Bite honcho talks about mobile broadband, free call business model

Fred Hrenchuk, the CEO and board chairman of mobile operator Bite Group, talks about mobile broadband (a forthcoming jump to 14.4 Mbps), the effects of the economic downturn and the BiFri free calling business model.

Highlights of a Bite press event

Bite Latvija held a press event to talk about how it was moving toward profitability (lots of data and graphs) and how (copies of new customer's recent mobile bills from brands X and Y, sanitized for personal details) it was moving prices downward in Latvia. Here are some excerpts on video from the event (the video is dual use for my Latvian-language blog, hence the bilingual titles).

Vodafone sharing toys with its fattening calf in Latvia

Vodafone will share its high-speed HSDPA+MIMO technology with Bite, the Latvian mobile operator. Tests show that this (for all practical purposes) 3.5 G technology can achieve data rates of up to 20 megabits per second (Mbps). Fred Hrenchuk, who heads Bite Latvia told the LETA news agency the technology could be tested in Latvia later this year or in early 2010.
If the high speed link (to be deployed in urban areas with intensive business use) is implemented, it will be the fastest mobile internet technology in the Baltics. Tele2, another regional and pan-European player, has offered 21 Mbps HSDPA in Sweden.
A new technology also stirs up the market competition, which has, of late, drifted into competing quasi flat-rate low pricing schemes with similar marketing ("call your bunny rabbit, talk all you want to your honeybunch) and that sort of thing.
For me, the most significant thing about this is that it is yet another signal that Bite (the Bite Group including Lithuania) is probably being fattened for a takeover by Vodafone at some point. Why else would the global mobile services player be sharing its best toys with the rapidly maturing kid on the Baltic block? Sort of like the Latvian folk song about waiting for the girl across the river to grow up, so she can be married. Did I get that right? Or something to that effect...

Blackberry Bold comes to Latvia

The Bite Group has introduced the Blackberry Bold to Latvia and Lithuania. The Riga presentation was held at a wine bar/wine shop, which explains the background in the video. Somewhat surprising was the candid admission by Bite honcho Fred Hrenchuk that there were only 700 Blackberry service users on the Bite network in Latvia. Perhaps this is because there are now a number of mobile e-mail platforms and services available -- various Nokia phones, the iPhone and other smart phones. The Blackberry has to compete with these, unlike North America, where Crackberry addiction spread like wildfire under different pre-conditions. However, I met one businessman who already had a Bold (from the US side of his business) and would gladly buy another 10 (for his Latvian staff?) if Bite could meet a few specific conditions. So there is potential for growth.

Weird rumor-- Bite to sell iPhone in Latvia?!

I just heard the weirdest rumor for someone who is not a crackpot and has some contacts in the business, namely:

Starting Monday, September 1, Bite Latvia (of the Lithuania-based Bite Group) will start selling the iPhone3G in Latvia at various tariff plans and prices ranging from 400 to up to 600 LVL (both very pricey).

Theories: Vodafone, which has close ties with Bite, has influenced TeliaSonera (in charge of the iPhone business in Scandinavia and the Baltic countries) to let another operator distribute the innovative gadget. This also explains why LMT, the biggest mobile operator effectively controlled by the Swedes failed to launch the iPhone 3G on August 22, as was expected.

This, of course, could all be just Friday afternoon craziness...

Bite Group honcho speaks

Kenneth Campbell, the new CEO of the Bite Group talked to journalists in Riga on July 4 after a couple of months easing into his new job. I did the usual videoblog (see below), but some stuff was said off camera that is noteworthy.
1) Bite Group expects Latvia to be its fast growth, high opportunity market (Lithuania is mature and steady).
2) Bite will try to push the pace of network build-out in Latvia beyond the present 10 base stations/towers per month.
3) In the medium term, there will be more bundled services (XYZ minutes included in the basic fees) and a drift toward flat rate for everything as HSDPA mobile internet and its next generations become ubiquitous.
4) Mid Europa, the private equity company that bought Bite has an investment horizon of five years plus (remember, they are not a telco seeking to permanently have a network presence in Latvia).

My own guess -- no one told me this -- is that Bite is being fattened for a friendly sale to Vodafone in 6 to 8 years. It makes sense and Bite has had a favorable roaming and data roaming deal with Vodafone.

Here is the video, this time from YouTube. BlipTV was OK for a while, it took some longer videos but now screwed up, refusing to open a page where I can copy paste the code for putting a video window on the page, as I have done in some earlier posts.