Residents of Yellowknife, Whitehorse and Inuvik are unfamiliar with the concept of choice in telecoms. While most Canadians witnessed the demise of the old-fashioned monopoly system about 15 years ago, those in the vast territories reached via the 867 area code have had to make do with a sole provider in the shape of NorthwesTel, a subsidiary of BCE.
Until now, that is. The launch of a new local phone service was this week announced by Iristel (Markham, Canada), promising consumers and businesses significantly lower fees than they currently pay, with no need to change numbers.
Clearwire Corp agreed to sell a roughly 50 percent stake for $2.2 billion to majority shareholder Sprint Nextel Corp, which would then have full ownership of spectrum that will help it offer high-speed wireless services.
The $2.97-per-share deal is only 7 cents per share higher than a bid many minority shareholders said was too low days before. Clearwire (Bellevue, USA) shares slid 9.8 percent to $3.04 in premarket trading.
Japan’s Softbank says its board has approved the signing of a bridge loan contract for up to JPY1.65 trillion ($19.7 billion), which the company plans to use to fund its purchase of a controlling stake in US operator Sprint.
Softbank (Tokyo, Japan), Japan’s third-largest mobile-phone operator, announced plans to buy 70% of Sprint back in October for a fee of approximately $20 billion.
The deal would mark the largest foreign acquisition by a Japanese company of all time.
Franco-American equipment maker Alcatel-Lucent has struck a deal with Qtel to build a high-speed, fibre-based network in Tunisia, as the Qatari incumbent prepares to enter the North African country’s fixed-line market.
In a statement, Alcatel-Lucent (Paris, France) said it had signed a four-year agreement with Tunisiana – a Qtel (Doha, Qatar) subsidiary that currently provides mobile-phone services in Tunisia – to build a fixed-line network that will support voice, high-speed broadband and video services for residential and business customers.
Sprint Nextel Corp's $2.1 billion offer to buy out Clearwire Corp appeared to be running into trouble on Thursday, as some shareholders said they wanted more money while Softbank Corp set a cap on how much Sprint could pay.
Sprint (Overland Park, USA), which owns 50.45 percent of Clearwire (Bellevue, USA), offered $2.90 per share for the rest of the company and said it would also provide interim financing of $800 million to the cash-strapped company. Any deal would need approval by Softbank (Tokyo, Japan), which has agreed to buy 70 percent of Sprint for about $20 billion.
Sprint Nextel Corp, the majority owner of Clearwire Corp, has offered $2.1 billion to buy the rest of the wireless service provider but it will likely have to offer more money in order to secure a deal.
Clearwire (Bellevue, USA), which said it is reviewing the offer, saw its share jump more than 11 percent to $3.06 after the offer, topping Sprint's $2.90 offer price and suggesting that shareholders were hoping for a higher bid.
Sprint is in talks with Clearwire to acquire the 49% of the ailing mobile broadband operator it does not already own, according to CNBC.
Citing sources close to the matter, CNBC reports that the two companies are involved in “active negotiations” and could strike an agreement before the end of the year.
Redbox kiosks owner Coinstar Inc
The companies are set to launch their Redbox Instant video streaming service more than ten months after they first inked a joint venture.
Coinstar (Bellevue, USA) shares were up 3 percent at $52.50 on the Nasdaq on Wednesday morning. While Netflix (Los Gatos, USA) shares were down marginally at $86.24.
Chinese equipment maker Huawei continues to make inroads into territory previously held by its western rivals, having just signed an important managed-services deal with 3UK, the small UK operator owned by Hutchison Whampoa (Hong Kong).
The arrangement will see Huawei (Shenzhen, China) handling service management and operations for 3UK’s core network, transport network and ICT applications.
It has chosen India’s Tech Mahindra (Pune, India) as a partner for the work on ICT applications.
Deutsche Telekom hopes major investments in Germany and the United States and a long-awaited iPhone deal will turn around its fortunes, compensating for the dividend cut it plans to pay for them.
The company said it would increase investments by more than an annual 1 billion euros ($1.3 billion) to 9.5 billion euros in 2015 from an estimated 8.3 billion euros this year, rolling out faster broadband and next generation 4G networks, as it cut its dividend by almost 30 percent.