Following the launch of the merged Nokia Siemens Networks (NSN) in February 2007, the vendor was quick to communicate its presence across markets as a well-integrated, agile technology provider that is sympathetic to the commercial and technological pressures network operators are under. Despite having lost its founding CEO Simon Beresford-Wylie in September 2009, and been hit hard by the effects of the global economic slowdown in 2009, NSN maintains a steely determination as it looks to maximise emerging market opportunities

Erlemeier faces the challenge of restoring NSN’s sales in the MEA region after they suffered a significant decline last year. He is confident the vendor has the tools necessary to achieve this

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Given the emphasis currently being placed on cost savings by service providers as they navigate the latter stages of the global economic downturn, managed services is an area that has become front and centre of their strategic imperatives. Thierry Langlais, VP of business development for managed services EMEA and India at Alcatel-Lucent tells Comm. how service operators need to reinvent themselves in order to remain viable

Thierry Langlais says Alcatel-Lucent’s legacy in the management of multi-vendor networks places it in a good position to build on the current demand for such offerings

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Emirates Integrated Telecommunications Company (Du) announced today that it proposes to raise AED 1 billion (US$272 million) through a rights issue. The capital raised will fund an accelerated growth strategy.

An Extraordinary General Meeting (‘EGM’) will be held on May 11 to approve the increase in the company’s share capital and the issue of new shares to shareholders on a pro rata basis. The rights issue subscription period is expected to start on May 27 and end on June 8. The subscription price will be determined by the board on or about May 11, subject to final approval by shareholders at the EGM, at a price of up to AED 1.91 per new share.

Transaction rationale

· Deliver on commitment to customers by continuing to enhance network capabilities and expand fixed and mobile infrastructure;

· Invest in the next phase of growth by accelerating Du’s capital expenditure programme to become the preferred integrated telecommunications provider in the UAE; and

· Transform the company from a high growth early stage venture to a more mature company with efficient management of future funding requirements.

The founding shareholders of Du (Emirates Investment Authority, Mubadala Development Company and Emirates Communications and Technology LLC), holding approximately 80 per cent of the company, fully support the rights issue and have agreed to vote in favour of the resolutions to be proposed at the EGM. The founding shareholders have also agreed to take up their rights in full and oversubscribe for any new shares remaining after all other shareholders have had the opportunity to take up their rights and oversubscribe for additional new shares.

JP Morgan is acting as rights issue co-ordinator and bookrunner and Mashreqbank is acting as lead receiving bank for the rights issue.

The Zain Group has announced that the management of its Iraq operation, Zain Iraq, will henceforth fall under the direct supervision of the group’s CEO, Nabeel Bin Salamah. The former Zain Iraq CEO, Ali Al Dahwi, has been appointed special advisor on Iraq for the Zain Group.

The Zain Group explained that the move was made on the basis of the company’s long term development in Iraq and will not necessarily mean a change in the strategic direction set out by Al Dahwi. Zain Iraq counts a customer base of 11 million, the highest among the Zain’s Middle East operations.

Barrak Al Sabeeh will represent Bin Salamah in an on-the-ground capacity, while Wael Ghanayem, the newly-appointed Zain Iraq CFO will take on the additional role of acting CEO until such time that a new CEO is officially appointed.

Etisalat’s chairman Mohammed Omran has issued a blunt statement setting clear the operator’s position with respect to its investment in Pakistan telco Pakistan Telecommunication Company Limited (PTCL) and the UAE’s telco’s non-payment of almost half of the US$2.6 billion it pledged for a 26 per cent stake of the Pakistan operator in 2006.

Recently media reports have quoted Pakistan’s minister of privatisation, senator Waqar Ahmed Khan, calling for an enquiry into Etisalat’s acquisition of the stake in PTCL.

“The deal (between Etisalat and PTCL) was full of flaws and legal advisers had asked the then government to scrap it, otherwise it would be considered contrary to rules,” Khan is quoted as saying. Omran countered in his statement by saying Etisalat’s investment in PTCL, “came in the wake of a welcome invitation and encouragement by the government of Pakistan to participate in the privatisation process”.

At the beginning of this year Etisalat was reported to be withholding US$1 billion in payments to the Pakistan government over a dispute relating to its purchase of its stake in PTCL. The dispute is over the ownership of properties in Pakistan that were meant to form part of the original deal.

According to the terms of the agreement, Etisalat was due to pay US$1.4 billion within one month of signing the purchase deal and the remaining US$1.2 billion was to be paid in equal instalments over four and a half years, with one instalment every six months.

Responding to the issue of the outstanding purchase price, Omran said that under the terms of the deal, Etisalat is entitled to withhold payments until the property titles are transferred to PTCL.

“Our aim is to ensure that PTCL receives clean title to and possession of all properties. We are confident that when the privatisation commission fulfils this obligation, Etisalat will immediately release the instalments,” he said.