Ericsson sacks CEO Hans Vestberg after poor results

Swedish mobile telecoms gear maker Ericsson parted company with its chief executive Hans Vestberg on Monday, a move led by major shareholders after a series of disappointing results. The company said that Chief Financial Officer Jan Frykhammar had been named acting chief executive. It has also appointed Carl Mellander, currently VP & Group Treasurer, as acting CFO of the company. Ericsson  has had to lay off thousands of workers this year in the face of a stagnant market for its products, and last week said it is still looking to drastically cut costs. Its biggest problem is that most operators are done rolling out the current generation of mobile broadband networks, known as 4G or LTE.
Ericsson is currently searching for a successor to Vestberg and said that search process will comprise both internal and external candidates. Vestberg, who has been CEO since 2010, will be available to support the Board and management during his term of notice of six months. “I have had 28 fantastic years at Ericsson, the last seven as CEO. As the industry enters the next phase, driven by 5G, IoT, and Cloud, it is time for a new CEO to step in and continue the work to ensure Ericsson’s industry leadership,” Vestberg said in a statement. 

Amazon Prime launched in India

Amazon India has launched its prime subscription service in India. Amazon Prime will offer “unlimited one-day and two-day delivery” services, and “discounted same-day, morning and scheduled deliveries”, in selected cities. There will be with no minimum order size.
Currently, Amazon Prime will be available to customers in 100 cities. The registered Amazon members from 20 cities can also choose same-day, morning or scheduled delivery at a discounted fee of Rs. 50 per order.

RCom incorporates investment firm in Netherlands

Reliance Communications has incorporated an investment firm in the Netherlands in the name of Aircom Holdco BV.  "We would like to inform you that Company has incorporated a wholly-owned subsidiary company 'Aircom Holdco BV' in the Netherlands," RCom said in a BSE filing. 
The firm has been registered with the Trade Registrar of of the Netherlands on July 18, 2016, the Anil Ambani-led company added.  The company has formed with paid-up capital of 1,000 euro.

Airtel bags spectrum rights from Aircel

Leading telecom company, Bharti Airtel has announced that it has acquired the rights to use 20 MHz 2300 Band 4G TD spectrum from Aircel. The Company are pleased to share that the proposed transaction has successfully concluded for 6 out of 8 circles namely Tamil Nadu (including Chennai); Bihar, Jammu & Kashmir, West Bengal, Assam and North East, following the receipt of all necessary approvals and satisfying all the conditions (including conditions stated in the Spectrum Trading Guidelines). The Company shall update the stock exchanges when the transactions for the remaining circles of Andhra Pradesh and Orissa are completed.

Bharti Group planning to sell its Insurance business

Bharti Group is scouting for prospective buyers to exit its insurance venture. Bharti AXA Insurance is a JV between Bharti Group (49%)  and AXA Group (49% stake increase in 2015). The deal may provide much needed cash for Bharti. AXA's life insurance valuations are pegged around Rs 3000-3500 crore. The deal if happens, will help Bharti Group to monetise its insurance business and use deal proceeds to build war chest for its telecom venture Bharti Airtel.
Bharti is said to be in talks with PE firms like Blackstone, Advent, Actis, Warburg Pincus for selling stake in its insurance JV. Bharti Group, however, has denied the reports and maintained that it remains committed to its insurance business.

Tata Communications agrees to sell subsidiary Neotel

Tata Communications agrees to sell its South African unit Neotel Pty to Liquid Telecom.  In a BSE filing, Tata Communications said it will sell majority stake in South African internet-service provider Neotel Pty Ltd to telecommunications company Econet Wireless Global for about USD 293 million.  Liquid Telecom, majority of which is owned by Econet Wireless Global, entered into an agreement to acquire Neotel, the company said in a statement. 
Tata Communications acquired 68.5 per cent controlling stake in Neotel in 2009.  The transaction, if approved by stakeholders of companies involved and regulatory authorities, will create the largest pan-African broadband network and business-to-business telecoms provider, the company said.