Orascom confirms sale talks with MTN

Following recent speculation that MTN is interested in purchasing Orascom’s Algerian unit ‘Djezzy’ and which could extend to other subsidiaries, Orascom has confirmed the negotiations are taking place.

“Orascom is aware that its parent company, Weather Investments SpA, is in discussions with MTN Group which may or may not lead to a transaction relating to the acquisition of control of Orascom and/or its businesses by MTN,” said a press statement on the company’s website published today.

“A further announcement will be issued in due course as required. Accordingly, Orascom has requested from the Egyptian Exchange to restore trading on its stock.”

Additionally, Orascom had earlier informed the Algerian government of the talks and when asked if it would approve the deal, a source is quoted as saying "having the South Africans in the telecoms sector in Algeria instead of the Egyptians is a good solution for us".

Iran hands Tamin Telecom third mobile licence

Tamin Telecom has secured Iran’s third mobile licence, as well as the exclusive right to provide 3G services across the country for two years, according to the official IRNA news agency.

"The license was given on Saturday to (Tamin Telecom) along with its consortium, and we are hopeful its SIM cards will reach the market in the course of the current year," commented Iran’s communications minister Reza Taqipour.

This is not the first time Tamin has been awarded the title of third operator. Originally in January 2009 it was granted the concession as the local partner in a consortium with the UAE’s Etisalat for US$400 million, however, the licence was later revoked. Zain, the second placed bidder in the auction then entered negotiations in May, but when the Kuwaiti operator failed to comply with obligations, the licence was scrapped, with plans for a new tender to take place.

Neither the other parties in Tamin’s consortium, nor the price to be paid for the licence have been disclosed. Tamin is an affiliate of the Social Security Investment Company of Iran.

The Iranian market is currently served by state-owned Iran Telecommunications Company (TCI) and Irancell, which is 49 per cent owned by South Africa’s MTN Group.

It is estimated the nation has a mobile penetration rate of less than 60 per cent, and it is also the largest market in the Middle East with a population of 66.4 million.

NSN secures US$1 billion of contracts in China

Nokia Siemens Networks has secured €750 million (US$1,003 million) worth of orders for mobile equipment from China Mobile and China Unicom. China Mobile, the world’s largest operator by subscribers, has signed frame agreements for GSM and TD-SCDMA network equipment, as well as IP multimedia subsystem solutions. China Unicom has ordered GSM, WCDMA and HSPA solutions.

As part of the deals, the Finland-based company will provide networking services to support 3G services at both operators, including network planning, deployment, maintenance and training.

The agreements strengthen existing ties between NSN and the Chinese operators, building on similar contracts that were inked in 2009.

Batelco net profit declines to BD 24.3 million; seeks acquisitions

Bahrain-based Batelco has reported its Q1 2010 financial results, posting revenues of BD 85.9 million (US$227.8 million), up four per cent from the first quarter of 2009, while net profit declined seven per cent to BD 24.3 million. The firm attributed the slide in profits to significant start-up costs of its new operations and specifically funding S-Tel in India. Earnings per share for the quarter was 16.9 fils.

Chief executive Peter Kaliaropoulos said he was satisfied with the group’s performance, taking into consideration increased competitive activities and new entrants in Bahrain and Jordan. He said the 35 per cent year-on-year growth in Batelco’s customer base to 6.4 million came largely from increases in mobile and broadband customers across every market, including over a million customers in India.

In addition, Kaliaropoulos stated the group was seeking acquisitions in North Africa and Asia, in the price range of US$1.5-2 billion. This is with a view to raising annual net profit to between BD 90-100 million during 2010.

“Furthermore, whilst investing in infrastructure, sales, marketing and customer care initiatives, we have also been implementing efficiency and productivity initiatives and as a result our EBITDA has grown by five per cent and group operating profit grew by seven per cent to BD 27.8 million,” he added.

The firm has invested twice as much in Bahrain – its home and most important market – in Q110 compared to Q109, focussing on expanding fixed and mobile infrastructure. Operations outside of Bahrain contributed 32 per cent of revenues and 22 per cent of EBITDA during the period.

Jordanian operation Umniah now has 1.65 million mobile subscribers, amounting to a 26 per cent market share. Its WiMAX and ADSL customer base increased to 19,000 customers.

Turkish firm on the hunt for Zain stake

A Turkish firm is reportedly interested in purchasing an unspecified share of Zain Group, according to Kuwaiti newspaper Al Qabas.

"The Turkish company is still searching on a preliminary basis into the issue and did not formally discuss the features of the deal with the owners of the company," stated the report without naming a source.

If the owners agree, the Turkish party will wait until the sale of Zain’s African assets excluding Sudan and Morocco to India’s Bharti Airtel is complete, before negotiations begin.