Zain Group of companies hold strategic commercial meeting at Dead Sea
Under the working theme of planning for a future by better serving its customers, the Zain Group held its annual strategic commercial workshop at the Kempinski Hotel on the Dead Sea from 20 to 21 December, 2010. Attended by senior marketing, branding and communications personnel from its seven operations across the Arab World, the meeting focused on the company’s future plans and strategic direction in all areas of customer care, new products and services, advertising and branding.
The workshop in Jordan follows several other important gatherings that Zain Group has held in the Kingdom, the most recent being the ACE and FUN meetings, in 2008 and 2009 respectively, that saw the attendance of over 500 senior managers from all of its operations across the Middle East and Africa.
Bashar Arafeh, Chief Commercial Officer of Zain Group said that, “holding such meetings in Jordan is testament to the importance the Group places on its telecommunication operation in the Kingdom and the advanced nature of the local industry, one that has been defined by HM King Abdullah’s vision of developing his country into a knowledge-based society and telecom hub.”
Mr Arafeh also added “the purpose of the gathering was to exchange ideas, plans and experiences between personnel from Group and the subsidiaries, in order to exploit future opportunities and to better prepare for common challenges in light of fierce competition in the regional telecommunications industry.”
The meeting also saw Zain Jordan CEO, Dr Abdul Malek Al Jaber, welcome the attendees by emphasizing Zain Jordan’s leading position and its future plans in terms of introducing new technologies in the local market. He also briefed the attendees on the local operation’s transformation from a simple mobile operator to an integrated telecommunications company, offering a complete range of mobile, data, fixed, and entertainment services.
Jordan has proven to be one of Zain Group’s most successful operations over recent years, showing remarkable growth in both revenue and net profit while maintaining a leading customer market share of 42%, despite competition from three other operators.
Seven telecom operators from five countries collaborate on Regional Cable Network (RCN) Project
Seven operators, including Etisalat (UAE), Mobily (Saudi Arabia), Jordan Telecom, Mada and Zain (Jordan), Syria Telecom (Syria) and Superonline, a Turkcell Group company, from Turkey have announced that they are building the Middle Easts longest fully-redundant terrestrial communications infrastructure along a 7,750 kilometer round trip route. The RCN project will extend from the city of Fujairah in the United Arab Emirates to Istanbul in Turkey and then to Europe and will serve as a gateway to the Internet for 2 billion people.
The RCN project was signed by the seven telecom operators during a ceremony held in Ankara. The event was attended by the Minister of Transport and Communications Binali Y?ld?r?m, RCN Project Interim Consortium Chairman and Executive Vice President of Carrier Wholesale at Etisalat Ali Amiri, the CEOs of the founder members of the Consortium: including Turkcell CEO Sreyya Ciliv, Mobily COO Mr. Abdulaziz Altamami, Jordan Telecom Group CEO Mrs. Nayla Khawam, Mada Group Managing Director Charles Hage , Syrian Telecommunications Establishment Director General Nazem Bahsas and Superonline CEO Murat Erkan.
Starting from Fujairah (United Arab Emirates) and passing through Riyadh (Saudi Arabia), Amman (Jordan), Tartous (Syria) and reaching Istanbul (Turkey), the RCN projects fibre optic cable line will cover the entire Gulf region in the Middle East for the first time through a uniform infrastructure. 3,875 km in radial length and totaling 7,750 km with its round trip routes, the RCN project will become the regions longest fully-redundant terrestrial fiber infrastructure between Fujairah, one of the busiest nodes for submarine and fibre cables, and the West.
Addressing the ceremonial assembly, Consortium Chairman and Executive Vice President Carrier & Wholesale at Etisalat, Ali Amiri described the RCN as being unmatched in terms of speed, quality, ease of upgrade, redundancy, and reliability. Recalling that the dual fibre lines would cross five countries and intersect in five cities, Amiri stated that this infrastructure has the ability to provide the tremendous capacity of 12.8 terabits per second. The demand for intercontinental connectivity continues to grow at a remarkable rate. The regions governments are encouraging investment in new technologies to bolster the performance of their national economies. Operators are deploying Next- Generation Networks for both fixed-line and wireless environments which in turn allow an increasing volume of services to be provided to ever more consumers. These factors as well as the growing technical literacy of the local population and availability of rich local content are all driving the demand for ever more capacity. Etisalat is delighted to partner with six of the regions leading operators in a project which will enhance the lives and increase the reach of over two billion people, Amiri said.
Designed to stretch from Fujairah to Istanbul and offer connectivity to Europe through more than 15 access points readily available on the Bulgarian and Greek borders of Turkey, RCN infrastructure boasts a data carrying capacity of 12.8 Terabit per second. Initially 2.4 Terabit per second of capacity will be activated along the two different routes. In contrast to similar systems, all the operators taking part in RCN, will dedicate fibre on both routes exclusively to RCN, paving the way to immediately upgrade or re-route the entire path when needed.
The RCN project brings together top telecom companies from five countries. Each a leader in communication technology in their respective countries, Etisalat (UAE), Mobily (Saudi Arabia), Jordan Telecom/Orange Jordan and Mada-Zain Partnership (Jordan), Syrian Telecommunications Establishment (Syria), and Superonline (Turkey) have signed their names to the Project. With an approximate investment value of half a billion dollars, the fibre optic line will be operational in the second quarter of 2011.
With the potential to directly serve the largest population in the Middle East region, the RCN project will ensure more reliable, redundant and faster Internet connectivity for roughly 2 billion people with its diversified route. Envisaged to satisfy the Internet demand in the countries involved and to become the preferred route for transit traffic across all the countries it passes through, this Project will increase speeds throughout the region.
Mobily and six telecom operators from five countries collaborate on Regional Cable Network (RCN) Project
Seven operators, including Superonline, a Turkcell Group company, from Turkey, UAE, Saudi Arabia, Jordan and Syria today announced that they are building the Middle East’s longest redundant terrestrial communications infrastructure along a 7,750 kilometer round trip route. The RCN project will extend from the city of Fujairah in the United Arab Emirates to Istanbul in Turkey and then to Europe and will serve as a gateway to the Internet for 2 billion people.
The RCN project was signed by the seven telecom operators during a ceremony held today in Ankara. The event was attended by the Minister of Transport and Communications Binali Y?ld?r?m, RCN Project Interim Consortium Chairman Ali Amiri, the CEO’s of the founder members of the Consortium; including Turkcell CEO S¼reyya Ciliv, Mobily COO Mr. Abdulaziz Altamami, Jordan Telecom Group CEO Mrs. Nayla Khawam, Mada Group Managing Director Charles Hage , Syrian Telecommunications Establishment Director General Nazem Bahsas and Superonline CEO Murat Erkan.
The Middle East’s longest redundant terrestrial fiber Internet infrastructure
Starting from Fujairah (United Arab Emirates) and passing through Riyadh (Saudi Arabia), Amman (Jordan), Tartous (Syria) and reaching Istanbul (Turkey), the RCN project’s fiber optic cable line will cover the entire Gulf region in the Middle East for the first time through a uniform infrastructure. 3,875 km in radial length and totaling 7,750 km with its round trip routes, the RCN project will become the region’s longest redundant terrestrial fiber infrastructure between Fujairah, one of the busiest nodes for submarine and fiber cables, and the West.
“Our participation in the regional cable network comes as part of our commitment to contribute to the regional and global connectivity by expanding the reach of our robust, reliable and trusted Saudi National Fiberoptic Network through having multiple routes available for data communication traffic originating from inside the Kingdom or transiting from the networks of other operators”
Turkcell CEO S¼reyya Ciliv: “The world’s newest Internet base is Istanbul”
Speaking at the Signing Ceremony, Turkcell CEO S¼reyya Ciliv emphasized Turkcell’s satisfaction at this joining of forces between powerful, excellent organizations intent on technological leadership in a region where Turkey and the Turkcell Group are major players. Drawing attention to the changing global economic situation, S¼reyya Ciliv remarked that the RCN project, which is noteworthy for its capacity and its diversified structure, is planned to accommodate specific requirements to bring significant advantages to the region by connecting it to the world via Turkey. Predicting that the RCN infrastructure would promote growth of Internet penetration in the region, Mr. Ciliv said, “This will enable still wider Internet expansion as Internet use will become even faster throughout the region.”
He added, “Through this gigantic infrastructure project which starts in the United Arab Emirates and runs the entire length of Turkey, we are building an Internet highway between Fujairah and Istanbul. The RCN project will allow Internet traffic from so far has struggled along a narrow pathway to comfortably reach the speed of a multi-lane highway. One of the key stops along this route will be Istanbul. Positioned in the project as the Middle East’s Internet gateway to Europe, Istanbul is poised to become the world’s newest Internet base due to its geostrategic location. We, the Turkcell Group, are proud to be making such a beneficial investment for Istanbul, for Turkey, and for the region changing lives by offering users an enhanced communications experience.”
Turkey’s Minister of Transport and Communications Binali Y?ld?r?m: “RCN will foster greater capacity in communicating with the countries in the region, as well as greatly benefiting business relations and trade.”
Minister of Transport and Communications Binali Y?ld?r?m stressed that the RCN project would create a welcome opportunity for investors in the countries involved to access their investments and businesses in other countries. Commenting that the establishment of this fiber optic network would help boost Turkey’s communication volumes, business relations and trade within other countries in the region, Mr. Y?ld?r?m said, “We regard this project as one of the fruits of our successful foreign policy. This cooperation between five countries will further enhance the already close relations we have been cultivating recently across in the region.”
Minister of Transport and Communications Mr. Y?ld?r?m went on to say, “The RCN project is a high-capacity infrastructural system that is far more economical, much more reliable, and – most importantly – diversified into two separate routes. Our geographical positioning allows us to develop this hugely valuable piece of Internet infrastructure. As the Transport and Communications Minister of the Republic of Turkey, I am especially pleased that our country is becoming one of the world’s key fiber optic nodes. My heartfelt congratulations go to all the companies taking part in the project, notably the Turkcell Group. This is a project for the whole world to envy and I hope it proves auspicious to Turkey and the region.”
RCN Project Consortium Chairman Ali Amiri, Executive Vice President / Carrier & Wholesale Services Etisalat UAE: “A project unmatched in speed, quality, redundancy, and reliability.”
Addressing the ceremonial assembly, Consortium Chairman Ali Amiri described the RCN as being unmatched in terms of speed, quality, ease of upgrade, redundancy, and reliability. Recalling that the dual fiber lines would cross five countries and intersect in five cities, Amiri stated that this infrastructure has the ability to provide the tremendous capacity of 12,8 terabits per second. “The demand for intercontinental connectivity continues to grow at a remarkable rate. The region’s governments are encouraging investment in new technologies to bolster the performance of their national economies. Operators are deploying Next- Generation Networks for both fixed-line and wireless environments which in turn allow an increasing volume of services to be provided to ever more consumers. These factors as well as the growing technical literacy of the local population and availability of rich local content are all driving the demand for ever more capacity. Etisalat is delighted to partner with six of the region’s leading operators in a project which will enhance the lives and increase the reach of over two billion people ,” Amiri said.
RCN Project: 12.8 Terabits/second capacity with a diversified system
Designed to stretch from Fujairah to Istanbul and offer connectivity to Europe through more than 15 access points readily available on the Bulgarian and Greek borders of Turkey, RCN infrastructure boasts a data carrying capacity of 12.8 Terabit per second. 2.4 Terabit per second of capacity will be activated initially along the two different routes and the fiber optic cables will follow. In contrast to similar systems, all the operators taking part in RCN, will dedicate fibers on both routes exclusively to RCN, paving the way to immediately upgrade or re-route the entire path when needed.
Seven operators from five countries, half a billion dollar worth of investment
The RCN project brings together top telecom companies from five countries. Each a leader in communication technology in their respective countries, Etisalat (UAE), Mobily
(Saudi Arabia), Jordan Telecom/Orange Jordan and Mada-Zain Partnership (Jordan), Syrian Telecommunications Establishment (Syria), and Superonline (Turkey) have signed their names to the Project. With an approximate investment value of half a billion dollars, the fiber optic line will be operational in the second quarter of 2011.
More reliable, redundant and faster Internet for 2 billion people
With the potential to directly serve the largest population in the Middle East region, the RCN project will ensure more reliable, redundant and faster Internet connectivity for roughly 2 billion people with its diversified route. Envisaged to satisfy the Internet demand in the countries involved and to become the preferred route for transit traffic across all the countries it passes through, this Project will increase speeds throughout the region.
Batelco inks international group framework agreement with ZTE (Bahrain)
Bahrain-based Batelco has signed an international group framework agreement with Chinese telecoms equipment provider ZTE Corp.
Under the agreement, ZTE will supply 2G and 3G wireless network solutions to Batelco’s subsidiaries and affiliated companies. As per the agreement, it aims to include reducing Batelco’s capital and operating expenditure whilst supporting its international expansion strategy and mobile broadband development.
The Batelco group accounted for around 7.5 million mobile subscribers across Bahrain, Jordan, Kuwait, Yemen, Saudi Arabia, Egypt and India as of end-September 2010.
Previously, ZTE has deployed a core network for Batelco’s Go Telecom unit in Saudi Arabia, whilst at another group affiliate, India’s STel, ZTE project managed a network launch across various circles, with more than 3,000 sites on air to date. In Jordan, ZTE is already delivering GSM equipment for Umniah’s mobile network.
Mobile Data Revenues to More Than US$10 Billion a Year by 2015 in Middle East
A research was conducted by Informa Telecoms & Media which has shown that the number of mobile subscriptions in the Middle East crossed the 200 million mark in 3Q10 to reach 202 million at end-September.
Determined by growth in the less-developed markets like Iran and Iraq, the region’s mobile market is still growing strongly, with the number of mobile subscriptions in the region increasing by almost 20% over the year to end-September.
According to Matthew Reed, head of mobile research for the Middle East and Africa at Informa Telecoms & Media, although the rate of growth in mobile subscriptions in the Middle East will inevitably slow as the regional market matures, there are still substantial opportunities for subscription-growth in the less-developed markets, as well as in mobile data right across the region.
Iran is the biggest mobile market in the Middle East in terms of subscriptions, with almost 66 million subscriptions at end-September. Saudi Arabia is the second-biggest mobile market in the Middle East in terms of subscriptions, with almost 43 million mobile subscriptions at end-September. In addition, Saudi Arabia has the most valuable mobile market in the Middle East, with mobile revenues in the country forecast to be US$11.2 billion in 2010. Iran recorded the biggest growth in the Middle East in terms of mobile subscriptions, with 12.2 million net additions to the Iranian mobile market over the year to end-September. The Palestinian mobile market recorded the fastest growth rate in the Middle East over the year to end-September, with mobile subscription numbers increasing by 56%.
Reed added that mobile data revenues in the Middle East will amount to more than US$10 billion by 2015, representing about 23% of all mobile revenues in the region. Mobile data- including the use of smartphones and mobile broadband services – represents one of the best growth opportunities for the regional industry.
All of the operators in the six GCC markets have HSPA networks that allow them to offer mobile broadband services. However, only 7.5% of Middle East mobile subscribers are using 3G services at present as a number of major regional markets – such as Iraq and Iran – have yet to launch 3G networks.
Jordan saw the launch of its first 3G network earlier this year, as well as the debut of its first MVNO. Other new opportunities include the new mobile licenses on offer in Syria and Iraq, which have provoked considerable interest.
According to forecasts by Informa Telecoms & Media, the number of mobile subscriptions in the Middle East will cross the 300 million mark in 2014 and will reach 327 million at end-2015.
Orange plans to increase internet user base in Jordan
Orange Jordan has launched a plan to increase the country’s internet user base by two thirds over the next two years, from 60,000 to 100,000 outside the Capital city. The company will finance the first US$7 of the monthly internet subscription for new users and also for new subscribers looking to upgrade their connection.
According to Khawam, this initiative falls in line with the royal vision of promoting the internet culture in the kingdom. The company’s prime objective is to make the internet more accessible to their dear citizens residing beyond the capital and to increase awareness on its importance as a central research and education tool.
The initiative is part of Orange aim to achieve 50% internet penetration by the end of 2011.
Khawam added that this fund is merely the first phase of a comprehensive, long-term plan, which entails the training of 24,000 citizens in the governorates on how to use the internet. The fund will also rehabilitate internet infrastructure and computer labs to 500 schools within these demographics in order to bring the internet into their learning process.
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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.
SK Telecom to release 10 smartphones (South Korea)
SK Telecom, the country’s top mobile carrier, revealed that it will introduce 10 new smartphone models by the end of this year.
The 10 smartphone models are: HTC Desire POP; Sony-Ericsson X10 Mini; Sony-Ericsson X10 Mini Pro; BlackBerry Pearl 3G; LG Optimus One; Motorola Jordan; Motorola Moto Mix; SK Telesys Reaction Phone; Pantech Mirach; and BlackBerry Torch.
The new models, which will target specific groups of women and students, will come in different sizes and colors.
According to the officials, excluding LG Optimus One and Pantech Mirach, the others will be exclusively available for SK Telecom customers. The mini and content-based smartphones are not only equipped with a variety in color, design and special features, but they are also affordable, which is why the company expects them to gain popularity among the specific groups.
The mobiles’ special features will include moisture and dust protection, high-quality music control and a strong multi-media supporting system.
The number of smartphone users for SK Telecom has jumped to 2.8 million in October, up six fold from 470,000 last year.
Jordan Telecom net profit drops by 11.3%
Jordan Telecom Group, the country’s sole fixed-line operator revealed that its net profit in the first nine months of 2010 fell 11.3% to US$97.24 million.
France Telecom owns 51% stake in the company. And as per the company, the revenue of its mobile and fixed-line business fell 1.5% to US$447 million compared to the previous year. Company’s data services rose 38% to US$280.2 million.
The group has over 700,000 landlines and a mobile subsidiary Orange that has over 30% market penetration with over two million subscribers.
The mobile phone market has seen a violent grass war with its main competitor, Kuwait telecom operator Zain’s wholly owned Jordanian subsidiary.
Zain is the largest mobile operator in Jordan with around 2.5 million subscribers and a market share of 42% in a market with almost 100% penetration.
Batelco’s 3Q net profit drops 24%; mobile users more than doubled
Bahrain Telecommunications Company (Batelco) has recorded a 24% year-on-year plunge in Q3 net profit to lower revenues in its domestic market, while the results also revealed its share of losses from STel, its start-up mobile joint venture in India.
According to Batelco’s chairman Shaikh Hamad Bin Abdulla Al Khalifa, net income for the three months ended 30 September 2010 dropped to US$51.1 million, down from US$67.10 million in the corresponding period of 2009.
As per reports, over the first nine months of 2010 Batelco’s total revenues were as US$678.29, with net profit falling 17% year-on-year to US$175.06million. Nine-month operating profit of US$214.31 million represented a 3% decline compared to the same period in 2009.The group’s total number of customers stood at 7.9 million at end-September 2010, including a mobile subscriber base of around 7.5 million, up 53% from 4.9 million a year earlier.
Umniah, Batelco’s 96%-owned subsidiary in Jordan, reached a mobile customer base of 1.8 million, while Sabafon in Yemen, in which the group holds 26.9% equity, reached 3.2 million subscribers.
Saudi venture Etihad Atheeb (15% owned by Batelco, offering services under the GO brand) recorded a total of 92,000 customers, up 5% quarter-on-quarter. Subscriber numbers at STel rose to 1.64 million across its operations in Bihar, Orissa, Himachal Pradesh and the recently launched Assam and North East telecoms circles of India.
Batelco’s mobile customer base in Bahrain down by 4% quarter-on-quarter to 836,000 at the end of September 2010, while broadband users also declined in the quarter to 86,000 customers, representing a 2% drop.
According to the company, loss of profitable market share at home, particularly in the key areas of mobile, broadband and International Direct Dial (IDD), has presented Batelco with tough challenges in the home market … Batelco’s transformation into a lower cost organization is underway.
