For the first half of 2011 to end-June, the Zain Group reported consolidated revenues of KWD659.4 million (US$2.38 billion), up two per cent year-on-year. The period witnessed net income increasing to KWD140.2 million, up 17% from H110. The telco’s consolidated EBITDA reached KWD293.1 million for the period, up six per cent year-on-year, reflecting an EBITDA margin of 44 per cent (up one percentage point).

Year-on-year customer growth across all operations in which Zain operates was 16 per cent, with the company adding 5.46 million customers in the 12 months to end-June 2011. Zain served 39.6 million managed active customers as of June 30, 2011. Zain Saudi Arabia witnessed 32 per cent year-on-year growth to serve 9.1 million customers and Sudan 24 per cent growth to end the period serving 11.4 million. Zain Kuwait also increased its customer base by seven per cent reaching a milestone two million customers, along with increases in Jordan of 5.5 per cent and for Iraq 5.2 per cent to serve 2.7 million and 12.3 million customers respectively.

Q211 operational highlights:

· Zain received remaining US$700 million from sale of Africa assets to Airtel

· Zain Saudi Arabia successfully refinanced US$600 million Murabaha loan with syndicate of regional banks to fund future growth of mobile operation

· Notable growth in Zain Sudan, which now serves 11.4 million customers, and attained a 14 per cent revenue increase in local SDG currency

· Zain Iraq served 12.3 million customers, with 10 per cent increase in revenues

· Zain Group’s e-mal mobile financial services platform launched in Jordan

· Zain Group signs deal with Apple and launches iPhone 4 in Kuwait, Jordan and Bahrain

Qualcomm today launched its Qualcomm Powered smartphone initiative in Saudi Arabia, aimed at bringing OEMs (original equipment manufacturers), retailers, and network operators closer together to drive mobile data usage.

Speaking exclusively to Comm., Jay Srage, Qualcomm’s president for the MEA region said that the technology provider had partnered with Saudi telco Mobily; Saudi handset retailers Axiom and Jarir Bookstores; and six device manufacturers – Sony Ericsson, HTC, Alcatel, Samsung, Acer, and Huawei – in the offer of a joint strategic and marketing campaign aimed at driving up smartphone and data usage in the kingdom.

Jay Srage says Qualcomm Powered is an early-stage model that has the potential to uplift the entire smartphone-accessed mobile data ecosystem

“Qualcomm has always been interested in working with ecosystem players across the entire telecom value chain, and with respect to the Qualcomm Powered initiative, I like to refer to us as being the glue that binds the various parties together,” Srage said. “What we have done in Saudi Arabia, and aim to do in other parts of the region, is to enable data packages and connections to be accessed in a way that unleashes mobility and mobile data usage,” he added.

The six OEMs have a combined portfolio of around 25 smartphones offered in Saudi Arabia, and as part of the Qualcomm Powered initiative in the kingdom Mobily has agreed to offer customers who purchase any of the smartphones included in the campaign data usage at no charge for a period of time following the purchase.

Qualcomm Powered looks to benefit OEMs through offering a potential differentiation tool, while complimenting their existing in-country supply and distribution channels. The initiative seeks to benefit retailers given it works as a virtual subsidy of the smartphones sold, allowing retailers to sell more of them. It is also set to benefit service providers by raising the awareness of smartphones and their capabilities, with the view to more subscribers becoming paying customers to data services in the longer-run.

“We are following up the launch in Saudi Arabia with similar launches in Egypt and the UAE in due course,” Srage revealed. “These are all high-growth markets in which smartphone usage is increasing rapidly. Our aim is to launch these initiatives and then after a few months assess their impact. If it is successful our aim is to roll it out across the MEA and even beyond the region,” he added.

In Egypt, more than one network operator has already signed up to Qualcomm Powered, and Srage said he also expects that the number and size of OEM partners is likely to grow should this new model of joint, strategic marketing focus be vindicated.

Oman mobile reseller Renna Mobile has announced that during the course of last month it reached operational break even (EBITDA).

“We reported our first full month of positive cash flow on our operation in Oman in June,” Joakim Klingefjord, Renna Mobile CEO said. “This is obviously a very crucial milestone for us since we are able now to show to our shareholders, employees and other stakeholders alike that the MVNO model actually does work in this part of the world also.”

Renna Mobile launched operationally in May 2009 after having secured a wholesale agreement with Omantel and a Class II mobile reseller license from the telecom regulator.

Renna Mobile has expressed its interest to expand into territories beyond Oman for the first time

Klingefjord claims the operator’s focus on operational efficiencies and cost prudence have been the major reasons Renna Mobile is the first MVNO in the Middle East to be able to announce a positive cash flow from its operation.

“With the positive cash flow, we are really geared towards expansion which will take us forward in our position in Oman, as well as using this as a platform for launching elsewhere in the region,” Klingefjord said. “Our mobile broadband offers are very well received in the market and our latest triple play has great customer value that has also been recognised by our users.”

At the end of May, it was announced that a further two telecommunication companies are reported to be seeking government licences to offer mobile reseller services in Oman.

Awasif Company was said to be seeking a licence to operate as a mobile reseller, while Madakhil was looking to provide mobile telecommunication services to fishermen.
Should the applications be granted, this would raise to seven the number of companies in Oman licensed to operate as resellers. Current licensees are Friendi Mobile, Renna, Mazoon, Injaz and Samatel.

Vodafone Qatar posted a 65 per cent rise in its quarterly revenue of QR 290.6 million (US$79.7 million), while the quarterly profit before interest, tax, depreciation and amortisation (EBITDA) reached QR 31 million for the period to end-June.

Average revenue per user (ARPU) increased 11 per cent year-on-year to reach QR 116, while the subscriber base rose by 43 per cent to reach 761,000 mobile customers as at June 30.

The cellco has come under pressure from some shareholders to start paying dividends sooner than the company had planned.

There is currently no change from the dividend guidance outlined in Vodafone Qatar’s IPO prospectus, and the company still expects to pay dividends based on performance in the financial year ending March 31, 2013.

Vodafone Qatar is 23 per cent owned by Vodafone, 22 per cent by the Qatar Foundation, with 40 per cent floated on the stock exchange and 15 per cent held by government investors.

Etisalat has signed an agreement with Huawei and the Export-Import Bank of China encompassing Etisalat’s entire footprint in 18 countries.

Under the terms of the agreement, Huawei and Etisalat will work together, while the China EXIM Bank will extend finance support to the cooperation of the two companies.

The MoU was signed by Nasser bin Obood, Etisalat acting CEO; Yuan Xingyong, assistant president China EXIM Bank; and Ji Ping, the executive VP of Huawei.

Bin Obood said that through this agreement, Etisalat and Huawei will share the latest best practice covering telecommunication industry trends, including intelligent management of networks, cloud computing and applications.

“In the past eight years, the cooperation between Etisalat and Huawei has witnessed significant growth and success. From the first 3G network deployed in MENA in 2003, Etisalat and Huawei have since moved on to collaborate on a global perspective by cooperating to build and expand Etisalat’s networks in Saudi Arabia, Pakistan, Egypt, Tanzania, Nigeria, Afghanistan,” he added.