Etisalat enters infrastructure sharing MoU with seven operator groups

Etisalat Group has signed a network infrastructure sharing memorandum of understanding (MoU) with seven of the largest mobile network groups operating in the Middle East and Africa. The MoU will facilitate an initiative to proactively explore greater cooperation with respect to infrastructure sharing.

As part of the MoU, Etisalat Group will actively explore commercially negotiated agreements on passive infrastructure sharing, and where feasible from both technical and regulatory perspectives, active infrastructure sharing with Bharti Airtel, MTN Group, Ooredoo Group, STC Group, Orange, Vodafone Group and Zain Group. The MoU is intended to form a platform for other initiatives with operators outside this initial group.

The multi-operator cooperation is an outcome of discussions finalised during the recent Mobile World Congress. It recognises the need for telcos to further optimise capital and operational expenditures as well as increase the penetration of mobile voice and data services to a wider spectrum of customers.

Through this understanding, Etisalat Group aims to reduce its expenditure and environmental impact while improving its network coverage in Middle East, Asia and Africa.

Etisalat has operations in 15 countries in the Middle East, Asia and Africa, and services nearly 150 million customers across its international footprint.

NSN appoints Deon Geyser to head Southern Africa sub-region

Nokia Solutions and Networks (NSN) today announced the appointment of Deon Geyser as head of Southern Africa sub-region effective today. Geyser has held a number of senior management positions in leading African telcos, including COO at Millicom International Cellular (Tigo) in Tanzania. In his previous role at NSN, Geyser served the company as country director for Tanzania from 2007-2012.

Geyser has held various roles across NSN before moving to Millicom as COO. He has vast experience across mobile broadband, value added services (VAS), billing, business transformation, managed services and customer experience management (CEM).

Born in South Africa, he holds two undergraduate degrees in Electronics Engineering and IT and a master’s degree in Engineering Management from University of Johannesburg.

Virgin Mobile and Jawraa Lebara awarded Saudi MVNO licences

Virgin Mobile Middle East & Africa (VMMEA) today announced that the Communications and Information Technology Commission of Saudi Arabia (CITC) has approved the grant of a MVNO licence to the Virgin Mobile Saudi consortium.

The CITC started the MVNO licence application process in early 2013, and this process has now been concluded with the award of the licences.

VMMEA already serves over one million customers across its five operations, positioning the company as the undisputed leader in the MVNO sector in the Middle East and Africa region.

Following the award of the MVNO licence in Saudi Arabia, the VMMEA consortium is now poised for the commercial launch in Saudi Arabia that is expected during the first half of 2014.

VMMEA was one of three companies to win licences in January 2014. Five companies had bid for the Saudi MVNO licences, and along with VMMEA, Jawraa Lebara was a winning bidder, partnered by Mobily; while Dubai-based retailer Axiom Telecom was the winner of a third licence and will purchase capacity from Zain Saudi Arabia. VMMEA’s network provider partner is Saudi Telecom (STC).

Jawraa Lebara was also awarded its operational licence, though it is understood that Axiom Telecom has not been, apparently because the consortium has some issues with its shareholder structure.

Sale of STC’s Axis Telekom to Axiata approved

Asian operator group Axiata’s Indonesian unit has gained regulatory approval to acquire Axis Telekom, the Saudi Telecom-owned operator, creating Indonesia’s second-largest player.

The deal has been given the green light by the KPPU, the Indonesian antitrust body, meaning it has fulfilled the final requirement for the deal to go through.

The Ministry of Communications and Informatics cleared the deal last December, while XL Axiata shareholders approved the merger in February.

An XL Axiata statement said the KPPU decided the merger would not constitute a monopoly as the combined company would only have a 21 per cent market share (65 million subscribers).

The deal was first agreed with Axis owner Saudi Telecom in September last year. The agreement covers 95 per cent of Axis shares with an Indonesian shareholder holding a five per cent stake in accordance with Indonesian foreign investment rules. The transaction values Axis at US$865 million on a cash-free and debt-free basis.

XL Axiata outlined a US$500 million loan arranged with its parent group to finance the purchase. Axiata owns a 66.5 per cent stake in XL.

XL said the merger will “improve the service quality and provide better and wider network coverage with higher capacity as well as wider product and customer service in the market”.

According to GSMA Intelligence figures, XL Axiata had 60.5 million connections at the end of 2013, with Axis on 17.8 million connections. The combined company would therefore count 78.3 million connections, giving it the number-two spot in Indonesia.

Market leader Telkomsel had 131.5 million connections, with current number two Indosat on 59.6 million connections. Hutchison Whampoa’s 3 had 32 million connections.

Mobily and Huawei enter new Smart Network Initiative

Mobily and Huawei have signed a strategic contract to launch a new Smart Network Initiative in Saudi Arabia with the aim of enhancing the overall user experience for Mobily customers and increase the telco’s revenue.

The agreement will see Mobily and Huawei cooperate on a series of business and market research initiatives over the coming five years including the exploration of more business scenarios that Mobily believes could boost its network capabilities. The initiative will also explore ways in which Mobily can further maximise the value of its existing network assets to drive greater intelligence and efficiency across the organisation, raising revenue opportunities.

Mobily and Huawei ran a similar trial project over a three-month period in the beginning of 2013, looking at how the Smart Network Initiative could enhance Mobily’s service capabilities.

Mobily and Huawei have continued to expand their strategic relationship in recent years with several landmark projects for the region. Last year the two companies deployed the industry’s first commercial 400G IP Core Network in Saudi Arabia designed to bring a more diversified and efficient service experience to customers.