Telco Daily 22-Aug-2007

SK TELECOM TO TAKE UNICOM STAKE
According to FT South Korea's SK Telecom said it would convert USD1billion worth of bonds in China Unicom into a 6.6 percent stake to solidify its position in China. SK Telecom expects the deal will help it expand co-operation with China Unicom in 3G services once licences are issued.

Speculation of a restructuring in China's telecom sector - which could see the number of large operators cut from four to three - includes talk of a proposal for Unicom to be divided in two, with one of its national wireless networks going to China Telecom and the other to China Netcom. (Financial Times)



APPLE SECURES EUROPE IPHONE REVENUE DEALS
Apple has signed contracts with three European mobile operators which want exclusively to sell the new iPhone. The contract was signed by T-Mobile of Germany, Orange of France and O2 in the UK, writes FT Deutschland. In the US, AT&T has negotiated a two-year contract with Apple. Mobile operators are said to be hoping for a significant boost in their image from the exclusive deal with Apple, writes FT. (Financial Times)



SPRINT NEXTEL BETS ON WIMAX
Besides selling wireless service to subscribers, Sprint Nextel is seeking to embed access to its WiMax network in novel products, such as digital cameras and billboards. Sprint CEO Gary Forsee said demand for WiMax services won't grow without a large number of products that use the network. As a result, the company has teamed with Intel, Motorola, Samsung Electronics and Nokia to release 50 million WiMax devices over the next three years. Mr. West said Sprint was in discussions with other makers of consumer-electronic products. (The Wall Street Journal)



PARTNERSHIP KEEPS BEATING ALL THE ODDS
Alliances within the telecommunications sector do not have a very good track record. But Microsoft and Nortel are betting their strategic partnership, called the Innovative Communications Alliance, will beat the odds. Both of them sense a business opportunity as companies combine voice and data networks into a single IP-based system. The alliance was created one year ago and the two partners now claim the partnership, which combines Nortel's network equipment expertise and Microsoft's software, is on track.

To help convince their customers, Nortel and Microsoft have set up more than 100 demonstration facilities across the globe. (Financial Times)



HUTCHISON TELECOMMUNICATIONS: EARNINGS SOAR ON UNIT SALE
Hutchison Telecommunications International said its first-half revenue increased 12 percent to HKD9.64billion. A gain from the sale of its stake in India's Hutchison Essar to Vodafone boosted earnings. The company said revenue from mobile-data increased and that the number of subscribers increased 15 percent to 6.8million. (The Wall Street Journal)