Wireless Federation

North Africa mobile market continues to grow despite strife

On 03.30.11, In Mobile, By Editor

A new analytical report has revealed that the social and political chaos in the developing countries of the Middle East and North Africa is having a short-term troublesome effect on mobile communications markets, but still projects steady growth in subscriptions and revenues for the region. The latest report forecasts that mobile subscriptions continue to grow at an average rate of 3.5% per year through 2015.

As per the report, the current unrest could even drive demand for communications services, particularly mobile social networking. It is easy to exaggerate the extent to which these are ‘Facebook Revolutions,’ but the fact is that social networking will become an even more critical communications tool as the result of current events.

In the short term, Analysis sees the potential for disruption to operator financing, noting that Mobinil in Egypt has deferred making a scheduled dividend payment. Additionally, the new Tunisian government has seized the assets of France Telecom’s local partner in Orange Tunisie.

Egyptian 3G subscribers to grow fivefold by 2012

On 03.21.11, In Mobile, By Editor

A new research report has revealed that the Egyptian 3G market is expected to grow five fold by 2012, as compared to 2007.

According to reports, the 3G market, mainly operated by three operators, possesses huge potential for future growth. The 3G penetration level was less than 1 million at the end of 2009 but operators are investing heavily to upgrade existing technology and increase ARPUs.

Operators are trying to convince their customers to move into the new 3G services as a way of freeing up 2G capacity and halting the steady erosion of the ARPUs. Various equipment manufacturers are playing an important role in developing Egypt’s 3G network. Nokia Siemens Networks and Huawei have been developing Mobinil’s 3G networks while Alcatel-Lucent and Motorola are cooperating with Mobinil to establish its 2G network. Furthermore, Cisco Systems and Ericsson have had their part in the development and enhancement of the company’s network infrastructure. Apart from 3G, the report found that Egypt’s mobile market will also grow strongly in the coming years, boosted by an increase in the low-income customer segment, competition between operators and the availability of pre-paid and installment payment options.

Filed under:Mobile Tagged with: 2G • 3G • Alcatel-Lucent • ARPU • Cisco Systems • Egypt • Ericsson • Huawei • Mobile • Mobinil • Motorola • Nokia Siemens Networks • pre-paid

Egypt mobile subscriber base reaches 67mn

On 02.25.11, In Mobile, By Editor

According to Ministry of Communication and Information Technology, Egyptian mobile subscriber base grew to 66.87 million at the end of November 2010, from 65.5 million a month earlier.

In November 2009, Egypt’s three mobile operators, Etisalat Egypt, Mobinil and Vodafone Egypt, had 53.68 million subscribers.

Filed under:Mobile Tagged with: Egypt • Etisalat Egypt • Ministry of Communication and Information Technology • Mobile • Mobinil • Vodafone Egypt

Egypt’s mobile phone networks restored

On 01.31.11, In Mobile, By Editor

Egypt’s mobile phone networks have been able to resume their services after being ordered to shut-down their networks on Friday. Vodafone, France Telecom controlled Mobinil and UAE based Etisalat owned, Etisalat Misr were all ordered to block their networks in selected areas throughout the country.

The move seemed to fail on the government though, as protests had been pre-arranged in anticipation of such action, and the blockage seemed to simply inflame existing anger with the government.

According to Vodafone Egypt, they would like to make it clear that the authorities in Egypt have the technical capability to close their network, and if they had done so it would have taken much longer to restore services to our customers. It has been clear to them that there were no legal or practical options open to Vodafone or any of the mobile operators in Egypt but to comply with the demands of the authorities.

The decision to shut the network had been criticized by international campaigners who called upon the mobile networks to defy the government, despite the technical impossibility of doing so.

There have also been unconfirmed rumors that the mobile networks might be ordered to shut-down again on Monday and that landline networks may also be shut-down. The landline networks have been the main route for internet traffic as users which to dialing international ISPs to bypass the blocked local broadband services.

Filed under:Mobile Tagged with: Egypt • Etisalat • Etisalat Misr • France • France Telecom • ISP • landline networks • local broadband services • Mobile • Mobinil • UAE • Vodafone • Vodafone Egypt

Egypt’s Telecom Growth May Slow: HC

On 12.15.10, In Mobile, By Editor

Cairo-based AlembicHC’s report has revealed that growth in Egypt’s telecommunications industry may be limited next year and beyond as mobile-phone revenue per user and the number of new subscribers decline.

The penetration rate in Egypt is higher than it seems as real penetration is expected to reach 95% by the end of 2010. HC Brokerage, which issued the report, is now known as AlembicHC.

According to AlembicHC, Telecom Egypt, the country’s monopoly fixed-line operator and 45% shareholder of the second-biggest mobile network, Vodafone Egypt, faces better growth prospects because of the diversity of its revenue stream and strong balance sheet. Egyptian Co. for Mobile Services, Egypt’s biggest mobile-network operator also known as Mobinil, will face rising competition and higher costs for upgrading its network.

AlembicHC estimates Mobinil will have a market share of 40.5% at the end of the year, compared with Vodafone Egypt’s 41.1%. According to the report Egypt will have 74.9 million subscribers by year-end.

Filed under:Mobile Tagged with: AlembicHC • Cairo • Egypt • Egyptian Co. for Mobile Services • HC Brokerage • Mobile • Mobinil • Telecom Egypt • telecommunications industry • Vodafone Egypt

Mobinil seeking financial support for Network Expansion

On 10.25.10, In Mobile, By Editor

If reports are to be believed, Egypt’s Mobinil is seeking to raise US$347 million in debt to fund a network expansion.

According to reports citing the firm’s Chief Executive Officer, Hassan Kabbani, the size of the debt offering depends on market conditions as well as talks with Commercial International Bank (CIB) and the state-owned National Bank of Egypt.

The Central Bank has blocked the mobile network from borrowing additional funds from local banks, as the banks have reached locally imposed limits on how much they can lend to a single customer. When calculating loan limits, the Central Bank Orascom Telecom’s liabilities into consideration because Orascom still owns part of Mobinil.

As per the report, Mobinil had asked for an exception after it had incorporated its financial accounts into those of its other major shareholder, France Telecom.

Filed under:Mobile Tagged with: Central Bank Orascom Telecom • CEO • Commercial International Bank • Egypt • financial support • France • France Telecom • Hassan Kabbani • Mobile • Mobinil • Network Expansion

Non VimpelCom Deal Assets to Form New, Listed Co.: Sawiris (Egypt,Russia)

On 10.06.10, In Mobile, By Editor

As per the Egyptian billionaire Naguib Sawiris, The company will hold about 51% of a new, publicly-listed company that will include his assets in Egypt that were not part of a $6.5 billion deal with Russian mobile operator VimpelCom Ltd.

According to reports, all assets external to this deal will be included in this new company, which will be listed on the Egyptian exchange. Sawiris is expecting the new company, which hypothetically is called “Orascom Telecom 2″ to be formed in some months. The company would include Sawiris’s share in Egyptian Company for Mobile Services, or Mobinil.

The new company will include assets in North Korea as well as Greece’s Wind Hellas Telecommunications SA, which weren’t the part of the VimpelCom deal.

As per the agreement, VimpelCom will be owned by Sawiris’s Weather Investments S.p.A. with a share of 51.7% of Orascom Telecom Holding SAE and 100% of Wind Telecomunicazioni S.p.A. Orascom Telecom is currently the dominant mobile operator in the Arab world.

According to Sawiris, the company opted to keep the other Egyptian assets out of the VimpelCom deal because they wanted to maintain control of assets within the homeland, especially after a protracted battle with France Telecom over their ownership in Mobinil.

He further revealed that the company is connected to the nation and homeland and Sawiris wants to keep control of the assets. There was practically a fight between Sawiris and France Telecom over Mobinil so there was no way they could then go and sell that.

In April, France Telecom and Orascom Telecom settled their disagreement over Mobinil, ending a three-year dispute, which involved the international arbitration court and Egyptian courts.

Filed under:Mobile Tagged with: Arab world • Assets • Deal • Egypt • Egyptian billionaire • Egyptian court • France • France Telecom • Greece • international arbitration court • Listed Co • Mobile • Mobile services • Mobinil • Naguib Sawiris • Orascom Telecom • Orascom Telecom 2 • Russia • SAE • Sawiris • VimpelCom • Weather Investments S.p.A. • Wind Telecomunicazioni S.p.A.

Mobinil Might sell US$175million bonds to expand funds: CEO

On 09.06.10, In Mobile, By Editor

The Egyptian Co. for Mobile Services possibly will issue bonds valued at US$175 million. According to Chief Executive Officer Hassan Kabbani, The Egyptian Co. for Mobile Services may issue bonds valued at US$175 million. The Cairo-based company that operates under the brand Mobinil plans to use the proceeds to fund network expansion. The time frame for the sale is yet to be disclosed.

Mobinil sold 2.32 billion U.S. dollars of bonds this year with the institutional portion having 1.5 times more offers than bonds available, and the sale to individual investors being 11.4 times oversubscribed.

According to Kabbani, the first issue was a huge success, the company got a positive reaction and that’s why the company is thinking of a second issue to fund expansion. Mobinil has a very aggressive expansion plan.The company has difficulties borrowing from banks because the central bank limits how much a local company can rise from lenders and treats, Mobinil as a unit of Orascom Telecom Holding SAE when it should be considered part of France Telecom SA.

Orascom first operation was the Egyptian Company for Mobile Services commonly known as Mobinil. Mobinil is a market leader serving over 24.2 million subscribers representing a market share of 43.6% (as of September 2009). Mobinil is one of Egypt’s five largest companies on Cairo & Alexandria Stock Exchange (CASEâ€) in terms of market capitalization.

Orascom and the Paris-based company in May settled a more than two-year legal dispute over the ownership of Mobinil, keeping the ownership structure unmoved.

Filed under:Mobile Tagged with: Cairo-based company • CASE • Egypt • France • France Telecom SA • Mobile • Mobinil • Orascom • Paris

France Telecom eyes main emerging markets

On 05.12.10, In Mobile, By Editor

www.WirelessFederation.com/news: Expressing its focus on the main emerging markets, France Telecom’s Chief Executive Officer, Stephane Richard, announced that his company is “ready to pay a good price” to grow further in Africa.

Introduction of broadband to both mobiles and fixed-lines in Egypt, where France Telecom controls the country’s largest mobile operators by the number of subscribers is also on the cards of the operator.

According to Richard, the firm wants to bring to the Egyptian market the innovations that the group has in the world and it is the sole reason why it wants to bring broadband into both mobile and fixed-lines into Egypt.

Stephane Richard was in Cairo to announce a deal with Egypt’s Orascom Telecom over their joint ownership in Egyptian mobile operator ECMS, which is also known by its brand name Mobinil.

Filed under:Mobile Tagged with: Africa • Egypt • Europe • France • France Telecom • Mobile • Mobinil • operator • Orascom

MobiNil Telecom to be consolidated by France Telecom

On 05.10.10, In Mobile, By Editor

www.WirelessFederation.com/news: Results of Egyptian mobile-phone operator MobiNil Telecom will be fully included by France Telecom SA in its accounts following an accord with co-owner Orascom Telecom Holding SAE.

According to the company, the 300 million fee that France Telecom agreed to pay Orascom covers termination of a previous shareholders’ agreement and compensation because Orascom can no longer consolidate MobiNil results under the amended deal.

Explanation of the fee was demanded by Egypt’s financial-market regulator from Paris-based France Telecom and Cairo-based Orascom, last week. The decision was taken as MobiNil’s ownership structure was left unchanged after the settlement was announced by the companies on April 15.

Minority shareholders in Egyptian Co. for Mobile Services will not be affected by minority shareholders. Orascom received a put option to sell its shares in MobiNil and Egyptian Co. for Mobile Services to France Telecom as a part of the changed shareholders’ agreement.

Filed under:Mobile Tagged with: Africa • Cairo • Egypt • France • France Telecom • Mobile • Mobinil • operator • Orascom • Orascom Telecom

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