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Telstra offers $2 billion for Digicel’s Pacific operation

Hala Turk

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Australian telecom giant Telstra announced on Monday that it is currently in talks to acquire Jamaican telco Digicel’s operations in the South Pacific for a rumored bid of $1.5 billion, various media reports highlighted.

The Australian offer has been backed up from the government which will support the acquisition not only financially but also in terms of strategic risk management.

“If Telstra were to proceed with a transaction it would be with financial and strategic risk management support from the government,” a spokesperson of the telco told reporters.

Telstra described any equity investment it would make as “a minor portion of the overall transaction,” suggesting that the government will foot most of the bill.

As for Digicel Group, which has been sinking under the weight of around $5.4 billion gross debt, such a transaction would be a major boost, allowing the company to focus on their remaining 26 markets across the Caribbean, Central America, and Asia Pacific regions.

“The discussions are incomplete and there is no certainty that a transaction will proceed,” said Telstra, responding to numerous media inquiries.

In parallel, experts consider this new offer as a political block to China’s influence in the region. As the national security committee of federal cabinet has reportedly considered the potential implications of the company being sold to a Chinese entity.

China Mobile, for example, has also been rumored to be in talks with Digicel.

Security experts fear the mobile phone networks could be used to spy on Australia’s nearest neighbors, access sensitive data, and disrupt activities.

However, concerns have also been raised that the company could be using China as a scapegoat to extract money from Australian taxpayers.

It is worth mentioning that Digitel Pacific, owned by Irish entrepreneur Denis O’Brien, hired Citigroup, American multinational investment bank and financial services corporation, last year to advise on a possible sale of the Pacific portfolio, which covers Papua New Guinea, Fiji, Samoa, Vanuatu, Tonga, and Nauru.

Hala is a journalist and an editor with experience in the news industry. She enjoys writing motivational stories aiming to inspire people to overachieve.

Telecoms

BT, Microsoft partner to enhance voice calling

Hala Turk

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London-based telecom provider BT partnered on Thursday with Microsoft to enhance enterprise voice calling, security, and industry-focused services in various sectors. 

The new agreement will allow BT to switch its global managed voice services to the cloud and deliver them directly through Microsoft Teams. 

Microsoft’s Operator Connect plan, that supports telecom operators adding their calling plans to Microsoft Teams, will help the British partner to create new business models and revenue streams. 

According to Microsoft’s blog post this deal “paves the way for the development of revolutionary new cloud-based products and services for BT’s voice customers and the wider telecoms sector.” 

As for cybersecurity part of the deal, the pair will work together to build and launch a new generation of managed security services that will enable and secure the modern collaborative workplace. 

The British provider will team up with the U.S. tech giant to create unique security propositions to protect clients’ operations in the cloud as well as its own IT infrastructure. 

“BT and Microsoft are at the forefront of innovation in global digital platforms and connectivity that will take technology and communication beyond limits,” Bas Burger, CEO of Global at BT, and executive sponsor of BT’s partnership with Microsoft said in a joint statement.  

“This partnership will ensure all of Microsoft’s solutions work ‘Best on BT’ and support both companies’ commitments to improving digital skills in the community,” Burger added. 

In parallel, Omar Abbosh, corporate vice president of industry solutions at Microsoft, considered the partnership as the “start of an exciting, shared journey of innovation and collaboration that will shape the future of telecoms.” 

Abbosh further explained that BT can use Microsoft’s cutting-edge tools to develop new communications services that meet the needs and demands of today’s customers. 

It is worth mentioning that the number of users of BT’s managed Microsoft Teams collaboration service has almost doubled during the past 12 months, according to the pair. 

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Telecoms

5G drives Chinese mobile service to rise at 3.1% in 2026

Hala Turk

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Chinese mobile service revenues are expected to grow at a compounded annual growth rate CAGR of 3.1 percent from $131.3 billion in 2021 to $152.7 billion in 2026, according to a study published on Thursday.  

London-based data analytics company, GlobalData published a study showing that the mobile data revenues will witness a rise in its CAGR reaching 6.8 percent due to the growing adoption of 5G services, followed by the rise in data Average Revenue Per Unit (ARPU). 

“5G subscriptions will surpass 4G subscriptions in 2023 and go on to account for 73.8 percent of the total mobile subscriptions share in 2026, driven by the ongoing 5G network expansion by operators and increase in the availability of 5G-enabled smartphones,” said Harika Damidi, Telecoms Analyst at GlobalData. 

In parallel, findings indicate that the average mobile data usage is expected to increase from 9.9GB per month in 2021 to around 32.6GB per month in 2026, as a result to the mounting consumption of high-bandwidth online entertainment and social media content over smartphones. 

However, data revealed that the mobile voice revenues are supposed to drop at a CAGR of 5.2 percent between 2021 and 2026, due to falling voice ARPU levels. 

Damidi explained that the increase in penetration of Internet of Things (IoT) and M2M services are also expected to drive market growth during the forecast period. 

The analyst further highlighted that two state-owned companies had led the Chinese telecom market in terms of mobile subscriptions last year.  

Damidi said that China Mobile ranked first followed by China Telecom, explaining that China Mobile “is making strategic investments in 5G base stations, data centers, industrial Internet, and IoT to ensure its leadership.” 

It is worth mentioning that, in 2020, China mobile generated a revenue of $118.8 billion, in comparison China Telecom’s $60.91 billion during the same year according to Statista.  

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Telecoms

Indian Telco Reliance Jio adds 3.5 million users in May

Hala Turk

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Indian telco Reliance Jio added 3.55 million wireless subscribers during the month of May, acquiring the highest rank in the telecom industry for four consecutive months. 

Despite the overall wireless subscriber base drop throughout that month by 6.27 million, Jio outperformed its fellow Indian telcos Bharti Airtel and Vodafone Idea. 

Both providers lost 4.61 million and 4.28 million subscribers, respectively. 

As per data shared by the Telecom Regulatory Authority of India Trai, Jio’s wireless subscriber base increased by 0.83 percent to reach 431.23 million.  

In contrast, Bharti Airtel’s base declined by 1.31 percent to 348.29 million.  

Similarly, Vodafone Idea’s wireless user base was down 1.52 percent to 277.62 million. 

In terms of wireless broadband users, Jio’s base stood at 431.23 million, followed by Airtel at 189.49 million and Vodafone Idea at 119.63 million.  

Industry experts believe the loss in user-base is mainly due to the lockdown and reverse migration to villages. 

Various states across the country were under lockdown in May to reduce the spread of the coronavirus. The decision resulted in labors heading back to their towns. 

Additionally, several workers are thought to have discontinued their mobile subscription. 

Despite these factors, Jio was able to add subscribers due to its strong offline retail network at the micro-level. Also, the company was able to sell JioPhone to a good number of customers, many of whom have come from rivals Bharti Airtel and Vodafone Idea. 

Moreover, Reliance Jio’s fiber optic project deployed in 2018, enabled it to add around 200,000 wireline broadband users. 

It is worth mentioning that the Indian telco partnered on Thursday with Oppo to field test Jio’s standalone 5G networks. 

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