Article

Spain targeted by Mexico's Slim

Thu, 12 Jun 2008 06:59:56 -0400

Having backed away from acquiring a Spanish mobile licence three years ago, the owner of America Movil, Carlos Slim, has again declared an interest in entering the Spanish market.

Speaking at a press conference in New York, Slim said that his company had an interest in participating in the Spanish telecoms market under the right conditions. This renewed attention to the European sector, according to industry observers, is likely driven by investigations by Mexican authorities into antitrust activities in the fixed-line and wireless markets. Slim's America Movil is used by over 70 per cent of wireless subscribers in Mexico.

Spain's former state phone company Telefonica is Slim's main competitor in Latin America (albeit a distant second), where it has wireless and fixed-line operations in most of the region's major markets. However, the revelation that it might have a new--and aggressive, competitor, in its home market is a distraction Telefonica does not need given its ambitions to expand into other regions.

For more on this story:
- read Total Telecom and Telecom TV

Related stories:
Oi to acquire Brasil Telecom for US$3.5 billion. Oi story
America Movil may take aim at Telefonica (2005 story). America Movil story

Cracks showing in FT's bid for TeliaSonera

Thu, 12 Jun 2008 06:59:55 -0400

Despite some analyst support for France Telecom's (FT) bid for TeliaSonera, there are growing signs that it might need to look elsewhere, with Brussels-based Belgacom being put forward as a more tolerable alternative. The major hurdle for FT is the downward slide of its share price since rumours surfaced mid-April of a likely bid--the shares have slipped 17 per cent in this two-month period.

Further complications have arisen with fresh speculation that Telenor might make a bid for TeliaSonera, albeit that this plan would likely collapse under the weight of regulatory obstacles, a backlash against Nordic job losses and political complications.

FT's financial director, Gervais Pellissier, has taken an aggressive line with respect to the bid by threatening to walk away from its proposed €26.5 billion takeover of TeliaSonera unless the operator rapidly signaled its interest in a tie-up. Pellissier also admitted that FT could withdraw its offer if its share price started to plunge amid continuing uncertainty over a deal. However, Ovum's John Molony has painted a more positive picture of the strategic reason for a merger between FT and TeliaSonera.

For more on this story:
- read AFX News , The FT and Ovum's analysis

Related stories:
FT may dump TeliaSonera bid. FT bid story
What's behind FT's interest in TeliaSonera and Telenor? FT/TeliaSonera story

France Telecom needs to up its bid for TeliaSonera

Mon, 09 Jun 2008 06:59:58 -0400

Having finally made a bid for TeliaSonera, France Telecom (FT) is now being lambasted by the analyst community for pitching the price much too low. The offer of SKr56.22 for each TeliaSonera share is seen as needing to be above SKr60 to grab the attention of the major shareholders.

However, FT is determined to play hard ball claiming it won't raise the offer and is prepared to walk away unless there is a positive answer within 15 days. 'We have other options', said FT CEO, Didier Lombard.

Adding to the sense of mystery, Lombard hinted that FT might be prepared to alter certain "non-monetary" elements of the scheme, but declined to say what these would be.

Two major shareholders in TeliaSonera, the Swedish and Finnish governments, are said to be relaxed about the situation and speculated that FT's bid would encourage higher bids from other telecoms firms.

The Swedish government has the added political pressure of having sold shares in TeliaSonera to nearly 10 per cent of the population in an initial public offering at SKr85 each. One banker close to the deal has warned that, unless a much higher bid is made, this public embarrassment could see the Swedish government declining to accept FT's SKr56 offer.

For more on this story:
- read AFX News and The FT

Related stories:
France Telecom up against Swedish Army over TeliaSonera sale. FT story
France Telecom bids $42 billion for TeliaSonera. FT bid story

Sports fans are top mobile TV watchers

Mon, 09 Jun 2008 06:59:55 -0400

A new study into who is watching digital media claims that twice as many sports fans watch mobile video compared with the average mobile user (12 per cent vs. six per cent).

The study, which involved over 1,000 European respondents, was conducted by the European Interactive Advertising Association (EIAA) in an effort to understand the convergence of media across TV, Internet and mobile handsets.

Of particular note was the apparent need by sports enthusiasts for information on the go, highlighted by the fact that 93 per cent of those that access sports sites own a mobile/PDA/Blackberry (vs. 83 per cent of all European Internet users) and are heavy users of the mobile Internet. Interestingly, they are twice as likely as the average European mobile/PDA/Blackberry user to watch video/film clips via their mobile and are more likely to perform other online activities on their cell phone.

For more on this story:
- read Cellular News

Related stories:
KPN goes live with mobile TV, France issues licences. KPN and FT story
Vodafone Germany doubts pay TV's viability. Pay mobile TV story

Voice roaming needs greater competition, claims Euro regulatory body

Mon, 09 Jun 2008 06:59:54 -0400

Pointing at the lack of price competition, the European Regulators Group (ERG), an independent body which groups all the European Union member states' telecoms regulators, has stated that there is an obvious need to extend voice roaming regulation and to consider new measures to curb excesses in SMS roaming.

The ERG accepted that preliminary data for the period October 2007 to March 2008 indicated that the new Eurotariff had successfully capped voice roaming charges, but the information also showed that prices clustered just below the cap, indicating no evidence of price competition or tariff innovation.

The ERG has said it will advise the European Commission and the European Parliament on the need for further regulation ahead of a further round of reform of the rules governing the telecoms sector.

For more on this story:
- read AFX News

Related stories:
EU operators jack up roaming fees. Roaming fees story
EU launches inquiry into mobile data roaming fees. EU inquiry story

France Telecom builds acquisition war chest

Mon, 02 Jun 2008 06:59:58 -0400

Despite repeated denials that it is not talking to TeliaSonera, France Telecom (FT) has approached a group of five banks to raise US$10 billion to finance a large acquisition.

However, analysts are becoming increasingly skeptical about FT's ability to make such a large and complex merger with the Scandinavian operator a success. FT's track record is less than stellar as seen with its investments in the German mobile and Internet group Mobilcom and British cable operator NTL, and the purchase of Spanish mobile operator Amena has been viewed as disappointing.

Nonetheless, a deal could boost the Paris-based group's purchasing power with mobile handset vendors and with suppliers of media content, an area expected to become more important in the future.

For more on this story:
- read Interactive Investor

Related:
Why European telcos are looking to make deals. Merger story