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Vimpelcom moves forward with $6 billion Wind Mobile merger, intends to hurdle regulatory snags
If you thought Verizon Wireless and Alltel's marriage underwent a good bit of scrutiny, you'll soon be swearing that Vimpelcom and Wind Mobile are on some sort of global watch list. The Amsterdam-based Vimpelcom has taken a giant leap towards the completion of a $6 billion merger with Wind Telecom, the latter of which has around 117 million subscribers spread across Algeria, Bangladesh, Egypt, Pakistan, North Korea and Canada. If and when the two link hands, the combined effort will be home to a staggering 173 million customers, creating the fifth largest mobile operator by subscriber count. Wind Mobile's head honcho seems more than enthused about the news, and he's hoping that the tie-up will allow prices to sink for just about everyone involved. Claiming feats such as "more access to international cooperation for roaming and long distance services" and the ability to utilize "more leverage and increased scale" to drive down prices, Anthony Lacavera isn't showing any public signs of worry when it comes to regulatory hurdles. In months past, the CRTC took issue with Globalive Wireless -- operator of Wind Mobile -- starting up in Canada, primarily due to the company's largest lender (Orascom) residing outside of the Great White North. As of now, things seem to be sailing right along, but you can bet this marriage won't be formally recognized before a borderline-obnoxious amount of investigating goes down behind the scenes. [Thanks, Kelvin]
Reversed decision enables Globalive to enter Canada's cellphone market 'immediately'
Tired of being badgered by your contemporaries over in the Northwest Angle about having to deal with those silly "three-year contracts?" Buck up, 'cause a new player has just been cleared to go head-to-head with the likes of Telus, Bell and Rogers in the Great White North. In a surprising reversal of an October CRTC ruling, the federal government in Canada has cleared Globalive to begin operations as a wireless cellphone operator in the country. The most amazing part? No changes are required in the outfit's debt structure or ownership hierarchy. You see, Canada generally requires that its wireless carriers be Canadian-owned, but as it stands, the majority shareholder in Globalive is Egypt's Orascom. Whatever the reasoning, we're just stoked to hear that the company can kick open the doors "effective immediately," and we're hoping to hear that it's doing just that in short order. [Thanks, Martin] Update: Whoa, that was quick! Looks like WIND (the brand this will all fall under) already has a site ready to rock. No sales or anything yet, but it looks like they won't be taking this reversal of fortunes lightly. Thanks, Leon!
CRTC blocks Canada's WIND from launching over ownership concerns
Globalive, which has recently been ramping up to launch a national Canadian phone service under the WIND brand using spectrum won in last year's auction, has been dealt a hell of a blow by the CRTC this week. The organization -- essentially the northern equivalent of the FCC -- has strict rules demanding that Canadian wireless networks be Canadian-owned, and an investigation of WIND's structure has apparently raised enough concern to cause it to call off the service's launch. Egypt's Orascom Telecom (which, strangely, also runs North Korea's Koryolink) owns some 65.1 percent of the operation and apparently "holds the overwhelming majority of the outstanding debt" for which Globalive is responsible, so yeah, we can see how that might not qualify as "Canadian-owned." For its part, Globalive says that it's "extremely disappointed" in the decision and "will be evaluating [its] options on how to proceed," but in all likelihood, that's going to have to mean cashing out a good chunk of Orascom if it's serious about making this happen. [Thanks to everyone who sent this in] Read - CRTC decision Read - WIND response
North Koreans love their spotty cellphone service
It's been nary a year since the Democratic People's Republic of Korea (aka "the North") got its very own 3G network, and now the Daily NK is reporting that -- no surprise -- cellphone use has taken the capital by storm. "Demand for mobile phones has been increasing" said one source. "Almost 30 percent of Pyongyang citizens seem to be using them." Still, this is the same country that refers to Kim Jong-Il as "Dear Leader," so while things are certainly looking up for Pyongyangites, there are any number of restrictions. For instance, not just anybody with disposable income can pick up one of these things -- the devices are still off-limits to cadres in the Central Committee of the Party and foreigners. In addition, using two phones simultaneously is illegal, as well as using a phone in someone else's name. And you thought the T-Mobile store was a pain in the ass? When an individual or a group of workers buy a phone, they must get a stamp from their home village, and then submit an application to the Communications Center -- all this for the privilege of having the government listen to their phone calls. There is no word on what phone / phones are available, but we do know that one will cost you between $90 and $120. Charges are reportedly ₩3,000 (around $20) a month for eight hours of talk time, with an additional €15 (also around $20) surcharge if you go over. Service is currently only available in Pyongyang and Sariwon, but apparently the service in Sariwon "kinda sucks." So really, service is only available in Pyongyang. And you know what? If you're reading this, you're probably not in Pyongyang.
North Korea to allow limited access to "the internet" on cellphones
Looks like North Korea -- a place not known for its liberal attitudes toward communication of information -- may slowly be taking another baby step toward the 21st century. The country, which only began allowing limited access to cell phones last December, has announced that now, limited access to the internet will be available on mobiles as well. Apparently about 20,000 of North Korea's estimated 23 million citizens now have cell phones, and though there is scant detail about what the internet access will constitute, an estimated 400 million dollars was spent to construct the 3G network in the country. So while there's no real bright side to the story, at least those lucky few who can look at Kim Jong Il's official website will have a decent connection.
North Korea gets 3G
Around these parts, mention "3G" and you'll get an earful of the latest speculation on just when Apple's retooled iPhone will be making its first official appearance. Mention the same in North Korea, though, and you're likely to get some curious glances. Until just a few months ago, the simple act of making a mobile call within the nation's borders was a crime punishable by public execution. Via hanging. Seriously. With the ban dropped, Orascom Telecom, the only such company to be allowed to open up shop there, has completed its first 3G call. The Egyptian-based carrier is still setting up its nation-wide network, with hopes of going live coast-to-coast by the end of the year. Take that, China.[Via IntoMobile]
