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Here is your Daily Update for:
Friday, 3rd August 2001

W I R E L E S S  M A R K E T  H E A D L I N E S
1.        Siemens not sure of extent of job cuts
2.        RadioMobil still wants UMTS price Czech
3.        Portugal - regulator wants answers on 3G delays
4.        BT wants GBP4B loan to finance spun-off Wireless unit
5.        Alcatel Romania wins EUR20M MobilRom deal
6.        Palm and Handango strike Euro web retail pact
7.        Siemens and Proxim demo HomeRF voice call
8.        Russia - MTS says it has two million subscribers
9.        Elisa sales up 11PC - but doesn't see profits
10.      Vivendi and Elektrim deal to be finalised any day now
11.      Elcoteq to cut 1,500 jobs as it slumps to EUR13M loss
12.      Freeserve and Nokia develop SMS imaging application
13.      FT looking for tie-ups in Japan - not acquisitions
14.      TDC chief sees no need for Nordic mega merger
15.      Swedish 3G operators facing antenna delay
16.      Airtel launches single rate roaming tariff
17.      FT and Mobistar - no decision yet on restructuring
18.      Austrian operators face EUR10.9M 3G build-out bill
19.      Vivendi eyes 75PC stake in KPN's PanTel
20.      Peramon and Poulternet develop SMS service for MTV
21.      Telenor denies it overcharges for SMS
22.      Nigeria - Nitel assures that GSM launch is on target
23.      Partek to co-operate with Finnish defence forces
24.      Group 3G signs colocation pact with DigiPlex
25.      Buongiorno to acquire MyAlert


1.        SIEMENS NOT SURE OF EXTENT OF JOB CUTS
Siemens, which has already announced about 10,000 job cuts this year, has
said it is early to say how many more employees will have to leave as it is
still figuring out reorganization measures at its networks unit.

"There is nothing new to say so far," said Siemens spokesperson Stefan
Denig. "We have made it clear there will be more restructuring but there are
no details yet."

Denig's comments come as reports emerge in the German press that 5,000 jobs
at Siemens' network business and an unknown number at Siemens Business
Services, its IT services unit, are to go.

Heinrich von Pierer, CE, Siemens said last week that "further corrective
measures" are necessary after Siemens reported a EUR489 million loss in its
fiscal Q3 and fired Roland Koch, the head of its network unit.

The number of additional cuts is preliminary, and they are expected to be
mainly outside Germany, according to the German reports.


2.        RADIOMOBIL STILL WANT UMTS PRICE CZECH
Radiomobil, the Czech Republic's second largest mobile operator, will decide
next week whether to seek a 3G license - and it is still at odds with the
country's government over price.

"We certainly will do nearly everything to acquire the license," said Roland
Mahler, CE, RadioMobil. "But we don't see any possibility for a high license
fee, which is the expectation of the Czech government."

RadioMobil values a license at CZK1.5 to CZK2.5 billion. The government,
meanwhile, hopes to raise CZK20 billion (EUR583 million) from the sale of
three or four licenses, expected at the end of August.


3.        PORTUGAL - REGULATOR WANTS ANSWERS ON 3G DELAYS
Portugal's communications regulator, Instituto de Comunicacoes de Portugal,
has requested details from the country's four licensed 3G operators on the
postponement of the new service.

Portugal Telecom's TMN, Telecel Vodafone, Sonae's Optimus, and Oni, the
telecom unit of utility Electricidade de Portugal, have all said that they
are postponing the launch of the service until either the middle or end of
2002 because of equipment supply delays and software difficulties.

The original launch date, set as part of the licenses' terms, was January 1,
2002.

The regulator said that unless the operators provide sufficient reasons that
explain the "economic, technical and market-related delays," the original
launch date must be adhered to.

Separately, ICP rejected Oni's request for a GSM license.


4.        BT WANTS GBP4B LOAN TO FINANCE SPUN-OFF WIRELESS UNIT
British Telecom has said that it has asked banks to bid on a loan of up to
GBP4 billion to finance BT Wireless after its planned spin off.

It is thought that a GBP4 billion loan would give BT Wireless around GBP2
billion of working capital, as BT has said that it intends to move as much
as GBP2 billion of its existing debt onto BT Wireless's balance sheet.

BT said it wants to minimise Wireless's debt to give it a competitive
advantage against its heavily-indebted peers.

"We intend to demerge BT Wireless with a balance sheet it can sustain," said
Andrew Longden, treasurer, BT.


5.        ALCATEL ROMANIA WINS EUR20M MOBILROM DEAL
Alcatel Romania has signed a EUR20 million deal to build a fiber-optic
network for Romanian mobile operator MobilRom, according to reports in the
local press.

MobilRom is majority owned by France Telecom.


6.        PALM AND HANDANGO STRIKE EURO RETAIL WEB PACT
Palm and Handango have formed an alliance to provide mobile computing
systems in Europe via Palm's website.

The partnership enables users of Palm Powered handheld devices to go from
Palm's European site via a link to Handango's web page where they can access
and purchase various handheld applications, ranging from personal
productivity software to entertainment and travel software.

Palm and Handango also plan to launch a German, Italian and French site for
Palm's international customers by the end of the year.


7.        SIEMENS AND PROXIM DEMO HOMERF VOICE CALL
Siemens and Proxim have announced the industry's first public HomeRF voice
call demonstration. The companies said that the integrated voice capability
demonstrated will enable high-quality voice calls and unified voice-data
messaging over broadband services.

According to Siemens and Proxim, with HomeRF 2.0's new voice capability,
broadband service providers will be able to offer consumers fast internet
access and the ability to make calls over their broadband connections.

"One of the greatest things about the integration of toll-quality voice into
the HomeRF wireless networking technology is that we can do it at a consumer
price point today," said Kevin Duffy, VP, home networking, Siemens.

"The long-held promise of voice-data convergence and unified messaging is
now becoming a reality for consumers - easy to install, high quality, high
performance home communications," Duffy said.

CONTACT:        Karen O'Brien, Siemens
                            EMAIL: karen.obrien@icm.siemens.com



8.        RUSSIA - MTS SAYS IT HAS TWO MILLION SUBSCRIBERS
Mobile TeleSystems, Russia's leading cellular operator, has said it has
reached a level of two million subscribers.

The company increased its customer base by 43 per cent from 1.4 million
customers reported as of March 31, the last time the company released its
customer base figures.

MTS' competitor Vimpel Communications recently reported its customer base
stood at 1.1 million subscribers.


9.        ELISA SALES UP 11PC - BUT DOESN'T SEE PROFITS
Finnish telecoms group Elisa Communications has reported an 11 per cent rise
in Q2 sales - but it warned that it no longer expects to post a profit for
the full year.

Elisa, the parent of Radiolinja, Finland's second-largest mobile operator,
said sales were EUR331 million, up from EUR299 million in the same period
last year.

Pre-tax profit for the period was EUR3 million, against EUR86 million in Q2
a year ago. Last year's figure was aided by one-time gains of about EUR60
million.

Both profit and sales fell short of forecasts. Analysts had expected profit
of around EUR7 million on sales of around EUR342 million.

Elisa disappointed market watchers further by saying that it expects net
profit for 2001 to be "at the zero level."

Radiolinja's Q2 revenue rose 14 per cent to EUR176.5 million from EUR155.3
million in the year-earlier quarter. It had 1.28 million subscribers at
end-June.

Radiolinja's EBITDA stood at EUR47 million, compared with EUR51 million in
the year-earlier quarter. Elisa said the unit's EBITDA had been weakened by
its network spending and by investments in new business areas, and analysts
said the narrower EBITDA margin was not a surprise.


10.      VIVENDI AND ELEKTRIM DEAL TO BE FINALISED ANY DAY NOW
The deal that will give Vivendi Universal control over Elektrim's telecom
assets should be completed by the end of the week, and will not differ
greatly from their preliminary agreement, according to reports in the
European press.

The two companies failed to complete the deal by a July 30 deadline, but
said their talks, which have been going on since Elektrim and Vivendi signed
a LOI over a month ago, would continue.

The EUR679.2 million cash and debt deal, if completed, would settle a
months-long wrangle over the fate of Eastern Europe's top cellphone
operator, Polska Telefonia Cyfrowa, between Vivendi and rival Deutsche
Telekom.


11.      ELCOTEQ TO CUT 1,500 JOBS AS IT SLUMPS TO EUR13M LOSS
Finnish contract electronics manufacturer Elcoteq Network has posted a Q2
net loss of EUR13 million and said it would cut 1,500 jobs as a result of
slowing demand in the telecoms sector.

Elcoteq also said it expects sales to continue to decline in Q3 and to post
a loss for the full year.

Elcoteq said sales for Q2 fell 11 per cent to EUR441 million from EUR495.1
million in the year-earlier period. It made a net loss of EUR13 million
compared to a profit of EUR8.9 million a year earlier.

Elcoteq's largest customers are Ericsson and Nokia, whose own sales have
slumped with the downturn in the telecom market.

Elcoteq said in late June that it expected a "clear loss" for Q2.

Elcoteq said full-year net sales would be below last year's EUR2.22 billion,
with sales of network equipment "clearly lower than expected."

The company had said at the end of Q1, when it posted a EUR2 million net
loss, that it expected overall sales for 2001 to be flat.

The 1,500 job cuts will come on top of the 1,500 already made this year,
after Ericsson's decision to outsource most of its telephone production to
Flextronics International in January.


12.      FREESERVE AND NOKIA DEVELOP SMS IMAGING APPLICATION
Freeserve has launched Grab-a-pix, a new SMS application which allows Nokia
users to have pictures on their phones.

Users must first find the small image they would like to have, then log onto
the Grab-a-pix website, download and activate the programme and follow the
instructions.

Users will also be able to take their own digital pictures and use the
Grab-a-pix website to display them on their handset.

The Grab-a-pix website will display the result before users decide to
download the digital picture. Users will then be directed to a web page with
a phone number and a special code which identifies the image saved.


13.      FT LOOKING FOR MOBILE TIE-UPS IN JAPAN - NOT ACQUISITIONS
France Telecom is seeking to enter the Japanese mobile market through
comprehensive tie-ups with Japanese mobile firms, and not via acquisitions,
according to Michel Bon, CEO, FT.

Cited in the Japanese press, Bon said he is set to meet with senior managers
of DoCoMo and KDDI, Japan's respective number one and two on the mobile
market.


14.      TDC CHIEF SEES NO NEED FOR NORDIC MEGA MERGER
Henning Dyremose, CE, TDC, has said he sees no need for a Nordic telecom
merger, despite persistent talk of a deal linking his company with Telia and
Sonera.

"I cannot necessarily see a need for a geographic consolidation in the
Nordic region," Dyremose said. "It is wrong to believe that a growth
strategy for a telecoms operator has to be geographic."

TDC, which is 42 per cent owned by SBC Communications, has been the subject
of speculation that it has been in merger talks with Sonera in recent
months.


15.      SWEDISH 3G OPERATORS FACING ANTENNA DELAY
Swedish 3G operators are facing a delay in getting 10,000 new transmitter
masts and antennas in place, according to reports in the Swedish press.

The Swedish military must approve each mast to ensure no equipment will
interfere with military radio link systems.

Frsvarets Materielverk, the authority who must approve each application,
does not have the staff necessary to comply with the demand, the reports
said.


16.      AIRTEL LAUNCHES SINGLE RATE ROAMING TARIFF
Spanish mobile operator Airtel has announced a single tariff of ESP133
(EUR0.80) per minute for European calls via operators associated with the
group.

Airtel, which is controlled by Vodafone, said that it was also to offer a
single tariff of ESP141 for operators outside the group.


17.      FT AND MOBISTAR - NO DECISION YET ON RESTRUCTURING
France Telecom and its 50.71 per cent unit Mobistar have been considering a
restructuring of their operations for a year, but have taken no decision,
according to Mobistar spokesperson Thierry Bouckaert.

The spokesperson was responding to reports in the Belgian press quoting
Mobistar chairman John Cordier as saying that the fixed line telecoms
division will be sold to FT's Equant business telecoms unit by the end of
the year.

Bouckaert said Mobistar Corporate Solutions, which includes most of the
fixed line business, has complementary activities to France Telecom's
business sector unit in Belgium.

Mobistar concentrates on Belgian companies whereas France Telecom in Belgium
focuses on international companies' business.

The two work in synergy, he said.


18.      AUSTRIAN OPERATORS FACE EUR10.9B 3G BUILD-OUT BILL
Austrian mobile operators will invest up to EUR10.9 billion in UMTS
networks, according to latest estimates published in the Austrian press.

Georg Serentschy, a telecom expert at Arthur D Little, was cited as saying
that each of the six mobile companies that have acquired UMTS licenses in
Austria will have to raise between ATS5 million and ATS25 million.


19.      VIVENDI EYES 75PC STAKE IN KPN'S PANTEL
Vivendi Universal  is in talks with the KPN on buying a 75 per cent stake in
KPN's Hungarian alternative telecom service provider PanTel, according to
reports in the local press.

The companies would not expand on the reports, but PanTel said that talks on
its sale are at an advanced stage.


20.      PERAMON AND POULTERNET DEVELOP SMS SERVICE FOR MTV
UK-based mobile internet software provider Peramon and the interactive
systems specialist Poulternet have teamed up to develop a new messaging
system for the broadcasting company MTV.

Peramon's SMS server is being used in MTV's new interactive live video show
VideoClash, where viewers vote for the next video to be played via a mobile,
landline or MTV's website.

Viewers can also submit their opinions via SMS and see them displayed as
tickertape across the screen a few seconds later.


21.      TELENOR DENIES IT OVERCHARGES FOR SMS
Telenor has denied allegations that it overcharges customers for sending SMS
messages, according to reports in the Norwegian press.

Esben Turman Johnsen, deputy information manager, Telenor, said its costs
have been calculated and documented to the relevant authorities.

Telenor charges NOK1 per message, and its network handles 145,000 messages
an hour.


22.      NIGERIA - NITEL ASSURES THAT GSM LAUNCH IS ON TARGET
Barely a week to the deadline for the roll out of GSM operations in the
country, the management of NITEL has assured President Olusegun Obasanjo
that its network would be ready to interconnect the two other operators'
network any day now.

Officials of NITEL, MTN Nigeria Communications and Econet Wireless Nigeria
met Obsanjo this week to discuss their readiness to commence seamless
operations.

Reports in the local press said that NITEL officials at the meeting assured
Obsanjo that the service was set to go, and that the network would be
capable of interconnecting 100,000 lines from each of the operators.

The deadline for the roll out by NITEL, MTN and Econet, as stipulated in
their license agreement, is August 9, 2001 and the Federal Government had
intervened when MTN and Econet complained that NITEL's network may not be
ready to give them a seamless interconnection.


23.      PARTEK TO CO-OPERATE WITH FINNISH DEFENCE FORCES
Finnish mobile logistical solutions supplier Partek and the Finnish defence
forces materiel command Puolustusvoimien Materiaalilaitoksen Esikunta, have
signed a co-operation agreement.

The aim of the agreement is to chart the possibilities for long-term
material procurement.

The financial details surrounding the deal have been disclosed.


24.      GROUP 3G SIGNS COLOCATION PACT WITH DIGIPLEX
Group3G, a German-based JV between the Spanish mobile operator Telefonica
Moviles and Sonera, has signed a lease agreement with the neutral colocation
facilities provider DigiPlex.

Under the agreement Group3G has leased over 1,250 square meters of
conditioned colocation space and 500 square meters of office space within
DigiPlex's colocation facility in Munich, Germany.

Group 3G intends to use the space to house its infrastructure and technical
equipment in preparation for the launch of its mobile services.

The financial details surrounding the deal have not been disclosed.


25.      BUONGIORNO TO ACQUIRE MCOMMERCE FIRM MYALERT
Buongiorno.it, a provider of interactive and mobile services, has reached a
definitive agreement to acquire mcommerce firm MyAlert.com.

Buongiorno.it will acquire 100 per cent of the shares in MyAlert. In return,
MyAlert shareholders will be assigned Buongiorno.it's newly issued shares,
thus holding about 1/3 of the capital post increase.

Mauro Del Rio and Andrea Casalini will remain chairman of the board and CEO,
respectively. Jorge Mata will join Buongiorno's board of directors as the
vice chairman.

Jorge Mata, founder and CEO, MyAlert, said: "We have created the strongest
independent company in this market at European level. We have built the
foundations for an ambitious enterprise that will benefit all our
subscribers with improved services, alongside even more innovative and
effective offerings for our corporate clients."


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