The US$23 billion bet

Following years of false starts, the award of 3G spectrum finally took place in India earlier this year, with bidder appetite for broadband spectrum raising billions of dollars for the treasury. Comm. looks at the winners of both the 3G and broadband wireless access licences and assesses what direction the bidders’ strategic plans are set to take

BetIndia is one of the fastest growing mobile markets, and with particularly low broadband penetration, stands to be a tremendous growth opportunity to operators and vendors alike

Continue reading →

Open Days 2010

Much of the success of individual vendors shall depend on the technology choices they are currently making. Given the pace of change and the pressure of competition, it is an arena with an extremely narrow margin for error. Alcatel-Lucent opens the doors to its Bell Labs research facility in Villarceux to showcase the innovations it is backingA Mechaly - Official

André Méchaly says Alcatel-Lucent’s emphasis on innovation is helping carve niches out for the vendor in a competitive market

Continue reading →

Zain Saudi reports 357% rise in gross profit in Q2

Zain Saudi Arabia yesterday announced increased revenues for the three months ending June 30, reaching a break-even point for profit before interest on its Murabaha loan, taxes and depreciation (EBITDA) for the second quarter of 2010. This was achieved within a period of 22 months since commencing operations in August 2008.

Revenue was up 107 per cent to SAR 1.45 billion (US$387 million), compared to SAR 702 million in Q209, with gross profit rising 357 per cent to SAR 608 million compared to SAR 133 million for the same period in 2009. Operational losses decreased by 55 per cent to SAR 314 million compared to SAR 706 million for the same period last year.Zain burning logo

Zain Saudi Arabia took its total customer base to over seven million. The operator reported a reduction in net loss by more than 26 per cent, to SAR 632 million compared to SAR 857 million in 2009, in addition to significant growth in gross profit of 42 per cent compared to the first quarter of 2010.

Zain is looking to expand its network to cover 93 per cent of the populated areas of Saudi Arabia by the end of 2010.

Issues persist over Zain Tanzania ownership

The Tanzanian government has announced that it would like to buy the 60 per cent stake in Zain Tanzania that is now owned by India’s Bharti Airtel. The offer came a few days after Bharti Airtel offered US$11 million to buy out the government’s 40 per cent stake in the operator.

The Tanzanian government argues that Zain’s decision to sell its Tanzanian subsidiary to Bharti Airtel, as part of the sale of most of its telecom assets in Africa, violated an agreement between Zain and the Tanzania Telecommunication Co. (TTCL). Zain acquired a 35 per cent stake in TTCL, the state-run telco, more than five years ago and had recently agreed to sell that stake back to the government.Zain Kenya shop Zap

The government is understood to be trying to build a profitable state-owned telecom company and would like to own both a landline and mobile network.

The Tanzania Communication Regulatory Authority (TCRA) has not formally granted permission for the sale of the local subsidiary to Bharti Airtel.

The perfect storm

Five years after having introduced mobile services in Oman in March 2005 as the country’s second provider, Nawras has grown to become one of the most successful new entrant launches in the Middle East. Counting a subscriber base virtually on par with the incumbent and having innovated in a number of key areas, the introduction of fixed-line services and preparation for an IPO before the end of the year is likely to round off a spectacular fifth year of operation for the companyNawras - Ross Cormack IMG_3882 web

Ross Cormack has presided over the growth, development and success of Nawras over its five years of existence

Continue reading →