Fixed operator strategies - 25/08/06

Interoute (pan-European fixed backbone) is buying Telecom Partner Network (TPN) in Bulgaria. TPN has a national MPLS network.

Local loop unbundling (LLU) in France is beginning to have an impact on the market. After Neuf Telecom in early summer, Iliad is launching a flat-rate product, offering customers telephony and broadband internet services for a flat fee of €30 per month. In both cases, line rental (to be paid to FT) is included in the package.

FT is still reluctant to open its future fiber optic FTTx to its competitors, in spite of injonction from French telecom regulator, French Finance Minister and pending EU decision (see German case).

BT is banking on its BT Vision, a new service focused on IPTV to be launched this fall. BT/ Informa forecast to grab some 1.4m households by 2011. For BT it is a way to retain customers when competitors have slashed broadband services prices.

VSNL (India) will build two undersea cable systems: one between India and Europe and a second intra-Asia between Singapore, Hong Kong and Japan. The combined cost of the two systems is worth about $600m.

Telmex (Mexico) has bought Colombian cable system operator Superview Telecomunicacoes for $40m.

Finland's telecoms regulator, FICORA, has granted wireless broadband WiMAX licenses to 29 companies in Finland over 2006.

Belgacom sells its 6% stake in Neuf Telecom to SFR (France) for €187m.