[Appple to expand the iPhone’s global availability via Orange - the key brand of France Telecom.]
Paris — Orange today announced a new agreement with Apple to bring the iPhone to Orange customers in Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland and Orange’s African markets later this year.
[BlackBerry users can now access Windows Live Hotmail and Windows Live Messenger.]
Seattle, WA and Waterloo, Ontario — Microsoft Corp. and Research In Motion (RIM) announced an agreement to provide Microsoft Windows Live services on BlackBerry smartphones. As a result of this collaboration, BlackBerry smartphone customers will enjoy easy mobile access to Windows Live Messenger and an enhanced level of integration between Windows Live Hotmail and the BlackBerry platform.
The integration of Windows Live services into the BlackBerry platform will allow customers who use Windows Live Hotmail and Windows Live Messenger on their BlackBerry smartphone to benefit from the BlackBerry platform architecture with the ability to communicate in real-time using push technology, and offering an exceptional mobile communications experience. Customers will also be able to seamlessly access their Windows Live Hotmail and Windows Live Messenger account from their BlackBerry smartphone by simply entering their Windows Live e-mail address and password once.
“The BlackBerry platform is respected around the world for providing optimized messaging capabilities and RIM continues to look for ways to provide customers with a wide range of communications options and the best possible mobile experience,” said Mark Guibert, Vice President, Corporate Marketing at Research In Motion. “Our relationship with Microsoft and the addition of Windows Live services to BlackBerry smartphones helps us build on that strategy for our customers.”
Among other features:
Windows Live Hotmail for BlackBerry will allow customers to:
- Use BlackBerry ‘push’ technology for automatic message delivery and message synchronization so the customers’ online account is up-to-date with actions taken on their BlackBerry smartphone
- Use a dedicated inbox for Windows Live Hotmail messages, which are automatically delivered to the smartphone. Customers can also choose to receive their Windows Live Hotmail messages, along with messages from other e-mail accounts, within a single inbox on their BlackBerry smartphone
- Display HTML e-mail with the ability to view graphics, Web links, and contact photos in emails
Windows Live Messenger for BlackBerry will allow customers to:
- Send instant messages and join group chats
- Set status and see the presence of friends and colleagues within Windows Live Messenger or their contact cards
- Customize status messages
- Save conversations
- Showcase their Display Picture (Avatar)
- Send and receive pictures and files
- Use more than 60 emoticons
“Over 430 million people around the world rely on Windows Live to stay in touch,” said Brian Arbogast, Vice President of the Mobile Services organization at Microsoft. “Our collaboration with RIM will enable BlackBerry smartphone customers to take full advantage of Windows Live, whether at work or on the go.”
Windows Live services for BlackBerry smartphones are expected to be available beginning this summer with support for multiple languages. 20f5
[Opera releases version 4.1 of its browser for mobile phones that is 50% faster than the 4.0 version.]
Oslo, Norway — Today, Opera Software announced the availability of Opera Mini 4.1, the newest version of the award-winning browser that works on nearly every mobile phone. Opera Mini 4.1 revolutionizes the way people get the Web on their Mobile phone. People can now enjoy instant access to websites from any location and any device. Opera Mini is freely available from http://www.operamini.com.
Opera Mini 4.1 introduces the following new features:
- Opera Mini 4.1 is up to 50% faster than Opera Mini 4.0
- The new Opera Mini will automatically suggest URL completions, making address input easy and intuitive
- Web pages can be saved for later off-line viewing
- Opera Mini 4.1 gives you quick access to the word or phrase you want in Web pages
- Images, ringtones and other content can be downloaded without leaving Opera Mini.
“More than 44 million people from all over the world have discovered and fallen in love with Opera Mini,” says Jon von Tetzchner, CEO, Opera. “Those people are not just the users of Opera Mini, they are also the co-creators and our most valued critics of the product. We have actively talked to our community members in order to build the best Web browser for mobile phones. I strongly believe that the newest version of Opera Mini will be received with much excitement.”
“Opera Mini 4.1 is just great,” says Ramunas Monkevicius, a student from Lithuania. “I use it at school to find information on Wikipedia, on the bus to read up on the latest news, and even in bed, for blogging. Opera Mini enables me to be up to date with current events from all over the world. My favorite new feature of Opera Mini 4.1 is the ability to save websites for later reading, it really helps me at school. I can just save my Wikipedia pages and access them whenever I need to. My history grades improved drastically, thanks to Opera Mini”.
View the guided tour of Opera Mini 4.1 http://www.operamini.com/tour/ 20f7
[Dell to offer laptops featuring built-in HSPA mobile broadband modules from Ericsson.]
Ericsson and Dell have teamed up to ensure international travelers can stay connected with Dell’s next-generation laptops that will support seamless roaming on tri-band HSPA mobile broadband networks. Dell will offer built-in HSPA mobile broadband modules from Ericsson beginning in Q2 2008.
HSPA is the world’s most widely deployed mobile broadband technology, with more than 185 commercially deployed networks available around the world serving more than one billion subscribers.
“Consumers are increasingly utilizing notebooks to access the high-capacity services that they have typically experienced only through a wired or WiFi connection,” said Mats Norin, Vice President, Mobile Broadband Modules, Ericsson. “We are excited to work with Dell to give consumers and business users the freedom and flexibility to access internet in the way they want it, wherever they are.
“Dell’s model is uniquely capable of putting the technology and wireless service in customers’ hands. Teaming with Ericsson to offer built-in HSPA in our laptops ensures Dell delivers on the basic assumption that one can access critical information anytime, anywhere, with the speed and rich content that we have all come to expect,” said John Thode, Vice President Small Devices, Dell Consumer Group.
Ericsson’s mobile broadband modules provide the end user with a simple and cost effective solution for broadband access while on-the-go. Seamlessly integrated with and optimized to work within the notebook, the built-in mobile broadband module provides superior downloading and uploading performance and takes less power from the battery. The module also has a GPS receiver, to be used together with positioning applications. Leveraging Ericsson’s in-house HSPA chipset technology and the company’s economies of scale and longstanding operator relationships, Ericsson can offer a very competitive mobile broadband module solution that will help further drive a mass market for mobile broadband.
Market projections indicate that in 2011, approximately 200 million notebooks will ship annually and Ericsson anticipates that 50 percent of those notebooks will feature a built-in HSPA mobile broadband module. Users will increasingly have the option to take their broadband connections with them, delivering on the promise of full service broadband, which is anytime, anywhere access from the screen or device of choice. 20fa
[Sprint and Clearwire to merge their next-generation wireless broadband businesses to form a new wireless communications company to be named Clearwire focused on expediting the deployment of the first nationwide mobile WiMAX network.]
Kirkland, WA and Overland Park, Kan. — Clearwire Corporation and Sprint Nextel Corporation announced that they have entered into a definitive agreement to combine their next-generation wireless broadband businesses to form a new wireless communications company.
The new company, which will be named Clearwire, will be focused on expediting the deployment of the first nationwide mobile WiMAX network to provide a true mobile broadband experience for consumers, small businesses, medium and large enterprises, public safety organizations and educational institutions. The new Clearwire expects to dramatically enhance the speed and manner in which customers access all that the Internet has to offer at home, in the office and on the road.
Sprint and Clearwire also announced today that five innovative technology, content and communications leaders - Intel Corporation (NASDAQ: INTC) through Intel Capital, Google Inc. (NASDAQ: GOOG), Comcast Corporation (NASDAQ: CMSCA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Bright House Networks - have collectively agreed to invest $3.2 billion into the new company. The investment by the five strategic investors will be based on a target price of $20.00 per share of Clearwire’s common stock, subject to a post-closing adjustment. This adjustment is based upon the trading prices of new Clearwire common stock on the NASDAQ Market over 15 randomly selected trading days during the 30-trading day period ending on the 90th day after the closing date. The price per share will be based upon the volume weighted average price on such days and is subject to a cap of $23.00 per share and a floor of $17.00 per share. In addition, Trilogy Equity Partners, led by wireless veteran John Stanton, will invest directly in the new Clearwire’s common stock.
Upon completion of the proposed transaction, Sprint will own the largest stake in the new company with approximately 51 percent equity ownership on a fully diluted basis assuming an investment price of $20.00 per share. The existing Clearwire shareholders will own approximately 27 percent and the new strategic investors, as a group, will be acquiring approximately 22 percent for their investment of $3.2 billion, both on a fully diluted basis assuming an investment price of $20.00 per share.
Sprint and Clearwire also announced a series of commercial agreements with the strategic investors, including 3G and 4G wholesale agreements.
“For Sprint shareholders, this is an opportunity to unlock and bring visibility to the value of our significant spectrum assets, technology and expertise, by leveraging the technology, applications and distribution strengths of our investors, who together command nearly a half- trillion dollars in market capitalization,” said Dan Hesse, president and chief executive officer of Sprint. “We’ve made an excellent start developing XOHM WiMAX services. Contributing those advances to a strongly backed new company - in which we’ll hold the largest interest - provides Sprint with additional financial flexibility and allows Sprint management to leverage and focus on our core business.
“Additionally, the agreements allowing the new company and our cable company investors to bundle and resell Sprint’s third-generation wireless services strengthen the distribution of our current services while reducing the complexity and enhancing Sprint’s cable relationships,” Hesse added.
Clearwire Chairman Craig O. McCaw, said, “The power of the mobile Internet, which offers speed and mobility, home and away, on any device or screen, will fundamentally transform the communications landscape in our country. We believe that the new Clearwire will operate one of the fastest and most capable broadband wireless networks ever conceived, giving us the opportunity to return the U.S. to a leadership position in the global wireless industry.
Benjamin G. Wolff, chief executive officer of Clearwire, said, “The combination of robust next-generation mobile WiMAX technology and nationwide spectrum that we believe is optimal for delivering mobile broadband services - coupled with substantial new financial resources, a team of experienced wireless industry veterans, and distribution and technology agreements with some of our nation’s leading communications, technology and content companies - creates what I believe to be a once-in-a-lifetime opportunity.
“Given the complexity of this transaction, we have taken the time and effort to do it right, by thoughtfully leveraging the resources and opportunities that we and our investors are bringing to the table. This transaction is tremendous news for the entire Clearwire team - our shareholders, our customers and our employee-partners, and we look forward to partnering with the talented team from XOHM to achieve our shared vision,” Wolff added.
The strategic investors are among the nation’s leaders in communications technology, chipset development and Internet advertising, content and distribution. It is expected that the new Clearwire will have a time-to-market advantage over competitors in fourth-generation services, supported by strong spectrum holdings and a national footprint. Further, it will build on the strong foundation of Clearwire’s rapidly growing subscriber base of nearly 400,000 wireless broadband customers as of year-end 2007, as well as Sprint’s continued XOHM WiMAX network build-out in certain markets throughout this year.
“This agreement is a historic step forward for WiMAX as it represents the first nationwide deployment of a next-generation mobile broadband Internet in the U.S.,” said Paul Otellini, Intel president and CEO. “The agreement also signifies growing industry support for WiMAX. Given its flexibility, coverage and speed, WiMAX will enable the mobile Internet and is already opening doors to a host of new and exciting applications, devices and business models around the world.”
“Google is a firm believer in supporting new ways for people to access the Internet,” said Eric Schmidt, chief executive officer and chairman of Google. “We are proud to invest in the new Clearwire alongside several leading technology and communications companies, and we believe that its planned WiMAX network will increase the ability for users to get high-speed broadband anytime, anywhere.”
“This is a great coalition of innovative companies that have joined together to create the next generation of mobile wireless products. It is exciting to be on the ground floor of this new venture that we believe will create unprecedented high-speed wireless products and make them available across the nation,” said Brian L. Roberts, chairman and chief executive officer of Comcast Corporation. “This transaction is attractive to us strategically and financially and puts in place very attractive wholesale relationships for access to Sprint’s existing 3G and Clearwire’s 4G networks, giving us complete flexibility to introduce wireless mobility in terms of product innovation and deployment.”
“This exciting new venture enables Time Warner Cable to help shape the next generation of wireless services in ways that will complement and enhance our products and services,” said Glenn Britt, Time Warner Cable’s president and chief executive officer. “We’re committed to giving our customers more control over how and where they can easily connect to what’s important to them - entertainment, information, and each other. The agreements we’re announcing today are a financially prudent way for us to add mobility to our offerings when our customers demand it.”
“We are pleased to join our fellow cable operators as well as the new technology and wireless investors in this strategic venture. This broadband wireless relationship will help us to continue to provide the best possible competitive services for our customers, today and in the future. It is consistent with our commitment to delivering customers the products and services that they desire, whenever and wherever they want,” said Robert J. Miron, chairman and chief executive officer of Bright House Networks.
The new Clearwire expects to offer mobile wireless Internet services on a broad array of new devices that will be made possible by integrated WiMAX chipsets, scalable operating expenses and a commitment to an open architecture.
Mobile WiMAX is a standards-based wireless broadband technology designed to operate multiple times faster than today’s 3G wireless networks. With embedded WiMAX chipsets in laptops, phones, PDAs, mobile Internet devices and consumer electronic equipment, mobile WiMAX technology is expected to allow users to wirelessly access a range of multimedia applications, such as live videoconferencing, recorded video, games, large data files and more - anywhere in the network coverage area.
The transaction has been approved by all of the parties’ boards of directors, and is expected to be completed during the fourth quarter of 2008. The transaction is subject to various closing conditions including, but not limited to, the approval of Clearwire’s stockholders, and receipt of regulatory approvals, including the approval of the Federal Communications Commission and clearance under the Hart-Scott-Rodino Act. 20fe
[VZ Navigator Version 4 location-based service is now available. New version offers real-time traffic information in 75 cities, 3D mapping, a movie and events finder, weather, and gas prices at nearby gas stations.]
Basking Ridge, NJ — Verizon Wireless announced today that VZ Navigator(SM) (Version 4) is now available on select consumer phones. First announced during CTIA WIRELESS 2008, the newest version of VZ Navigator allows customers in 75 cities from coast to coast to access information about traffic incidents on major roadways, obtain traffic updates and find detours around traffic congestion and accidents. More cities are expected to be added in the coming year. In addition, the new version of VZ Navigator offers a 3D perspective view of maps, a movie and events finder, weather reports and forecasts, and gas prices at nearby gas stations.
Verizon Wireless’ VZ Navigator service is a location-based service (LBS) application that utilizes location-based technology and real-time and historical information feeds. The new version of VZ Navigator offers customers the following features:
– Traffic Integration — Customers in 75 cities can access routes that are calculated using both historical and real-time reported traffic information. Historical information allows customers to see on average whether the traffic is impacted by traffic lights, heavy traffic or school zones. Incident and flow information tells customers how traffic is flowing and includes details about reported accidents, disabled vehicles and congestion. VZ Navigator’s historical data covers over 750,000 miles of roads in 48 states. The traffic tracking center continually monitors conditions along the customers’ routes, sending proactive alerts to drivers about conditions ahead of them on their chosen routes. Detour options allow users to compare estimated times of arrival and conditions before selecting a new route.
– Local Movies and Events — Customers can now search for show times, critics’ ratings and other details for movies, concerts, plays, sporting events, and other social events based on the physical location of their phones.
– 3D Perspective View — Enhances navigation by displaying maps from angles customers would see through car windshields, making it easier to visualize turn-by-turn directions.
– Gas Finder — Provides customers with information on the location of gas stations close to their physical locations and even provides gas prices as reported by many gas stations in the area. Once a customer selects a station, VZ Navigator can also provide turn-by-turn directions to the selected gas station.
– Weather — Provides current weather conditions and forecasts based on the physical location of the customer’s phone without manually inputting an address.
Lee Daniels, vice president of consumer product development for Verizon Wireless, said, “With the new features of VZ Navigator, Verizon Wireless customers now have a powerful navigation device that not only gives them directions but also provides the latest traffic information and more. The expanded services on VZ Navigator are another example of how we provide our customers with a great value for their wireless dollar — on the most reliable wireless network in the country.”
Pricing and Availability
VZ Navigator (Version 4) is available today for $9.99 for unlimited monthly access or $2.99 for one-day use on select Get It Now-enabled phones in the Get Going section under Travel & Guides or Featured Apps. Airtime or megabyte charges and specific terms of use apply when browsing, downloading and using the application. Traffic integration is only available in certain areas.
Verizon Wireless customers who currently have a subscription to VZ Navigator can upgrade on select phones by simply selecting Options from the main screen of VZ Navigator then selecting Check for Updates. At launch, the following phones are able to access VZ Navigator (Version 4): G’zOne Type-V and G’zOne Type-S; Kyocera K323; The V(TM), enV(2)(TM), envy(TM) Chocolate, Venus(TM), and Voyager(TM) by LG, LG VX5300, LG VX5400, LG VX8300, LG VX8350, LG VX8600, LG VX8700, and LG VX9400; Nokia 6205 and Nokia 2605; MOTOKRZR(TM) K1m, MOTORAZR(TM) maxx Ve, MOTORAZR(2) V9m, MOTORAZR(TM) V3c, MOTORAZR(TM) V3m, MOTOSLVR L7c, MOTO(TM) Z6c world edition, and Motorola W385; and Alias(TM) by Samsung, Verizon Wireless Juke by Samsung, Samsung SCH-a930, Samsung SCH-a990, Samsung SCH-u410, Samsung SCH-u540, and Samsung SCH-u620. 2101
[RIM’s BlackBerry Curve 8330 smartphone - the smallest and lightest full-QWERTY BlackBerry - is now available through Verizon Wireless.]
Basking Ridge, NJ — Verizon Wireless announced today that the highly anticipated BlackBerry Curve(TM) 8330 smartphone from Research In Motion (RIM) is now available through Verizon Wireless’ online store and through business sales channels. This sophisticated, silver smartphone will be available in Verizon Wireless Communications Stores, including those in Circuit City, on May 12.
The BlackBerry Curve is the smallest and lightest full-QWERTY BlackBerry smartphone and is packed with rich multimedia capabilities and services, allowing customers to stay connected to work, family and friends while on-the-go. The BlackBerry Curve 8330 smartphone also includes the following capabilities and key features:
* BlackBerry Internet Service - access up to 10 supported POP3 and IMAP personal and corporate e-mail accounts, including most popular ISP e-mail accounts
* BlackBerry Professional Software for small businesses and BlackBerry Enterprise Server for enterprise deployments - advanced security and IT administration within IBM Lotus Domino, Microsoft Exchange and Novell GroupWise environments
* VZ Navigator(SM) - get visual and audible directions to a destination, locate businesses and other places in an area, get a map of a location, bookmark favorite spots and recent searches, and even share locations with others. Customers will be able to upgrade to the new VZ Navigator (Version 4) in the coming weeks, which will provide traffic updates, information on traffic incidents and detours around traffic congestion and accidents in 75 cities from coast to coast
* Small and light design that is easy to handle and use; measures 4.2″ x 2.4″ x 0.6″ and weighs only 4 ounces
* Large, vibrant 320 x 240 display, with light sensing technology that automatically adjusts brightness for optimal viewing in outdoor, indoor and dark environments
* Responsive, highly-tactile full-QWERTY keyboard and RIM’s intuitive trackball navigation system
* Premium phone features including: noise cancellation technology to offset background noise; Speaker Independent Voice Recognition (SIVR) for Voice Activated Dialing (VAD); dedicated “send,” “end” and “mute” keys; and low-distortion speakerphone
* Bluetooth 2.0, with support for hands-free headsets, stereo headsets (Bluetooth stereo audio profile A2DP/AVRCP), car kits and other Bluetooth accessories
* 2.0 megapixel camera with support for video recording, a self-portrait mirror, enhanced flash and 5x zoom (microSD(TM) memory card required for video recording, sold separately)
* Easy access to the popular Facebook for BlackBerry Smartphones application
* 3.5 mm stereo headphone jack and dedicated volume controls
* Advanced media player and enhanced desktop media manager software that makes it easy to move media files between a PC and the BlackBerry Curve 8330 smartphone via High Speed USB 2.0 - USB Data Cable comes in-box
* microSD/SDHC memory card slot, providing plenty of additional storage (cards up to 8 GB are currently available)
* HTML Web browser delivers a fast, rich browsing experience and supports streaming video from sites like m.youtube.com (3GPP RTSP streaming protocol over EV-DO)
* Removable, rechargeable battery, rated for up to 260 minutes of talk time and up to 11 days of standby time
* In-box accessories include: a stereo headset, USB cable, travel charger and premium tote sleeve
The BlackBerry Curve 8330 smartphone is available for $169.99 after a $50 mail-in rebate with a new two-year customer agreement. An additional $100 credit toward the purchase of the handset is available for customers who sign up for qualifying voice and data plans at the time of purchase. Customers who purchase a Verizon Wireless Nationwide voice plan can also subscribe to the E-Mail and Web for BlackBerry plan for an additional $29.99 per month while those opting for a data-only plan can pay $34.99 per month for unlimited e-mail and access to the Internet via BlackBerry Internet Service. 2101
[Austria’s ‘mobilkom’ has demonstrated the world’s fastest mobile data call using Nokia Siemens I-HSPA solution - speeds on the downlink reached up to 10.1 Mbps.]
Vienna, Austria — Testing the capabilities of the new flat network architecture, mobilkom austria has demonstrated the world’s fastest data call with a mobile device using the pioneering Internet High Speed Packet Access (I-HSPA) solution from Nokia Siemens Networks. During the trial, the data transmission downlink speed reached up to 10.1 Mbps.
The I-HSPA trial with mobilkom austria, the country’s leading mobile operator, marks another milestone for Nokia Siemens Networks in enabling top-quality 3G mobile multimedia and data services to a rapidly growing number of users in a cost-efficient manner. The I-HSPA functionality is designed for heavy data and rich multimedia usage over the wireless network. Thanks to its simplified flat architecture, the network is ready to offer the end user a full mobility of data services, improved multimedia, gaming, web browsing and email service experience. In near future, I-HSPA will be capable for data transmission rates over 10.1 Mbps.
The innovative solution also complies with the future network technology known as Long Term Evolution (LTE), supporting data rates of up to 173 Mbps. In addition to the world’s fastest I-HSPA call, Nokia Siemens Networks also demonstrated its LTE solution for the first time in Austria.
“These new technologies will offer higher data transmission rates to our customers, making it easy to use broadband multimedia services while shortening the latency rates. For us as a network operator, these technologies, with their flat architecture, offer the possibility to expand our network with more slender investments,” said Boris Nemsic, CEO mobilkom austria und CEO Telekom Austria Group. “The evolution from GPRS via UMTS and HSPA towards LTE is a consequent line in our complementary network strategy.”
Being the leading provider of mobile broadband solutions, Nokia Siemens Networks also is the driver of the related standardization processes, like 3GPP (3rd Generation Partnership Program) standard that provides specifications for the third generation (3G) mobile phone system.
“It is exciting to demonstrate our I-HSPA capabilities together with our partner mobilkom austria, who always has been a network operator living the technological leadership claim. I am proud to be able to prove that the future technologies are within our reach here today with the worldwide fastest I-HSPA call,” said Dietmar Appeltauer, in charge of Nokia Siemens Networks business in Central Eastern Europe.
I-HSPA innovation by Nokia Siemens Networks introduces a flat network architecture to the 3G networks based on Wideband Code Division Multiple Access (WCDMA) technology by connecting the base station directly to the Internet and enables cost-efficient scaling of the network. It works with all HSPA devices and improves end user experience by reducing latency. I-HSPA flat network architecture also enables smooth migration to LTE. 20fe
[Best Buy to buy 50 percent of Carphone Warehouse forming new joint company.]
London — The Carphone Warehouse Group PLC (”The Carphone Warehouse”) and Best Buy Co., Inc. have agreed to form a new venture to accelerate their growth by capitalising on the European consumer’s evolving appetite for consumer electronics. The assets of the newly-formed company will comprise The Carphone Warehouse’s existing retail business, operating from more than 2,400 stores in nine European countries under the Carphone Warehouse and Phone House brands; and The Carphone Warehouse’s share of its existing relationships with Best Buy.
Best Buy is a world-leading consumer electronics retailer, with fiscal 2008 revenues of $40 billion, operating income of $2.2 billion, 150,000 employees and 1,314 stores providing over 48 million square feet of sales space in the United States, Canada and China. Best Buy plans to acquire a 50% stake in the new company for a cash consideration of BPS 1.1 billion, or $2.1 billion.
Consumer electronics has been the fastest-growing category in European retail over the past five years and represents an estimated market of approximately $175 billion. The two companies expect growth in consumer electronics to be led by the convergence in entertainment, computing and communications.
Best Buy and The Carphone Warehouse expect wireless information provision, mobility and broadband to create significant new consumer and business opportunities. Demonstrating, advising on, configuring and connecting these services will be key to success in this new market. The two companies believe that the customer focus and passion for impartial advice that they share will be crucial elements of the new venture, and give it the potential to build a substantial presence in European larger format consumer electronics retailing.
On completion of the transaction, The Carphone Warehouse and Best Buy will each own 50% of the retail business, comprising all the 2,400 stores, the web and direct businesses, the insurance operations, and its airtime reselling businesses. The Carphone Warehouse continues to own 100% of its fixed line telecoms business in the U.K., comprising TalkTalk, AOL Broadband and Opal; and its share of the Virgin Mobile France joint venture. Best Buy continues to hold its 2.9% stake in The Carphone Warehouse.
The Carphone Warehouse plans to use the proceeds of the transaction to repay existing debt, to invest in broadband customer growth and infrastructure, and to invest in new areas of growth presented by the transaction.
The transaction is subject to the approval of The Carphone Warehouse’s shareholders. The directors of The Carphone Warehouse have unanimously agreed to vote in favour of the resolution to approve the transaction at the extraordinary general meeting scheduled to take place by early August.
The purpose of the new venture is three-fold. Specifically, the new company plans:
* To continue to grow The Carphone Warehouse’s existing retail business through further physical expansion in its existing European markets, the acceleration of the current evolution towards mobile and fixed line connectivity, growth in private-label products, and the realisation of benefits from joint purchasing, joint sourcing and merchandising optimization;
* To build a significant market share in consumer electronics retailing in Europe, through the roll-out of Best Buy stores, services and websites in selected markets, beginning in calendar 2009; and
* To bring to Best Buy’s core North American operations The Carphone Warehouse’s expertise in sourcing mobility products, bundling services and operating smaller stores, thereby enhancing and diversifying Best Buy’s skill set for improving its customer experience.
The new venture would also benefit from a long-term commercial agreement with The Carphone Warehouse’s fixed line division in the U.K., enabling it to create attractive offerings through the extension of the subsidised hardware model from mobile to fixed line.
Charles Dunstone, CEO of The Carphone Warehouse, said, “Today’s announcement marks the next big step in The Carphone Warehouse’s growth story. We have built The Carphone Warehouse by anticipating consumers’ changing needs and adapting in advance to meet them. Our core principles of full range, impartial advice and best value have underpinned the creation of our leading position in mobile retailing. Our approach to fixed line telecoms and our subsequent launch of free broadband followed these principles by championing choice and value for customers in a traditionally uncompetitive marketplace. Each of these businesses in its own way has changed the market it serves, and each has benefited shareholders as well as customers.
“We have been working closely with Best Buy for nearly two years,” Dunstone continued, “and it is clear that we have very complementary cultures, skills and assets - it’s a perfect match. It is also clear that we have a significant opportunity for incremental growth in our retail business which we can best realise with Best Buy on board. Best Buy brings demonstrable expertise in merchandising, sourcing and customer service: that should help us accelerate the evolution of our business towards the broader connectivity market. We bring local knowledge, infrastructure and the expertise in linking services to product: that should help them push into larger format consumer electronics retailing in Europe.”
Roger Taylor, CFO of The Carphone Warehouse, said, “We are joining forces with a leader in consumer electronics retailing to enter a major new market together. Best Buy’s track record of value creation speaks for itself. In addition, the proceeds from the transaction give us the power and flexibility to maximise the value of our fixed line business and enhance its scale and profitability. Our employees, customers and suppliers all stand to benefit from the increased opportunities that the venture brings - as do our shareholders. We welcome our expanded relationship and are very excited about its future growth prospects.”
“Both companies could have pursued their goals individually,” said Brad Anderson, Vice Chairman and CEO of Best Buy. “However, we believe that we can collapse time, increase our success with consumers and create more shareholder value for both companies by pursuing our goals together. The Carphone Warehouse offers complementary capabilities as well as local customer insights, and has a similar passion for the customer and employee experience.”
Bob Willett, CEO - Best Buy International and Chief Information Officer, said, “We’ve been successful with our business model and aspire to apply that model to one of the largest markets in the world. Yet we must do so carefully and with humility. We have seen great companies fail because they thought they could simply export their current business model to new geographies. We intend to plan our European entry strategy carefully, focused on customer needs, and with on-the-ground help from our trusted partner, The Carphone Warehouse.”
“We have been sharing experiences with The Carphone Warehouse for four years and working closely with them for the last two,” said Brian Dunn, President and Chief Operating Officer of Best Buy. “Both companies focus on anticipating and meeting the changing needs of customers. Our cultures are similar, and we share a mutual trust and common values. We believe our combined expertise has potential to result in significant financial upside as we together attempt to transform retail in Europe through the Carphone Warehouse, Phone House and Best Buy brands. Consumers” needs, both explicit and latent, are dramatically changing, and we want to capitalize on those. We also intend to make the substantial capabilities of Best Buy fully available to the new venture to ensure its successful growth.”
Best Buy Mobile, which Best Buy developed through its relationship with The Carphone Warehouse, offers its U.S. customers twice the assortment of mobile phones previously offered in Best Buy stores, and has been producing higher customer satisfaction scores (as compared with stores without the Best Buy Mobile experience). The new concept is being introduced into all of Best Buy’s stores in the United States during calendar 2008. The two companies also have been collaborating to bring Geek Squad, a 24-hour computer support task force, to European markets.
Details of the Transaction
The Carphone Warehouse is proposing to contribute its retail business (which includes all retail stores, its mobile airtime reselling operations, and its insurance operations) into the new venture in return for a 50% stake in the new company and total cash consideration of BPS 1.088 billion ($2.142 billion), payable by Best Buy on completion. The transaction includes The Carphone Warehouse’s economic interests in Best Buy Mobile in the United States, as well as the Geek Squad in the U.K. and Spain. The transaction excludes The Carphone Warehouse’s U.K. fixed line operations, its share in Virgin Mobile France and its major freehold properties.
The Carphone Warehouse’s retail business generated EBITDA of BPS 263 million ($518 million) and an operating profit of BPS 177 million ($349 million) on revenues of BPS 2.9 billion ($5.7 billion) in the year ended March 2007, as reported under International Financial Reporting Standards. Details of the gross assets that are the subject of the transaction, and the audited financial results for the year to March 2008, will be included in the circular to be sent to shareholders in due course.
It is proposed that The Carphone Warehouse’s existing European retail management team will remain responsible for the day-to-day management of the new venture. In due course, the team will be supplemented by additional personnel from Best Buy as the development of the Best Buy stores and websites gathers pace. Bob Willett is expected to be chairman of the new venture, and Roger Taylor, The Carphone Warehouse’s Group CFO, is anticipated to be CEO in addition to retaining his existing duties. The business is to be overseen by a board comprising equal numbers of Best Buy and The Carphone Warehouse executives, including Charles Dunstone, Group CEO of The Carphone Warehouse.
In summary, both companies believe that the transaction provides the right platform for The Carphone Warehouse to expand its business model into new areas outside its current expertise, and for Best Buy to launch consumer electronics stores in Europe. The companies estimate the size of the European market for consumer electronics at BPS 89 billion ($175 billion), and believe that no other European retailer offers the type of shopping experience the new venture intends to provide for consumers. While The Carphone Warehouse could continue to expand and evolve its core proposition on a standalone basis, and similarly Best Buy could make a “greenfield” entry on its own into the European consumer electronics market, both parties believe that the opportunities presented by the changing marketplace can be taken more quickly, more successfully and more cost-effectively by combining their diverse skills and resources.
The transaction is conditional on the passing of an ordinary resolution approving the transaction by The Carphone Warehouse shareholders at its extraordinary general meeting, which is expected to take place by early August 2008. It is also conditional on receipt of approval of the change in corporate controller from the Financial Services Authority, and on The Carphone Warehouse completing the reorganisation of its corporate structure to create a new holding company for its retail assets.
The transaction is expected to close during Best Buy’s fiscal second quarter, which concludes on 30 August 2008.
Financial Effects on The Carphone Warehouse
Gross cash consideration of approximately BPS 1.1 billion ($2.1 billion) is payable by Best Buy to The Carphone Warehouse on completion of the transaction. Although on a standalone basis the transaction will be dilutive to The Carphone Warehouse’s earnings per share by approximately 10-15% in the year to March 2009, The Carphone Warehouse board believes that the incremental opportunities for growth and value creation resulting from the transaction significantly enhance the long-term prospects for the distribution business and the group as a whole.
The Carphone Warehouse expects to use the consideration received from Best Buy as follows:
* To repay debt at the Group level;
* To invest further in its next generation telecoms network in the UK, to widen its physical footprint and build additional capacity and resilience;
* To continue to grow its fixed line customer base, both organically and through acquisition, should appropriate opportunities arise; and
* To invest in new growth opportunities presented by the transaction.
Financial Effects on Best Buy
Best Buy’s BPS 1.1 billion ($2.1 billion) acquisition of a 50% share in the new venture is expected to be funded through a combination of cash on hand, existing bank lines and other new borrowing. At the end of its fiscal 2008, Best Buy had cash and cash equivalents and short-term investments of $1.5 billion. As a result of this investment, Best Buy does not expect to repurchase shares under its existing share repurchase program in fiscal 2009. Best Buy previously had disclosed that its fiscal 2009 earnings guidance included an assumption of $800 million in share repurchases.
Best Buy is expected to consolidate the financials of the new venture following the close of the transaction. For Best Buy, this transaction is expected to add approximately $5 billion to fiscal 2009 revenue. In combination with the negative impact of the reduction in its share repurchases, the transaction is expected to be accretive by $0.05 to $0.07 to its fiscal 2009 diluted earnings per share.
Best Buy anticipates that this venture will provide another significant profit growth opportunity, enhancing its innovation capabilities, and further diversifying its business. Other key benefits of the investment for Best Buy include the addition of a well respected management team with a successful track record; and purchasing synergies.
Anderson added, “We believe that successful companies create partnerships and networks to maximize growth. This is a great addition to each of our networks of skills and capabilities.”
Shareholder Approval
A circular setting out full terms of the transaction is expected to be posted to The Carphone Warehouse shareholders by 13 June 2008, together with a notice convening an extraordinary general meeting to approve the transaction.
This transaction does not require the approval of Best Buy’s shareholders.
Investor Presentation
An overview of the transaction and key strategic highlights will be presented to investors and analysts at 2.30 p.m. London time or 9:30 a.m. eastern time today at Altitude, 29th Floor, Millbank Tower, 21-24 Millbank, London SW1P 4QP.
[The Samsung Glide is now avaiable through Verizon Wireless and features a 2.8″ touch-screen offering tactile response and a slide-out QWERTY keyboard.]
Basking Ridge, NJ and Dallas — Verizon Wireless and Samsung Telecommunications America (Samsung Mobile) announced that the Samsung Glyde(TM) will be available on May 9, 2008, online at www.verizonwireless.com and in more than 2,400 Verizon Wireless Communications Stores from coast to coast, including those in Circuit City. The Glyde is a powerful and sleek multimedia and messaging phone that boasts a robust feature-set packaged in a compact, touch-screen device with a full QWERTY keyboard.
The Glyde features a 2.8″ advanced touch-screen that offers a tactile response and a slide-out QWERTY keyboard that provides customers with an easy way to send text and instant messages. This multimedia device comes equipped with a full lineup of Verizon Wireless hottest services including V CAST Music and Video. With V CAST Music, customers have access to more than 3 million songs from well-known and independent artists that can be purchased and downloaded directly over-the-air to the Glyde. V CAST Video gives customers access to content from the best names in news, sports and entertainment.
Other features include a 2.0 megapixel camera with flash, microSD card slot, which supports up to 8 GB of external memory, and Bluetooth stereo headset support.
Additional features of the Glyde include:
* HTML browser with touch navigation
* Get It Now - download games, ringtones, wallpapers, location-based services and more
* 2.0 megapixel camera and camcorder with flash and zoom: - Brightness adjustment, - Self-time: Off, three, five or 10 seconds, - Color effects: Normal, black and white, sketch, antique, negative, green, aqua, - Multi-shot Mode: Series, divided, - Resolution Adjustment: 1600 x 1200, 1280 x 960, 1024 x 768, 640 x 480, 320 x 240, 176 x 144
* VZ Navigator(SM) capability - get visual and audible directions to thousands of destinations, locate businesses and other points of interest, get maps of a location, and share directions with others
* Music Player for .mp3, .wma, and unprotected .aac and .aac + files
* Bluetooth - supports headset, hands-free car kits, serial port, dial-up networking, advanced audio distribution (stereo), phone book access, object push for vCard, basic imaging for sending/printing non-protected images to a compatible device and basic print
* Text, picture and video messaging
* Instant Messaging using AIM, MSN, Yahoo!
* Speakerphone
* Speed dialing
* Dimensions: 4.09″ x 1.97″ x .7″ (standard battery)
* Weight: 4.13 ounces (with standard battery)
* Display: 240 x 440 pixel, 262K TFT, 2.8″ active screen area
* Bilingual user interface: English and Spanish
* TTY/TTD-capable
* Hearing Aid Compatibility = M4
* Personal organizer with calendar, calculator, notepad, currency converter, alarm clock, world time and stop watch
* Phone book with up to 500 entries with multiple contacts
* Usage time: Up to 210 minutes with standard battery or up to 250 hours with standard battery for standby time
* 2.5 mm headset jack
The Glyde will be available for $249.99 after a $50 mail-in rebate with a new two-year customer agreement. 2101
