Libyan Rebels Launch Mobile Network

According to the UK's Daily Telegraph, rebels in Eastern Libya have set up their own independent mobile phone network, less than a month after they were cut off from the country's centralised infrastructure, which required all calls to be routed through the international gateway in Tripoli. 

The new network, called 'Free Libyana', is the brainchild of UAE-based telecoms executive Ousama Abushagur, a Libyan national who was raised in Alabama. He admitted that the the move was necessitated after humanitarian convoys that he had organised suffered logistical problems because the Gaddafi government was broadcasting jamming signals to cripple the satellite telephones used by the rebels.

Free Libyana was supplied with the necessary telecoms equipment by UAE telecoms giant Etisalat, which stepped in when Chinese telecoms manufacturer Huawei rejected Abushagur's approach; an unnamed Libyan businessman based in the UAE bankrolled the project.

 The network was rolled out by a team of international telecoms engineers – three Libyans and four Westerners – who flew to Egypt before crossing the border into Libya and commencing work in the rebel-held capital Benghazi. 

The rebels were reportedly aided by Benghazi-based employees of Libyana, the country's largest mobile phone operator by subscribers. According to Abushagur the new network launched on 2 April, and currently has 750,000 active SIM cards in operation. Although the network is widely available in the east of the country, international calling is limited to selected senior rebel figures.

Starcomms In Talks To Buy Multilinks

Nigerian CDMA operator Starcomms is reportedly negotiating a deal to acquire rival Multilinks, the local unit of Telkom SA, according to Nigerian newspaper THISDAY. 

Despite Telkom’s board having rejected a proposal by former CEO, Reuben September, to merge its Nigerian business with Starcomms back in January 2010, the pair are currently said to be negotiating a price for Multilinks, which was put up for sale in November 2010.

Since then, Multilinks was reported to have attracted interest from Etisalat Nigeria, but this was later denied by the UAE-owned company’s CEO Steve Evans. 

Telkom acquired a 75% stake in Multilinks on 1 May 2007 for USD280 million, and purchased the 25% it did not already own from Kenston Investments in January 2009 for USD130 million.

However, Telkom has failed to turn around the fortunes of the ailing company, which has struggled to survive in Nigeria’s fiercely competitive market, and wrote down the value of Multilinks by ZAR5.2 billion (USD751 million) in the financial year ended 31 March 2010. Telkom CEO Jeffrey Hedberg has estimated the ‘exit cost’ at anywhere between USD100 million and USD180 million.

FT Continues With Plans To Purchase Korek

France Telecom (FT) is proceeding with the purchase of a stake in Iraqi cellco Korek Telecom, after it was chosen as a preferred bidder over South Africa’s MTN, according to a report by Middle East business intelligence service MEED.

The GSM operator, based in the autonomous Iraqi Kurdistan region, won a nationwide licence in 2007 and has proceeded to branch out from its northern homeland to cover central and southern regions of Iraq. Korek is Iraq’s third largest cellco by subscribers.

The MEED report adds that Korek, with a customer base approaching three million in a market with room for growth, is an attractive asset for the French group, which recently expanded in the Middle East and North African (MENA) region by purchasing a 40% stake in Morocco’s Meditel.

FT is looking to increase its territorial presence further via more acquisitions, with the overall aims of doubling its revenues and reaching 300 million subscribers worldwide. The deal, which is yet to be finalised, would also assist Korek’s further expansion plans with the investment of a global player, whilst also representing a cheaper option for FT than bidding for a new licence in Iraq and building a network from scratch.

Meanwhile, FT has recently established research and development labs in Amman and Cairo to create services and products specific to the Middle East market.


Providing a cautionary note, UAE-based Etisalat previously failed to negotiate a stake purchase in Korek, saying that the Iraqi firm demanded ‘too much for too little’ in talks with the Abu Dhabi operator more than two years ago.

FT 'Planning to Buy Meditel'

Reuters reports that France Telecom (Orange) is in ‘advanced’ talks with the owners of Morocco's second largest mobile operator Medi Telecom (Meditel) to acquire a 40% share in the company.

Moroccan business weekly Acutel wrote over the weekend, ‘It is official. The negotiations between the owners of Meditel, CDG and Finance.com, and Orange are at an advanced stage,’ and went on to speculate that the stake could be priced at around EUR650 million (USD849 million). Spain's Telefonica and Portugal Telecom last year sold their respective stakes of 32.2% each in Meditel to the operator's other shareholders, Moroccan private investment group Finance.com and state investment vehicle Caisse de Depots et de Gestion (CDG) for USD1.15 billion in total.

Whilst the domestic owners have declared they can run the company alone, they have also indicated their openness to a range of options including a stock market listing and a partnership with a new, major player strategic investor. In March 2010 it was rumoured that the UAE’s Etisalat had ‘agreed’ to acquire a 45% interest in Meditel, which offers cellular, broadband and fixed line services, but a deal did not materialise.

TeleGeography's GlobalComms Database notes that France Telecom sold its Moroccan ISP Maroc Connect (Wanadoo) in August 2004 to the CDG and ONA groups, before ONA bought out CDG in 2005; Maroc Connect became Wana, which launched the successful fixed-wireless and cellular brands Bayn and Inwi, along the way attracting a new foreign investor, Kuwait-based Zain Group.

Etisalt H1 Results Reveal 2% Growth

UAE-based telecoms operator Etisalat has announced its financial results for the six months ended 30 June 2010, reporting 2% year-on-year growth in revenue to AED16.0 billion (USD4.35 billion), up from AED15.7 billion in the same period in 2009. Net profit for the six-month period totalled AED3.9 billion, compared to AED4.6 billion in 1H09.

Meanwhile, revenue generated in the second quarter of 2010 was unchanged year-on-year at AED8.1 billion, while net profit in the three-month period slipped 21% to AED1.9 billion, down from AED2.4 billion in 2Q09, due to increasing competition from the company’s sole rival in the UAE telecoms market, Du. At 30 June 2010 Etisalat recorded 7.8 million mobile subscribers in the UAE – an increase of 90,000 on the previous quarter – as well as 1.28 million domestic fixed line and 1.39 million internet customers. ‘Etisalat has followed a powerful strategy to offset the potential impact of today's global economic conditions which continue to affect the results of companies around the world,’ commented Mohammad Omran, chairman of Etisalat, adding: ‘We have seized opportunities to stand strong and have faced all the challenges and continue to achieve exceptional results.’

Etisalat In Deal With India's Reliance

According to the Financial Times, UAE-based Emirates Telecomunications Company (Etisalat) is close to acquiring a 26% stake in India’s second largest mobile network operator by subscribers, Reliance Communications (RCOM). Citing people familiar with the negotiations between the two companies, the report claims that in a bid to overcome any potential regulatory obstacles to a deal a merger of RCOM with Etisalat’s Indian unit, Swan Telecom, could be considered.

Under existing Indian telecoms norms no company may own more than 10% in two separate telecoms entities in the country. It is believed that a tie-up between RCOM and Etisalat could come as early as next month, although other sources have suggested that it may take until the end of the year for such a deal to come to fruition.

Etisalat Hits 4 Million Mark In Nigeria

Mobile operator Etisalat Nigeria has announced it has attracted four million active wireless customers since it launched commercial services in October 2008, local newspaper Daily Champion reports.

The company has gradually expanded coverage of its GSM network, which is currently available in all 36 states and the Federal Capital Territory, Abuja. CEO of Etisalat Nigeria, Steven Evans, noted: ‘We are glad to be able to make such a momentous announcement like this after less than two years of commercial operations in Nigeria's highly competitive environment, especially given our position as the fifth entrant into the dynamic Nigerian telecoms market.’

Etisalat Nigeria is 40%-owned by UAE incumbent Etisalat, with 30% owned by UAE government investment vehicle Mubadala Development Company, and the remainder by Nigerian investors.

We Are Not Talking With Zain, Says Etisalat

UAE telecoms operator Etisalat has said it has not submitted a bid or made a proposal to purchase a stake in Kuwait-based Zain Group, cellular-news reports.

The statement followed a recent report from Kuwaiti newspaper al-Seyassah, which said that Zain had entered into talks to sell a majority stake in the group to Etisalat.

Earlier this month Zain's chief executive, Nabeel bin Salama, said the firm was not in talks to sell further assets, after it completed the sale of its African assets to Indian telecoms group Bharti Airtel, in a deal valued at USD10.7 billion.

Zain In Talks To Sell sTake to Etisalat

Kuwaiti telecoms firm Zain Group has entered into talks with Etisalat to sell a majority stake in the group to the UAE-based operator, Reuters reports, citing Kuwaiti newspaper al-Seyassah.

Without providing details about the size of the stake or the price, the report states that both firms held meetings last week to discuss the potential deal.

Earlier this month Zain completed the sale of its African assets to Indian telecoms group Bharti Airtel, in a deal valued at USD10.7 billion.

Meanwhile, though Etisalat has yet to confirm the Zain reports, the Abu Dhabi-based operator has admitted it is looking at options in India, including a 26% stake in telco Reliance Communications.

MNP To Begin In Nigeria During H2

Nigeria's tele­coms regulator, Nigerian Com- munications Com- mission (NCC) has confirmed that the delayed Mobile Number Portability will be introduced in the second-half of this year, confirming earlier statements about the issue.

Mr. Stephen Bello, the acting vice-chairman of the Commission, told IT News Africa that  it had become necessary to introduce MNP because of the high telecom subscriber base in the country.

Mr. Earnest Ndukwe, former CEO of NCC, had set May 2009 as the date for the announcement of a timetable for MNP takeoff. On the mode of implementation, he said that the NCC would engage the services of an independent company to oversee the process. He also revealed that the local operators were on board and ready.

Earlier this year, the NCC retained the services of KPMG Consultancy Services as consultants for the development of Regulatory and Technical Framework for implementation of number portability in Nigeria.

According to figures from the Mobile World analysts, the country ended last year with 73 million mobile subscribers, representing a population penetration level of 50%. The market shares of the operators are: MTN Nigeria (42.2%), Glo Mobile (22.5%), Zain (20.2%), Etisalat Nigeria (4.7%), Visafone (3.7%), Multi-Links Telecommunications (2.7%), Starcomms (2.3%) and Reliance Telecommunications (1.7%)

Etisalat Increases It's Stake in Zantel

Emirates Telecommunications Corporation (Etisalat) yesterday announced the purchase of an additional 14% stake in Tanzanian fixed line, internet access and mobile operator Zanzibar Telecom (Zantel) for USD16 million, raising its equity holding in the African firm to 65%. Etisalat said the move to increase its influence in Africa is part of a wider plan to help lower its reliance on revenues generated in its home market. Etisalat had last increased its stake in Zantel by 17% in October 2007. Commenting on the purchase of the additional shares, Etisalat's Chief Financial Officer Salem Al Sharhan said: ‘The future is in data, information services and internet … Abroad, we will continue to look for opportunities everywhere. We will consider every market where we think we can be profitable.’

Egypts Bans Ban On Skype Calls

Egypt’s National Telecommunication Regulatory Authority (NTRA) has confirmed that the country has begun enforcing a ban on international calls made via mobile internet connections, Reuters reports.

The ban applies to all three of Egypt’s mobile network operators – Egyptian Company for Mobile Services (MobiNil), Vodafone Egypt and Etisalat Mirs – and is expected to provide a much-needed boost to the fixed line revenue of monopoly landline provider, state-owned Telecom Egypt (TE). Clarifying the situation, Amr Badawy, executive president of the NTRA, said: ‘The ban is on Skype on mobile internet, not on fixed, and this is due to the fact it is against the law since it bypasses the legal gateway.’

Under existing regulations all international calls must be routed via TE’s network. Despite mentioning Skype by name, it is understood that the regulator may extend the ban to other services, with Badawy noting: ‘We are targeting any illegal voice traffic on the mobile (internet). Any traffic outside the international gateway is against the law.’ It remains unclear however whether such a restriction will be extended to fixed line internet connections.

Etisalat Plans To Have 4 Million Clients In Nigeria This Year

UAE-based telecoms operator Etisalat has said it plans to increase its current 2.6 million mobile subscriber base in Nigeria to four million this year, Nigerian newspaper Daily Trust reports. According to Etisalat Nigeria’s CEO, Steven Evans, the company plans to achieve this through the investment of around USD700 million aimed at expanding its wireless network, compared to the approximately USD800 million spent last year.

Etisalat will rent infrastructure from telecoms companies rather than spending the money on constructing new networks. Evans added that the global economic slowdown has affected the telecoms business in Nigeria, but Etisalat remains hopeful that the industry will pick up by 2011, by which time the company is expected to break even. In order to boost its customer base, Etisalat is targeting users of other network operators by focusing on high network quality, the provision of robust products, competitive prices and good customer service.

At present, Etisalat is operational in all of the country’s states and its network covers 40% of the population.

Etisalat Hits 100 Million Mark

UAE-based telecoms operator Emirates Telecommunications Corporation (Etisalat) has revealed that its subscriber base has exceeded 100 million customers across 18 markets in the Middle East, Asia and Africa, covering two billion people. The announcement follows Etisalat’s acquisition of the remaining 18% of its West African venture Atlantique Telecom (AT) it did not already own for USD75 million earlier this month.

Etisalat operates AT as part of a ten-year management contract ending in 2015; the company holds majority stakes in seven operators in Cote d’Ivoire, Benin, Burkina Faso, Gabon, Niger, Togo, and Central Africa Republic. At the same time, the UAE incumbent revealed it had filed an application with the Indian Foreign Investment Promotion Board (FIPB) in December 2009 to obtain approval to raise its 45% stake in its Indian subsidiary Etisalat DB to 50% plus one share. The company has said it is targeting majority stakes in its subsidiaries and associates for greater operational and financial synergy.

Mobinil Reports USD 1.9 Billion Revenues

Egyptian cellco MobiNil has posted revenues of EGP10.8 billion (USD1.9 billion) for 2009, up 8% year-on-year, on the back of strong subscriber growth. EBITDA grew by 9% during the period to EGP5.1 billion while net income came in at EGP2 billion, up 3%.

At 31 December the active subscriber base stood at 24.1 million, up from 19.2 million twelve months previously. Average monthly ARPU across the year fell from EGP46 in 2008 to EGP39 in 2009 in light of fierce competition between MobiNil and rival cellcos Vodafone Egypt and Etisalat Misr (Nile Telecom).

Etisalat Makes Roaming Easier

The UAE's Etisalat has simplified its roaming tariffs with flat rates based on which of three zones the customer is in at the time. The roaming zones are; the GCC (Gulf countries), other Arab countries, and the rest of the world.

Etisalat Posts 5% Increase in 2009 Revenues

UAE-based telecoms operator Emirates Telecommunications Corporation (Etisalat) has reported its preliminary consolidated results for the year ended 31 December 2009, announcing net revenues of AED30.83 billion (USD8.93 billion), an increase of 5% compared to AED29.36 billion posted in 2008. The company’s net profit for full-year 2009 rose to AED8.836 billion, up from AED8.511 billion a year earlier, which included profit from the sale of shares in Saudi cellco Mobily of AED892 million.

Excluding this exceptional item, net profit after federal royalty for 2009 would have increased by AED1.217 billion, 16% higher than 2008. Total assets increased 13% to AED40.38 billion compared to AED35.62 billion in 2008. Etisalat did not reveal quarterly figures, but Reuters has calculated 4Q09 profit at AED1.99 billion (39% higher than the year-ago quarter), based on previous financial statements.

The number of Etisalat’s domestic mobile subscribers exceeded 7.74 million at 31 December 2009, up 6% year-on-year, while fixed line customers reached 1.31 million (a fall from 1.358 million in 2008) and internet subscribers grew 16% in 2009 to total 1.33 million, although the company did not reveal how many of those were broadband users. In 2009 Etisalat launched its ‘eLife’ fibre-to-the-home (FTTH) network and is currently working on making Abu Dhabi the first capital city in the world to be totally connected by fibre-optic infrastructure. The company is also aiming to make the UAE one of the first countries in the world to be entirely covered with fibre-optic services in 2011.

Egypt Mulls Over 4th Mobile Licence

Eygpt may consider offering a fourth mobile operator licence, reports the Reuters news agency, citing the local al-Mal newspaper. The tender for the license is being a Damoclean Sword being held over the incumbent operators if they do not adapt recent rulings on the tariffs they charge to customers.

"There are no obstacles to issuing a fourth mobile licence in Egypt ... but offering the licence will mainly depend on market demand in the coming period," the paper quoted Amr Badawi, head of the National Telecommunication Regulatory Authority (NTRA), as saying.

The newspaper added that the operators have objected to recent pricing policies issued by the regulator.

"Before setting these rules and regulations, we sent queries and surveys to the mobile operators but we received no replies from the companies ... (They) have the right to approach the administrative court to object about the authority's decisions," Al Mal quoted Badawi as saying.

Egypt currently had three operators, and based on figures from the Mobile World analysts, their market shares are: Mobinil (45.2%), Vodafone (42.6%) and Etisalat Misr (12.2%). The country has a population penetration level of 62%.

The regulator is already planning to issue two fixed line licenses aimed at triple-play operators outside the capital, Cairo.

Zain Denies It's In Talks With Asian Group

* Zain says unaware of stake sale talks after report

* Shares close 1.6 percent higher

Kuwaiti telecoms firm Zain said on Sunday it was not aware of talks between shareholders and an Asian group after a newspaper reported stake sale negotiations.

The firm said in July that it was still reviewing a possible sale of its African operations -- excluding Morocco and Sudan -- after French media and telecoms conglomerate Vivendi broke off talks on buying the operations.

Kuwait's Al-Rai newspaper, citing unidentified sources, said on Sunday that Zain's largest shareholders were in talks with a major Asian telecoms group to sell more than 40 percent of the firm.

"Zain would like to clarify that regarding what has been published in a local newspaper about negotiations between a major Asian group and shareholders, the executive management of the company is not aware of this subject, which is up to shareholders," Zain said in a statement on the bourse website.

Sovereign wealth fund Kuwait Investment Authority owns 24.61 percent of Zain. Kuwaiti family-owned conglomerate Kharafi Group is Zain's second largest shareholder, with 13.3 percent.

Neither KIA nor Kharafi were immediately available for comment. A Zain spokesman declined to comment further.

Zain ended 1.6 percent higher on the bourse on Sunday.

"There is an enormous amount of rumours about Zain," said Naser al-Nafisi, general manager at Al Joman Center for Economic consultancy in Kuwait. "If there's anything going on between the shareholders, the management should know about it."

The newspaper, which did not identify the Asian group, cited unidentified sources as saying that the biggest shareholders in Zain had "the ability and the suitable mechanism to provide the required majority stake".

Sale talk has swirled around Zain in recent weeks.

The head of the international unit of Emirates Telecommunications Corp (Etisalat) said in July that the UAE firm was interested in buying a 51-percent stake in Zain, "given the right values".

Zain said on July 1 that it was working with Swiss investment bank UBS and other consultants to review its strategy as a result of the global financial downturn.

- Reuters

Etisalat Plans To Enter Sri Lanka

Etisalat is reported to be considering an investment in Sri Lanka now that the military aspect of its decades long civil war has largely concluded. An official from the UAE-based operator is currently visiting the tropical island meeting stakeholders, including the Telecommunications Regulatory Commission (TRC).

"I've told the representative from Etisalat that Sri Lanka is open for investments into new or existing operations," TRC director general, Priyantha Kariyapperuma told the Lanka Business. "With the war over in May, there is ample scope for investments into telecom services and infrastructure facilities, especially in the north and east," he added, referring to the area of the island nation that was most affected by the war.

Millicom International, which owns the Tigo mobile network in Sri Lanka has recently expressed an interest in selling the company. According to figures from the Mobile World analysts, the operator ended Q1 '09 with just over 2.1 million subscribers, representing a market share of 18%.

In related news, the regulator has also said that they want to see more tower sharing by the networks as they expand their networks into the former war-torn regions. The operators are rushing to expand thir coverage, and concerns have been expressed that a "forest" of towers could emerge in the region, which is still light on government administration.

There are six mobile networks operating in the country, with a seventh licensed but yet to launch services