Russian fixed-line telco Center Telecom, part of the state-backed Svyazinvest group, has posted a 28.9 percent year-on-year increase in net income to RUB 2.43 billion (USD 97 million) in the first six months of 2008, on revenues that increased by 3.84 percent to RUB 16.94 billion, compared to RUB 16.31 billion in the first half of 2007. Operating profit rose by 19.4 percent to RUB 4.29 billion in the six months ended 30 June 2008, whilst EBITDA improved by 13.7 percent to RUB 6.65 billion, compared to RUB 5.85 billion in 1H 2007. The company’s broadband Internet subscriber base increased by 43.9 percent in the period to 437,372 at end-June.

Center Telecom is one of Svyazinvest’s seven mega-regional operators, and is licensed to provide local, long-distance and international telephony, data transfer, internet, ISDN and wireless access services.

Center Telecom covers the Central Federal District and is Russia’s second largest fixed-line telco in terms of sales volume. It is owned by Svyazinvest (38.02 percent), other Russian companies (53.05 percent), foreign companies (0.61 percent) and individuals (8.32 percent).

Vodafone CR has purchased wireless broadband Internet firm BroadNet for an undisclosed fee from Comcast Corporation of the US. Vodafone intends to absorb BroadNet’s products and services into its own portfolio.

BroadNet has focused on building its own wireless network infrastructure and is not dependent on national incumbent Telefonica O2 CR. It offers services primarily to the corporate sector over a privately owned local access network offering transmission rates of up to 34Mbps. In 2000 and 2004, BroadNet Czech was awarded licences to build LMDS networks in the 26GHz and 28GHz bands.

The purchase will enable Vodafone to expand its operations into the Czech corporate, fixed-mobile arena.

Vodafone are currently the third largest operator in the Czech Republic with 2.7 million subscribers as of 2Q 2008, behind O2 and T-Mobile (as shown below):

(more…)

For further analysis and statistics on this and other stories sign up for a free trial or subscribe to the weekly newsletter.

The government of Macedonia is looking to licence three more firms to offer 3G mobile services in the country so as to liberalise the market and stimulate competition. The Ministry of Transport says the tender process for the 3G awards will be prepared in the coming months with starting prices for each concession expected to be set at EUR 10 million (USD 14.5 million).

In January 2008 the Agency for Electronic Communications (AEC) in Macedonia, awarded a 3G licence to mobile operator CosmoFon following a tender it launched in November 2007. The licence cost EUR 10 million and will enable CosmoFon to deploy a UMTS network supporting data speeds of up to 3.6Mbps using HSDPA technology. At the time of the award, the operator’s parent Cosmote said its Macedonian unit had been allocated 2×15MHz plus 1×5MHz spectrum, CosmoFon has intentions to launch 3G commercial services during 3Q 2008.

There are currently three mobile network operators in Macedonia, currently only Cosmote’s CosmoFon network has a 3G licence. As shown below, CosmoFon are the second largest operator, T-Mobile the biggest with 1.22 million subscribers and VIP Operator are the smallest:

(more…)

For further analysis and statistics on this and other stories sign up for a free trial or subscribe to the weekly newsletter.

Belarus’ second largest mobile operator by subscribers Mobile Digital Communications (Velcom) added a net 169,000 new subscribers in the second quarter of 2008 raising its base to 3.369 million by the end of June.

The operator, a subsidiary of Telekom Austria Group, contributed revenues of EUR 71.1 million (USD 103.4 million) and EBITDA of EUR 35 million in the April-June period, while operating income was EUR 16.9 million. Velcom said its blended monthly ARPU climbed from EUR 6.5 in 1Q 08 to EUR 6.9 in the second quarter and average MOU increased to 165.8 from 147.7 previously.

Velcom was the first cellular communications operator Globalstar in the Republic of Belarus. The company launched commercial activity on 16 April 1999, with just 10 base stations in the capital Minsk. By the end of 2002 the company covered 70 towns and settlements and more than 87 percent of the urban population had access to Velcom’s network.

In 2005 the company upgraded its WAP-service to a new WAP-gateway (2.0 version). In December 2005, WAP throughput was improved and high-speed data transfer technology EDGE was introduced in Belarus for the first time.

Telekom Slovenije, a state-controlled Slovenian telecommunications firm, has agreed to buy a cable TV operator called Netkom in the Serb-dominated part of Bosnian-Herzegovina for EUR 1.3 million (USD 1.9 million), the company said on Tuesday.

The purchase of cable-firm Netkom will help Telekom Slovenije offer consumer Internet services, including telephone and multimedia, and strengthen its position in Republika Srpska, a company statement said.

Netkom has some 6,500 subscribers and earned a net 255,000 euros last year. Telekom Slovenije will buy Netkom through its Banja Luka-based subsidiary Aneks.

Slovenian companies have invested strongly in former Yugoslavia over the past decade since peace took hold in the Balkans.

Under the 1995 Dayton peace agreement, Bosnia-Herzegovina was split into a Serb entity and a Muslim-Croat federation.

Russia’s second largest cellular operator by subscribers, VimpelCom, has reportedly launched its first 3G services.

Networks have been switched on in the cities of St. Petersburg, Nizhny Novgorod, Samara and Chelyabinsk according to a report from Bloomberg, with around 40 cities expected to be covered by the end of this year.

VimpelCom is one of three 3G licensees in Russia alongside MTS and MegaFon. It recently signed a deal to distribute Apple’s iPhone 3G handset in Russia.

Albania’s Minister of Telecommunications Sokol Olldashi has announced that the country’s three mobile network operators will have reduced their tariffs by 20 percent by October. The reduction follows a decision by the Telecommunication Regulation Agency (ERT) which lowers interconnection rates between mobile operators.

The Minister also announced the opening of an international tender for the country’s fourth wireless licence in October, to compete with the established trio of Vodafone, AMC and Eagle Mobile.

Eagle Mobile is a subsidiary of Albtelekom, the former state owned fixed-line company which was sold to a consortium comprising Turk Telecom and Calik Holding in 2007.

Albanian Mobile Communications, an Albania mobile provider and Cosmote group company, registered a total of 1.3 million customers at the end of the second quarter, up 17.3 percent from 1.09 million customers one year earlier (as shown below). AMC reported net additions of 56,886 customers in the second quarter.

Revenue increased 12.6 percent to EUR 46.3 million from EUR 41.1 million in the year-ago quarter. The growth in revenues was a result of the significant expansion of its customer base, a 10 percent increase in traffic and a 19 percent rise in the number of SMS.

AMC’s OIBDA grew by 14.3 percent to EUR 29 million, generating a 62.2 percent margin. Blended average minutes of use reached 55 minutes, compared to 58 minutes a year earlier, while blended ARPU declined to EUR 13 from EUR 14 a year earlier.

(more…)

For further analysis and statistics on this and other stories sign up for a free trial or subscribe to the weekly newsletter.

Samsung and Russian telecommunications operator Scartel have launched a mobile WiMAX network to users in Russia. Scartel has deployed the networks in 2.5-2.7 GHz frequency in Moscow and St. Petersburg with population coverage of 20 million people and plans to expand the network to other cities this year.

For this, Samsung is providing a Mobile WiMAX total solution including 1600 base stations, Access Service Network gateway and related equipments as well as services to Scartel.

WiMAX in Russia is currently offered by Enforta, Synterra, Comstar, Summa Telecom and Virgin, among others.

Enforta was formed in October, 2003 with the objective to provide broadband services using WiMAX and other advanced technologies in Russia’s regional capitals. Enforta’s service area recently expanded up to 68 cities spread across the country.

Synterra operates a 65,000km long-distance network covering 70 Russian regions and also uses WiMAX technology to connect end users.

Comstar is currently deploying 160 base stations, expected to be built in Moscow by the end of 2008. The overall investments in the project are expected to amount to approximately USD 20 million in 2008. The network will run on the IEEE 802.16e standard, using the 2.5-2.7 GHz range.

(more…)

For further analysis and statistics on this and other stories sign up for a free trial or subscribe to the weekly newsletter.

The National Agency for regulation in the field of electronic communications and information technology (NAREKIT) in Moldova issued the first license for providing 3G communication services to operator Orange Moldova (a France Telecom subsidiary).

Under the terms of the licence Orange’s 3G network must cover the Chisinau and the Balti region by the end of the first year of operation. By the end of the second year, coverage should have reached the Comrat municipality, as well as district centres Cahul, Orhei, Ungheni and Soroca, and by the end of the third year the remaining 29 Moldovan district centres must be covered. Further coverage of the network will depend on the demand for services, said NAREKIT.

In 2008, remaining two GSM operators, Moldcell and Eventis Mobile SRL, and the CDMA operator of the country, Unite (a member of the Moldtelekoma), may obtain 3G licences without competition. The cost of each licence will be USD 8 million and a network should be put into operation before 1 August 2009.

(more…)

For further analysis and statistics on this and other stories sign up for a free trial or subscribe to the weekly newsletter.