Tuesday, January 09, 2007

Lattelecom looks to plan B or Plan C on mobiles

I'll make this quick as I am up to my arse (the British spelling) in alligators at work because I am heading off to the US tommorrow and have to finish several things.
It looks pretty much like Lattelecom will have to implement plan B (a virtual mobile operator) or plan C (waiting for mobile WiMax). Denmark's TDC will be selling the Bite Group in the next couple of weeks, either to a private equity group or another, big telecom player. Lattelecom could afford to, but is unlikely to pay the close to EUR 500 million one is probably talking about.
Plan B is not so bad, Bite welcomes all comers. The only stumbling block (aside from what strange ideas the new owners of Bite, whoever they will be, may get) are Telia Sonera's objections to Lattelecom going into the mobile market anything less than a year after it will be traded back to 100 % government ownership.
This is silly, as TeliaSonera will then become 100 % owner of Latvian Mobile Telephone, which, in terms of revenues and profitability, is the MMFITV. This is from an sacriligious version of the 23rd Psalm-- Yea (this is not a cheering yea, it is a Biblical "yea") though I walk in the valley of the shadow of death, I shall fear no evil, for I am the Meanest Motherfucker in The Valley. " As the MMFITV of the Latvian mobile market, LMT doesn't need this shit, it can do fine against Bite/Lattelecom without TeliaSonera's help.
Oh, and by the way, the word is out that TeliaSonera is on the selling block as well with the same crowd of Telefonica, France Telecom, Deutsche Telekom and the private equity money gathering for the sale.

3 comments:

Anonymous said...

could elaborate on that MMFITV acronyl please?

Juris Kaža said...

Meanest MotherFucker in The Valley

ED-2151 said...

Do you know why all these big conglomerates are out for sale? These are profitable corporations with hundreds of millions in revenues and tens of million in profit.

My version is that the old capitalists can't adopt themselves in Web 2.0 era and they are wise enough to drop it while it's still hot.

I guess we are standing at the front of very big changes where the main base for communication will be ... the internet.