Qtel has posted a robust set of Q1 2010 financial results, with net profit attributable to shareholders soaring 104.3 per cent to QAR 1.2 billion (US$330 million) from QAR 549 million a year earlier. Revenues increased more modestly, growing 14.2 per cent from QAR 5.6 billion in Q1 2009 to QAR 6.4 billion for the quarter ending March 31, 2010. A strong EBITDA performance was also achieved with EBITDA rising 14.4 per cent during the period to QAR 3.0 billion.

Group subscriber numbers across 17 markets gained steadily growing from 55.87 million to 67.68 million year-on-year.

"We have continued to advance across all areas of our operations in this first quarter, building on the positive momentum generated during 2009, most notably in markets such as Iraq and Indonesia where progress has been particularly encouraging,” commented Nasser Marafih, chief executive of the Qtel Group.

“We continue to prove highly successful in our efforts to defend and even expand our solid market positions in those markets where competition is heightened. At the same time, we have retained sufficient flexibility in our operating model to be in a position to respond quickly to opportunities and challenges as they arise," he added.

Review of operations by market

Qtel, Qatar

Qtel took a dent in its home market revenues following the introduction of competitor Vodafone, declining 6.4 per cent year-on-year from QAR 1.5 billion in Q109 to QAR 1.4 billion a year later. EBITDA also dropped 20.3 per cent to QAR 712.8 million from QAR 894.4 million.

However, the company said the impact of competition is offset by the reduction of the royalty fee from 25 per cent of profits to an industry fee of 12.5 per cent, backdated to October 7, 2007. In addition, a one percent fee is payable on Qtel Qatar’s regulated revenue from the effective date. The benefit of the changes is an estimated QAR 554 million.

In March 2010, Qtel began the first phase of a national programme for ‘Fibre to the Home’ (FTTH), aiming to link homes across Qatar with fibre connections over the next three years, enabling the future introduction of next generation services across the country. This will help develop new income streams from the higher value market segment. The firm also confirmed a partnership with Tata Communications in which the operator will be the landing party in Qatar for the Tata Global Network (TGN) Gulf Project.

Indosat, Indonesia

Qtel continues to reap the rewards operationally and financially of the significant monetary investments made in Indosat, in addition to refocusing the Indonesian operator’s strategy, realigning the customer base and reviving its sales functions. Indosat’s customer base grew by 17.3 per cent to end March with 39.8 million subscribers, while quarterly revenues rose 29.9 per cent year-on-year to QAR 1.9 billion from QAR 1.4 billion.

EBITDA during the period also increased, boosted both by the improved operational performance and favourable foreign exchange rates. During the period EBTIDA advanced 31.2 per cent to close Q1 2010 with QAR 923.7m, compared to QAR 704.2 million a year earlier.

Wataniya Telecom

Wataniya Telecom encompasses the Qtel Group’s businesses in Kuwait, Tunisia, Algeria, Saudi Arabia, the Maldives and Palestine, where consolidated subscribers increased 36.8 per cent to 15.76 million from 11.52 million in Q109.

Revenues increased 13.1 per cent from QAR 1.4 billion to QAR 1.6 billion, while EBITDA gained 9.1 per cent year-on-year to QAR 592.1 million.

Nawras, Oman

Nawras has remained on track with its plans to introduce an international gateway during 2010, as part of the fixed-line mandate secured during 2009 and which will help diversify its future revenue streams.

The operator has continued to strengthen its position in the Omani market, with subscribers growing 22 per cent from 1.59 million to 1.94 million. Revenues also improved by 19.1 per cent to reach QAR 432.1 million. EBITDA increased 70.5 per cent to QAR 251.2 million.

Asiacell, Iraq

Asiacell made significant progress during 2009, delivering substantial customer, revenue and profit growth. Positive momentum continued during the first quarter of 2010, with Asiacell’s total active customers increasing a further 15.8 per cent to 7.74 million, from 6.69 million in the first quarter of 2009. Revenue continued to grow with Q1 2010 revenues standing at QAR 1.2 billion, a year-on-year increase of 33.7 per cent. EBITDA also advanced 45.5 per cent year-on-year.

After extending its offer three times and raising the price, Cisco Systems has finally completed its acquisition of global video communications provider Tandberg for NOK 19 billion (US$3.4 billion). Cisco originally offered US$3 billion in October but was rejected by 90 per cent of Tandberg share owners as undervaluing the company.

Commencing April 26, Tandberg’s full product line is incorporated into Cisco’s TelePresence range, while its CEO Fredrick Halvorsen will lead a new unit of Cisco called the TelePresence Technology Group (TTG) in the role of senior vice president. The newly-formed group includes three fully integrated businesses that will focus on endpoints, infrastructure and Cisco TelePresence cloud services.

The East Africa Submarine System (EaSSy) was completed earlier this week and is planned to go live in July, according to the consortium’s major investor West Indian Ocean Cable Company (WIOCC). The cable system is the second high-capacity fibre optic cable skirting Africa’s east coast after SEACOM, and runs from South Africa to Sudan and onwards to Europe via the Red Sea and the Mediterranean. The 10,000 kilometre cable also has landing points in Djibouti, Somalia, Kenya, Tanzania, Comoros, Madagascar and Mozambique.

In addition to the WIOCC which owns 29 per cent of EASSy, the other members in the consortium are Bharti Airtel, Botswana Telecom, British Telecom, Comores Telecom, Etisalat, France Telecom, Mauritius Telecom, MTN International Group, Neotel, Saudi Telecom Company, Sudatel, TTCL (Tanzania), Telkom/Vodacom, Telma (Madagascar) and Zambia Telecom.

In a related project, EASSy signatories are building terrestrial fibre backhauls to link the land-locked countries of the region to the cable – Ethiopia, Uganda, Burundi, Rwanda, Malawi, Zambia, Zimbabwe, Botswana, Swaziland and Lesotho.

Vodafone Qatar announced it has closed the first quarter of 2010 with 464,962 mobile subscriptions, a 31.5 per cent increase from the previous quarter of 353,580. The majority of the customers were acquired in less than seven months since the launch of Vodafone’s prepay product ‘Red’ in September 2009.

"We are thrilled by this amazing result which has exceeded our expectations and targets for customer numbers. We now have a substantial customer base that will help drive future performance and forms a solid basis for generating future revenue growth," commented Grahame Maher, chief executive officer of Vodafone Qatar.

Fifty per cent of account subscribers joined via the operator’s online store, while the rest joined through the more than 700 partner distribution outlets.

Rival Qtel has not yet released figures for Q1 2010, however it ended December 2009 with 2.4 million subscribers in Qatar.

After eight days and 46 rounds of bidding in India’s 3G auction, the price for a licence to provide 3G services nationwide reached INR 60.67 billion (US$1.36 billion). The Department of Telecommunications (DoT) expects the auction to run for up to two weeks. Taking into account all bids received so far, DoT is guaranteed to receive at least INR 242.68 billion from 3G proceeds, with the broadband wireless access (BWA) auction still yet to come.

Delhi has returned to the centre stage in bidding for individual circles on April 19 , attracting a top bid of INR 6.91 billion, followed by Mumbai with INR 6.36 billion and Tamil Nadu with INR 6.06 billion. Gujarat, which made headlines last week for topping the bids on day four ahead of the metro areas, attained a bid price yesterday of INR 5.49 billion.

Upon conclusion of the auction operators will be able to go live with 3G services beginning September 1. State-owned operators Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL) have already received their licences and launched services, however, will be required to pay licence fees that match the price of auction valuations.