18th October 2007 : Leadcom voted "AIM International Company of the Year for 2007"




Main Web Site : http://www.leadcom-is.com/

Investor Relations Email : investorsinfo@leadcom-is.com

MM buy in there as well earlier, and now we get ALTI off of 62p offer. Looking better now, might be a decent rise coming up sometime this month or next on news.

L2 presently 5 v 1 @61/63

Interesting news, we will have to see what pans out. Ericsson and Nokia/Siemens getting the work split between them, could be a very very nice results for Leadcom ??

http://www.easybourse.com/Website/dynamic/News.php?NewsID=69044〈=fra&NewsRubrique=2

Ericsson Lowest BSNL Order Bidder; Evaluation Begins

Monday October 9th, 2006 / 13h17

STOCKHOLM -(Dow Jones)- Swedish telecommunications-equipment-maker Telefon AB LM Ericsson (ERIC) has qualified in the technical evaluation and emerged as the lowest bidder for a contract from Indian telecom operator Bharat Sanchar Nigam Ltd., an Ericsson spokeswoman said Monday.
"Now a complete evaluation of our offer will be done by the customer," said Ericsson spokeswoman Aase Lindskog.
Ericsson expects this evaluation to take some weeks, Lindskog said.
Lindskog said BSNL aims to have two suppliers with 60% of the order going to one company and 40% to the other.
Local media in India Monday reported Nokia Corp. (NOK), Ericsson and Siemens AG (SI) had all passed the technical evaluation for the INR200 billion ($4.4 billion) tender while China's ZTE Corp. (000063.SZ) and Motorola Inc. (MOT) hadn't.
-By Magnus Hansson, Dow Jones Newswires; +46 8 545 130 91; magnus.hansson@dowjones.com

Ericsson and Nokia get the BSNL tender, possibly the best combination for maximum contract awards in the months ahead for Leadcom.......


http://www.domain-b.com/industry/telecom/20061009_ericsson.html

The High Court has refused Motorola's request on a "stay" for the tender :) and has simply asked BSNL to provide their reasoning for disqualifying Motorola/ZTE. Lets hope they put "Frist and anti-WTO legislation in the US" as one reason ;) LOL

Typcial, the US government enacts anti-WTO legislation to protect US companies in the States, and then US companies complain of unfair competion outside the US...... LOL :)



http://economictimes.indiatimes.com/articleshow/2132863.cms

Ericsson lowest bidder in $5bn BSNL tender

TIMES NEWS NETWORK[ TUESDAY, OCTOBER 10, 2006 04:07:04 AM]

European telecom major Ericsson emerged as the lowest bidder in the BSNL tender for adding 45.5m GSM lines. It quoted a price of about $107 per line. Nokia emerged as the second lowest bidder by quoting $177 per line, while Siemens lost the race.

US major Motorola, meanwhile, approached the Delhi High Court on Monday, seeking a stay on the grounds that it was not informed of its disqualification. The court declined to grant a stay, but told BSNL that further processing of the tender would be subject to its orders.

This round of tendering has been controversial as the Prime Ministers Office (PMO) had earlier expressed apprehension that the tender may not be finalised in a very transparent manner. In a letter to DoT about two weeks ago, it said that the tender specifications had been repeatedly changed to protect the interest of some foreign firms.

As per the tender condition, Ericsson will supply 60% of the 45.5m lines while Nokia will provide the remaining. Nokia will have to match the price quoted by Ericsson.

The value of Ericssons order, if awarded, would be $2.92bn. At a price of $107 per line, Nokias order would be valued at $1.95bn. The tender envisages that 30% of the total capacity would be 3G-enabled. Similarly, the ITI-Alcatel combine, for which 18m lines have been reserved, will also have to match Ericssons bid price, which puts the deal size at $1.92bn.

For Ericsson, this is the second billion-dollar contract in India in recent months in August, Bharti had awarded a $1-bn network expansion contract to the company. Meanwhile, in response to Motorolas petition, the Delhi High Court directed BSNL to file its reply within two weeks and asked to produce the records of the case in court.

In a statement Motorola said: As recently as a week ago, Motorola provided compliance undertakings on various requirements desired by BSNL. At no point in time was Motorola communicated that its bid was being dropped due to technical reasons. On Saturday, Motorola learnt from informal sources that it had not been invited for opening of the price bid.

Motorola is surprised and disappointed by the BSNL decision not to invite it for price bid opening for BSNLs tender for GSM and 3G equipment. According to industry sources, Chinese vendor ZTE, which was also disqualified, is exploring the option of taking BSNL to an international court over the issue. When contacted, ZTE officials refused to comment.

BSNL officials countered these charges and said that the tender process was completely transparent. ZTE and Motorola were disqualified as they had failed to meet the stringent tender conditions, they added.

Looks like Motorola failed the Capabilities test on Oct 7th, but are trying to to stay in........ bloody US companies, why can they not accept this, perhaps the Indians should put in place a law banning US money transfers if they are to be used in mobile comms tenders ;)

The HC refused to stay the tender, so Nov 2nd is now a key date, if BSNL can prove to the courts of law in India that Motorola failed the tests and were duly informed of their failure, they should be kicked out fairly soon. The HC's refusal to stay the tender points to they will not get involved, as Ericsson and Nokia as due winnners of the tender, and with it not stayed, can now start their final negotiatins before final signing of the contracts around mid Nov I imagine.


http://www.newkerala.com/news4.php?action=fullnews&id=33215

US-based Motorola today challenged in the Delhi High Court, its disqualification from the bidding process for supply of equipment to BSNL, which has rolled out a mega mobile expansion plan, but the Court declined to stay the tender process.

Fixing November 2 as next date of hearing on Motorola's petition, a division Bench of the High Court comprising Acting Chief Justice Vijendra Jain and Justice Kailash Gambhir issued notices to the Centre and BSNL.

Motorola was disqualified on technical grounds on October 7 and not allowed to participate in financial bids, where Swedish MNC Ericsson emerged as the lowest bidder this morning for the 45.5 million line GSM contract of BSNL at an estimated cost of over Rs 20,000 crore.

Tech funds poised for a strong rally, that would be good :)


http://www.timesonline.co.uk/newspaper/0,,176-2403989,00.html

..........................The technology sector is full of uncertainties, but one constant remains: just when investors start to give up on the sector, it starts to deliver on its promises. Today feels very much like the late 1980s.

Technology was unloved, and only the most committed technology enthusiasts were daring to invest their own money into the sector. History has proved these can be the most rewarding times to invest. ........................

PP: Any views on timescales until we know the extent of LEAD's involvement in India contracts??

silvermede, I would not expect news until late Nov or early Dec at the earliest........but thats just IMO.

October 2006 Presentation for Q3 update : 2.3MB PDF file on the link :


http://www.leadcom-is.com/siteImages/IR_Oct_06_Q3_06_[1].pdf

Looks like Nov 16th is a key day now in moving things on in India.

http://www.hindustantimes.com/news/181_1834406,00020020.htm

PP, thanks for the last link. From the article, it doesn't sound as if Motorola India has a strong case. Roll on the 16th Nov.

silvermede, I think they are just making their point. Its a dangerous game as its not going to effect, imo, this present tender, but Motorola are trying to set the "game rules" for the next tender, but the Yanks might actually be wrong and create some enemies instead.............Whichever way I see Ericsson and Nokia walking away with it as planned this time.

410K X trade at mid price.

Thursday 16th Nov is the court case hearing for the Motorola complaint against BSNL in India.

BSNL are restrained from awarding the tender contract to Ericsson and Nokia until the verdict on the 16th Nov.

Therefore pending the verdict, which will be straightforward we all hope, then Ericsson and Nokia can go about putting the sub-contracting into place in the 2nd half of this month and December.

Fingers crossed all goes well as I fancy a nice Christmas present!

Hearing for Motorola/BSNL dispute is ongoing today. I like the talk of growth growth growth in India :)


This comment from Ericsson yesterday :


http://www.newkerala.com/news4.php?action=fullnews&id=51118

Ericsson for quick end to BSNL-Motorola dispute on GSM tender

Tokya, Nov 15: A day before the hearing on US-based Motorola's petition challenging BSNL's Rs 20,000 crore GSM tender, Ericsson, which had emerged the lowest bidder, said an early solution to the legal battle will be good for both the company as well as India for the growth of telecom sector.

"India is adding a record number of mobile subscribers every month... Any delay in the award of contract by BSNL will adversely affect both the company and country," Carl-Henric Svanberg, President and worldwide CEO, said.

Delhi High Court had last week stayed India's state-owned telecom firm BSNL to award the contract till the next hearing, but had allowed the public sector company to continue with the evaluation process.

The case is scheduled to come up for hearing tomorrow.

Asked whether Motorola was right in challenging the entire process, he refused to comment, saying it was their decision.

He, however, added that "in the entire evaluation process we (Ericsson) clearly met all technical or financial criteria put forward by BSNL." BSNL had floated a tender for expanding GSM mobile services by adding 45 million lines at an estimated cost of more than Rs 20,000 crore. Ericsson had emerged the lowest bidder, followed by Nokia of Finland.

Ericsson, if it wins the bid after due evaluation, would get 60 per cent of the contract, while the remaining 40 per cent of the order would go to Nokia.

"I hope a quick conclusion is reached," Carl-Henric said, adding the company was looking at the expansion plan in India.

--- PTI

Decision delayed until at least 30 Nov 06.


Business India News


Delhi High Court extends stay on BSNL GSM contract award


New Delhi, Nov 16: The Delhi High Court today restrained BSNL from awarding contracts for its Rs 20,000 crore GSM network expansion project till November 30, after the telecom PSU sought time to respond to Motorola's affidavit on the bidding process.

A bench comprising acting Chief Justice Vijender Jain and Justice Kailash Gambhir gave BSNL a week's time to file an additional affidavit in the case initiated by US telecom equipment major Motorola after it was disqualified from the race for the 45.5-million line GSM network expansion project.

BSNL's counsel submitted that the affidavit filed by Motorola, which was disqualified on technical parameters, has some new facts and that they want more time to respond.

The court, which first heard the petition on November 2, adjourned hearing till November 30.

Last month, BSNL, had opened the financial bids for the GSM network project that seeks to add over 45 million lines over a period of three years at an estimated cost of about Rs 20,000 crore.

Swedish company Ericsson had emerged the lowest bidder followed by Finland's Nokia.

While barring the US company from the tender process, BSNL had said that Motorola does not fulfill all the necessary techno-commercial standards prescribed by the tender document.

The telecom PSU is currently in the process of evaluating the financial bids of both the players and if selected, Ericsson would be awarded 60 per cent of the contract, while Nokia the remaining 40 per cent of the 45.5 million lines.

According to sources, Ericsson had quoted a price of about 107 dollars per line, while Nokia had asked for 177 dollars, but officials of both companies declined to comment.

--- PTI

The court gave another 2 weeks delay to the award of the big India BSNL contract, as Motorola raised new questions, so BSNL have to answer those as well.

Its not a worry, as anything big from India is not in the price and not in the forecasts, it remains purely upside should it happen, and big upside at that.

As can be seen below, at 61p Leadcom was seen as cheap by Money Week, based on present standard forecasts, and forgeting all about the big upside that could seriously rerate next years 2007 EPS forecasts upwards.

"A tip for LEAD at 61p from Money Week has come available free online from 22nd September

http://www.moneyweek.com/file/18815/paul-hills-tip-of-the-week-a-small-cap-with-big-prospects.html

"Tip of the week: Leadcom Integrated Solutions (Aim: LEAD, 61p), tipped as a BUY by Altium Capital

Many investors still have horrible memories of the dotcom bubble back
in 2000. A few have vowed never again to invest in hi-tech stocks and have instead ploughed their hard-earned savings into property. Their fears are understandable, but they risk missing out on some very interesting opportunities now cropping up in the technology sector.

Along with the rapid adoption of digital/high-definition TV, VoIP (internet telephony) and wireless broadband, there are some major product launches scheduled for the next six months. Apples iPod Video, Microsofts Vista operating system (the follow-up to Windows) and Sonys PlayStation 3 games console, should all boost consumer demand in the coming years.

I think that this weeks top tip, Leadcom Integrated Solutions, will be a beneficiary of this. Leadcom provides a comprehensive service for telecoms firms and equipment suppliers (such as Nokia) who wish to outsource the design, building, commissioning and installation of their communication networks. The firms headquarters are in Tel Aviv and it employs around 900 staff in 40 countries.

According to research group IDC, the market for network deployment services was worth $900m in 2005 and is expected to increase to $1.2bn by 2008, representing a 12% annual growth rate. This expansion is being driven by three dominant trends.

The first is the construction of wireless networks in emerging markets, where fixed-line telephony is simply too expensive to establish. Second is demand from Western economies, where broadband internet access is presently expanding. Third is the trend for telecoms companies and equipment suppliers to outsource to third parties such as Leadcom particularly in developing regions.

Leadcom has an impressive list of blue-chip customers, which, along with Nokia, includes Nortel, Siemens, TIM and Millicom. It also has a wide geographical spread and is winning significant new business in Latin America, Africa and Asia. New contracts have been signed this year in Argentina and the Congo, and last Monday, $10m worth of deals were announced in Brazil, Venezuela and the Caribbean. India has also been targeted for substantial future investment.

Sales for the first half of this year were $61.8m, up 32% on the same period in 2005, delivering a solid 10.5% operating profit margin. Earnings per share came in at 2.2p and are forecast to reach 4.5p this year, before hitting 6.5p in 2007. With net cash of $10.7m, a growing $80m orderbook and a healthy sales pipeline of $310m, I believe Leadcom offers good value.

As far as risks go, network deployment is undoubtedly a cyclical industry, and geopolitical uncertainties in emerging markets could cause lumpy revenue streams. However, for the time being, the sectors fundamentals look attractive and growth remains strong. And at 61p, the shares trade on a 2007 p/e ratio of 9.4, which appears far too cheap. A third-quarter trading update is scheduled for the end of September.

Recommendation: BUY at 61p (market cap 73m)"

The new Company Presentation/Introduction is well worth going through for a good oversight of Leadcom.

Link below :

http://www.leadcom-is.com/siteImages/leadcom_19.swf

http://economictimes.indiatimes.com/articleshow/459360.cms


Ericsson CEO hopes for a quick fix on BSNL-Motorola row

TIMES NEWS NETWORK[ THURSDAY, NOVEMBER 16, 2006 12:08:04 AM]


TOKYO: Ericsson CEO Carl-Henric Svanberg said on Wednesday that he hoped the ongoing legal dispute over the $5bn BSNL GSM contract would be resolved soon.

The contract is for installing 45.5m GSM lines. Ericsson had emerged as the lowest bidder and is thus, entitled to 60% of the contract. Motorola, which had been disqualified during the tendering process, has approached the Delhi HC, resulting in a delay. The HC has asked the government not to sign a binding contract till the next hearing. A hearing is scheduled for today.

I hope that for Indias sake they come to a quick decision. Every days delay is costing BSNL money and new subscribers, Mr Svanberg said. Mr Svanberg was speaking on the sidelines of the Ericsson strategy and technology summit in Tokyo. Nokia has the right to the remaining 40% of the 45.5m if it can match Ericssons price.

A further 17-18mlines, over and above the 45.5m, are reserved for public sector telecom equipment maker ITI, which has a technical collaboration with Alcatel. The size of the BSNL deal, including the ITI portion, comes to $7bn, making it one of the largest in the world, and has thus, attracted considerable attention.

Ericsson would investment a couple of hundred million dollars per year in manufacturing, R&D and global services delivery in India. The quantum of investment can obviously go up depending upon the execution of the GSM contract, said Mr Svanberg.

Ericsson makes GSM equipment at a factory near Jaipur. It also has R&D and global services delivery centres in Chennai and Gurgaon. Speaking to analysts, Mr Svanberg said Ericsson is in the process of reorganising its business into three broad streams: networks, telecom services and multimedia.

The term network refers to the physical part of the telecom infrastructure while telecom services refer to operating the network on behalf of the operator and hosting of applications (ring tones). Multimedia is a relatively new initiative, which involves management of content like downloading music, games and video. Ericsson manages Bhartis network in 15 circles.

Ericsson officials said the roll out of 3G services was proceeding rapidly in Europe, most parts of Asia (except China and India), Australia, Latin America and the US. India is now in the process of finalising the 3G policy. Mr Svanberg said in India the emphasis right now was on 2G rollout, but 3G will be relevant in providing Internet connectivity.