New WiMAX network to launch in Iraq
A new WiMAX network is being launched in Iraq by the operator Fanoos Telecom. The billing provider Aptilo Networks is providing the complete backend of the network, including prepaid billing capabilities, using its WiMAX CSN System.
Fanoos will begin deployment of WiMAX network in Sulaimaniyah, Mosul and Kirkuk, using the existing tower infrastructure from AsiaCell. Rollout is expected to be complete by the end of the year. The network will address both the residential and enterprise markets and address a market with a population of more than 10 million. Aptilo will enable a multitude of different business models including payment via premium SMS and vouchers.
Additionally, the WiMAX CSN System will serve as a foundation to enable a future Wi-Fi hotspot network, providing a cost-effective means to connect Wi-Fi hotspots throughout Iraq with WiMAX infrastructure as backhaul and opening up new market opportunities for Fanoos. Aptilo’s solution also enables full interoperability between the various WiMAX vendors and products involved in the Fanoos deployment, to improve scalability and streamline costs.
Aptilo’s WiMAX solution allows us to rollout the network very quickly, and positions us well for future network expansion, including into a secondary business model of offering Wi-Fi hotspots,†said Hiwa Rauf, CEO, Fanoos Telecom. The technology is ideal for this large-scale, growing network, which we hope to build into the largest in Iraq.â€
The CSN System is the first pre-integrated, ready to deploy wireless broadband data and voice services solution for mobile WiMAX AAA and service control. Unique multi-access, multi-service support allows for management of bundled data and multimedia services over WiMAX and Wi-Fi networks within the same platform.
Fanoos Telecom is paving the way for advanced communications in Iraq,†said Jan Sjonell, Managing Director, Asia/Middle East, Aptilo Networks. With a quarter million voice subscribers, Fanoos can tap into this established market leadership to deliver advanced 4G mobile broadband to help bring this next level of connectivity to residents and businesses, which will also spark new economic growth.â€
Zain shareholders approve Etisalat bid (UAE)
Shareholders in Zain have agreed to sell a controlling stake in the company to Etisalat, the United Arab Emirate’s operator. This deal would be one of the biggest deals on record in the Middle East.
According to Al Khair National for Stocks and Real Estate, an investment company controlled by the Kuwaiti Kharafi merchant family, they have signed a preliminary deal accepting Etisalat’s bid for 46% of Zain for US$6.1 a share in cash.
The deal would give Etisalat a 51% controlling stake in the Kuwaiti operator, and would be worth almost US$12 billion.
According to analysts, the Kharafi family directly and indirectly owns only about a quarter of Zain’s shares, but has been able to get other minority shareholders to join the selling consortium.
According to Informa Telecoms & Media, the research group, if the acquisition comes under the heels of Etisalat, it would become the world’s 19th largest operator in terms of subscriptions, with almost 138 million customers across the Middle East, Asia and Africa.
Etisalat, which still gains about 86% of its revenue from the UAE, would also gain access to several high-growth markets, such as Iraq.
According to Matthew Reed, a senior analyst at Informa, it’s a big deal. Etisalat will become a much bigger player across the region, and will look to take advantage of its broadened regional footprint in a number of ways.
The company will now start due diligence on Zain, and the two parties expect a final deal to be closed by January 15 next year.
According to Mohammed Omran, chairman of Etisalat, Zain is a very well-run company which occupies the pole position in many of the markets in which it operates, including Sudan, Iraq, Kuwait and Jordan. The company believes that this deal represents excellent value for their shareholders.
As per Al Khair, the deal is contingent on the sale of Zain’s Saudi subsidiary, which competes directly with Mobily, Etisalat’s Saudi arm.
Qatar Telecom and Batelco, Bahrain’s state-controlled operator are widely seen as the most likely buyers of Zain’s 25% stake in Zain Saudi Arabia.
Qtel captures MENA
Qtel continues to reinforce its market position in the Mena region and South East Asia where major operations showed solid performance with the Group announcing strong revenue and profit growth for the nine months ended September 30, 2010.
The revenue growth reveals a 14.4% increase throughout the period. Net profit rose to US$659.28 million, showing an increase year-on-year of 3.7 percent. The company’s combined customer base remains healthy, positioned at 68.9 million. EBITDA performance also strengthened, increasing 15.1% year-on-year. EBITDA margin has also improved, closing the period at 48%.
According to Chairman of the Qtel Group, H E Sheikh Abdullah bin Mohammed bin Saud Al Thani, he is pleased with the consistent and positive progress Qtel has made as a Group. This period’s performance determines the ability to overcome challenges, capitalize on opportunities and deliver meaningful returns. He is also pleased to report solid growth for these first nine months of the period and an unbelievable positive response to our very successful bond issuances.
According to Qtel, it has continued to focus on its core strategy of maintaining its market leadership within the Qatar market, and enhancing its share of market value. The expansion of Qtel’s portfolio of new services and the successful completion of the first phase of a nationwide fibre-to-the-home programme have positioned Qtel to enjoy strong and sustainable returns moving forward. The reason for its growth is the steady increase in the number of subscribers. The customer base of Indosat has grown to 40.4 million till the quarter’s end.
Wataniya is the company that has maintained itself with a good strategic position in Kuwait. Although Kuwait has a lot of competition in the market, Wataniya still stood out from most of the organizations. Wataniya has also extended to Algeria by its Nedjma brand. The customer base of this company is 16.2 million.
Qtel has seen a good consumer-following with its Nawras brand which further strengthened Qtel’s market position. Also, Asiacell has progressed in Iraq. It has grown in revenue and profitability both. Asiacell is known for its strong brand equity and quality of service in its region.
Zain profit jumps on Africa asset sale
Kuwaiti telecoms firm Zain has reported a net profits for the first nine months jumped 411 percent on year to US$3.37 billion largely from the sale of its African operations.
The result included capital gain of US$2.73 billion from returns on the sale in June of the company’s operations in 15 African nations to India’s Bharti Airtel for US$10.7 billion.
According to the company, a net profit of US$3.085 billion in the first six months of 2010 compared with US$533.5 million in the same period last year. The revenues in the first three quarters rose 8.3% to US$3.58 billion.
Zain’s customer base is in Kuwait, Saudi Arabia, Bahrain, Iraq, Jordan and Lebanon, as well as Sudan and Morocco, expanded by 25% to 35.3 million clients.
Important shareholders in Zain agreed two weeks ago to a opening offer from United Arab Emirates telecoms giant Etisalat to purchase a 46% stake in the firm for more than US$10 billion.
The two parties are still negotiating details to close the deal expected to be finalized before the year’s end.
Iraq plans to award mobile network license
According to Iraq’s Minister of Communications, Farouq Abdul-Qadir Abdulrahman, Iraq is planning to award the previously announced fourth mobile network license in the first quarter of next year. The new operator will be expected to provide competitive rates to existing operators, as the war-torn country focuses on improving telecom services.
Fifteen companies, including USA-based Verizon Communications, South Africa’s MTN, Turkcell, UAE’s Etisalat, France Telecom, and Vodafone had expressed an interest so far.
It emerges that the license has already officially been awarded to the state-owned Iraqi Telecommunications and Posts Co (ITPC), and the government is now looking for outside investors to build the network.
The country has three operators, Zain, Asiacell and Korek Telecom.
Zain revenue up by 10 %
Now that the sale of the Zain Africa assets have concluded, joined with a healthy cash balance and reduced debt levels, the company is now well positioned to focus on, and further grow, its profitable Middle East operations.
Middle East mobile operator Zain revealed its second-quarter profit. The company achieved US$2.95 billion compared with 266.585 USD a year earlier ,an increase of 10 percent compared to the same period of 2009. The company said it made a first-half profit of $3.1 billion, which included $2.65 billion from the sale of assets in Africa. This includes the capital gain of USD 2.653 billion from the sale of the Zain Africa assets on 8 June
According to the company ,despite the challenging global economic conditions and the competitive markets in which the company operate are extremely pleased with the 10% revenue increase which is in line with our expectations as well as the record profit that is the largest in the company’s history.
With the Saudi Arabia operation of the company it achieved break even EBITDA and 7 million customers in only 22 months of operation, joined with the impressive customer and revenue growth in the Sudan and Iraq operations, and Kuwait maintaining its market share despite the entry of a third operator,the company is confident that impressive results will continue.
Zain Kuwait sign managed contracts with Motorola
www.WirelessFederation.com/news: Three-year managed services contract has been signed between the Networks business of Motorola and Zain Kuwait. Zain Kuwait’s 3G networks will be operated and managed by Motorola under the contract besides handling the design, planning, support and optimization to provide high-quality operational and customer experiences.
The optimization of the existing 2G network will be lead by Zain Kuwait’s internal team. In October 2009, Zain Iraq signed a contract with Motorola to improve network performance, to operate and maintain it, as well as to provide training to its technical support team.
There are existing contracts between Zain and Motorola in Iraq, Saudi Arabia, Nigeria and Jordan for several different technologies, network domains and service functions.
Asiacell expects 30% rise in the revenue this year (Iraq)
www.WirelessFederation.com/news: 30% increase in the revenue is expected by Iraqi mobile operator Asiacell this year as a result of demand from an influx of foreigners working in the oil sector. According to Asiacell CEO Diar Ahmed, turnover will rise to between USD1.4 billion and USD1.5 billion in 2010, compared to USD1.1 billion a year earlier, despite a global downturn and a tough investment climate.
Asiacell Communications is a consortium comprising Asiacell Iraq owning 30% stake, Qatar Telecom or Qtel with 30% stake and investment group Merchant Bridge with 40%.
He also announced that Asiacell signed up almost half of the two million new subscribers in Iraq in 2009 and growth is expected to accelerate as the private sector plays a wider role in an improved regulatory climate. The government of the country is planning to license a fourth national operator, in which the Ministry of Communications (MoC) would have a 35% stake.
Ahmed feels that the entry of the MoC as a competitor will create a conflict of interest because the government cannot be an operator and regulator and competitor at the same time.
Asiacell expands coverage in Iraq
www.WirelessFederation.com/news: Iraqi mobile operator Asiacell has expanded coverage of its wireless network to the city of Anbar, including the cities of Rawah, Ubaidi, Karbalah, Husaibah and Haditha. The expansion work has taken place under the telco plan to provide nationwide coverage in 2010. The campaign has put special emphasis on the western and southern regions.
Asiacell is the country’s second largest cellco by subscribers behind Zain Iraq, with a customer base of 7.74 million at March 31, 2010 and representing a market share of 37.2%.
According to Asiacell’s Chairman, Faruk Mustafa Rasool, making sustainable investments in its infrastructure is one of its main priorities due to its significant contribution to the development of the Iraqi telecoms sector and in raising the sector’s competitiveness in terms of quality and standards. He added that the telco is proud of being the first company to provide coverage for all of Iraq, and pledge to continue to follow the same ambitious methodology in delivering on its promises to the subscribers through providing them with the best telecom services wherever they are.
Q1 2010 – Zain revenue up 11% & subscribers up 28%.
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Total Managed Active Customers
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31.4 million up 28% on Q1, 2009
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Consolidated Revenues
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KWD 329.7 million (US$1.146 billion)
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EBITDA
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KWD 139.2 million (US$ 483.7 million)
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EBIT
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KWD 99.4 million (US$ 345.6 million)
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Net Income
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KWD 51.5 million (US$ 179.1 million)
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EPS
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KWD 0.013 (US$ 0.05)
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