H3G and T-Mobile have agreed to fully share their 3G networks, with their networks being roughly doubled to a combined 13,000 sites over the next two years
Iliad is getting ever closer to securing the French 4th 3G licence on terms with which it is happy, with progress slow but seemingly inevitable, and a licence award likely in H2 2008 followed by service launch in 2010
International performance was hit by problems in Jamaica and was weak generally except for Panama and Macau
H3G has launched the ‘Skypephone’, a Skype-branded phone with a free Skype VoIP service fully integrated into the handset
This report presents our analysis of Neuf Cegetel alongside that of close rival Iliad (which trades under the Free brand). Neuf and Iliad are France’s two leading unbundlers, are both quoted on the Euronext exchange and, since Neuf’s IPO in November 2006, have been assessed largely in parallel by investors. We anticipate Neuf's Investor Day on 12th September will provide analysts with greater detail on Neuf’s strategy to improve by 2010 its profitability to the level enjoyed by Iliad.
H3G’s revenue growth has slowed significantly, with H1 revenue flat on the previous half, driven by steady churn and a reduced investment in customer acquisition
The performance of the international business remains solid
French altnet Neuf Cegetel is buying Club Internet from Deutsche Telekom for an estimated €500 million and will overtake its rival Free as the #2 on the DSL market, still way behind Orange
The new consumer data tariffs from Vodafone and Orange in the UK continue the trend towards dramatically lower data prices for high end users, although they are cunningly structured to involve more moderate increases for low end users
DMGT’s recent upbeat trading update showed improvements on the hefty declines in advertising of 2005 and 2006. At least part of the lift is thanks to DMGT’s national titles gaining share from other mid market and quality titles, and we are discounting a general print advertising recovery