Hits Telecom acquires majority stake in Spanish MVNO

As reported in Comm.’s July/August issue, Kuwait-listed Hits Telecom has confirmed plans to enter the Spanish market by announcing the acquisition of a 51 per cent stake in Spanish mobile virtual network operator Metrored Movil.

Hits Telecom chairman Bahabri says his type of company represents the third-generation of operator emerging from the Middle East

The €7 million (US$10.96 million) deal will see Metrored Movil launch in September under the Hits Telecom Spain banner and operate over Vodafone Spain’s network.

Hits Telecom already has operating licences spanning the Middle East, Africa and Latin America, and chairman Sultan Bahabri told Comm. his company’s goal is to reach 50 million subscribers by 2015, including 10 million users in Europe by that time.

“The numbers we have forecast are achievable,” Bahabri told Comm. “It is an ambitious task…The challenge is to add those 50 million subscribers at a fraction of the cost that is paid today.”

The firm’s incursion into Europe comes alongside Hits Telecom’s intentions to enter China through a deal that Bahabri told Comm. would involve developing a fibre optic network in the country.