Etisalat to spend $15 billion on its network (UAE)
UAE’s largest telecom operator, Emirates Telecommunications Corporation’s (Etisalat) Chairman has announced that the company will be investing US$15 billion in the enhancement and development of its network in the UAE and beyond over the next five years.
According to Mohammed Omran, Etisalat had already invested US$1.36 billion in fibre optics and the company plans to invest an additional US$1.36 billion.
He added that he thinks fibre is the backbone for this new media, to connect the customer with the right speed. That is why they have invested heavily in fibre not only in the UAE, but also in Saudi Arabia and other markets.
Etisalat Nigeria bags $650 mn funding for network expansion
Etisalat Nigeria has reportedly completed a US$650 million agreement deal with eight Nigerian banks to expand its mobile phone network.
According to reports, the loan is being arranged by First Bank of Nigeria Plc, Zenith Bank Plc, Access Bank Plc, Fidelity Bank Plc and United Bank for Africa Plc. Others are Bank PHB Plc, Guaranty Trust Bank Plc and Oceanic Bank International Plc.
According to Chief Executive Officer Steven Evans, the company would invest $400 million in 2011; noting that $50 million out of the money would be specifically spent on 3G equipment.
Etisalat Nigeria acquired Alheri Mobile Services, a unit of the Dangote Group and a recipient of a 3G license last December for an undisclosed amount.
According to Evans, the 3G network will be launched in Lagos, Port Harcourt and Abuja very soon, while other parts of the country will be covered in 2011.
71% mobile users active in January (India)
The Indian telecom regulator, TRAI has stated that Videocon lost more than 1 million subscribers, while Bharti Airtel, Reliance Communications and Vodafone Essar added 3 million subscribers each in January this year.
According to TRAI, more than 71% of mobile subscribers in India are active users. Around 548.66 million people were using mobile phones of the total subscriber base of 771 million mobile subscribers.
Bharti Airtel had the highest ratio of active subscribers compared to its total subscriber base at 92.63%, followed by Idea Cellular with 90.34% but Etisalat showed the lowest ratio of 33.55%.
Bharti Airtel also continued to lead the industry, grabbing more than one-fifth of the market share. RCOM and Vodafone Essar were the second and third largest telcos as of January-end. BSNL was the only public telco to have a market share of more than 11.6%.
Jammu & Kashmir has the highest proportion of active subscribers at 81.26% followed by Assam with more than 81% and Maharashtra at 77.58%. In contrast, the financial capital Mumbai has the lowest proportion of active mobile users.
Zain Q4 net profit rises (Kuwait)
Kuwait’s Mobile Telecommunications Co. Zain stated that its 2010 net profit rose as the company added new subscribers and that it plans to double its net profit by 2014.
The subject of a nearly $12 billion takeover offer by U.A.E.’s biggest telecoms company Emirates Telecommunications Corp., Etisalat, said its net profit excluding a capital gain from selling its African assets rose to US$1.02 billion, compared with US$700.80 million a year earlier.
Net profit reached US$3.80 billion, including a capital gain of US$2.76 billion from the sale of Zain Africa assets on June 8, 2010.
According to Zain Group Chief Executive, Nabeel Bin Salamah, the company targets organic growth and more than doubling its net profit by 2014. To realize their business aspirations, they have devised an integrated strategy that will hopefully aid them, through organic growth, to reach 52 million customers, generate 6.3 billion in revenues, and increase earnings before interest taxes, depreciation and amortization to $3.4 billion– while improving the EBITDA margin to 53%-and more than double their net profit to $2.1 billion by 2014.
Zain stated that 2010 revenue reached US$5.03 billion, 7% increase from the year earlier. Zain added that its mobile customers stood at 37 million at the end of December, an increase of 23% from the same period a year earlier.
Etisalat still interested in Zain’s deal (UAE)
UAE’s Etisalat spokesperson Ahmad Bin Ali has stated that the company is still interested in buying a 46% stake in Zain Kuwait even after the expiration of its $12 billion bid.
Ali announced that Etisalat’s ongoing interest after Kuwati family conglomerate Kharafi Group, Zain’s major shareholder stated that it doesn’t want to sell its stake to Etisalat anymore after the company didn’t meet the deadline for due diligence.
According to Ali, Etisalat is not sure whether Kharafi’s stake is still available for the sale.
Zain Board declines Batelco offer for Zain Saudi stake (Kuwait)
Kuwait’s biggest phone operator, Zain has reportedly turned down an offer from Bahrain Telecommunications Co. to acquire its 25% stake in Zain Saudi Arabia.
As per sources, Batelco’s offer was below the book value of the stake. Batelco, Bahrain’s largest phone company stated on Feb. 9 that it submitted to an offer to acquire Zain Group’s stake in Zain Saudi. Zain’s board met today to decide on the offer. The meeting followed an announcement by Kingdom Holding Co. that it has not reached an agreement with Zain to buy its stake in Zain Saudi. Kingdom Holding, controlled by Saudi billionaire, Prince Alwaleed bin Talal, made an offer on Jan. 31.
Zain Saudi shares today fell by 4.3% in Riyadh to US$2.06, valuing the company at US$2.9 billion. The stock has declined 22% in the past year.
Zain’s board decision may frustrate a bid by Emirates Telecommunications Corp. to buy a 46% controlling stake in Zain. Etisalat is in talks with Zain shareholders to buy a majority stake in the Kuwaiti company. It has stated that Zain needs to sell its stake in the Saudi unit in a timely fashion for the deal to proceed.
