BERLIN, March 6 (Reuters) – China’s state-owned CGTN television said it had resumed services via Germany’s Vodafone cable network after receiving approval from French media regulators.
Germany’s Vodafone, a unit of British telecommunications group Vodafone, had to stop distributing CGTN television on its cable service last month as a result of a media dispute between Britain and China.
CGTN has been distributed in Germany under a British license but French media regulator Conseil supérieur de l’audiovisuel (CSA) says here on Wednesday that he took over as the relevant authority following Britain’s exit from the European Union.
“After receiving a confirmation letter from the French media regulator stating that CGTN’s rights to broadcast in Europe are under its jurisdiction, Vodafone Germany resumed distribution of CGTN and its Documentary channel at around 7 a.m. on March 5 via its cable service,” CGTN said in a statement. here.
The UK last month revoked a permit allowing CGTN to be distributed in the UK. This drew protests from China, which banned the BBC from its television network and limited its reach in Hong Kong.
Under the terms of the 1989 treaty on “transboundary television”, drawn up under the auspices of the Council of Europe, of which Britain remains a member, a distribution license in one European country applies over most continents.
France’s CSA says CGTN abides by standards such as information pluralism and refrains from incitement to hatred or violence.
“CSA will take great care that CGTN respects these legal requirements,” he said in the statement. (Reporting by Ludwig Burger, Emily Chow in Shanghai, John Irish in Paris, Editing by Ros Russell)
BRASILIA (Reuters) – Spanish telecommunications unit Telefonica SA in Brazil said on Tuesday it had agreed with Canadian pension fund CDPQ to create a joint venture to develop a “neutral and independent” wholesale fiber optic network in Brazil.
According to the securities filing, Caisse de dépôt et placement du Québec (CDPQ) will invest up to 1.8 billion reais ($ 317 million) in the venture, receiving 50% of the voting rights. Telefonica Brasil will own 25% of the voting rights, while Telefonica Infra, another Spanish subsidiary, will own the remaining 25%.
The new venture, called FiBrasil Infraestrutura e Fibra Ótica SA, aims to reach 5.5 million households within 4 years.
Telefonica will be the “anchor customer” for FiBrasil and donate about 1.6 million homes that are already in operation.
Telefonica Chief Operating Officer Angel Vila said last week that the company was in talks with investors to expand high-speed fiber coverage to more Brazilian cities, following a similar project in Germany with insurance company Allianz. Vila did not mention the name of the investor in the Brazilian project at that time.
($ 1 = 5.6761 reais)
Reporting by Jake Spring; Edited by Christian Plumb
BERLIN, February 15 (Reuters) – German independent telecommunications company 1 & 1 Drillisch said on Monday it had agreed to expand its fiber-optic partnership with Deutsche Telekom and accepted an enhanced national roaming offer from Telefonica Deutschland.
The deal advances Drillisch’s plans to launch a fourth 5G network in Germany, said subsidiary United Internet, and sent its shares and its parent sharply higher in early trading.
Drillisch said that if concluded, the roaming agreement with Telefonica would retrospectively add 34 million euros ($ 41 million) to 2020 revenue, which it will book in fiscal 2021.
“In addition, the agreement on national roaming will be an essential prerequisite for the planned launch of the high-performance 5G network by 1 & 1 Drillisch,” Drillisch said in a news release.
Nationwide roaming access to the Telefonica network will give Drillisch time to build a standalone network – a process that will take years to complete.
Meanwhile, they will be able to continue to take advantage of the German network run by Telefonica, effectively extending the EU merger legal effort from 2014 for another 10 years.
“The agreement with 1 & 1 Drillisch creates certainty for long-term planning, and will make a significant contribution to revenue and revenue,” said Markus Haas, Telefonica Deutschland Chief Executive Officer. “We confirm our medium-term forecast.”
Commenting on his 2020 results, Drillisch confirmed his guidance for a core revenue of 600 million euros, although after deleting unused internet connections the figure came to be 470 million euros.
Service revenue increased 2.6% to 3.02 billion euros.
Providing prospects for 2021, Drillisch said it expects service revenue to rise to 3.1 billion euros and estimates earnings before interest, taxation, depreciation and amortization (EBITDA) of 650 million euros.
United Internet, of which CEO Ralph Dommermuth owns 42% of the shares, reported EBITDA of 1.05 billion euros last year following deletions related to Drillisch’s internet connection.
Sales rose to 5.36 billion euros in 2020 from 5.19 billion a year earlier. United Internet estimates sales of 5.5 billion euros and EBITDA of 1.22 billion euros this year.
Drillisch shares were trading 5% higher after the news and United Internet were up 1.4%, with both giving back some early gains. Telefonica Deutschland, Spain’s Telefonica unit, rose 0.8%. ($ 1 = 0.8238 euros) (Reporting by Douglas Busvine; Editing by Thomas Seythal, Ana Nicolaci da Costa and Jan Harvey)
BRASILIA, Jan 29 (Reuters) – Brazil’s federal government plans to assign fifth-generation (5G) wireless networks exclusively for its own use which will have security requirements for equipment suppliers separate from national networks, according to a document seen by Reuters.
The plan, which will be published in an official newspaper on Friday, calls for a limited 5G network to the Federal District, where the capital city of Brasilia is located. The plans come as the government prepares for a spectrum auction this year for 5G networks, weighing security concerns that have led some countries to exclude China’s Huawei Technologies Co as a supplier for the next-generation network. (Reporting by Lisandra Paraguayassu Written by Anthony Boadle Editing by Brad Haynes)
LONDON (Reuters) – Some of the world’s largest sovereign wealth funds and public pension funds are caught in rising technology-related tensions between the United States and China, according to a Reuters analysis of their archival data and public disclosures.
These range from the sovereign wealth funds of Norway and Singapore to the Swiss central bank and the US $ 1.1 trillion TIAA, which was founded more than a century ago by Andrew Carnegie as the American Teacher Insurance and Annuity Association.
US investors are barred from owning stakes in more than 40 Chinese companies seen as having military ties in a series of moves since November as US President Donald Trump seeks to strengthen his hardline policies toward Beijing.
That prompted Nuveen’s TIAA unit to sell stakes in blacklisted companies including China Telecom, China Mobile and China Unicom, as well as microchip giant SMIC, state oil company CNOOC and cellphone and gadget maker Xiaomi.
Other US public pension funds are expected to follow.
CalPERS, the largest fund, holds Hong Kong-listed ‘H’ shares in several companies, including a 1.1% stake in China Telecom and 0.2% of China Mobile and China Unicom respectively, according to Refinitiv data. CalPERS, which has been criticized by Republican politicians for its investment in China, did not respond to a request for comment.
Florida State Administration, which manages $ 200 billion in assets and has small stakes in China Telecom, China Mobile and Xiaomi, according to Refinitiv data, told Reuters it would comply with the ban.
“Those sanctions really bite US institutions,” said Elliot Hentov, head of policy research at State Street Global Advisors.
And the ripples aren’t just felt in the United States.
A number of sovereign wealth funds (SWF) have been affected as the New York Stock Exchange and index providers MSCI, S&P Dow Jones, and FTSE Russell have removed blacklisted companies from the benchmark, causing some share prices to drop more than 20%.
Norway’s $ 1.3 trillion SWF, the world’s largest, owns a 0.2% -0.6% stake in China Telecom, China Mobile, Xiaomi, CNOOC and China Unicom Hong Kong as part of its $ 35 billion Chinese equity portfolio. more broadly, according to the most recent disclosure running through early 2020. It said it would not comment on specific holdings.
Singapore’s GIC, which is referred to as an “independent country investor”, owns 10% of Hong Kong-listed China Telecom’s ‘H’ shares and owns about 1.4% of mainland’s SMIC, A- and H-shares, Reuters calculations based on stock exchange filings shows. GIC declined to comment.
Other holders are the Canadian pension fund Caisse de Depot et Placement du Quebec (CDPQ), British Columbia Investment Management, CPP Investment Board, PGGM Vermogensbeheer, an independent pension fund based in the Netherlands and APG Asset Management.
Non-US investors are not legally obliged to make any changes and many will see the value of their Chinese investment soar in recent years.
China’s equity market is at a 13-year high and the market capitalization of a major technology index has doubled from two years ago.
“We view our investment in China – an important country in the global economy – with a long-term perspective,” CDPQ told Reuters, declining to comment on specific investments.
Graph: Increased Chinese equity investment from the Norwegian sovereign wealth fund –
While China’s increasing weight in global markets is driving state funds to hold onto a larger Chinese portfolio, recent cyber espionage bans and claims of 5G company Huawei and the social media dance craze app TikTok show how technology is now a major geopolitical battleground. .
With no indication of a new approach by US President Joe Biden, China Telecom, China Mobile, Xiaomi and CNOOC shares have fallen between 12% and 22% since being blacklisted in November or this month.
SMIC has bucked the trend with double digit gains.
“Some of the shares that are being released may be taken from owners of bargain-hunting assets outside the US,” said Winston Ma, a former managing director of the sovereign wealth fund China Investment Corp. “However, it may be difficult for them to absorb all of them.”
Graph: Gains mixed for Chinese companies amid blacklist uncertainty –
It wasn’t just Washington’s actions that caused trouble.
Beijing shocked markets in November when it suspended Ant Group’s $ 37 billion IPO plan by a few days and just as the Trump administration pushed through with its ban.
Alibaba, which owns a third of Ant, saw its market value shrink by more than a quarter. These are the top 10 global stocks and are widely held by government funds and pension funds.
US Stock Exchange Commission data sec.report/CIK/0001582202 suggests the Swiss central bank has doubled Alibaba’s stake in the past two years to $ 1.4 billion from the company’s $ 650 billion stake in September.
The November fall will remove about $ 350 million from that holdings. Alibaba shares recovered nearly half of their January losses after escaping a US blacklist.
Graph: Ownership of China Mobile by sovereign wealth funds, pension funds –
Graph: Ownership of Xiaomi Corp by sovereign wealth funds, pension funds –
Graph: Ownership of China Telecom Corp by sovereign wealth funds, pension funds –
Additional reporting by Terje Solsvik in Oslo, Brenda Goh in Shanghai, Anshuman Daga in Singapore, Maiya Keidan in Toronto and John Revill in Zurich; Edited by Catherine Evans