Wireless Federation

The department of telecom (DoT) reportedly has assured the central vigilance commission (CVC) that the Swan-Unitech deal was acceptable. Swan Telecom and Unitech Wireless have not sold their shareholdings but are in association with foreign companies for investments. Swan and Unitech inked an agreement with Etisalat and Telenor, respectively, for bringing in equity capital into the companies to launch telecom networks in their respective licensed areas. According to DoT, the investments will be used for launching services, which could enhance their capital base, keeping shareholding of their partners unchange.
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Etisalat reported a 19% rise in the third-quarter profit therefore meets analyst’s forecast, as it added more users in a saturated home market and expanded abroad. The second-largest Arab telecom firm by market value posted profit in the three months ended on September 30 of 2.1 billion UAE dirhams ($571.7 million), it said. Data reveals that the earnings were supported by a 23.8pc rise in revenues in the quarter to 6.6bn dirhams.

Du which started its operations last year and signed up 220,000 mobile phone users at home in the three months, lead Etisalat to loose its telecom monopoly.The UAE, the second-largest Arab economy, is home to about 4.5m people, many of whom hold more than one line.The details of iEtisalat’s global subscribers is not yet revealed.

Etisalat is making a move into new populous markets to diversify its revenue sources as the growth in new customers in their homeland plunges. This move includes holding stakes in operators in Saudi Arabia, Egypt, Pakistan and Indonesia.
As earlier reported by Wireless Federation that ‘ Etisalat acquires 45% of Swan Telecom, a deal worth $900 million.’
“Our acquisition in India has opened yet another key market, which will help power Etisalat’s growth,” Etisalat chairman Mohammed Hassan Omran said.
Earlier this month the firm was eyeing opportunities in Iraq, Omran added.
The global financial crisis, which has depressed asset values across the world, was creating an “opportunity” for Etisalat to make acquisitions, he further said.
Etisalat made 1.8bn dirhams in the third quarter last year, including minority interest, as revealed by previous financial statements.

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Etisalat announced its consolidated financial results for the third quarter of 2008. The results showed a significant growth in revenues, profits and subscriber numbers. The company reported AED 2.1 billion in group net profits for the third quarter - an increase of 19 % on 2007 figures. This takes net profits for the first nine months of 2008 to Dh. 7.3 billion.

Etisalat recorded net revenues of AED 6.6 billion for the third quarter of 2008 and AED 19.1 billion in total for the first nine months of the year. This shows an increase of 24 %, compared to the third quarter of 2007 1.3 billion). Total assets recorded were 32.5 billion an increase of 26 % (AED 6.6 billion) compared to last quarter 3 2007. Profits per share for the first 9 months increased to reach AED 1.21 against AED 0.92 for the same period in 2007.

Etisalat announced its acquisition of 45% of “Swan Telecom”, which will provide services in India. This takes Etisalat’s geographical reach to 18 countries in Africa, Asia and the Middle East, covering a population of approximately 1.6 billion.

“The growth rates Etisalat has achieved in both financial and operational terms reflect the high levels of efficiency and performance at all levels of its management. This has helped us to become one of the largest regional and international operators. Etisalat has succeeded in sustaining our financial growth and technical leadership thanks to our commitment to world class standards in all areas of our business,” said H.E. Mohammad Hassan Omran, Chairman of Etisalat.

“Our acquisition in India has opened yet another key market, which will help power Etisalat’s growth. We are also delighted to have received our first ratings from Moody’s, Standard & Poor’s and Fitch Ratings - which places us in a very strong position to continue our international expansion,” added H.E. Mohammad Hassan Omran, Chairman of Etisalat.

Mohammad Al Qamzi, Chief Executive Officer at Etisalat, said, “Mobile subscriptions in the UAE have now exceeded (7.05 million number) showing an increase of (11 %) compared to the third quarter of 2007, fixed line subscriptions reached (1.36 million), while internet subscribers reached (1.08 million). These tremendous results come in line with Etisalat’s endeavor in providing latest and best technologies that match its customers’ needs.”

In the third quarter of 2008, Etisalat has announced many new products, services and initiatives including:

* An agreement with BT and Khalifa University for Science, Technology and Research to establish the Etisalat-BT Innovation Lab in Abu Dhabi.

* The launch of BlackBerry Bold - Etisalat is the first operator in the Middle East to introduce the productivity tool; and the launch of a special BlackBerry applications portal

* Launch of global interconnect and voice trading platform named E-Globe Interconnect from Etisalat Carrier & Wholesale services

* Launch of 3.5G wireless USB modem, the E170

* Etisalat received inaugural ratings from Moody’s (Aa2), Standard & Poor’s (A+) and Fitch Ratings (AA-)

* Launch of E-Support software to support home Internet users with answers to common problems

* Reach Entertainment campaign to promote the use of multimedia services
For more info log on to www.etisalat.ae

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

The allotment of spectrum to Swan telecom was “transparent”, said Telecommunications Minister A Raja. The allocation of spectrum was done as per the guidelines of the National Telecom Policy 1999, there was no favouritism, added Raja. The spectrum was alloted to Swan on first-come-first-served basis.
Following to Swan telecom’s $900 million deal with UAE-based Etisalat, which purchased 45% of its shares, allocation of spectrum was an added advantage. The deal valued the company at $2 billion. Swan Telecom is part of the Mumbai-based Dynamix Balwas group. Government has granted permission to Swan telecom to offer  both national and international long distance (NLD and ILD) services, in addition to permission to operate as an Internet service provider (ISP) in India. With these three additonal licences the company will be able to provide the complete range of telecom services from mobile to fixedline to voice and data to Internet services.

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UAE’s Etisalat acquires 45% stake in Swan Telecom a deal for $900 million hits yesterday. Now Swan telecom is set to obtain mobile licences held by  Allianz Infratech. According to Industry sources, it is anticipated that the deal, which may run into a couple of hundred crores, is likely to be announced within a fortnight. Allianz Infratech had aaplied for Telecomlicences on a pan- India level but was permitted to instigate in only two circles, Madhya Pradesh & Bihar. Swan already have the licence to operate in 13 of the 22 telecom zones in India though Madhya Pradesh & Bihar is not included in these zones. Ajay Singh, Ashish Singh, Praveen Singh and Ashish Deora  are the four individuals-aviation entrepreneur who promotes Allianz Infratech. Each holds 25% of the share in the company. Following the deal, Swan will be able to provide telecom services in 15 circles covering over a billion people.Swan managing director Shahid Balwa denied the development. He admitted that Swan would make an acquisition to extend its footprint in India. Mr Balwa further said, Swan would launch mobile services in the first quarter of 2009. The company was in talks with existing operators and stand-alone tower companies for infrastructure sharing, he added. Swan Telecom is among the seven companies that was successful in obtaining GSM licences earler this year.

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UAE’s leading mobile operator Etisalat acquires 45% stake in the Indian operator Swan Telecom for $900 million. The deal valued Swan a whopping $2 billion, an amount several times more than the fees it paid for the licence.
The acquisition enables Etisalat to make it’s mark in the Indian telecom sector, an oppurtunity it eyed from past one and a half year. According to sources, Etisalat may further look in to increasing it’s stake to 51%.
“We will be launching telecom in the first quarter of 2009. We are in talks with existing operators and standalone operators for infrastructure sharing. We already have licences and spectrum in 13 telecom circles,” says Swan MD Shahid Balwa.

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Etisalat (UAE’s Leading Telecom Operator) seems to be in its final stage to sign a deal with Sawan telcom, acquiring 40% stake in the firm. Etisalat has been looking for an Indian partner and was in talks with telcos including Spice Communication and Videocon-backed Datacom. Swan telcom persistently hitting the headlines for its association with Anil Ambani group company RCOM, which was said to hold 9.9 per cent stake in it at the time of applying for licence last year.
According to RCOM officials, the company does not hold stake in Swan telecom anymore. Swan Telecom had obtained licence for launching operations in 13 circles. Etisalat is operating in 16 countries across Asia, the Middle East and Africa has a presence in India, through its data services subsidiary Technologia in Bangalore.

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Tata Teleservices, the Indian CDMA operator, along with other three operators Videocon’s Datacom Solutions, Unitech Wireless and Swan Telecom, recieved the GSM spectrum to offer it’s services in Mumbai.
The competition will heat as to who earns the highest ARPU/month in the country.
All the four operators have been allotted “trial spectrum” of 4.4Mhz spectrum each in the 1800 Mhz band, with a timeframe for the trial. Tata Teleservices is, reportedly, required to finish the trials within the time span of 3 months.

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Swan Telecom has been awarded GSM spectrum for the Delhi circle, reports a local media. Bharti Airtel, Vodafone Essar, Idea and MTNL will be joined by Swan Telecom to provide services in the region. Swan pounds other interested companies including Datacom and Tata Teleservices to bag the licence. At the time when Swan applied for licence, RCOM was holding a 9.9% stake. But it has been confirmed that RCOM has sold its stake in the venture.

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