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Orascom in alliance with Western Union launches mobile remittance services

  • October 21st, 2008
  • 10:56 am

The Western Union Company today announced that it has created an alliance with Orascom Telecom Holding S.A.E., one of the largest mobile operators in the Middle East, Africa and Asia.
Orascom Telecom and Western Union plan to work together to introduce mobile remittance services in select markets. The services aim to make low-principal, high-frequency remittances more convenient to the millions of consumers who send money every day.
Orascom Telecom, which was established in 1998, operates six mobile networks with a combined total of 77 million subscribers, including Djezzy in Algeria, Mobilink in Pakistan, Mobinil in Egypt, Tunisiana in Tunisia, Banglalink in Bangladesh, and Telecel Zimbabwe in Zimbabwe. In addition, in early 2008, Orascom Telecom acquired a license in North Korea to operate mobile services.
“Orascom Telecom mobile networks are in areas with high populations of people who have limited access to financial services,” said Naguib Sawiris, Orascom Telecom Chairman and CEO. “We believe this alliance, supported by our current mobile subscribers throughout the Middle East, Africa and South Asia, presents an effortless method to bring financial services to many of the world’s families for the first time.”
Western Union, together with its affiliates Orlandi Valuta and Vigo, maintains the industry’s largest global money transfer Agent network with more than 355,000 locations in over 200 countries and territories.
“As the need for remittances continues to grow, so does the desire for new channels to conduct quick, convenient and affordable money transfers,” said Gail Galuppo, Western Union Executive Vice President and Chief Marketing Officer. “Western Union is already offering this convenience with mobile money transfers from select locations, and we look forward to working with Orascom Telecom to offer this option to their subscribers in the future.”
Several of the countries where Orascom Telecom operates are among the top receivers of remittances in the world. For example, according to the World Bank, Bangladesh received US$6.6 billion in remittances in 2007; Pakistan received US$6.1 billion, and Egypt received US$5.9 billion.
The Western Union(R) mobile money transfer service is currently available from select Western Union Agent locations in the United States, the Middle East, Asia-Pacific and Europe to Globe Telecom and Smart Communications subscribers in the Philippines.
The mobile money transfer service connects mobile operators to Western Union’s trusted global “hub” for processing cross-border remittances. Once connected to Western Union’s service, mobile operators use their own “mobile wallet” software to enable person-to-person mobile money transfers over Western Union’s global remittance network. The Mobile Money Transfer service enables consumers to transfer money to or from mobile wallets and is being introduced into the global network of Western Union Agent locations for cash-to-mobile and mobile-to-cash transactions.
The agreement with Orascom Telecom is part of the pilot program of Western Union and the GSM Association, a global trade association representing over 750 GSM mobile phone operators, to facilitate the development of cross-border mobile money transfer services.

About The Western Union Company

The Western Union Company is a leader in global money-transfer services. Together with its affiliates, Orlandi Valuta and Vigo, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. It operates through a combined network of more than 355,000 Agent locations in over 200 countries and territories. Famous for its pioneering telegraph services, the original Western Union dates back to 1851. For more information, visit www.westernunion.com.

About Orascom Telecom

Orascom Telecom is a leading international telecommunications company operating GSM networks in six high growth markets in the Middle East, Africa and South Asia, having a total population under license of approximately 440 million with an average mobile telephony penetration of 44% as of June 30, 2008. Orascom Telecom had over 77 million subscribers as of June 30, 2008.
Orascom Telecom is controlled by Weather Investments S.p.a. which also owns Wind Telecomunicazioni S.p.a., Italy’s third largest mobile operator and second largest fixed-line operator, and Wind Hellas, the third largest mobile operator in Greece.
Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol; and on the London Stock Exchange, its GDR is traded under the symbol.

About Wireless Federation

Wireless Federation is an industry research conglomerate headquartered in London, United Kingdom. The mandate of the Wireless Federation is to provide its members and customers industry knowledge that can further enhance their understanding of the wireless industry. Wireless Federation conducts bespoke research and produces boxed reports in collabaration with Industry Bodies, Telecom Operators for Issues that revolve around ARPU, CHURN and Loyalty.
They have been associated with more than 225 mobile operators globally to set their Pricing/ Tariff Strategies, Go-To-Market Strategies for Mobile Advertising, Mobile Payments, Cutting VAS among others amongst 59 countries globally.

For more information you can log on to www.wirelessfederation.com

Algeria’s subscriber base may grow to 36 million in 2010 (Algeria)

  • August 27th, 2008
  • 2:31 pm

The $6.4 billion Algerian telecom market is one of the fastest growing sectors of the country. With fast adoption of mobile services 2003/4, the mobile subscriber base has shown exponential growth over the last three years with a CAGR of 78% during 2004-2007. As of 2007, the Algerian mobile market was 81% penetrated.
Djezzy (Orascom), Mobilis (AT), and Nedjma (Wataniya) together sharing the market.

Notable highlights of the 3Q08 Algeria Mobile Forecast include:

  • Total subscribers in Algeria will increase by 12%, from 32.21 million in 2008 to 36 million in 2010.
  • Djezzy will continue to receive much higher ARPUs than the other two operators. In 2007, Djezzy’s ARPU was $12.34 compared to $7.76 for Nedjma and $3.06 for Mobilis. In 2010, it is forecasted that Djezzy’s ARPU levels will increase slightly to $12.7 per month. We think that market share gains by Nedjma will come primarily from price reductions, and are forecasting a -11.5% reduction in its ARPU over the forecast period. ARPU at Mobilis will remain at $3.06 from 2008 to 2010
  • On average over the forecast period, Djezzy and Nedjma will continue to enjoy some of the highest EBITDA margins in the Middle East (for covered companies). Djezzy will continue to enjoy the highest average EBITDA margin among Algerian operators of 61.5% over the forecast period.
  • Algeria to have the lowest ARPU levels in the African region and operator-wide ARPU levels in Algeria will be US$ 8.13 in 2010.
  • In 2010, the operator which will bill its customers at the lowest rate in our coverage list will be Mobilis in Algeria with an ARPU of only US$ 3.13 per month in 2010.

   

Shalaby is appointed as the Chairman of ECMS (Egypt)

  • August 25th, 2008
  • 1:13 pm

Orascom Telecom Holding announces that the board of directors of the Egyptian Company for Mobile Services (“ECMS”) nominated Mr. Alex Shalaby to become its chairman. Shalaby will be replacing Naguib Sawiris, now CEO of the company, will take over the chairmanship on 1 September, while Hassan Kabbani has been appointed as Shalaby’s replacement. Kabbani, worked for France Telecom before joining Orascom Telecom in 1998, and has been running the Algerian mobile operator Djezzy since 2003. Sawiris, will remain on the board at Mobinil, is also chairman of Orascom Telecom, which owns stakes in both Mobinil and Djezzy. Djezzy has promoted CTO Tamer El Mahdy to replace Kabbani as its new CEO.

Algeria announces tender for 3G licences

  • May 29th, 2008
  • 2:07 pm

Algeria’s Regulation Authority of Post and Telecommunications (ARPT) yesterday launched the process to issue 3G mobile licences in the country. Local and international parties wishing to participate must register their interest by 30 June. No details were released on the number or type of licences to be issued. The country currently has three mobile network operators; Egyptian Orascom Telecom’s Djezzy, Qatari-owned Wataniya Telecom’s Nedjma and Mobilis, part of state-owned operator Algerie Telecom.

   
 

Orascom open to French mobile alliance with Iliad (Egypt)

  • September 12th, 2007
  • 3:09 pm

Egyptian conglomerate Orascom is open to forming an alliance with France’s only bidder for a fourth mobile licence, triple-play operator Free’s parent company, Iliad. Naguib Sawiris, who owns half of Orascom Telecom through his Weather Investments vehicle, counts as Orascom’s only presence in Europe Italian mobile operator Wind, acquired for EUR 12.1 billion in 2005. The magnate told Les Echos that Orascom Telecom expressed interest in the French licence, but did not bid because it was not clear whether the licence price, EUR 619 million, would be reduced or if it would be possible to spread payments over time. Sawiris explained that Orascom would not be interested in pursuing UMTS in France, though, as he sees 3G as a “flop” on which operators spent billions of dollars on licences, but is only expected to attract 10 percent of their customers.

The main application of mobile is voice, he insists, and Wind has yet to spend a single Euro on 3G in Italy. This position puts him at odds with France Telecom, a big spender in 3G, whith whom he describes a “complex relationship”. France Telecom is Orascom’s partner in Egypt, Algeria and Tunisia. Sawiris was unwilling to change the brands Mobinil, Djezzy and Tunisiana’s to Orange Egypt, Algeria and Tunisia, he reveals. Sawiris also reiterated to the newspaper that Orascom would be interested in buying France’s third mobile operator, Bouygues Telecom, if Martin Bouygues ever decided to sell. The French building and telecommunication group may be looking for funds to finance its potential acquisition of a large stake in a new merged French nuclear and power utility company being formed by Areva and Alstom, according to the French press.

Orascom Telecom, outside its home market mainly present in emerging countries such as Pakistan and Algeria, has a USD 13 billion market capitalisation. It made a USD 1.1 billion operating profit on USD 2.5 billion of revenues in the first half of the year. and expects to have 100 million subscribers by the end of 2008. Sawiris sees telecommunications as a way to unite the countries of the Mediterranean Basin, which include France, but also keeps his eye on the bottom line. Thanks to lower operating costs in its emerging markets, the group enjoys a 65 percent gross operating margin in Algeria, compared to 45 percent in Italy. In Pakistan, for example, consumers spend only USD 4.90 a month on mobile communications, and consume a mere quarter of the network capacity in France.