Nokia Oyj (NOK1V) is nearing a deal to sell its Vertu luxury-phone unit to Swedish private-equity firm EQT Partners AB as it divests assets as part of a turnaround plan, according to two people with knowledge of the matter.
The transaction values Vertu at about 200 million euros ($250 million), said one of the people, declining to be identified as the talks are private. A deal could be announced as early as this week, another person said. Church Crookham, England-based Vertu is known for its jewel-bedecked mobile phones that sell for an average price of more than 5,000 euros.
Nokia is selling assets as Chief Executive Officer Stephen Elop seeks to revive a mobile-phone business that’s been devastated by competition from devices running software from Google Inc. (GOOG) (GOOG) and Apple Inc. (AAPL) (AAPL) The Espoo, Finland-based company is betting on a software partnership with Microsoft Corp. (MSFT) (MSFT) to rebuild its cachet in the critical North American market, where it has struck deals with carriers AT&T Inc. (T) (T) and T-Mobile USA to sell its flagship Lumia smartphone.
“Vertu is a bet on a very specific, niche market, though it’s a niche that’s growing,” said Francisco Jeronimo, an analyst at researcher IDC in London. Its new owner will face the challenge of modernizing Vertu devices’ technology, which has until now been largely based on Nokia’s obsolete Symbian operating system, to compete with devices like Apple’s iPhone, he said.
Multilingual Hotline
Representatives at Nokia, EQT and Vertu declined to comment.
Vertu, started by Nokia’s then-chief designer Frank Nuovo in 1998, is the dominant player in the luxury-phone sector, with about 60 percent of the Western European market in 2010, according to IDC.
The unit has sought to stand apart from rival offerings like Research In Motion Inc. (RIMM) (RIMM)’s Porsche-branded BlackBerry devices with its “concierge” service, a 24-hour, multilingual hotline that assists clients with requests ranging from restaurant reservations to sourcing esoteric gifts.
Luxury phones have been a rare bright spot for Nokia, whose shares have declined almost 40 percent this year, the worst performance in the 27-company Stoxx 600 Technology Index (SX8P), which was up 0.8 percent. The shares rose 0.2 percent to 2.26 euros in Helsinki yesterday, valuing the former global handset leader at about 8.5 billion euros.
Vertu, which doesn’t disclose its earnings publicly, saw “high double-digit sales growth” in 2010 and 2011, driven largely by demand from emerging markets in Asia and the Middle East, President Perry Oosting said in September. The unit operates more than 80 retail stores in locales like Beverly Hills’ Rodeo Drive and Paris’s Rue Royale.
The Vertu deal would be Stockholm-based EQT’s second acquisition this month. The buyout firm yesterday announced the purchase of BSN Medical that values the German bandage supplier at 1.8 billion euros. EQT, which is partly owned by Sweden’s Wallenberg family, in October raised 4.75 billion euros from investors for a new buyout fund focused on Northern and Eastern Europe.
To contact the reporters on this story: Matthew Campbell in London at mcampbell39@bloomberg.net; Adam Ewing in Stockholm at aewing5@bloomberg.net; Anne-Sylvaine Chassany in London at achassany@bloomberg.net
To contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net; Jacqueline Simmons at jackiem@bloomberg.net
B4bn floor for 3G bids - TMCnet
B4bn floor for 3G bids
Jun 13, 2012 (Bangkok Post - McClatchy-Tribune Information Services via COMTEX) -- The reserve price for the third-generation (3G) licence auction will likely start at more than 4 billion baht for each of the nine five-megahertz bandwidth slots of the 2.1-gigahertz spectrum, says the National Broadcasting and Telecommunications Commission (NBTC).Vice-chairman Settapong Malisuwan said the price benchmark should closely equal that of the old figure, set by the NBTC's predecessor, of 12.8 billion baht for a licence containing 15 MHz of bandwidth.
The NBTC's 2100-megahertz committee approved the draft 3G licence auction framework for the international standard 2.1-GHz spectrum.
Under the draft, the regulator will divide the existing bandwidth of the 2.1-GHz spectrum into nine slots, each containing 5 MHz of bandwidth.
The new information memorandum (IM) scrapped the key conditions of the old framework's "N -1" approach, which would have made available a number of licences equal to the number of bidders minus one, for competition.
"An exact reserve price with a new draft of the information memorandum for the 3G auction will definitely be released by the committee this month," said Col Settapong, who also chairs the NBTC's telecom committee.
The draft will then be submitted to the NBTC's telecom committee for consideration before being passed to the board for approval.
The NBTC will hold a public hearing on the draft within 30 days after receiving approval by the board.
Finally, Col Settapong said the IM for the 3G auction will be released on the NBTC website before being published in the Royal Gazette by August as planned.
"A 3G licence auction should be on the schedule by the fourth quarter," he said.
The event will feature simultaneous ascending-bid auctions. Each participant can get maximum bandwidth of 20 MHz under a bandwidth cap restriction, said Col Settapong.
In another development, the NBTC telecom committee yesterday acknowledged a draft regulation for type-3 communications satellite service providers that have their own networks.
Thaicom Plc, the satellite arm of InTouch, is seen as the sole company that can apply for a licence to provide service as a network service provider.
The committee has yet to complete drafts for the two other satellite licence types _ one for satellite signal uplink-downlink service providers and the other for satellite bandwidth resellers.
The panel expects to complete a draft by next month.
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Lenovo turns mobile broadband operator for 3G-equipped ThinkPads - zdnet.co.uk
->'However, it occurred to me that, over time, this is exactly how PCs become: slower, less responsive husks of their purchase-day glory' We're...
1 day ago by SoapyTablet on Ultrabook vs laptop: Is an ultrabook worth £500 more?3G tariff cuts in India set to kick-start growth - Ovum
The Indian mobile market has recently experienced a series of 3G tariff cuts. 3G adoption in India has been underwhelming so far, with optimistic estimates stating that there are currently 39 million 3G subscribers. However, we believe that the actual number of active 3G subscribers is approximately 25 million. The latest round of price competition has been sparked by Airtel’s decision to cut its 3G tariffs by up to 70%. Airtel was not the first operator to reduce its tariffs, with BSNL and Aircel previously reducing their prices. However, the scale of Airtel’s tariff cut has forced other operators to react, and Vodafone, Idea, and Reliance Communications (RCom) have all made similar 3G price reductions.
Ovum believes that the price cuts will have a positive impact on the affordability and adoption of 3G services in India. While they will also have a net positive effect on the top-line revenue growth of 3G operators in the short to medium term, their impact on margins will take time to determine. However, as 3G adoption increases, operators may face challenges from their limited spectrum holdings. If additional 3G spectrum is not made available, there is a risk that the 3G network could encounter the same quality issues that have negatively affected 2G services in India.
3G has suffered from perceptions of limited incremental value over EDGE
A year and a half after the launch of services, 3G adoption in India continues to be underwhelming. It is clear that subscribers have not been attracted by the 3G value proposition. A lot of this has to do with operators’ premium pricing of 3G services. In our November 2010 report 3G in India: Operator Launch Strategies, we predicted that Indian operators would adopt a voice-centric strategy for 3G services and price data at a premium. This was due to the significant capacity constraints on 2G networks, and the need to “ration” the use of 3G. Up until now, most operators had priced 3G with the “10 paisa per 10kb” tariff, which worked out to approximately INR17 ($0.30) per MB. When one considers that monthly ARPU is approximately INR150 ($2.70), it isn’t difficult to understand why 3G adoption has been slow. In an attempt to increase adoption, operators offered data packages and bundles, but the damage had already been done. The slow adoption of 3G has been further exacerbated by poor user experience due to the lack of true nationwide coverage from any single operator, and the patchy coverage even within licensed circles.
New 3G plans include prepaid and “snacking” options
While Airtel was not the first operator to cut its 3G tariffs, it was the first to cut them on such a significant scale. Airtel’s new plans have reduced its postpaid tariffs by up to 40%, and its prepaid plans by up to 70%. Under its new tariff structure, a 2GB plan that previously cost INR650 ($11.70) per month now costs INR450 ($8.10). However, the new 3G tariffs are still more than double those of a similar EDGE service, which is available for approximately INR200 ($3.60) per month. Ovum does not believe that these tariff cuts will be as damaging as the price wars that previously occurred in India as competitive intensity in the market has eased in recent years.
Airtel has also introduced “snacking” and postpaid add-on options as part of its revised 3G proposition. The operator now offers entry-level prepaid 3G data offers starting from INR10 ($0.18) for 30 minutes of usage. These options extend to a 10GB data bundle for INR1,500 ($26.90) that is valid for 30 days.
As well as its “snacking” options, Airtel offers “Smartbytes” add-on bundles that complement its existing monthly postpaid plans. Airtel’s Smartbytes options range from INR80 ($1.40) to INR300 ($5.40), and must be used up with existing monthly allowances. These types of options were necessary additions to make 3G more affordable for the average user, and to add flexibility for postpaid users that do not want to exceed their monthly allowances.
Airtel will be best positioned after this round of price cuts
Different operators have various motivations for making price cuts. Airtel’s decision to reduce its 3G tariffs has more to do with the launch of LTE and the positioning of its services than with the competition in the market. Airtel is positioning LTE as a premium service, and has indicated that it will look to migrate all of its high-end subscribers to the new technology. This strategy has made rebalancing its 3G proposition a necessity. We believe that this will leave Airtel in the best position to provide a comprehensive offering across all pricing tiers and service levels. If its LTE strategy is successful, it will have a positive cascading effect that will rebalance traffic flows across all of its networks and boost its margins.
Airtel’s aggressive tariff reductions have forced Vodafone, Idea, and RCom to follow suit or risk losing their premium subscribers to Airtel. While BSNL and Aircel tested the waters with their limited cuts, they have also had to respond to Airtel’s move with significant reductions. The reduced 3G tariffs are far better suited to enticing users to upgrade to 3G, and we believe that Airtel’s move and the competitive responses that are sure to come will have a positive impact on 3G adoption in India over the next six months.
Why Samsung really could be buying Nokia - NASDAQ
Nokia Corporation ( NOK , quote ) jumped almost 7% on Friday on heavy volume after a Reuters report that South Korea's Samsung ( SSNLF , quote ) might be making an offer for the Finnish-based communications giant.
The report had more than its share of detractors. Commented Ben Wood of CSS Insight, "This is Friday madness. I can't think of a rational reason why Samsung would want to buy Nokia at present." Even with that dour assessment of Nokia's worth to Samsung, the stock rose 14.39% last week.
There is appeal to Nokia for Samsung or another buyer that can be found in both tangible and intangible factors. The mere fact that Microsoft ( MSFT , quote ) is partnering with Nokia on a number of ventures is a bullish indicator.
Weight must also be given to Nokia's position as the second biggest seller of mobile phones in the world. Until recently, it was at the top. Who supplanted Nokia? Samsung.
Nokia has not been negligent in turning out new products, although they have been bedeviled. The Lumia 900 introduction went poorly in early April. That caused a hit to Nokia's share price.
But Nokia has pumped out a series of Lumia and S-40 mobile phones, which offer a wide variety of entry points in the global marketplace. While Samsung is now challenging Apple in the United States, Nokia is very strong in emerging markets.
Nokia's presence could assist Samsung in acquiring users who do not commit to two-year contracts, the new hot market niche. T-Mobile is very actively pursuing this business segment. Owned by Deutsche Telecom ( DTEGY , quote ), T-Mobile is pursuing these customers with pre-paid data options for the week and the month. With its emerging market strength and new low-end S-40 models, Nokia could be a formidable competitor for these customers.
The balance sheet and income statement of Nokia has some appealing financials for a buyer. The debt-to-equity ratio is under 0.50. The price-to-book ratio is 0.83 and the price-to-sales ratio is 0.26. There is $3.29 cash-per-share on the books so there is enough funds to pay for the purchase. The dividend can also be ended to buttress cash flow after an acquisition. Earnings-per-share are projected to increase by 134.80% for the next year.
Nokia sells more mobile phones than any company in the world other than Samsung, is strong in new products, has an established presence in the emerging market nations where the most growth will be in the future , is valued cheaply for both assets and sales, and has enough cash to make an acquisition very inexpensive in terms of capital outlays for the buyer.
In addition, Samsung just borrowed money very, very cheaply in a bond offering, so it has plenty of cash for an acqusition. Samsung's interest could be just a rumor, but there is some merit behind the surge in Nokia's price for the day and week.
Nokia Maps with 3D navigation to replace Bing Maps in Windows Phone 8 - YAHOO!
Nokia and Microsoft are reportedly planning to follow in the footsteps of Google and Apple, and will offer a new powerful Maps feature in Windows Phone 8, according to WPCentral. The two companies will replace Bing Maps with Nokia Maps, which is said to feature 3D navigation, including recent traffic updates, and hardware acceleration across all Windows Phone handsets. Microsoft’s upcoming software update will also include Skype integration, Windows Phone Wallet, native gaming development and various camera improvements. The software giant is expected to announce these changes on June 20th at its Windows Phone Summit.
[Via The Verge]
Nokia to provide incoming Seton Hall University freshman with Lumia 900 - YAHOO!
Seton Hall University provides Nokia Lumia 900 to incoming freshmen
Nokia‘s Windows Phone smartphone on AT&T extends the Academic Learning Environment
Orlando, FL – Nokia, AT&T, Microsoft and Seton Hall University announced today a step forward in Seton Hall’s Mobile Computing Initiative, whereby all incoming freshmen will receive a Nokia Lumia 900 each for extensive use across the University. The entire class of 2016 will receive a Nokia Lumia 900 powered by the Windows Phone 7.5 operating system, to support the university’s mission of providing state of the art technology tools to enhance the student experience and prepare students for success in a rapidly changing world.
Since 1997, Seton Hall has provided mobile technology to its students and faculty to support the integration of technology into the curriculum. Enhancing the University’s philosophy of open-ended exploration, students discover new opportunities for learning with mobile computing, sharing ideas and collaborating with peers and faculty while learning how to utilize technology effectively in their academic professional and personal lives. Mobile technology provides a means of enhancing all aspects of university life, and encourages students to engage with each other and the university community from orientation through graduation.
“Nokia has a long history of innovation and their partnership with Microsoft allows us to extend the core academic and community resources of the University into the pocket of our students,” noted David Middleton, Executive Director, Center for Mobile Research and Innovation, and Assistant Vice President of Administration at Seton Hall University. “By providing our new incoming students with the Nokia Lumia 900, Seton Hall University can expand our existing Windows services and infrastructure while providing a unique, high quality, dynamic and engaging mobile experience.”
All Seton Hall students have access to SHUmobile, an app available across multiple platforms that provides access to campus news feeds, directories and maps. However, Seton Hall freshmen will have access to a custom Freshmen Experience component of this app exclusive to the Lumia 900. This personalized element adds customized social media integration and direct communication channels with their freshmen peers, peer academic advisors, housing information and roommates. Additionally, the University will leverage Nokia Data Gathering, recently made available for Windows Phone, to communicate with the incoming freshmen beginning this summer by conducting polls, providing information to help students prepare for college and to learn how the Lumia 900 and other technologies are being used.
“Mobile technology has become ubiquitous and pervasive, but we are just beginning to understand the breadth of its impact across campus. Smartphone use in higher education has tended to rely on finding a specific app to fulfill a specific curricular purpose. With the close collaboration between Nokia and Microsoft on the Lumia 900, the phone itself takes center stage” added Michael Taylor, Academic Director, Center for Mobile Research & Innovation.
Professor Taylor explains that the seamless integration of core academic tools such as Microsoft Office increases the opportunity for faculty and students to connect, collaborate, and create. The synthesis of Windows Phone features and Lumia 900 hardware are a natural enhancement to the University’s commitment to teaching and learning with technology. Utilizing AT&T’s 4G network, these partnerships will help foster new opportunities for learning, content creation and experimentation. Teaching and learning can now take place not just in the classroom but virtually anywhere, providing a more engaged and integrated learning experience.
Nokia provides the business market with a portfolio of compelling, high-quality devices at every price point that meets the needs of people both as consumers and business users. With business productivity tools and applications to ensure that business decision makers and employees have access to the information they need within the framework of a well-governed IT environment and an ecosystem of partners and providers, Nokia ensures the long-term viability of businesses’ IT investments.
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