Qatar Telecom confirms bid in Syrian mobile network license
Qatar Telecom (Qtel) has confirmed that it will bid for the country’s third mobile operator license, despite the ongoing political turmoil in the country from democracy activists.
According to Qtel’s Chairman, Sheikh Abdullah bin Mohamed bin Saud al-Thani, their board has taken the decision to pursue the third license in Syria.
Syria’s forthcoming auction for the country’s third mobile network license is reportedly set to have a minimum reserve price of US$122 million.
According to reports, the country is estimated to have had just over 11 million mobile phone subscribers at the end of March 2011, which represents a population penetration level of 54%.
The two incumbent operators will have to buy out their current BOT agreements and convert to a conventional license agreement. The buyout price has been previously reported as being around US$500 million.
The company also confirmed that it would be restructuring its debt within the next few months, and might consider further capital rising at the time. The company also signed, in association with Wataniya Telecom, an agreement to acquire another 25% shareholding in Tunisia, raising its stake to 75%.
Etisalat drops $122 mn bid for Syrian mobile license (UAE)
Middle East Economic Digest (MEED) has stated that Etisalat has dropped its plans to bid for Syria’s third mobile licence, in the latest blow to the firm’s drive to expand its Middle East footprint.
According to MEED, the UAE Company is not happy with the 25% revenue share demanded by Syria. Etisalat was not immediately available for comment. The bid would have been worth a minimum of $122 million.
The Syrian government has stated that five bidders – Etisalat, France Telecom, Qatar Telecom, Turkcell and Saudi Telecom — have qualified for the license auction. Bids are due April 12.
Syria has been crippled by growing political unrest recently in which more than 60 people have been killed so far.
This deal would have given Etisalat a presence in Kuwait, Iraq, Bahrain, Jordan, Lebanon and Sudan.
The former monopoly already operates in 18 countries, including Saudi Arabia, India and Egypt.
Nepal telecom signs MoU with Qatar telecom
Nepal Telecom has signed Memorandum of Understanding (MoU) with Qatar Telecom on operation of international telecommunication service at a subsidized rate through inter-connectivity.
Though the service had already come into operation since December last year through establishment of inter connectivity between the two companies, the formal accord to this effect was signed on Tuesday.
Managing Director of the Nepal Telecom, Amarnath Singh and Chief Executive Officer of the Qatar Telecom, Dr Naser Marfiha signed the MoU amidst a function.
With the new agreement between the two telecom companies, Nepal Telecom customers can now make a call to Qatar at US$0.17 per minute as compared to US$0.28 per minute earlier.
The new provision is expected to benefit some 465,000 Nepalis currently working in Qatar.
Qtel reports record 2010 revenue of US$7.5 billion
Qatar Telecom (Qtel) announced that 2010 full year Group revenue increased 13.1% to end 2010 at QAR27.2 billion (US$7.47 billion), as the Group’s consolidated customer base reached 74.1 million (FY 2009: 60.4 million).
Distributable earnings for 2010 including profits from the Nawras IPO taken directly to retained earnings increased by 21.3% to QAR3.4 billion (US$927.5 million). Earnings per Share (EPS) for 2010 grew 2.2% to QAR 19.69.
As part of the Group’s diversification strategy, Qtel has maintained solid operational and financial progress, successfully balancing the management of competitive pressure to maintain market share in mature markets with the ongoing development of operations in growth markets.
Key highlights of the year include the roll-out of Fibre-to-the-Home in Qatar, the successful implementation of a value-driven strategy by Indosat in Indonesia, strong revenue growth in Algeria leading to a first annual net profit for Nedjma, the successful defence of market leadership position in Tunisia, the launch of fixed line and home broadband services by Nawras in Oman and continued subscriber growth for Asiacell in Iraq.
The Group also successfully launched IPOs in Oman and Palestine, saw strong support for a 10-year Bond for Indosat and for the Qtel Group’s bond sale, which was more than ten times oversubscribed.
Qatar Telecom (Qtel) provides a full range of telecommunications services in Qatar and across its presence in 17 countries. Our vision is to be among the top 20 telecommunications companies in the world by 2020 through expansion in both the MENA region and South East Asia.
Asiacell to extend mobile network in 2011 (Iraq)
Iraqi mobile operator Asiacell Communications, a group including Asiacell Iraq (30%), Qatar Telecom (Qtel, 30%) and investment group Merchant Bridge (40%), has signed a network expansion agreements with Nokia Siemens Networks (NSN) and Ericsson, as it is planning to expand its service footprint in the country.
According to the cellco’s Chief Technical and IT officer, Patson Anius, the supply contracts will allow the operator to introduce advanced services tailored to the domestic market. Next year, they will be further expanding their network coverage to include small villages and residential communities in remote areas. They look forward to breaking their own GSM deployment record in Iraq next year.
Asiacell is one of the three cellcos licensed to provide national mobile services, having been awarded its concession in August 2007 at a cost of US$1.25 billion.
In 2009 it deployed 1,490 base transceiver stations (BTSs) on its network, thanks to the build-out of 950 new communication towers, and improved the service capabilities of 450 other cell sites. At the end of September 2010 Asiacell had 7.917 million mobile subscribers, placing it second in the market with a share of 34.8%. It competes with Zain Iraq, Korek Telecom and SanaTel.
Indonesian anti-monopoly agency considers buying Temasek assets
Indonesia’s anti-monopoly agency is considering seizing assets owned by Singapore’s Temasek Holdings unless a local subsidiary does not pay a court-imposed fine.
According to the anti-monopoly agency, Temasek had breached antitrust laws by using its indirect stakes in two local mobile networks, Telkomsel and Indosat to fix prices.
The company was fined US$17 million in May 2010 after appealing against court rulings dating back to 2007. Temasek sold its stake in Indosat to Qatar Telecom in 2008 following a separate court ruling.
According to Tresna Soemardi, the agency’s chairman, they are now inventorying Temasek’s assets and expect to complete the activity in 2011, these assets would stand be seized unless the fine is paid.
According to Muhammad Reza, the agency’s Chief of Investigations, once the company has been formally notified of the fine and doesn’t pay it, the Indonesian anti-monopoly commission may ask for a court order to seize the said companies assets.
Temasek Holdings is an investment company owned by the government of Singapore, and it has a 55% stake in Singapore Telecom (SingTel), which in turn owns 35% of Indonesia’s Telkomsel.
Qatar Central Bank Permits Mobile Money Transfers & Payments
Qatar’s Central Bank has permitted telecom network operators, namely, Qatar Telecom and Vodafone Qatar to add mobile money transfer and payment services in direct collaboration with banks and exchange houses licensed by Qatar Central Bank.
The mobile payment will help the customers to pay for services provided by public institutions, companies and other enterprises, knowing that this service is actually provided in agreement with telecom network operators.
The service will also enable consumers to transfer funds through their telecom operator locally, as well as abroad, in accordance with the stipulated limits.
Qatar Central Bank has studied the feasibility of this service in terms of its procedures and applications with the mentioned companies as well as some banks to ensure the authenticity and transparency of the remittances and their conformity to the controls and regulations applied on payment systems in the State.
Gulf telecoms on smooth tracks
As per the analysts and bankers, the industry may soon enter a period of more measured, organic†growth, as acquisitions targets are scarcer and competition heats up in domestic markets.
Etisalat’s $11.7bn blockbuster bid for 46% of Zain, the Kuwaiti operator, is anticipated to go through and lead to the eventual sale of Zain’s 25% stake in its Saudi subsidiary which competes against Etisalat’s Mobily.
Most of the region will have been carved up by the Gulf’s remaining three large operators the United Arab Emirates’ Etisalat, Saudi Telecom (STC) and Qatar Telecom, or QTel once Zain Saudi Arabia is sold.
According to Victor Font, head of Delta Partners, a telecoms-focused management advisory and investments firm, there were a number of players in the region that had the aspiration to become relevant operators in the global scene, but there isn’t space for all of them to be successful and consolidation was to be expected.
The Gulf’s mobile companies are left in the Middle East, or even in the wider Asian and African markets. Whereas, there is a license for sale in Syria, and Lebanon’s long-delayed privatization plans remain.
According to Mr Font, most of the other regional players are government controlled and it is very unlikely that the company will see any of these sold, at least in the medium term.
Etisalat, STC and Batelco, the Bahraini telecoms company, are active in the rapidly growing but fiercely competitive Indian market, which is the largest pool of potential subscribers close to the Gulf. Etisalat is also in talks with Reliance Communications about a tie-up, which are expected to continue in spite of a Zain deal.
As per a senior telecoms-focused investment banker, once Etisalat closes the Zain and the India deal, they will be done with their acquisition expansion. The question is what QTel and STC will do now. There aren’t a lot of opportunities left in the Middle East.
QTel is a hot favorite amongst those who are eyeing on buy Zain Saudi Arabia if it comes up for sale. Batelco has also expressed interest, but lacks the financial heft of its Qatari competitor, and Saudi Arabia would fit well with QTel’s Middle East footprint, analysts say. Other possible, but less likely, buyers include South Africa’s MTN, India’s Bharti Airtel and Turkcell.
The attraction of Zain’s Saudi operations is clear. While Zain Saudi Arabia has struggled because of a price war with STC and Mobily, the overall size of the market will reach $11.6bn in revenues this year, says research by Delta Partners.
As per recent reports, Saudi Arabia alone will grow, in absolute terms, more than the rest of the [Gulf] telecoms markets put together.
Competition has increased across the Gulf, and eroded the average revenue per user (ARPU) a common industry measure of customer profitability. Across the Middle East, the overall ARPU rate has slipped from $20.85 a month in June 2008 to $13.95 in June 2010, Informa estimates.
The Gulf markets remain more lucrative. At $18.86, Saudi Arabia’s ARPU is the region’s lowest, while the figure is $44.64 and $33.14 in Kuwait and the UAE respectively, in line with richer developed markets.
National Mobile Telecommunications Q3 Profit plunges 3% (Kuwait)
National Mobile Telecommunications Co., the Kuwaiti phone company controlled by Qatar Telecom’s third-quarter profit declined 3.2% as competition strengthened.
According to company’s statement, net income chop down to US$63.4 million from US$64.7 million a year earlier.
According to Chairman Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, in the company’s home market of Kuwait, they continue to address the competitive pressures and increased the share in the market. Wataniya is in competition with Mobile Telecommunications Co., the market leader known as Zain; and with Kuwait Telecommunications Co., called Viva.
According to the company, profit in the first nine months chop to US$190.4 million, or 107 fils per share, from US$340.2 million or 194 fils, a year earlier.
As per the company, Wataniya’s customer base rose almost 30% to more than 16.2 million at the end of September. Revenue advanced 14% in the first nine months, while EBITDA gained 11%.
Qatar Telecom eyes higher stake in Philippine telco
As per the chairman of Qatar Telecom, Qtel is interested in raising its stake in the Philippines’ Liberty Telecoms and is in talks with partner San Miguel Corp to expand the venture.
As per Sheikh Abdullah Bin Saud Al-Thani at a conference, Qtel was committed to its investments in the Southeast Asian country and was seeking to expand its presence in Asia.
Qtel holds 32.7% of Liberty and San Miguel holds 33%. Liberty, which was a dormant listed firm prior to Qtel and San Miguel’s investment, last year, focuses on wireless broadband services. Liberty has a market value of nearly US$110 million.
According to Al-Thani, Qtel created a good bond between the two companies. Qtel is exploring with them more and more investments in telecoms and in the future of the technology. It’s not only the mobile business but into more of the IT and the telecoms sector. Qtel is in discussion and hopefully would come to an understanding of what’s the plan for the future.
The company doesn’t see that there is anything stopping them from partnering and exploring more business with San Miguel. It’s not the financials, but it’s about what the opportunities are and the working environment.
