Orange employs 3G services in Tunisia
According to a new report from Pyramid Research, an exclusive license to offer 3G services is enabling mobile giant Orange to gain a strong foothold in Tunisia’s mobile telecom market, and the operator is likely to continue to build market share even after competitive 3G services begin launching next year.
According to Mehdi Ben Said, Senior Analyst at Pyramid, in May 2010, Orange Tunisie started operating in the country as its third mobile operator and first 3G player. The universal license awarded to Orange Tunisie is expected not only to disrupt the mobile market because of 3G, but Pyramid expects it to leverage the power of its brand to offer real converging services. Orange Tunisie has 3G exclusivity until February 2011, and is expected to capture 22.4% market share and 16.9% revenue share by year-end 2015.
Ben added that on the fixed side, Tunisie Telecom still monopolizes the market. However, the entry of Orange Tunisie as a new fixed-mobile operator is expected to bring much-needed competition into the fixed segment and bring broadband access prices down. Waiting to deploy its own wired network and for the LLU to be acted, Orange Tunisie is already creating market disruptions by positioning itself in the segment with FWA technology over 3G, thereby making service convergence a reality.
Ben noted that a second 3G license has been announced in late September 2010, but no new fixed license will be awarded until January 2013. The upcoming 3G liberalization also offers opportunities for ultra-low-cost 3G handset manufacturers; this is a market that will become more and more addicted to usage but can’t afford high-end handsets.
Tunisie Telecom Planning Stock Market Listing
The head of the Tunis stock exchange has announced that Tunisia’s Tunisie Telecom will be listed on the local and a main European stock exchange before the end of the year.
According to reports citing Mohamed Bichiou, chief executive officer of the Tunis stock exchange, Tunisie Telecom will be listed before the end of the year…. The listing will be on the Tunis bourse and a European bourse. The Tunisian state would contribute 10% of the company’s shares, while the other 10% would come from United Arab Emirates shareholders.
Tunisie Telecom is majority owned by the state while Dubai’s TECOM Investments and Dubai Investment Group jointly holds 35%.
There are currently three mobile network operators in the country – the state controlled Tunisie Telcom which is the sole landline operator, and Tunisiana, which just operates a mobile phone network. Earlier this year, France Telecom’s Orange launched a 3G network in the country, in cooperation with Investec, a Tunisian subsidiary of the Mabrouk group. Orange holds 49% of the joint venture. The company was awarded its operating license in June 2009.
According to figures from the analysts, the country has 9.95 million mobile phone users, which represents a population penetration level of 94%.
Western Union collaborates With SBI to Launch Mobile Money Transfer in India
Western Union has collaborated with State Bank of India (SBI) to provide accountholders with cross-border money transfers via mobile phones. In July, Western Union announced the introduction of the Account-Based Money Transfer (ABMT) service which will be launched in early 2011. This service will facilitate SBI customers with online bank accounts to pull a Western Union Money Transfer directly into their accounts via Internet or ATM.
According to Anil Kapur, Western Union’s Senior VP (South and Southeast Asia), India is the world’s No. 1 remittance recipient country, and according to World Bank figures, has received US$52 billion in 2009. Currently, consumers can send Mobile Money Transfers from nearly 70,000 Western Union Agent locations in 25 countries.
Western Union has 61,000 locations in India, and the mobile transfer partnership will allow it to expand its distribution within India using SBI’s network. Western Union already has a partnership with SBI, with over 12,000 SBI branches offering Western Union Money Transfer service.
SBI has 110 million accountholders, of which more than 4 million are registered for online banking.
Western Union also offers the Mobile Money Transfer service in the Philippines with Smart Communications and Globe Telecom; in Kenya with Safaricom; in Malaysia with Maxis; and in South Africa with Absa Bank.
The company also announced an agreement with EnStream in Canada and has agreements with Tunisian Post and Bank of Commerce & Development (BoCD) in Libya. In addition, Western Union previously announced an alliance with Zain (Airtel) in Africa.
Tunisia grants a 3G License
If reports are to be believed, Tunisia’s state-controlled mobile network operator, Tunisie Telecom has been awarded a 3G license. Tunisie Telecom had paid US$80.2 million for the license.
Tunisie Telecom is majority owned by the state while Dubai’s TECOM Investments and Dubai Investment Group jointly hold 35%.
There are currently three mobile network operators in the country – the state controlled Tunisie Telcom which is the sole landline operator, and Tunisiana, which presently operates a mobile phone network.
Previously this year, France Telecom’s Orange launched a 3G network in the country, in cooperation with Investec, a Tunisian subsidiary of the Mabrouk group. Orange holds 49% of the joint venture. The company was awarded its operating license in June 2009.
According to figures from the Mobile World analysts, the country has 9.95 million mobile phone users, which represents a population penetration level of 94%.
Orascom & Algerian govt to open talk for Djezzy
www.WirelessFederation.com/news: Negotiations with Algerian government is set to be opened by Orascom Telecom, the Cairo-based mobile operator that could lead to the nationalization of its highly profitable subsidiary in the north African country. The company has written to the authorities in Algiers seeking talks over the future of Djezzy, its Algerian mobile unit.
However, there are still doubts as in whether Orascom will seal a deal with MTN, Africa’s largest mobile operator as, if it went ahead this would see MTN acquiring most of the Egyptian group’s African assets. Talk between the two companies had been confirmed last month. The discussion started with Djezzy but expanded to include other Orascom operations, including units in Tunisia, Burundi, the Central African Republic, Namibia and Zimbabwe.
After the deal became public, the government announced that it would block any sale of Djezzy. According to analysts, the removal of the Algerian subsidiary from any package of assets to be sold by Orascom makes it far less attractive to MTN and the Algerian operation is Orascom’s most profitable business and last year accounted for just over half of the Egyptian company’s earnings before interest, tax, depreciation and amortization, which totaled $2.24bn.
Government’s opposition to MTN buying Djezzy had been reiterated by Algerian trade minister. A legislation was brought by Algeria two years ago giving the state the right of first refusal when a foreign owner wants to sell assets in the country. Orascom in its argument has said that the law on pre-emption should not be applied retroactively as the rule was not in place in 2001 when it made its investment in Algeria.
$597m has been demanded from the company by the authorities in back taxes and penalties covering the period between 2004 and 2007, during which it had enjoyed an exemption. The authorities also blocked Orascom from repatriating dividends from Djezzy and prevented the unloading of its equipment in local ports.
MTN-Orascom will be over twice the size of Airtel & Orange Africa.
MTN-Orascom’s joint subscriber base will surpass the 100 million mark if the deal goes through. This would mean that it will be over twice the size of Airtel Africa & Orange. MTN will get a boost of over 20 million subs from the Orascom deal.
That said, if a deal were to happen, here’s a quick analysis of whats for sale in the Orascom portfolio and why 2 assets are particularly interesting:
1. Djezzy in Algeria: Top line of $1.86 billion with a 46% market share (14.6 million subs) and a 57% EBITDA margin! This is the jewel in the crown. However, there is a downside here as well for some key reasons. Orascom’s relationship with the government and the regulator is strained and Q4 2009 results suffered on account of backdated taxes and penalties. Djezzy has actually seen market share decline by 5 percent and ARPU declined by 16% in 2009. Mobile penetration is in excess of 90% and Q-tel owned Njedma has proven to be an aggressive competitor. Numbers are big and exciting but the hay-days might just be getting over pretty soon though.
2. Tunisiana in Tunisia: Orascom owns half of Tunisiana alongside it’s arch rival in Algeria, Q-Tel (Wataniya) which owns the remaining 50 percent. With 53 percent market share (5.2 million subs) and 54% EBITDA margin this is another rock and roll story. However, with Orange launching and that too with an exclusive 3G license, pressures will build up sooner rather than later.
3. CellOne Namibia, Telecel Zimbabwe, Telecel Central African Republic & U-com Burundi together have 1.8 million subscribers and contribute only $81 million to the top line.
If the deal were to go through then Djezzy will be the third largest operation in the MTN-Orascom combine, after Nigeria and South Africa.
Here’s a snapshot of what the MTN-Orascom would look like (Figures are sourced from Wireless Intelligence)
Orange & Investec launches 3G network in Tunisia
www.WirelessFederation.com/news: A mobile network has been launched by France Telecom’s Orange in the North African country of Tunisia. The venture has been launched in co operation with Investec, a Tunisian subsidiary of the Mabrouk group and Orange holds 49% in the joint venture.
One billion dinars (around EUR500 million) will be invested by Orange Tunisia to set up the network and to launch the operations. Majority of Tunisia’s major cities is already covered by this network and it will be doubled by the end of the year.
According to Didier Lombard, Chairman of France Telecom, Orange is proud to associate itself with Marwan Mabrouk to build Tunisia’s first genuine convergent telecoms operator and together they are committed to a project that will transform the Tunisian telecommunications market, and which in turn will help the country on its way to joining the world’s most competitive economies.
A network of nine shops and 400 distribution outlets will benefit Orange Tunisia. Almost 1,500 people will be hired by the company by the end of this year.
Orascom to get Tunisia permission for MTN deal
www.WirelessFederation.com/news: Orascom Telecom Holding SAE can get the permission from Tunisia’s government to sell its Tunisian unit to South Africa’s MTN Group Ltd. According to the spokesperson of the company, Negotiations for the sale of the 50 percent stake are at an advanced stage.
MTN, Africa’s largest mobile phone company, is in talks with Orascom and the government about the acquisition of the assets.
The deal will create the fourth largest telecom operator in the world but the entire process to reach that goal does not seem to be a cup of tea as it is suffering hurdles from various quarters.
MTN-Orascom: What exactly is for sale?
MTN may acquire Orascom’s African assets. Deal range $8-10bn (UPDATED)
www.WirelessFederation.com/news
UPDATE 1: Reuters reported that a source in the Algerian government has disclosed that MTN and Orascom are in discussions and Orascom is required by law to inform the government of any such activity. A senior source at the Algerian government also confirmed that they take a positive view of the sale and may bless the deal.
Djezzy is an attractive asset with approx 60 percent market share (penetration is 72 percent) and average EBITDA margin of 60-63 percent.
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May 26, 2010 : Orascom Telecom and MTN are in talks with each other wherein MTN will buy Orascom’s African subsidiaries. No deal has yet been finalized, but an announcement could come pretty soon.
MTN confirmed in a statement that it is in talks that may or may not lead to a transaction,†but didn’t name Orascom specifically. MTN approached banks for $5bn to help fund the acquisition of units from Orascom in a deal that may be worth $8 billion. Also, trading in Orascom’s global depositary shares in London has been suspended pending an announcement by the company.
Initially the talk was limited to MTN buying Orascom’s Algerian subsidiary Djezzy. But now the talk has been expanded to include most of its African businesses i.e Algeria, Tunisia (may be), Burundi, Central African Republic, Namibia and Zimbabwe. MTN is generally thought to be after Orascom’s Telecel Globe, which manages the Orascom’s Sub-Saharan African units, for a while now, which among other things would give it inroads into Zimbabwe, something MTN has been looking for. MTN does not seem to be very keen to buy Orascom’s minority stake in Egypt’s leading mobile operator, ECMS (Mobinil).
MTN wants to add new markets to its 21 countries across the Middle East and Africa while also consolidating its position on the continent.
Orascom reported group turnover of $5.1 billion for 2009, down 5 per cent compared with last year. Pre-tax profit dipped 18 per cent to $740.3 million. Orascom last week settled a dispute with France Telecom over ownership of ECMS (Mobinil). Orascom’s Algerian business, Djezzy is the biggest profit generator among its African assets. But Orascom’s chairman, Naguib Sawiris has been considering selling it since the Algerian government issued Djezzy with a $597m tax bill last year. This brought a major dip in Djezzy profits in the fourth quarter results for 2009.
