Nytex

In Brief: Telefonica has second thoughts about O2 UK sale 

Telefonica may decide against selling O2 UK after all.
An unnamed source said the Spanish incumbent is still keen to pay down its debt, but now believes it will be better off holding onto to O2 than selling it.O2 UK is the country's second-largest mobile operator after EE.In the three months to 31 March, O2's mobile customer base increased to 24.93 million from 24.62 million in Q1 2015, as steady contract customer growth offset falling prepay customers. 4G customers almost doubled to 8.3 million from 4.91 million.On the financial side, O2's revenue fell to €1.75 billion from €1.85 billion a year earlier. However, lower costs meant operating income before depreciation and amortisation (OIBDA) grew to €461 million from €453 million.

*** The Pakistan Telecommunication Authority (PTA) on gave its approval to Mobilink's planned acquisition of rival Warid Telecom, subject to certain conditions.Having assessed the impact of the merger on Pakistan's mobile market, looking at pricing of services, spectrum allocations and licensing, amongst other things, the PTA said it approved the companies' request to merge.However, the onus is on the merged entity to ensure the move brings benefits to consumers.

*** Mobile operator MTN Uganda has secured a USD114 million syndicated credit facility to provide funds for further network expansion and upgrade work. The loan was arranged by Stanbic Bank Uganda, along with Citi, Standard Chartered and Barclays. MTN Uganda Chief Executive said: ‘By end of last year, MTN Uganda had repaid all the loans arranged under the 2009 syndication, and we were completely debt free. It is an ideal position to fund our continued aggressive network rollout of high speed data capacity across Uganda.’ MTN Uganda’s capital investment for 2016 is planned at UGX238 billion (USD65.1 million), with another UGX299 billion to be spent in 2017. MTN serves almost 50% of Uganda’s mobile users, with 9.62 million subscribers at the end of March 2016.

*** The evolving environment for Latin American telecom companies is straining America Movil's business model. While cutting debt and reducing capital spending will help offset pressure on its credit profile, intense competition and slower industry growth are a threat. Latin American telecom companies are adjusting to a landscape of more competitive pricing, as consumer habits shift and technology develops. America Movil is also facing some incremental challenges because regulators consider it to be a dominant company in two of its key markets - Mexico and Colombia.

•*** EU states free up 700MHz band
•Packet selects Zayo for international connectivity
•Telstra sacks chief technology officer Vish Nandlall
•Ooredoo first to launch 4G in Myanmar
•FCC establishes rules for $2bn rural broadband plan