Mobily beats analysts’ expectations in Q4

Mobily has reported an 11 per cent rise in its fourth quarter profits to SAR1.9 billion (US$501 million), beating most analysts’ expectations.

Revenue also rose, by 17 per cent to SAR6.77 billion, compared to SAR5.80 billion a year earlier.

The operator said that its revenues and profits were boosted by a 41 per cent increase in mobile data usage, while the number of customers roaming on its network grew by a quarter thanks to the annual Hajj season.

For the full year, profits rose by 18 per cent to SAR6 billion.

Orascom Telecom to assume ownership of Wind Mobile Canada

Orascom Telecom has announced that it is buying out the co-founder in its Canadian subsidiary, Wind Mobile. Orascom Telecom is majority owned by Russia’s VimpelCom. Upon closing, Orascom will own an indirect 99.3 per cent interest in the mobile network operator.

The mobile network now counts around 600,000 customers.

Under the terms of the deal, Wind Mobile’s founder, chairman and CEO, Anthony Lacavera is to transfer his shares in Wind Mobile Canada to Orascom. The financial details are not being disclosed.

Lacavera will retain the landline assets owned by Wind Mobile.

Lacavera, who plans to launch a new initiative, Globalive Capital in 2013, will remain Wind Mobile’s chairman and CEO until closing, and will continue in a non-operational capacity as Wind Mobile Canada’s Honorary Chair.

Completion of the transaction is subject to satisfaction of certain conditions, including Canadian regulatory approval of the conversion of Orascom’s non-voting shares into voting shares, which would result in Orascom holding an indirect 65.1 per cent voting and economic interest in Globalive Wireless Management immediately before completion of the transactions with Lacavera.

Orascom currently holds an indirect 32 per cent voting interest and 65.1 per cent economic interest in Wind Mobile Canada. Lacavera’s holding company, AAL Corp/ currently holds an indirect 66.7 per cent voting interest and 34.3 per cent economic interest.

Orange looks to expand presence exponentially through Orange Horizons initiative

Orange has launched a new subsidiary called Orange Horizons that aims to seek out new business opportunities in countries where the Group is not already present as a mass-market telecommunications provider. These projects, which will leverage the global reputation of the Orange brand and existing Group assets, aim to provide a new source of revenue for the Group and improve customer loyalty across its footprint without the need for significant investment. Such projects could include the launch of online stores selling telecom-related equipment or airtime; the introduction of flexible travel solutions; or the launch of a virtual mobile operator (MVNO) activity.

The first of these projects has already been launched in South Africa under the Orange Horizons banner. This comprises two websites: firstly an e-commerce website, http://store.orange.com/za, has been launched to sell telecom-related devices and accessories. This is combined with a country website, www.orange.com/za, which provides online content specifically tailored for a South African audience including news feeds, sports news and audiovisual content. The launch of these services coincides with the start of the Orange Africa Cup of Nations.

A similar e-commerce initiative has also been opened in Italy (http://store.orange.com/it), where the brand already enjoys a strong reputation. These two existing online stores already offer state-of-the-art telecom and electronic equipment, and will soon also offer a variety of telecom services including airtime for Orange customers visiting from other countries.

The Group’s footprint currently covers around 10 per cent of the world’s population, leaving 6.2 billion people who could potentially become customers through Orange Horizons activities. The Group plans to launch business ventures in several other countries in 2013 in Europe and Africa, and will also look at opportunities in South America in order to leverage existing content-related assets.

A wide-range of business projects will be investigated depending on the specific potential within each country. These include:

-          e-commerce sites, and potentially even physical stores, selling handsets, accessories and electronic equipment. This could be extended to assistance corners for Orange customers visiting from abroad;

-          the launch of over-the-top country websites that aim to leverage existing assets such as the Group’s two pan-continental web-portals StarAfrica (Africa) and StarMedia (South America), or content-providers such as Deezer and DailyMotion;

-          the introduction of multi-country travel solutions – data offers using WiFi or VoIP – aimed in particular at professionals or tourists coming from countries in which Orange is already present;

-          finally, the launch of a virtual mobile operator (MVNO) activity is also a possibility in certain countries.

Alcatel-Lucent bags US$1 billion managed services contract in India

Alcatel-Lucent has struck a US$1 billion managed services deal with India’s third largest operator, Reliance Communications.

The deal runs until 2020, covering Eastern and Southern India, and is the first end-to-end managed services contract in India and one of the largest in the world. It extends an existing relationship between the companies.

The French vendor will help Reliance provide “world-class, seamless voice and data communications services” to customers and improve cost effectiveness.

Alcatel-Lucent will combine the Reliance wireless and fixed teams to create a single network management group, allowing for a leaner organisation. There will also be standardisation of tools, processes and best practices with pre-defined costs reducing investment risk.

Alcatel-Lucent’s Asia-Pacific president Rajeev Singh-Molares said the deal demonstrates the company’s “renewed focus on managed services as we apply greater selectivity on more value-added contracts”.

Saudi MVNO submissions to be made by May 4

Saudi Arabia’s telecom regulator, the CITC, has set a fee of SAR5 million (US$1.33 million) for each of the three MVNO licences that are due to be awarded later this year.

The MVNOs will also pay 15 per cent of their annual revenue to the regulator, according to a report from Reuters. There will be a further annual licence fee of one per cent of revenue, plus other miscellaneous charges.

The regulator set a deadline of May 4 for companies to submit applications for the three MVNO licences. The winners of the licences will be announced 12 weeks after the bid deadline, the report added.

Saudi Arabia’s ministry of telecommunications originally announced plans to award three MVNO licences in November 2011.

Saudi Arabia will become the third country in the Middle East to offer MVNO services after Oman and Jordan.