Monthly Archives: November 2010

TeliaSonera invites banks for €1bn loan

Stockholm-based TeliaSonera has invited six banks to join a seven-year high-grade loan

TeliaSonera has requested several banks to join its €1 billion credit facility. The Nordic telecoms group’s seven-year term high-grade loan will replace a loan of the same amount, maturing in December 2011.

The Stockholm-based operator has also agreed to pay the interest of 20 basis points to 22.5 basis points more than the euro interbank offered rate on the existing revolving facility, signed in 2004.

The loan is being led by six banks including Barclays Capital, Credit Agricole CIB, Citigroup, ING Groep and Nordea Bank, which will also refinance the existing credit facility due next year.

Lithuanian Viginta beats its drum

The Lithuanian triple play company UAB Viginta has claimed that it is proportionately spending more than the market leader TEO LT on upgrading its network to offer internet access at speeds of 100 Mbps to 1 Gbps.

VZ reports that the company, which has over 70,000 triple play subscribers nationally and 35,000 in Vilnius receiving its TV and internet services, has already invested LTL3 million (€868,924) in the capital alone this year. Furthermore, this will be matched by an additional LTL3 million in 2011.

Although TEO LT aims to invest LTL90 million on upgrading its network, Viginta argues that the incumbent telco is many times its size and so comparisons on the actual amounts spent by the two companies should not be made.

LTE competition breaks out in Sweden

Swedish telcos, Tele2 and Telenor, have launched LTE services designed to undercut incumbent Telia Sonera. By Ian Scales.

Both the companies have launched together, which is hardly surprising since the services are the fruit of an LTE network-sharing agreement.

The joint-venture network, Net4Mobility, will operate initially in Stockholm, Gothenburg, Malmo and Karlskrona. Telenor and Tele2 users will get speeds up to 80Mbit/s (not less than 20Mbit/s).

Both Telenor and Tele2 are offering Huawei dual-mode modems operating on both LTE and HSPA networks. Both are selling the services as DSL-style replacements with mobility thrown in.

Regulators are understandably nervous about network sharing deals since the companies involved must, by definition, work closely together; and since, also by definition, there is no technical or coverage differentiation between them. That leaves packages and pricing top differentiate against, so price collusion is no doubt a real worry.

So hardly surprisingly both network sharers have come out with tariffs which significantly undercut the TeliaSonera competition, demonstrating real, price-cutting competition is in the air.  The incumbent LTE operator launched its LTE network a year ago.

Teo, Omnitel launch joint broadband offer

Lithuanian fixed operator Teo and the mobile operator Omnitel have introduced a joint offer for subscribers of Zebra fixed internet from Teo and the Omni Connect wireless internet from Omnitel for LTL 49.90 per month. The price is half that of the two services bought separately. The offer is available until 31 January with a two-year subscription agreement.

TeliaSonera leidimas įsigyti iki 90% Omnitel duotas su sąlygomis

‘Telia accuses TDC of abusing leading position in IPTV market’

(DMeurope Via Acquire Media NewsEdge) Danish operator Telia sent a complaint to the Danish Competition and Consumer Authority in which it accuses its rival TDC of abusing its dominant position in the IPTV market. In its complaint, Telia said TDC prevents competitors from offering IPTV nationwide by requesting a very high wholesale price. Telia has more than two years since it has been negotiating with TDC a wholesale price that would enable it to offer television via telephone (IPTV over ADSL) nationwide. Meanwhile, TDC has attracted well over 100,000 customers with its Home Trio offers. Telia complained that people living in the country’s sparsely populated areas can only subscribe to TDC if they want a service offering internet, telephony and television via telephone. At the same time, Telia argued that consumers in the country’s largest cities want access to alternatives when it comes to IPTV. As TDC’s copper will still be the only connection to all the Danish households in the next five years, Telia has asked the authority to take action to encourage competition in the local IPTV market. Telia is the only Danish telecommunications company that offers a real alternative to TDC’s offer in the field of telephony, internet and IPTV. However, Telia can only offer IPTV for approximately 35 percent of Danish households.