Virgin Mobile South Africa announced the closing of 30 of its 38 retail stores in the country as it looks to refocus its marketing efforts. The initiative has already commenced and is expected to conclude during the first half of 2013.

The MVNO in South Africa merged its operations with Dubai-based Friendi Group, which is led by Mikkel Vinter. Together the two MVNOs are known as Virgin Mobile Middle East and Africa (VMMEA), and the company said the aim of the changes is to deliver an improved and differentiated customer experience by leveraging VMMEA best practice and investment in improved systems and processes.

Virgin Mobile South Africa will convert the eight remaining stores from sales focused franchise stores into full service stores offering its entire range of products and services including sales, renewals, upgrades and customer service and advice.

The company will also be offering online sales and service through a new improved website and is exploring new, alternative sales channels.

Vinter had suggested that changes would be made in South Africa in order to bring the company to profitability in that market. Speaking to Comm. in June, Vinter said: “Yes, there are still losses at Virgin Mobile South Africa, but I think what is required are some structural changes and tweaks, which I believe can turn the operator around quite quickly.”

“Virgin Mobile South Africa is a good business with a large pool of talented individuals; it is a real asset to VMMEA,” Vinter said. Virgin Mobile South Africa employs approximately 250 staff and it was announced at the time of Friendi Group’s arrival, that the company’s CEO, Steve Bailey is stepping down, to be replaced by a “highly experienced candidate.”

Telenor’s Indian arm Uninor has confirmed it will auction its assets ahead of a September 7 deadline to shut its operations – despite the move being strongly opposed by its local Indian partner.

Uninor’s licences were among the 122 revoked by the Indian Supreme Court in February; Telenor now wants to wind down the venture in time to bid as a new entity in the forthcoming re-auction of the cancelled spectrum.

Telenor owns 67.25 per cent of Uninor, while partner Unitech holds the remainder. The two firms have been at loggerheads for some time.

According to a Financial Express report, Uninor said in a statement that the auction of its assets will allow the company to generate the maximum possible returns for its creditors and secure the future of Uninor’s customers, employees and business partners in the hands of new ownership.

However, Unitech blasted the move “illegal.”

“Unitech has dissented and vetoed on Uninor’s proposal to auction assets. The auction notice of Uninor can best be termed as illegal,” a Unitech spokesperson said, hinting that it would resort to legal action if Uninor went ahead with the plan.

Uninor has published newspaper advertisements calling for potential bidders to express their interest by August 6.
The notice says that a reserve price in the auction has been set at INR40 billion (US$909 million) “based on an independent valuation carried out by the company (Uninor) through two independent valuers, Deloitte and KPMG.”

South Africa based mobile towers infrastructure operator, Africa Cellular Towers has been served with a liquidation order by the South Gauteng High Court after failing to stave off bankruptcy.

The company has struggled against rising debts and falling revenues for the past year, and a few months ago an unnamed creditor started proceedings against the company.

The company, listed on the stock exchange, declined to name the creditor in June but simply said that a liquidator would be appointed shortly. Two directors also resigned from the company.

Africa Cellular Towers operates three divisions, providing power lines, cellular towers and equipment shelters.

The company has been posting losses and was seeking an outside investor but had not secured the necessary investment before the winding up order was served.

The Pakistan government and Etisalat are reported to have settled a long running dispute over the price paid for a stake in Pakistan Telecommunication Company Limited (PTCL) in 2006.

Etisalat offered US$2.6 billion for a 26 per cent stake in PTCL back in 2006 in staggered payments, but has withheld US$800 million in a dispute over the transfer of assets from the government to the telco.

According to the terms of the agreement, Etisalat was due to pay US$1.4 billion within one month after the signing of the deal in early 2006 and the remaining amount of US$1.2 billion was due to be paid in equal instalments over 4 and a half years, with one instalment every six months.

The settlement reportedly agrees to a payment of US$700 million by Etisalat, which is a reduction of US$100 million based on the valuation of the assets not handed over.

Long standing plans by Etisalat to increase its holding to a controlling 51 per cent stake have been on hold until the dispute is settled.

Wataniya Telecom announced that Bassam Hannoun has been appointed as CEO and will commence in his new role soon.

Abdulaziz Fakhroo resumes his role as deputy CEO having been appointed acting CEO following the resignation and departure of Scott Gegenheimer in June 2012 to pursue other opportunities.

Hannoun was most recently the CEO of Wataniya Mobile Palestine, where he was responsible for the successful IPO and growth of operations. Previously he was CEO of Jordan’s leading WiMAX operator, Wi-tribe Jordan, a subsidiary of the Qtel Group. In addition to over twenty years industry experience in Europe and the Middle East, Hannoun has a PhD in telecommunications engineering and holds a Masters of Business Administration with a focus on strategic marketing.