Bharti Airtel to launch data services in world’s fastest-growing markets
Bharti Airtel, the leading telecommunications company declared to launch its data communication services in Thailand & Malaysia which are among the world’s fastest-growing markets.
Bharti launched the services in partnership with TRUE International Gateway Co. and Telecom Malaysia.
According to Bharti, its services will help clients communicate faster than current speeds with Africa, Europe and the U.S. The company currently provides mobile telephony services in India, Sri Lanka, and Bangladesh and in more than 15 countries in Africa.
According to Ajay Chitkara, chief executive for Bharti’s global data business, the launch of the services in Thailand and Malaysia fall in formation with this organizational plan.
Bharti Airtel’s Global Data portfolio offers Managed MPLS, Ethernet, IP and International Private Leased Circuit (IPLC) services to customers across the globe with a special focus on high growth markets in Asia Pacific, Middle East & Africa. The portfolio includes solutions for voice and data connectivity, collaboration services, co-location, carrier outsourcing and content distribution through its next-generation high speed submarine and fiber network.
Etisalat Sri Lanka Reaches 3 Million Subscribers with 24% growth since Launch
Etisalat, a UAE-based telecommunications services provider announced a striking three million subscribers in Sri Lanka operation and the company expects to add another million subscribers by the next year.
According to the company, Etisalat’s recent expansion drive covering 480 new 2G sites, taking Etisalat’s footing on the top position in 2G coverage, with a total of 1580 sites, including all urban areas as well as steady growth in the North East.
According to the CEO Dumindra Ratnayake, Etisalat is rolling out a development in coverage network upgrade to IP and latest in 3G with an investment of around US$163 million this year. Reaching 3 million subscribers is a landmark achievement for Etisalat in recently entered Sri Lankan market, and the company is committed to growing this number and taking this company to great heights.
According to Etisalat, since its launch, the company has seen a 24 % growth in subscriber base with a significant raise in market share, building it one of most dominant players in the telephonic arena in Sri Lanka.
Hutchison Whampoa lining up in profits
Hutchison Whampoa has revealed a higher-than-expected 12% rise in first-half net profit and are expecting 3G mobile-phone business to turn to the positive side.
The 3G division has been focusing on investors, as its losses have long been a pull on the corporation’s earnings. The company assures that it will make profits with its 3G operations by 2011.
The company’s net profit for the six months ended June 30 grew from HK$5.76 billion last year to HK$6.45 billion. The profits were more than the average HK$4.51 billion forecast of six analysts.
The company’s unexpected result was mainly because its 3G operations came in better than the market anticipated, but whether the recovery is sustainable will depend on how well its 3G operations in the U.K. can compete.
Hutchison’s 3G operations cover the U.K., Italy, Australia, Austria, Hong Kong and Sweden, and has more than 27.8 million subscribers.
Hutchison’s input to Cheung Kong Holdings Ltd., Li’s property flagship and Hutchison’s controlling shareholder with a 49.97% stake, rose 12% to HK$3.22 billion from HK$2.88 billion.
ARPU enlarged by 1% compared to last year. Apart from the consequence of the depreciation of Euro against other European currencies and Australian dollar, ARPU declined 4% compared to last year, largely owing to an improved proportion of mobile broadband access customers.
Excepting any major unfavorable market growth or regulatory developments, the management expects the 3 Group to make a positive contribution to the Group’s full year EBIT results this year.
The Group’s established mobile operations in Indonesia, Vietnam and its Sri Lanka and Thailand operations reported total revenue of HK$1,195 million and LBIT of HK$869 million for the period, a decline compared to the EBIT of HK$166 million for the similar period last year – largely reflecting the shrank contribution from its Israeli telecommunications operation which was disposed of in October 2009.
Axiata’s profit rises in Q1 (Malaysia)
www.WirelessFederation.com/news: Net profit of Malaysia-based telecoms group Axiata increased from MYR63.89 million (USD17.5 million) in 1Q09 to MYR921.48 million (USD281.7 million) in the three months ended March, 31 2010. Operational improvements and cost management at three of its subsidiaries Malaysia’s Celcom, XL of Indonesia and Sri Lanka’s Dialog has been attributed as the reason behind increased profitability.
Disposal of shares in XL has also been hailed as the reason behind the gain. 31% year-on-year rise in the revenue has also been reported which reached MYR3.81 billion while the EBITDA rose 52% against the same period a year earlier to MYR1.68 billion. Axiata’s total customer base rose by 37% y-o-y to reach 129.7 million at end-March 2010.
According to the company, it expects to face continued challenges in the coming year, and reiterated its plans to take a long term view by adopting prudent measures to optimize financial performance.
Indian telco Bharti Airtel’s latest ventures improves its world ranking
www.WirelessFederation.com/news: In the latest global rankings, Bharti Airtel which was ranked eighth in last year’s ranking will overtake Norway’s Telenor Group, Deutsche Telekom and China Unicom to become the world’s fifth largest mobile operator group with just under 170 million global connections. The rankings are based on fourth-quarter 2009 connections data and are calculated on a performance basis to demonstrate the impact of the enlarged Airtel Group.
The latest acquisition and deals made by Bharti Airtel across the world has played a major role in improving the ranking of the company in the world rankings. Incidentally, Indian telecommunications company Bharti Airtel and the Bahrain-based Zain group has signed definitive agreements for Bharti to buy most of Zain’s operations in Africa at an enterprise value of $10.7 billion.
Not only Zain’s acquisition, but its home market in India, launch of Airtel in Sri Lanka in 2009 and acquisition of Warid Telecom in Bangladesh in January 2010 has brought it total to 18 markets, a global footprint surpassed only by the large European operator groups and its new African rival, MTN.
Bharti is also in talks with Tanzania’s government over its stake in Zain Tanzania. If materialized, the talk will make Bharti the second-largest African operator group behind MTN, which remains ranked at number twelve by global connections. According to Finance and Economy Minister Mustafa Mkulo, Tanzania’s government has a 40 percent stake in Zain Tanzania, and the government is keen to know the future†of the unit when Bharti becomes the new majority shareholder.
However, everything is not green for Bharti as it has to face numerous hurdles before starting its operations in Africa in a full vigor. The Republic of Congo recently announced that it retains the right to block the transfer of Zain’s license to Bharti with the government of the country claiming that it was not consulted and this was a violation of the country’s laws.
But Zain trust in the company does not seem to be taking a back seat as it has expressed its desire to sell all but two of its African mobile assets to Airtel excluding wholly-owned Zain Sudan (a market leader in the country) and its 15.5 percent equity stake in Wana (ONA) in Morocco.
All this must seem to be working wonders for the Indian telco but will lessen the impact of Zain which will be reduced to just six markets and sees the Kuwaiti-based firm drop to number 46 in rankings on a pro forma basis.
Hutchison telecom advised to accept buyout by Hutchison Whampoa
www.WirelessFederation.com/news: The proposed takeover bid of Hutchison Telecommunications International Ltd by billionaire Li Ka-shing’s Hutchison Whampoa Ltd has been considered as attractive enough for the former investors to accept a buyout bid.
Hutchison Telecom investors’ exposure will be reduced after accepting the HK$4.23 billion ($545 million) buyout to the unit’s unprofitable wireless operations. In January, Li’s biggest company with operations in ports, telecommunications, energy, property and retail, Hutchison Whampoa offered to buy the Hutchison Telecom shares that it doesn’t own for HK$2.20 apiece.
60.4 percent of the shares outstanding were owned by the parent company while Li owns 5.5 percent of Hutchison Telecom. Hutchison Telecom operates mobile-phone units in Indonesia, Sri Lanka, Thailand and Vietnam.
Dialog telecom to now become Dialog Axiata (Sri Lanka)
www.WirelessFederation.com/news: In the line of the Malaysian parent group, the name of Sri Lanka’s dominant wireless operator Dialog Telekom has been intended to be changed to Dialog Axiata by the company. The owner of the cellco, Axiata Group was previously named TM International (a company spun off from Telekom Malaysia).
However, the current moniker was assumed in May 2009. According to the company, the name changes will accurately reflect its corporate identity, although the move is subject to approvals from shareholders and the company registrar.
Indian telco MTNL backs out from Zamtel buyout plan
www.WirelessFederation.com/news: After BSNL’s back out, another state owned Indian telco MTNL has too decided to abandon the bid to buy out Zambian telco Zamtel. Earlier, both BSNL and MTNL were to make a joint bid for 74% stake in Zamtel, but the combine did not submit a financial bid.
MTNL has been suffering financial loss over the past two years and lost Rs 894.95 million in the quarter ended December 2009. According to MTNL chairman and managing director Kuldip Singh, the losses are on account of pension payment but the company expects to be in profits in the January-March 2010 quarter, besides, it is still keen on Africa and will look for acquisitions there.
Bids were invited by the Zambian government last year to sell 74% stake in Zamtel which is the only landline operator, with revenues of $100 million in 2008. MTNL had bid for licenses in several countries across Asia and Africa, including Kenya, Sri Lanka, Saudi Arabia and Bhutan, but the limited funds failed its attempt.
Zain board clears Bharti’s bid for African assets
The board of Kuwait-based Mobile Telecommunications Co. KSC, Zain has approved the sale of its African assets to India’s largest telecom service provider Bharti Airtel Ltd. This deal values the assets at $9 billion.
According to the Zain board, the due diligence has been completed and the parties are finalizing definitive agreements which are expected to be signed in the coming days.
The Zain’s assets which are spread across 15 countries would cost Bharti over USD 9 billion. Mittal’s Bharti will also take on Zain’s $1.7 billion debt, which will put the deal value at $10.7 billion.
Bharti Airtel offers its services in India and Sri Lanka and has over 118 million customers apart from the 116.01 million mobile customers, according to the data record of November 2009.
Etisalat’s Sri Lankan operation begins
www.WirelessFederation.com/news: After acquiring 100% stake in Tigo mobile firm, UAE operator Etisalat has launched its operations in Colombo, Sri Lanka, targeting 1 million customers by the end of the year. A subsidiary of Millicom International Cellular, Tigo was bought at an enterprise value of USD 207 million.
HSPA+ on the network is expected with a connectivity speed of 28 Mbps, on par with the company’s operations worldwide.
According to Etisalat Lanka CEO Dumindra Ratnayaka, within one year, the company will be rolling out 1,500 2G base stations and 500 3G base stations islandwide. Etisalat will be launching its coverage in Jaffna during the mini Infotel exhibitions scheduled to take place there on 26 February
