Apple Partners with O2

Apple's iPhone officially has a phone company partner in the UK. After weeks of rumors, Apple announced Tuesday that O2 -- the largest UK mobile phone operator -- would be its exclusive wireless carrier there.

The UK launch is scheduled to take place on Friday, November 9, with iPhones sold through Apple and O2 stores, as well as through 1,300 Carphone Warehouse locations.

The price for the 8-GB model will be £269 including VAT. Customers can choose to transfer their current mobile phone numbers, whether with O2 or another carrier. An 18-month contract will include unlimited data. According to news reports, Apple will receive 10 percent of usage revenue.

Source: newsfactor.com

Bharti Airtel and Huawei Deal

ellular major Bharti Airtel has awarded a 150 million-dollar deal to Chinese vendor Huawei for building and managing GSM mobile infrastructure for its Sri Lankan operations.

Huawei will deploy comprehensive 2G and 3H network for Bharti Airtel Lanka, the subsidiary of Bharti Airtel.

Airtel has signed three-year deal managed networks deal for its Lanka operations with Huawei Technologies and it includes telecom applications and software.

With the network deal in place, customers in Sri Lanka can look forward to a host of products and services at an affordable price from Airtels vast portfolio, Bharti Airtel said.

Bharti Airtel was recently awarded the licence to provide 2G and 3G mobile services in Sri Lanka. Under the agreement, Huawei will deploy and manage Airtels core network, Node-Bs and BTSs and comprehensive end-to-end 2G/3G network solutions, it said.

According to Sanjay Nandrajog, Executive Director, International Operations & Managed Services, Bharti Airtel, "Bharti Airtel is committed to creating a mobile network and offering 2G and 3G services to customers in Sri Lanka. Huawei has established credentials as a global company producing high quality products and solutions."

Max Yang, CEO, Huawei India said, "We look forward to continuing this strategic partnership with Bharti Airtel by providing innovative and customer-oriented solutions and services including wireless solutions.

Source: dnaindia.com

American Express to sell international banking unit

American Express (AXP:

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AXP59.35, +1.15, +2.0%) said it will get $300 million plus the net asset value of American Express Bank in cash, which would have totaled around $860 million at June 30.

In addition it expects to realize roughly the net asset value of a subsidiary that issues investment certificates to the bank's customers. That should be worth an additional $212 million and will come through dividend payments and a further payment from Standard Chartered (UK:STAN: news, chart, profile) after 18 months.

"Today's agreement reflects our strategic focus on the high-growth, high-return payments businesses that have been driving our performance in recent years," said CEO Kenneth Chenault.

The sale won't include any of its card or travel businesses.

The deal is expected to close in the first quarter of 2008 and should have a roughly break-even impact on earnings, though this will be spread across several quarters. In the current quarter, American Express expects to take a charge of $50 million.

American Express Bank's operations include correspondent banking -- where it provides services to banks without a local presence -- and private banking in 47 countries.

Standard Chartered, which focuses on emerging markets and Asia, said the deal will double the size of its dollar clearing business as well as providing the group with direct euro and yen clearing operations.

In addition American Express Bank's $22.5 billion of assets under management will kick-start Standard Chartered's recently launched private banking business and provide branch licenses in India and Taiwan.

"This acquisition turbo-charges our plan for private banking by two to three years," CEO Peter Sands told analysts on a conference call.

He added it also gives the bank a foothold in Egypt and Kazakhstan and will improve its ability to service European corporate clients through offices in Paris and Frankfurt.

Shares in American Express climbed 0.3% in early Wall Street trading. See Market Snapshot.

Shares in Standard Chartered remained solidly higher after the announcement, standing up 3.4% amid a broader rally for the banking sector in London. See London Markets.

Cubillas Ding, an analyst with Celent, said the deal appears to be a defense against the likes of UBS (UBS:

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UBS52.08, +0.69, +1.3%) , Credit Suisse (CS:

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CS64.54, +0.74, +1.2%) and Citigroup Inc. (C:

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C46.65, +0.62, +1.3%) , which are focusing their private banking operations on Asia.

"This response is therefore decidedly required to both defend and grow in Asia, and to avoid playing difficult catch-up scenario," Ding said.

Standard Chartered said it expects to generate pretax costs savings in excess of $100 million a year from 2009 onward and added the deal should boost earnings per share in 2009, the first full year of ownership.

"American Express Bank's balance sheet is highly liquid and its income is predominantly fee-based. This is a transaction which has compelling strategic and financial logic and is management accretive," Sands said.
Source: www.marketwatch.com