Spectrum auction: Governement mulling secured bank loans for telcom companies - Economic Times
"We are having internal consultations. We are taking legal opinions. Issues are being resolved. Once issues are resolved, then I think bankability will be there," Department of Financial Services Secretary D K Mittal told reporters here.
He added that issues related to the matter "are likely to be resolved in a week or two ensuring the protection of capital."
Mittal said that some of the companies that would be bidding will be existing companies and if their balance sheets support, then banks would like to lend to them.
"But the question to me as banker (is that) whether my money is having enough security," he said.
Mittal said the Finance Ministry has proposed tripartite agreement to be executed with regard to auction of spectrum.
"We have taken inputs from the banks. SBI Capital Markets have done this work for us. Then this agreement has been sent to them (banks) about two months ago. There has been two or three meetings. We will have another one or two meetings then we will close this," he said.
The Telecom Department would offer the agreement to those who participate in the bids. This will be between the banks, Department of Telecom and the bidder, he added.
Telecom companies have been pushing the government to consider payment option in installments as suggested by telecom regulator TRAI as they consider base price of spectrum to be very high.
Telecom Regulatory Authority of India (TRAI) has recommended 10 times high minimum base price of spectrum for pan-India operations at around Rs 18,000 crore. This is around 10 times high than what companies paid in 2008 when A Raja was the telecom minister.
However, the inter-ministerial panel at DoT, the Telecom Commission, in its recommendation to the Empowered Group of Ministers on Telecom has decided against the option of staggered payments.
Deutsche Telekom Sees Obstacles to French Network Merger - Bloomberg
Deutsche Telekom AG (DTE) said a combination of its German network with France Telecom SA (FTE)’s domestic system to create Europe’s largest single network would create little value and be too difficult to manage.
“I’m not sure there are many advantages for both parties because you get to limits,” Niek Jan van Damme, Deutsche Telekom’s head of Germany, said in an interview in Cologne today. “The management of a bigger network normally has more challenges than a smaller network.”
France’s new Industry Minister Arnaud Montebourg favors France Telecom merging with its German counterpart to create a group modeled after European Aeronautic Defence & Space Co. (EAD), Journal du Dimanche said June 10. Bonn-based Deutsche Telekom and Paris-based France Telecom already cooperate on joint purchasing of 13 billion euros ($16 billion) worth of items including handsets and infrastructure every year. They also co- own the largest U.K. phone operator, Everything Everywhere.
Van Damme said he couldn’t say whether Deutsche Telekom’s current alliance with France Telecom will lead to deeper integration. He declined to comment on the prospect of a full merger. The German government owns 32 percent of Deutsche Telekom, while France controls 27 percent of its biggest phone company through a direct stake and another held by the sovereign fund Fonds Strategique d’Investissement.
Low Valuations
The valuation of European phone companies has fallen during the region’s debt crisis, with the 19-member Bloomberg Europe 500 Telecom Services Index (BETELES) near the lowest in three years. That has invited investors such as Carlos Slim’s America Movil SAB, which last month made an offer to increase its stake in Royal KPN NV, and may facilitate the return to large intra-European telecommunications deals reminiscent of Vodafone Group Plc (VOD)’s 1999 takeover of Mannesmann AG and Telefonica SA (TEF)’s 2005 move on O2 Plc.
Deutsche Telekom shares jumped 1.7 percent in Frankfurt today, while France Telecom gained 1.5 percent in Paris.
The French Minister discussed the ideas of combining the companies in a June 4 meeting with France Telecom Chief Executive OfficerStephane Richard, Journal du Dimanche reported, without saying where it got the information. A representative at Montebourg’s ministry couldn’t immediately be reached today for comment.
Cost Pressure
Europe’s former phone monopolies are under pressure to cut costs as the crisis saps demand for services. A combination of Deutsche Telekom and France Telecom would create a company with sales of more than 100 billion euros, assets covering most European markets and stretching from the U.S. to the Middle East.
“Even if there are numerous topics of discussion and collaboration between Deutsche Telekom and France Telecom, there is no discussion about a merger,” Tom Wright, a France Telecom spokesman, said today.
Members of Deutsche Telekom’s supervisory board have discussed how to deepen the cooperation with France Telecom, according to a person familiar with the situation, who declined to be identified because it’s an internal matter.
Suggestions include obtaining access to emerging markets through France Telecom’s network, cross-border phone service free of roaming charges, joint negotiations with content providers and building shared fiber-optic networks in border regions, according to a document obtained by Bloomberg News.
To contact the reporter on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net
To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net
Deutsche Telekom
Wolfgang von Brauchitsch/Bloomberg
The headquarters of Deutsche Telekom AG stand in Bonn.
The headquarters of Deutsche Telekom AG stand in Bonn. Photographer: Wolfgang von Brauchitsch/Bloomberg
Here she comes! Cheryl Cole announces dates for her FIRST solo UK tour - Daily Mirror
Cheryl fans may struggle to contain their excitement after it was announced the singer will embark on her first solo UK arena tour.
It's been a good week for Cheryl who wowed Wembley at the Summertime Ball and her new single Call Me Name when straight to No.1 within hours of release on iTunes, clocking up record breaking sales.
Now it has been confirmed that the Fight For This Love singer will tour the country and Ireland for the first time as a solo artist.
Cheryl will play eight shows in October, including the O2 Arena and a homecoming at the Metro Radio Arena in Newcastle.
She opened as a special guest for the Black Eyed Peas European tour in 2010 and played four sold-out arena tours as part of Girls Aloud.
She's one of the most exciting performers in music and will be performing songs from previous albums 3 Words and Messy Little Raindrops, as well as new material from the much awaited A Million Lights which will be released June 18.
There will plenty of surprises in store for fans who can purchase tickets from 9am on June 15 at Live Nation.
Can't wait until October to get your Cheryl fix? Read more below.
"Cheryl Cole is losing her touch": Desperate star adds nothing to the nation and it's time she went away: Read Mirror Online's guest columnist Fleet Street Fox brutal opinion on Cheryl.
Cheryl Cole pointless and unworthy of Prince Harry? She’s the perfect modern day celebrity and would blow Kate Middleton out of the water: Sunday Mirror celebrity columnist Dean Piper bit back at the Fox with his praising verdict of Queen Chez.
CHERYL COLE TOUR
6 Oct Capital FM Arena, Nottingham
7 Oct 02, London
9 Oct Motorpoint Arena, Sheffield
11 Oct Echo Arena, Liverpool
12 Oct LG Arena, Brimingham
13 Oct Manchester Arena,
15 Oct SECC, Glasgow
17 Oct Metro Radio Arena, Newcastle
O2 to offer free Wi-Fi in Debenhams stores for all - Phones Review
With more of us now using smartphones and tablet PCs the need for a reliable Internet connection increases, and a data connection can be expensive for some users but more companies are offering the opportunity to access a free Wi-Fi connection. Today we have news that UK carrier O2 is to offer free Wi-Fi at a number of Debenhams stores for all smartphone users.
According to an article on Mobile News all of the retailers 167 stores will be kitted out with free Wi-Fi so users can make use of the Debenhams app to improve their shopping experience. The retailer has teamed up with O2 to offer the service that will allow customers that use the app to order items for home delivery, and check sizes while in store.
The company will promote the service and its application to its customers as a way of combining online and retail shopping together. Users will be able to check stock and if an item isn’t available in the correct size they can simply scan the barcode, and arrange home delivery.
There will also be discount vouchers available within the application along with a store guide that will help customers to locate goods more easily. This news follows a trail run in three stores and the popularity of the stores app for online shopping growing. So far one million people have downloaded it, and twenty percent of the company’s online traffic is now coming via mobile devices.
Gavin Franks of O2 said the company were pleased to be adding Debenhams to their growing portfolio, and added that “this marks a continuation of our fresh thinking that has seen the rapid growth of O2 Wi-Fi”.
Simon Foster director at Debenhams said that “the shape of shopping in the future emerging right before our eyes”, and this move could transform how some people do their shopping.
Do you try and find a free Wi-Fi connection when you are out shopping?
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