Etisalat withholds payments to Pakistan again
www.WirelessFederation.com/news: Payment of USD800 million by UAE-based Emirates Telecommunications Corporation (Etisalat) to the Pakistani government is again expected to be withheld by the Middle Eastern company for the fifth month in a row.
The payment was supposed to be made by the end of March as part of Etisalat 2006 acquisition of a 26% stake in Pakistan Telecommunication Company Limited (PTCL). The difference between the Pakistani government and Etisalat over the transfer of real estate units remains unresolved.
According to Mohammad Omran, Etisalat chairman, until now, the government has not released a list of properties to be converted to PTCL ownership and the payment will be made when the list is released. On the other hand, according to Shahab Khawaja, federal secretary at Ministry of privatization (MOP), they have already approached provincial governments to put value to the properties in their respective provinces and as soon as they get it, same will be conveyed to Etisalat and PTCL.
Etisalat has made it clear that the payments will be withheld until properties that were originally part of the company’s 2006 acquisition of a 26% stake in PTCL are registered in the Pakistani operator’s name. MOP has announced March 31, 2010 as Etisalat next payment date.
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
Etisalat eyes expansion across six markets
www.WirelessFederation.com/news: Six countries across the Middle East and North Africa are currently in the eyes of UAE-based telecoms operator Emirates Telecommunication Corporation (Etisalat). Iraq, Libya, Lebanon, Oman, Syria and Morocco have been targeted by the company as markets with low penetration levels in which the UAE firm could acquire either a license or a telecoms operator.
According to the telco’s chairman, Mohammad Hassan Omran, Etisalat is in an excellent position financially and operationally to capitalize on these opportunities.
The company has also said it is targeting majority stakes in its subsidiaries and associates for greater operational and financial synergy.
Etisalat inches closer to Korek acquisition (Iraq)
www.WirelessFederation.com/news: The long-anticipated acquisition of a majority stake in Iraqi mobile network operator; Korek Telecom by the UAE based Etisalat seems to be on the verge of completion. The talk between the two companies has been going on since September 2008.
Zain, Asiacell and Korek Telecom are the three operators in the country. Orascom owned the Iraqna network, but failed to get an operating license in the last round of auctions and had tried to set up a joint venture with Korek Telecom but that fell apart. Iraqna was later sold to Zain.
Etisalat may seek to raise funding via bonds to expand into up to six additional markets, including a possible acquisition of Orascom Telecom’s troubled Algerian subsidiary, Djezzy.
MTN refuses to comment on Dubai rumors
www.WirelessFederation.com/news: No comment has been made by ¬South Africa’s MTN on the rumors regarding the moving of its headquarters from the country to the Middle East. The refusal came after it was reported that the company plans to move its group operations out of the country and eventually delist its shares from the Johannesburg Securities Exchange.
According to MTN executive director Nozipho January-Bardill in late January, the planned relocation of the technical services support team to Dubai is part of the group’s ongoing response to the challenges of the changing global telecommunications industry and it is also intended to address the logistical challenge of supporting the group’s networks in the Middle East in particular, and certain parts of Africa.
Using Dubai as a regional hub offers significant benefits to the company for tax and transport options even though MTN doesn’t have any operations in the UAE.
Indosat might be acquired by XL Axiata (Indonesia)
www.WirelessFederation.com/news: Indonesia’s second largest mobile operator, Indosat might be acquired by XL Axiata by the end of 2010. Strong subscriber and revenue growth has been aimed by XL Axiata this year and it has also been confirmed by the company that dividend payments were likely to resume this year following a return to profit in 2009.
86.5% of XL Axiata is owned by Malaysia’s Axiata Group and 13.3% is owned by Etisalat of the UAE while the remaining 0.2% is publicly held.
Etisalat gains 100% ownership of AT
www.WirelessFederation.com/news: With an aim to enhance its profile in India and Africa, Emirates Telecommunications Corporation (Etisalat) will boost up its stake in the Indian unit Etisalat DB and buying the rest of its West African venture, Atlantique Telecom (AT).
Currently, 44.73% of Etisalat DB is owned by the UAE telco, acquired for around USD900 million in 2008. The company seeks to raise its stake to 50%, plus one share. An application was filed by Etisalat in December 2009 to the Indian Foreign Investment Promotion Board (FIPB) to obtain approval to increase its ownership.
Etisalat operates AT as part of a ten-year management contract ending in 2015, and has bought the remaining 18% of shares in AT to bring its total shareholding to 100%.
Etisalat’s stake in Atlantic Telecom rises to 100%
www.WirelessFederation.com/news: With an investment of USD 75 million, 18% stake in Atlantique Telecom has been acquired by UAE-based operator Etisalat, thus increasing its shareholding to 100 percent.
82 percent in the African company Atlantique Telecom has already been held by Etisalat while the former holds controlling stakes in telecom operators in Ivory Coast, Benin, Burkina Faso, Gabon, Niger, Togo and Central Africa Republic.
Atlantique Telecom has been operated by Etisalat under the 10-year management contract ending in April 2015.
16% rise in Etisalat’s net profit
www.WirelessFederation.com/news: With a rise of 16%, AED 8.83 billion net profit up from AED 8.51 billion in 2008 has been generated by UAE-based operator Etisalat in the year 2009. The profit also includes AED 892 million profits on the sale of shares in its Saudi unit Mobily.
5% increase in the net revenue rising to AED 30.8 billion and earnings per share to AED 1.23 from AED 1.18 in 2008 has also been recorded. The number of mobile users in the UAE exceeded 7.74 million lines in 2009, an increase of 6 percent against end-2008.
