Burindi Carriers Team Up To Build Fibre Line

A number of Burundian telecoms operators have joined forces to build out a national fibre-optic backbone network in the small African country, aided by the World Bank. The so-called ‘Burundi Backbone Systems’ group, which includes incumbent PTO Onatel, mobile operator Leo (formerly U-Com), Africell (owned by V-Tel and Palestinian Paltel), Econet Burundi and domestic ISP CBI Net.

Balancing Act reports that Burundi Backbone Systems will oversee the development of a 1,200km backbone and several international fibre links connecting the country to its neighbours in the next 18 months. The World Bank is contributing money to the scheme which will provide coverage throughout Burundi with cables laid alongside road routes, with 26 different nodes.

Paltel cancels Zain Deal

Palestine Telecommunication Co (Paltel) has announced that it has canceled a deal which would have seen Kuwait-based telecom group Zain take gain a majority stake in the Palestinian operator, Reuters reports.

Paltel claimed that commitments made as part of the deal had not been fulfilled within the agreed time frame, although it declined to provide details on what these commitments were.

Zain has confirmed that the plug has been pulled on the acquisition, although it claimed that its inability to secure the required government approvals was the reason for the deal’s cancellation, although again no further details were provided as to what these approvals were or why they had not been granted.

The two companies announced the deal back in May 2009, with Zain agreeing to take a 56.53% stake in Paltel. Under the terms of the agreement the two companies entered into a share-for-share exchange, which would have seen Zain take the majority stake in Paltel in exchange for Paltel taking 100% ownership of Zain Jordan; the merger would have set Paltel shareholders’ equity position in both Paltel and its newly acquired subsidiary at 41.43%.

Paltel Agrees to Zain Partnership

Palestinian operator Paltel has agreed in principle to a partnership with Middle East mobile group Zain.

The Paltel management has called a special meeting of shareholders to approve a capital increase and share issue to Zain. 

Paltel's chairman is now working on finalising an agreement with Zain. Paltel's shares have been suspended trading until the deal is finalised.

Zain Plans to Partner With PalTel

Kuwait's Mobile Telecommunications Co (Zain) says it is in advanced talks to become a strategic partner in Palestinian operator Palestine Telecommunication Company (PalTel), reports Reuters. PalTel operates in the West Bank and Gaza Strip. "We are in advanced talks and could conclude a deal soon," said a Zain spokesman, declining to say if Zain wanted to buy a majority stake as it usually does when entering new markets.

Kuwait's biggest mobile operator, which is spending billions to expand and now operates in 22 countries in the Middle East and Africa, gave no more details in a statement.

The Palestinian Securities Exchange said in a statement it had suspended trading on Paltel at Paltel's request until the merger was completed. A second Palestinian mobile network, Wataniya, is expected to come into operation this year. Wataniya is owned by Qatar Telecommunications Co and the Palestinian Authority's Palestinian Investment Fund.