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According to local media report, Lebanon’s parliament has approved the new ‘national unity’ cabinet line-up, which is now expected to announce a commitment to privatise the country’s two mobile phone networks. Originally, the privatisation was set for the month of february but suffered delay caused by political deadlock.  The sale of controlling stakes in the GSM mobile companies, MIC1 and MIC2, might now be delayed until after parliamentary elections set for May 2009 said Lebanon’s Ministry of Telecommunications.

MIC1 is currently branded Alfa and managed by a joint venture between DeTeCon International, part of the Deutsche Telekom group, and Saudi Arabia’s FAL Holding. MIC2 is currently managed by Kuwait’s Zain Group under the MTC Touch Lebanon banner. It is anticipated that telecoms including Zain, Etisalat, Orascom, Qatar Telecom and Saudi Telecom to take part in the upcoming auction.

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Vivendi will not buy a stake in Saudi operator Oger Telecom after all. The company issued a statement announcing that the negotiations had now ended. Vivendi CEO Jean-Bernard Levy recently said an announcement would come soon, however this was not the expected outcome, writes Les Echos. Vivendi now says it will continue to pursue its acquisition strategy in the best interest of shareholders, at acceptable prices and with clear opportunities to take control. Apparently, neither condition was met by Saudi Oger’s offer. Oger Telecom provides internet services in Saudi Arabia and is present in fixed and mobile telephony in Turkey, South Africa, Lebanon and Jordan.

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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.

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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.

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Lebanon will privatise its two mobile phone network operations in February, according to a plan unveiled by the Higher Council for Privatisation and the Telecommunications Regulatory Authority. Interested bidders will need to submit an offer by 1 February, including one proposal for sharing revenues with the government and another without any income sharing. “It’s part of transparency, so that the Lebanese public can see what the potential revenues are for the country,” Ziad Hayek, head of the Higher Privatization Council, told The Daily Star. The government will decide on which structure to use based on how much it can reduce public debt over the long term. On 21 February, the government will select which model to implement, and an auction will follow, using the highest bid as the opening price. Each winner will receive 67 percent of the shares in the licence-holding company, while the state will sell off the remaining 33 percent in an initial public offering within a year of the auction. Lebanon’s monopoly fixed-line operator Ogero will also receive a third licence to operate a mobile network. The two networks have around 1.1 million subscribers, equal to a penetration of less than 30 percent of the population.

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Lebanon will privatise its two mobile phone network operations in February, according to a plan unveiled by the Higher Council for Privatisation and the Telecommunications Regulatory Authority. Interested bidders will need to submit an offer by 1 February, including one proposal for sharing revenues with the government and another without any income sharing. “It’s part of transparency, so that the Lebanese public can see what the potential revenues are for the country,” Ziad Hayek, head of the Higher Privatization Council, told The Daily Star. The government will decide on which structure to use based on how much it can reduce public debt over the long term. On 21 February, the government will select which model to implement, and an auction will follow, using the highest bid as the opening price. Each winner will receive 67 percent of the shares in the licence-holding company, while the state will sell off the remaining 33 percent in an initial public offering within a year of the auction. Lebanon’s monopoly fixed-line operator Ogero will also receive a third licence to operate a mobile network. The two networks have around 1.1 million subscribers, equal to a penetration of less than 30 percent of the population.

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The sale of Lebanon’s two mobile network operations is set for February 2008. The presidents of the Telecommunications Regulatory Authority and the Higher Privatization Council told The Daily Star they have prepared the invitation for applications to tender. Interested companies will be allowed to buy two-thirds stakes in each of the mobile networks, while the government will retain a third of the shares. The government will then sell part of its shares in a public offering on the Beirut stock market. The tender documents are expected to be made public in a couple weeks, with technical bids due in January. The telecoms minister has said the government hopes to raise USD 5-6 billion from the sale. Lebanon has just over 1 million mobile users who generate over USD 750 million in annual revenues. Currently MTC Touch and Alfa are operating the two networks in a contract with the government in exchange for a monthly fee of USD 4 million each. Their contracts are set to expire in May and June 2008. Around 7-8 to companies have already shown interest in the auction.

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AT&T announced on Monday that it is expanding its presence in the Middle East, with network node deployments in Kuwait and Saudi Arabia, and a virtual private network services (VPN) contract across the region with Ericsson.
AT&T is ramping up its services in the Middle East, “as part of an ongoing strategic investment in the region,” said a company statement, released at Gulfcomms 2007.

In cooperation with Saudi Telecommunications Company (STC) and NavLink, a company in which AT&T has a minority stake, the network node first announced by the U.S. carrier last year is expected to be fully operational by the end of 2007.

The new infrastructure is being rolled out to allow AT&T and NavLink customers interconnectivity with STC’s national MPLS network.

AT&T also said it is working with QualityNet and NavLink again, to deploy a network node in Kuwait.

The deal will allow AT&T to offer IP-VPN services to Kuwaiti-based enterprises, as well as multinationals looking to expand their Middle East presence, said AT&T.

The Kuwaiti MPLS node is expected to be activated during 2008, and the telecoms giant said it is growing its Dubai-based sales and support team in order to complement its expanded network reach.

The expansion initiatives form part of a $750 million global investment programme announced by the telecoms giant earlier in the year.

The U.S.-based carrier said at the time it planned in 2007 to focus on high-growth emerging markets in Asia Pacific and Latin America, as well as the Middle East.

Furthermore, in a separate announcement also made Monday, AT&T said it has been selected by Ericsson to provide VPN services across the Middle East region in a contract worth $6 million.

AT&T said the deal will see it provide services to Ericsson’s operations in Qatar, Bahrain, Kuwait, Jordan, Saudi Arabia, Lebanon, Oman and the United Arab Emirates.

“A reliable network, backed by a comprehensive service level agreement, the ability to execute locally and speedy implementation, were all key requirements for us when choosing our network provider in the Middle East,” said Carl-Magnus Månsson, CIO of Ericsson, in a statement.

“We are dedicated to the Middle East as a growth area of our business and feel that this is matched by the commitment that AT&T has made to the region,” he added.

“Through our direct investment in NavLink, partnerships with other key players in the Middle Eastern telecommunications market and our regional office in Dubai, we are confident that we can serve the needs of enterprises in these high-growth markets,” said Tom Regent, head of EMEA operations, AT&T, in a statement.

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Kuwaiti-based cellular group Mobile Telecommunications Company (MTC) says it is considering relocating its headquarters because Kuwait’s business environment ‘repels investment’. Kuwait newspaper Al Rai quoted MTC deputy chairman Saad Al-Barrak, who said: ‘MTC is today thinking on the global scale… especially since Kuwait accounts for only 15% of its revenue which will fall below 7% in the next two years.’ The firm is considering a move to a regional financial centre such as Dubai or Bahrain. Kuwait’s acting Communications Minister, Abdulwahed Al Awadhi, says the government will work with MTC to ensure it stays in the country. MTC Group has operations in Kuwait, Bahrain, Jordan, Iraq, Lebanon and Sudan, plus 14 sub-Saharan African countries via its wholly-owned subsidiary Celtel.

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Telecom Italia has reached an agreement to sell its 10.36% stake in Oger Telecom to the Middle Eastern holding company’s majority owner Saudi Oger for USD477 million, to reduce debts. The transaction is expected to be finalised by the end of July. Oger Telecom is an emerging markets telecoms holding group, controlled by Saudi Arabia’s Saudi Oger, with headquarters in Dubai, UAE. Oger Telecom has stakes in telcos and ISPs in Saudi Arabia, Lebanon, Jordan, South Africa and Turkey.

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