ZTE H109 results buoyed by strong domestic demand

China’s ZTE Corporation today announced its interim results to end-June, recording revenue of RMB27.7 billion (US$ 4.05 billion) in the first half year of 2009, representing an increase of 40.4 per cent year-on-year. Net profit amounted to RMB780 million, representing year-on-year growth of 40.5 per cent.

With the benefit of the full-scale construction of 3G networks in China, ZTE reported operating revenue of RMB14.95 billion in the domestic market in H109, representing a year-on-year growth of 111.7 per cent. The performance of the company’s wireless products, factoring in the network tenders of China Unicom and China Telecom held during the first half of the year, was in line with expectations. On the back of its cost advantage and customisation capabilities, ZTE achieved significant breakthroughs in the coastal provinces and other growth opportunity regions.

ZTE’s revenue from its international operations grew 0.7 per cent to RMB12.76 billion in H109 and accounted for 46.0 per cent of its total operating revenue. Second-generation (2G) network construction and capacity expansion in key developing markets, coupled with the demand for bandwidth upgrades and innovative services in developed countries, formed the cornerstones for the development of the vendor’s international market.

ZTE registered year-on-year revenue growth of 46.2 per cent for carriers’ networks, 29.8 per cent for handset products and 29.2 per cent for telecommunication software systems, services and other products during the reporting period.

Du looks for thicker slice of post-paid and business market

The UAE’s second telecoms provider Du continues to target the business and post-paid segment in the country, having earlier this month announced the launch of the Business Super Plan, a new mobile tariff for small and medium enterprises (SME). The Business Super Plan provides flexibility, transparency and performance with benefits including the freedom to call anywhere in the world, anytime, for effectively AED1 per minute (US$0.27) as part of an included international minutes bundle. The package also offers one rate on all incoming calls while roaming; a BlackBerry offer in the UAE; a 50 per cent discount on calls within a business; and per second billing on all outgoing calls from the UAE.Business Super Plan

Du offers two Business Super Plan options tailored to varied levels of mobile usage:

Business Super 150: Customers pay AED150 per month and receive AED150 in international minutes and AED150 in national minutes, every month.

Business Super 300: Customers pay AED300 every month and receive AED 300 in international minutes and AED300 in national minutes.

Du broke down its subscriber additions for the first time for the Q209 period, reporting that just three per cent of its overall base of 2.9 subscribers was post-paid at the end of June. However according to Comm. calculations, post-paid subscriber growth rate was almost five times higher than prepaid over the period, with the number of post-paid subscribers rising by 24 per cent in Q209 compared to a growth rate of just over five per cent for prepaid users.

Orange Jordan granted 3G licence

Jordan’s Telecommunications Regulatory Commission is reported to have granted a 3G licence to the Jordan Telecom Group (Orange Jordan), having reportedly rejected an offer by Zain Jordan which is said to have asked for more incentives and exemptions.

The TRC floated a public 3G tender in March and by the tender’s deadline in late May, Jordan Telecom Group was the sole bidder. However, the TRC rejected the group’s bid in June, saying its technical offer did not meet the commission’s standards.

Thus, the regulator continued to solicit offers, and Jordan Telecom Group and Zain were ultimately the only companies to submit tenders.

According to TRC chief commissioner Ahmad Hiyasat, 3G services are expected to be introduced in six months as Jordan Telecom already has the required infrastructure.

Other mobile operators will be allowed to introduce the service after one year of exclusivity to Jordan Telecom, provided that they meet the same conditions set in the original tender.

Hiyasat stated that Jordan Telecom agreed to pay JD50 million (US$70 million) for 10MHz of 3G spectrum.

Jordan Telecom has allocated JD100 million in investments for the provision of 3G services and said it was keen on providing 3G services.

Nordberg looks to turn Sony Ericsson’s fortunes around

Sony Ericsson has appointed a new president and reshuffled its board in a bid to revive its flagging fortunes.

Bert Nordberg, the head of Silicon Valley at Ericsson will assume the role of co-president of the Swedish-Japanese telecoms group next month, midway through a major turnaround programme. Bert Nordberg

Hideki “Dick” Komiyama, Sony Ericsson’s president would retire at the end of the year, the company said.

Howard Stringer, the Sony president responsible for a sweeping cost-cutting exercise at the loss-making Japanese company, has been appointed chairman of the board, taking over the role from Carl-Henric Svanberg, the president and chief executive of Ericsson, on October 15.

In July, Sony Ericsson posted a loss of US$213 million after four consecutive quarters of losses due to falling sales of mobile phone handsets, compared with a US$6 million profit for the previous year.

“Bert Nordberg has a strong track record in the area of business realignment and was instrumental in the transformation of Ericsson in the years 2002-2003,” commented Svanberg. “I am confident he will be able to build upon the foundation Dick has created and lead the final stages of Sony Ericsson’s transformation.”

Qtel overcomes challenges to record US$439 million net profit in H109

Qatar Telecom (Qtel) today reported that for the first half of 2009, the group achieved consolidated group revenue of QAR 11.5 billion (US$3.16 billion), up 42 per cent year-on-year. The group’s net profit attributable to shareholders reached QAR 1.6 billion in H109, registering 38 per cent year-on-year growth. At June 30, 2009 Qtel’s consolidated customer base stood at 52.2 million, spanning 17 countries across the Middle East, North Africa and Asia.Dr_Nasser_Marafih_jpg

Qtel’s EBITDA increased by 36 per cent in year-on-year in H109, increasing to QAR 5.5 billion. The Group’s EBITDA margin held relatively steady during the period at 48 per cent, down from 50 per cent a year earlier.

Marafih believes the rest of the year will be characterised by continuing economic uncertainty, but that Qtel will continue to innovate

In Q209, Qtel achieved consolidated group revenue of QAR 5.9 billion, growth of 30 per cent year-on-year. The group’s net profit attributable to shareholders for the period reached QAR 1billion, registering 59 per cent year-on-year growth. Qtel added 800,000 subscribers during the quarter.

“One of the main highlights during this quarter was the successful execution of key stages in our long-term financing strategy, commented Qtel Group chairman Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani. “The issue of our inaugural bonds of US$ 1.5 billon under our new US$ 5.0 billion Global Medium Term Note programme in June 2009 was significantly oversubscribed, following a road show to global investors. This was the first global bond of a telecom operator in the GCC region.”

In Qtel’s domestic market of Qatar, the operator extended its range of products and services and deepened its connection with subscribers. Consolidated customer numbers in Qatar grew in H109 by 29 per cent to 2.2 million at end-June.

“We expect the rest of the year to be characterised by continuing economic uncertainty but we continue to bring more innovative products to the market supported by a business that is increasingly consolidating to create long term value,” stated Nasser Marafih, CEO of Qtel Group.