Etisalat revealed today it will offer Apple’s iconic 3G iPhone to consumers in the UAE and Saudi Arabia later this month, making it the first of the Gulf markets in which the device is officially available.

The UAE operator did not offer further details about the agreement with Apple, except to say that the iPhone would be offered in Saudi Arabia through second mobile operator Mobily; in which Etisalat is a 26.25 per cent shareholder.

At the moment the closest markets where consumers can officially purchase the device is in Jordan through Orange, and in Egypt and Turkey through Vodafone, which has an agreement to offer the iPhones in ten of the countries where it operates. It had been anticipated that Vodafone’s imminent launch in Qatar would see the first introduction of the 3G phone in the Gulf, but Etisalat looks set to beat Vodafone to the punch.

The 8GB iPhone model currently retails in the UK with operator O2 for £350 (US$502), while the 16GB version costs £401.

Should Etisalat be able to extend the parameters of the deal to include Iran, where it was recently selected as the winner of the country’s third mobile licence, and first 3G licence, it would potentially create an attractive proposition to accompany the operator’s market entry. Etisalat has an exclusivity period to provide 3G services ahead of the mobile incumbents TCI and MTN Irancell.

Zain is in negotiations to seek control of Palestine’s sole operator PalTel, with PalTel’s CEO Abdul Malik Jaber to depart the company as part of the new ownership structure, according to reports.

Photos on PalTel’s website show some of the damage to telecoms infrastructure in Gaza, which occurred during last month’s attacks

Zain said in a statement on the Kuwait stock exchange that it was “engaged in negotiations to enter a strategic partnership in PalTel”, while the Palestine Securities Exchange stated it had suspended trading of PalTel at the operator’s request, until a deal was concluded.

PalTel has provided fixed, data and mobile services in the West Bank and Gaza Strip since January 1997. However, infrastructure in Gaza has been so severely damaged since the beginning of the year following Israeli attacks, that the company is in dire need of investment and rebuilding of infrastructure.

Zain currently operates in 22 countries across the Middle East and Africa, and recently raised US$4.49 billion for expansion activities. A finalised deal with PalTel would likely see the Palestinian operator rebranded as Zain across the Palestinian territories.

A second mobile operator, Wataniya Palestine, is set to launch services this year after repeated setbacks since March 2007, with a process underway to receive the staged release of radio spectrum. The company is owned by Qatar’s Qtel and the Palestinian Investment Fund.

The main shareholders of PALTEL include Palestine Development and Investment Company (PADICO) with 28.9 per cent, Arab Bank with 7.78 per cent, Palestine Commercial Services Company with 7.1 per cent, and Cairo Amman Bank with six per cent. Thirty per cent is listed on the Palestine Securities Exchange and Abu Dhabi Securities Market. Other companies and individuals make up the remaining shareholders.

As mobile penetration deepens in emerging markets to reach customers at the lowest socioeconomic level, the value added services (VAS) that will be attractive to this segment and how they will be used will be very different to how more affluent consumers have in the past. Working with 100 operators in 70 countries across Middle East, Africa, South East Asia and India, Bharti Telesoft’s CEO, Manoranjan ‘Mao’ Mohapatra shares with Michelle Mills his insight and experience into the challenges and special requirements in providing content to the next billion mobile customers

In India, we have about 30 per cent teledensity. As operators try to increase that towards 60 per cent, they are reaching out to a segment of the population that requires services that are not language dependent. Operators cannot assume that a user has the ability to read and write any more,” Mohapatra asserts.

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Etihad Atheeb Telecommunications Co (Atheeb), one of three new companies to have acquired fixed-line licences in Saudi Arabia last year, intends to raise SR300 million (US$80 million) through an initial public offering scheduled to commence tomorrow.

Atheeb will compete with incumbent STC and newcomers Optical Communications and Al-Mutakamilah to provide fixed-line and Internet services, with penetration rates of 18.75 and 5.4 per cent respectively

Shareholders Batelco and private Saudi investors will offer 30 million shares, representing 30 per cent of Atheeb’s capital for SR10 each, until February 2.

Atheeb’s IPO will be Saudi Arabia’s first since August 2008, following the country’s Capital Markets Authority reportedly placed IPOs on hold until investor confidence improves. The local bourse has lost 45 per cent of its value during the past four months.

Following the IPO Batelco will retain a 15 per cent stake in Atheeb, with the remaining shareholding divided amongst Atheeb Group, Nahla Company and GOSI (General Organisation of Social Insurance).

When Atheeb launching commercial services later this year it will compete with incumbent STC and the two other licencees – Optical Communications spearheaded by the US’s Verizon, and Al-Mutakamilah Company led by Hong Kong’s PCCW.

STC has approximately 4.5 million fixed-line subscribers and 1.3 million Internet users, representing penetration rates of 18.75 per cent and 5.4 per cent respectively.

Bahrain’s Telecommunications Regulatory Authority (TRA) yesterday confirmed STC the winner of the country’s third mobile licence, with the Saudi operator having bid BD86.687 million (US$230 million) for the concession.

In addition to the US$230 million bid for the third mobile licence, STC has committed US$300 million to establish a venture capital fund to foster ICT development in Bahrain

The TRA’s general director Alan Horne said the regulator would officially award the licence to STC once the latter had completed registration of the company with the Ministry of Industry and Commerce, and after conclusion of post-evaluation obligations.

As part of STC’s bid, the operator promised to construct a robust high-capacity mobile network focused on quality and speed, as well as committing one per cent of its revenue for corporate social responsibility to support e-health, e-learning and sports facilities within in the kingdom. In addition, STC will establish a US$300 million venture capital fund in Bahrain to foster the development of information and communication technologies.

The TRA’s chairman Mohammed Al-Amer stated the other three parties that had registered but did not submit bids when the auction closed on January 11, were Bahrain’s alternative providers Mena Telecom and 2Connect, and a consortium of France Telecom’s Orange and Jordan Telecom.