Vodafone Qatar to buy QNBN for US$57 million

Vodafone Qatar announced a non-binding agreement to buy state-owned Qatar National Broadband Network (QNBN).

The deal could be worth around US$57 million, reports Reuters, which would see Vodafone Qatar fully own the broadband operator.

QNBN already has wholesale broadband agreements with both Vodafone Qatar and Ooredoo.

Vodafone said the combination of the two companies would “enable Vodafone Qatar to deliver the benefits of choice to customers in the fixed-line market in Qatar”.

The deal is subject to regulatory approval, which, “subject to all conditions being fulfilled”, Vodafone Qatar expects will be given and the transaction completed on or before December 31, 2014.

Vodafone Group has a 22 per cent stake in the Qatari operator and state-run Qatar Foundation holds another 22 per cent. The remaining shares are listed.

The deal to buy QNBN is the latest in a series of broadband purchases made by the UK-headquartered group as it seeks to bolster its portfolio of triple and quad-play services.

Orange broadens digital services credentials

Orange chief executive Stephane Richard announced a range of new digital services and products, including a move into the ‘connected home’ and a bigger push into mobile money, adding that the industry was at the “dawn of the era of connected objects”.

Speaking at the operator’s ‘Hello Show’ in Paris, Richard said ‘Homelive’, the operator’s connected home service, would be launched in France on October 23. Charged at €9.99 (US$ 12.50) per month, users can select a range of intelligent sensors and connected devices (from Orange partners) to monitor remotely the likes of thermostats, light switches, and smoke detectors from their smartphones and tablets.

Meanwhile Orange is to commercially launch Mobile Connect in Q115. A SIM-based authentication solution (and a GSMA initiative), Mobile Connect allows customers to use their mobile phones to log-on and access digital services. It uses an API incorporated into partner Internet sites, which means customers only need to click on the Mobile Connect for ID purposes.

Orange is also enhancing its Orange Money transfer service with a ‘cash-to-goods’ feature provided in partnership with Afrimarket, a start-up. It means users can transfer money from Europe to a partner retailer in Côte d’Ivoire, Senegal, Togo or Benin. Orange pitches this as a straightforward, instant and risk-free system to pay for groceries for parents, say, or school supplies for relatives and so on.

With repeated emphasis on digital innovation and collaboration, Richard is clearly stepping up efforts in trying to re-position the Orange brand to mean more than simply fixed and mobile connectivity in the eyes of consumers.

As part of that push, the Polaris project was unveiled. It provides a new and unified interface for every screen in the home to access services. Once you start watching a film or series on the TV, for example, it’s possible to pick up where you left off through the tablet or smartphone.

Another innovation is ‘Homepoint’, to be launched in France before the end of 2014, which is not only a multimedia hub but can also give family guests easy Wi-Fi access through a short pin number.

VMMEA launches commercially in Saudi over STC network

Virgin Mobile Middle East & Africa (VMMEA) today launched the first MVNO business in Saudi Arabia, making it the fifth country in which VMMEA has opened, after Oman, Jordan, South Africa and Malaysia.

The VMMEA operation in Saudi Arabia is launching the group’s flagship Virgin Mobile brand, as well as the internationally focused Friendi Mobile offering.

The Virgin Mobile brand is bringing the unique style and customer experience that has made Virgin Mobile the most successful MVNO brand globally with some 20 million customers, to young-at-heart customers in Saudi Arabia.

The Saudi MVNO process has turned into a race of elimination as the three original selected bidders for the MVNO licences (VMMEA, Jawraa Lebara, and Axiom Telecom) were first reduced to two due to Axiom’s selection being withdrawn, and now VMMEA has outpaced Jawraa Lebara to launch just before Eid, which is an important sales period for telecom, and will make it difficult for Jawraa Lebara to launch until after the holidays

Friendi Mobile is targeted at multi-cultural customers in Saudi Arabia who are looking for a better mobile service to stay in touch with friends and loved ones locally and globally.

To secure the best possible basis for success in the Saudi Arabian market, the local operating company is owned by a consortium consisting of VMMEA and strong local partners including prominent Saudi Arabian and Middle Eastern investors.

Saudi Arabia typically serves as a regional catalyst for new technological and regulatory development. The introduction of MVNOs in Saudi Arabia is likely to spur mobile operators and telecom regulators across the region to accelerate their plans to introduce the MVNO model in their own markets.

Earlier this year, Hassan Kabbani, CEO of Zain Saudi Arabia, and the operator that was set to host Axiom Telecom’s MVNO said the decision to introduce MVNOs into the market is rather questionable given the timing. “The third operator, Zain, has yet to reach the level of maturity appropriate to introduce MVNOs. Also, these MVNOs paid very low prices to obtain their licences with little obligation on their side, which can lead to problems in the market with few tangible benefits,” he commented.

Ericsson opens experience centre in Islamabad

Ericsson announced the opening of its Experience Centre in Islamabad with the aim to bring innovation closer to the region while contributing to the development of the Networked Society in the region.

Live links to the Ericsson Studio in Stockholm and to Ericsson Managed Services Global Service Centre in Romania, demonstrated the full potential of the new Experience Centre that customers can benefit from.

Ericsson’s Experience Centre is a platform for innovation – a globally connected hub to service the company’s customers, regulators, and key telecommunications industry influencers in Pakistan. Within the Centre, Ericsson creates and develops experiences that support business discussions, strengthen relationships with current and future customers, and support ecosystem partners throughout the region.

Etisalat said to be considering Zantel exit

Etisalat is considering the sale of its operations in Tanzania, according to a Reuters report.

Sources said Etisalat is exploring the sale of its 65 per cent stake in Zanzibar Telecom (Zantel) with the help of Deutsche Bank.

Etisalat’s operations in Tanzania have apparently drawn interest from Vodacom Group, with Millicom seen as another potential buyer. Both companies have a presence in the East African country.

Zantel is a relatively minor player in Tanzania, but rival operators could benefit from acquiring control of the company due to its spectrum holding.

At the end of the second quarter, Zantel counted 1.7 million connections, placing it fourth in the market. Market leader Vodacom had 10.6 million connections, followed by Bharti Airtel with 9.2 million and Millicom’s Tigo, which had 6.6 million.

The rest of Zantel is owned by Tanzania investment company Meeco International, which has a 17 per cent stake, and the government of semi-autonomous Zanzibar, which has an 18 per cent stake.

Zantel generated sales of US$85 million in 2013 but is in default for non-payment of a US$96 million bank facility, with the lender saying it will take enforcement action unless it receives payment.

Earlier this month Millicom claimed a world first in Tanzania after launching a mobile money service offering users the opportunity to automatically earn a return on their balance direct to their wallet without the need for a separate registration.