Euronews: China Rejects EU's 'State Aid' Claims

Huawei Technologies Co. Ltd. , ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), KPN Telecom NV (NYSE: KPN) and Telia are in the thick of today's EMEA telecom headlines.

  • A spokesman for China's commerce ministry has rejected claims by EU officials that Huawei and ZTE were receiving illegal state aid which allowed them to undercut their European rivals, reports Reuters. Speaking at a news conference on Tuesday, Shen Danyang said: "We think such accusations are groundless and unreasonable ... Huawei and ZTE operate under a completely free market environment. Their products gain global competitiveness via the companies' active R&D efforts." (See Euronews: EC Sharpens Knives Over Huawei, ZTE and Euronews: China Warns EU Over Protectionism.)

  • Going up ... Carlos Slim has now increased his stake in KPN to 23.43 percent, getting ever closer to the magic 27 percent mark, which will give him effective control of the carrier, reports Reuters. Meanwhile, the Dutch incumbent has chosen Huawei to overhaul its BSS capabilities, though few details of the deal have been disclosed. (See Euronews: Slim's Stealthy Expansion , Slim's Dutch Drama and KPN Picks Huawei for Converged BSS.)

  • Denmark's Telia, through its TT-Netvaerket joint venture with Telenor Group (Nasdaq: TELN), has acquired more 4G spectrum in the 800MHz band, at a cost of DKK 111 million (US$18.6 million). This additional spectrum will, says the company, allow it to bring 4G to the more sparsely populated areas of the country. (See Telia Gets More 4G Spectrum in Denmark and Telia, Telenor Team Up in Denmark .)

  • There's more potential M&A action in the Middle East with the news on Bloomberg that Qatar Telecom QSC (Qtel) has made a bid to buy the shares it doesn't already own in Wataniya Telecom , at a cost of around $1.9 billion.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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