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Wireless Federation » archive for 'Bahrain'

Batelco tops 700,000 domestic mobile users, 3.3m group-wide (Bahrain)

  • April 24th, 2008
  • 2:37 pm

Batelco has posted a 10.8% year-on-year rise in net profit to BHD27.4 million (USD72.7 million) for the first quarter of 2008, on revenues that were driven up 17.4% by overseas operations to BHD78.1 million. A company official said that the Bahraini former monopoly achieved a milestone of over 700,000 mobile subscribers in the Kingdom by the end of March, whilst its consolidated group mobile user base reached 3.3 million. Foreign operations now contribute approximately a third of Batelco’s revenues and more than 20% of its operating income.

Batelco also announced that its pre-paid wireless customers can now enjoy mobile broadband services on handsets, laptops and datacard-equipped devices at maximum downstream connection speeds of 3.6Mbps. The operator has expanded its HSDPA-based O-Net Mobile Broadband service to the pre-paid segment following a contract-only launch at the beginning of this year.

   

 

Orascom to join Zain, Batelco in Lebanon mobile auction (Egypt)

  • November 6th, 2007
  • 1:28 pm

Egyptian mobile group Orascom Telecom is considering entering the upcoming auction for one of two state-owned Lebanese mobile network operators, its chairman Naguib Sawiris said yesterday. The Egyptian tycoon dismissed risks of political instability in the country, saying that the main problem would be high prices set by the Lebanese government, which hopes to raise as much as USD7 billion from the sale on 21 February. Sawiris said his group, which has stakes in countries including Iraq, Zimbabwe and Pakistan, was used to political and security risks. ‘This is normal for us…Beirut is like a safe haven,’ he told press. At present, Lebanon’s only two mobile networks – MTC Touch Lebanon and Alfa – are managed under government contracts by Kuwaiti-based Zain Group (formerly MTC Group) and German-Saudi consortium DeTeCon respectively. The state also intends to issue a third mobile licence to fixed line incumbent Ogero Telecom (which will be renamed Liban Telecom). Bahrain’s Batelco has also said it is planning investments in Lebanon as part of a USD4 billion foreign acquisition plan, whilst Zain Group has announced a plan to bid in the auction to remain in the country, although it too has expressed concern over high prices.

   

 

Orascom to join Zain, Batelco in Lebanon mobile auction (Egypt)

  • November 6th, 2007
  • 1:28 pm

Egyptian mobile group Orascom Telecom is considering entering the upcoming auction for one of two state-owned Lebanese mobile network operators, its chairman Naguib Sawiris said yesterday. The Egyptian tycoon dismissed risks of political instability in the country, saying that the main problem would be high prices set by the Lebanese government, which hopes to raise as much as USD7 billion from the sale on 21 February. Sawiris said his group, which has stakes in countries including Iraq, Zimbabwe and Pakistan, was used to political and security risks. ‘This is normal for us…Beirut is like a safe haven,’ he told press. At present, Lebanon’s only two mobile networks – MTC Touch Lebanon and Alfa – are managed under government contracts by Kuwaiti-based Zain Group (formerly MTC Group) and German-Saudi consortium DeTeCon respectively. The state also intends to issue a third mobile licence to fixed line incumbent Ogero Telecom (which will be renamed Liban Telecom). Bahrain’s Batelco has also said it is planning investments in Lebanon as part of a USD4 billion foreign acquisition plan, whilst Zain Group has announced a plan to bid in the auction to remain in the country, although it too has expressed concern over high prices.

   

 

Saudi Arabia’s i2 plans IPO for H2 2008 (Saudi Arabia)

  • October 10th, 2007
  • 3:28 pm

Saudi Arabian mobile phone distributor i2 is planning an initial public offering of shares for the second half of 2008, reports CommsMEA. “There are a few more internal measures we have to take before we can set about making an initial public offering but it is something we are looking to implement in 2008,” said i2 CEO Abdul Hameed Al Sunaid. The company recently announced plans to move into the MVNO market, pursuing a licence initially in Jordan. The company’s also in advanced talks for an MVNO in Bahrain and is looking at similar operations in Saudi Arabia, Egypt and Oman. The company expects to double sales this year to USD 3.2 billion form USD 1.3 billion, helped by a string of acquisitions. Volumes are expected to also double this year to 12 million handsets sold. I2 aims to grow its retail network by opening 150 new shops in the Middle East over the next three years.

   

Batelco invests USD13.5m in 3.5G launch (Bahrain)

  • October 8th, 2007
  • 3:51 pm

Batelco told the Bahrain Tribune that it has invested BHD5 million (USD13.5 million) in its new 3.5G W-CDMA/HSDPA mobile network, due to be launched nationwide this quarter. It added that investment in its next generation network (NGN) infrastructure reached BHD22 million, and that its total investment in its fixed and mobile networks has passed BHD1.4 billion in 26 years.

   

 

Kingdom to crown third mobile licensee in December (Bahrain)

  • October 5th, 2007
  • 2:41 pm

Bahrain will issue its third mobile phone network operating licence this December, Alan Horne, General Director of the Telecommunications Regulatory Authority (TRA), told the Bahrain Tribune. Horne said that all public comments on the licence award would be collected by 7 October and that the regulator would then proceed towards selecting the recipient of the third concession before the end of the year. He added that the TRA’s main purpose is to create better choice and value for telecoms consumers and businesses. Domestic fixed wireless licence holder Mena Telecom, which is currently deploying a WiMAX network, last week announced its intention to apply for the third mobile licence, while several international telecoms groups are also reportedly seeking entry to the Kingdom’s saturated but lucrative cellular market, which is currently a duopoly of fixed line incumbent Batelco and Zain Bahrain (formerly MTC–Vodafone Baharin). According to the Tribune, the TRA’s recent survey found that 62% of residential and 90% of business users were ‘satisfied’ or ‘very satisfied’ with the overall quality of mobile services, but only 22% of all subscribers surveyed expressed satisfaction with mobile service prices. According to the TRA director, ‘Basic underlying call charges from both mobile operators have changed very little since 2004. Despite each mobile operator having a significant market share, competition in the form of permanently lower prices has not eventuated.’

   

 

African operations to keep Celtel brand for now (Africa)

  • September 20th, 2007
  • 1:54 pm

Kuwait-based international cellular group MTC is to continue trading under the Celtel banner in its African operations for the forseeable future. Last week the group decided to change its name to Zain, and rebranded its mobile operators in Kuwait, Bahrain, Jordan and Sudan with immediate effect. Emmanuel Otokhine, public relations manager at Celtel Nigeria, said that keeping the Celtel brand on the continent would ensure certainty and continuity, particularly in the Nigerian and Kenyan operations, which rebranded to Celtel less than twelve months ago. Celtel currently operates in 14 African countries (not including Sudan): Burkina Faso, Chad, Republic of Congo, Democratic Republic of Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The group’s mobile subsidiaries in Saudi Arabia and Iraq are to be rebranded to Zain by early 2008.

   

 

 

Mena’s WiMAX network ready by January (Bahrain)

  • September 17th, 2007
  • 3:24 pm

Bahraini alternative telco Mena Telecom has issued a statement saying that it will begin rolling out a WiMAX network before the end of 2007, based on 802.16e technology supplied by Motorola. Mena’s WiMAX network will be deployed in two stages, with a full range of fixed-wireless services, including broadband, internet and telephony, to be available from the capital Manama to the Seef area by January 2008. In the second phase, coverage will be extended to other areas of the Kingdom by March 2008. According to TeleGeography’s GlobalComms database, Mena won one of two fixed line and fixed-wireless network operating licences in December 2006 alongside MTC-Vodafone Bahrain (now rebranded Zain Bahrain). Under the terms of the licences, both firms must launch commercial national fixed-wireless services within 18 months of the date of the award. Their obligations include a minimum requirement of 40% population coverage, rising to full national coverage in four years. Zain’s network is expected to be ready for commercial launch by the end of this month.

   
 

 

Batelco achieves major growth in mobile base (Bahrain)

  • September 14th, 2007
  • 6:50 am

Batelco has achieved major growth in its mobile subscriber base over the past year, buoyed by the group’s expansion in Jordan and Yemen.

“In Jordan, Batelco’s subsidiary Umniah has achieved one million subscribers and SabaFon over 1.6m customers complementing Batelco’s 650,000 mobile customers in Bahrain,” Batelco chief executive Peter Kaliaropoulos aid.

“This milestone was reached at a time when competition is rapidly increasing in the Jordanian, Yemen and Bahrain telecom markets.”

As part of Batelco’s strategy for growth in the region’s telecom industry, the group acquired a 96 per cent shareholding in Umniah, Jordan’s fastest growing mobile operator for $415 million in June of last year.

“In Umniah we realised an exceptional performance of which we are justifiably proud. It gives impetus to our expansion drive and validates our major investment in buying the Umniah stake,” Kaliaropoulos said.

“Umniah will add a new string to its bow with the launch of WiMax-based broadband services for the Jordanian market later this year, a move which is expected to attract significant numbers of new customers to the company.”

Batelco’s purchase of a 20 per cent shareholding in Yemen’s leading mobile communications company, SabaFon, for $144 million in March of this year, has further boosted Batelco’s mobile distribution footprint.

“SabaFon is the largest GSM mobile operator in Yemen offering national coverage with over 500 base stations across the country.

“The company has over 1.6 million mobile subscribers, and with a population of over 22 million there is plenty of scope to see that figure rise,” Kaliaropoulos said.

“We will continue to build on our niche growth strategy in the Middle East by focusing in areas of substantial growth such as mobile operations and broadband.

“Our predictions for robust growth and cost and revenue synergies for the group, due to our overseas investments, are beginning to be realised.

“Batelco plans to continue their expansion drive, through targeted acquisitions of other operators and licences, either directly or with partners,” he added.

   
 

Kenya: Goodbye Celtel? (Kenya)

  • September 13th, 2007
  • 3:18 pm

Celtel International is considering a major re-branding strategy that would see it drop the ‘Celtel’ brand and adopt a completely new identity - Zain. The plan is expected to create unique difficulties in Kenya and Nigeria, where the Celtel brand is still quite new, as well as across all non-Arab operations. It is part of a long-term strategy by Kuwait’s MTC Group, which owns the mobile telephone operator, to re-invent itself through the launch of a global brand.

MTC, which has expanded significantly through acquisitions, is seeking to consolidate recent growth under one banner. “We have a new brand that will be launched as single global brand for all our operations,” Dr Saad Al-Barrak, MTC’s deputy chairman and chief executive officer, said recently. “We will start any new operation with this new global brand.”

Controversy

Controversy has already erupted over the brand name chosen. Critics feel Zain, leaked in Kuwait in early August, has limited appeal to cultures outside the Arab world. A recent valuation of MTC by analysts from investment banker Morgan Stanley found that Africa accounted for 70 per cent of the company’s fair value.

MTC Chairman, Mr Asa’ad Al Banwan , Celtel International Chairman, Mr Mo Ibrahim, and MTC Deputy Chairman & Managing Director, Dr Saad Al-Barrak. Photo by MTC

The new logo has also been described as too dark and moody. The re-branding process has reportedly begun in Kuwait and is expected to spread to other MTC-branded operations in the Middle East.

Change will come to Africa and its Celtel-branded operations from 2008. The new changes come shortly after a regional marketing blitz to announce the expansion of Celtel’s borderless mobile network to include the Republic of Congo, Gabon and Democratic Republic of Congo. The service was previously limited to Kenya, Uganda and Tanzania. The decision to re-brand will create a costly marketing and logistical challenge for the Kenya and Nigeria operations, given that the two only recently re-branded to Celtel from KenCell and V-Mobile respectively.

The change from KenCell, which began in 2004, is yet to be completed by Celtel Kenya: Many of their telephone booths - admittedly an atrophied part of the business - are still branded KenCell. Nigeria’s switch from VMobile, which began last year, will also have to be scrapped.

A huge task

Speaking to FS during the Second Annual Connecting Rural Communities Africa Forum in Nairobi, Mr Mwaghazi Mwachofi, Celtel International Vice-President for Regulatory Affairs, confirmed that discussions on rebranding were in progress. “Nothing has been decided as yet, nothing concrete,” Mwachofi said when pressed on the matter.

“The Celtel brand is strong and powerful and re-branding is huge task.” MTC Kuwait is also expected to form a new subsidiary, MTC International, as a private company to hold all the MTC Group’s foreign assets and operations.

A newspaper report on the plan several weeks ago saw the Kuwait Stock Exchange halt trading in MTC shares pending clarification of the issues raised.

A local Arabic-language daily had reported that MTC was going to form an entity with $1.73 billion (Sh116 billion) in capital as an umbrella company under which MTC Kuwait and MTC International, called Zain, would operate.

The paper had also said the international unit would sell a stake - possibly 40 per cent or more - in an initial public offering on the London Stock Exchange next year. The re-branding confirms MTC’s ambitions to become one of the biggest mobile operators in the world.

The strategy

According Al-Barrak, the company was looking for a global brand that would work from China to Gabon, in Rio-de-Janeiro and Madras, in Moscow and Iceland. Currently, MTC is looking to fill gaps in sub-Saharan Africa - for example Angola Ethiopia and Senegal - and eyeing Saudi Arabia’s third licence. The company is also making noises about moving its headquarters because of Kuwait’s investor-unfriendly laws.

“The Kuwaiti business environment repels investment and the country’s laws are not good for a financial hub,” Al-Barrak was recently quoted as saying. Kuwait has been dragging its feet on reforms to create a more transparent stock exchange.

Another Kuwaiti law imposes a 55 per cent tax on foreign investors. MTC, Kuwait’s largest publicly traded company, said last week that it could move to Dubai or Bahrain, the Gulf’s financial centres, or to Amsterdam, headquarters of its subsidiary Celtel. The firm operates in Bahrain in partnership with Britain’s Vodafone Group and acquired Netherlands-based Celtel in 2005. It has no presence in Dubai. “MTC is today thinking on the global scale… especially since Kuwait accounts for only 15 per cent of its revenue, (a figure that) will fall below seven per cent in the next two years.” Incorporated in 1983 in Kuwait, MTC now has a presence in 20 countries.

The Group is a leading mobile operator in six Middle Eastern and 14 sub-Saharan African countries providing a comprehensive range of mobile voice and data services to over 29.7 million active individual and business customers.

It operates in Kuwait and Bahrain as MTCVodafone, in Jordan as Fastlink, in Iraq as MTC-Atheer, in Lebanon as MTC-Touch and in Sudan as Mobitel. It also has 14 operations in sub-Saharan Africa as Celtel. These are Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The company has also won Saudi Arabia’s third mobile license and is expected to roll-out a network soon. The change of identity is part of MTC’s plan to re-brand its operations across all networks in line with their “three by three by three (3×3x3)” strategy.