Orange contemplates its future in Kenya and Uganda

Orange is considering the reduction of stakes in mobile operations in Uganda and Kenya, according to a Bloomberg report.

A representative from Orange said in a statement that the options in Kenya and Uganda include finding new financial or operational partners to invest in the networks and services.

The review of operations in Uganda and Kenya is part of an evaluation of the company’s footprint, according to the representative, who added that the company remains committed to Africa and the Middle East.

Orange owns 70 per cent of Telkom Kenya and 95 per cent of Orange Uganda.

According to GSMA Intelligence figures, Telkom Kenya had 2.3 million connections at the end of Q413, making it the smallest operator in the market, behind Safaricom (21.5 million), Airtel (5.7 million) and Essar Telecom’s Yu (2.8 million).

Orange Uganda is a minor player with around 640,000 connections compared with MTN’s 8.7 million, Airtel (7.8 million) and Uganda Telecom’s UT Mobile (2.1 million).

Orange operates in a number of other African markets, including Botswana, Cameroon, Mali, Morocco, Senegal and Tunisia.

Orange previously sold assets in Switzerland and the Dominican Republic, while CEO Stephane Richard has said the company is looking for opportunities to increase its presence in markets such as Spain and Romania.

Zain KSA finds new chairman in Farhan Bin Naif Al Faisal Al Jarbaa

Zain Saudi Arabia announces the appointment of Farhan Bin Naif Al Faisal Al Jarbaa as chairman of the company, replacing Fahad Ibrahim Al Dughaither, who resigned from the position for personal reasons, but will still hold a membership on the board. This was announced following a meeting of the board on March 10.

Al Dughaither was elected chairman of Zain KSA during an Ordinary General Assembly Meeting held in March 2013.

Al Jarbaa is one of the prominent leading figures in telecom in Saudi Arabia, due to founding several telcos, in addition to his extensive experience over a 34-year career.

Du signs up to SEA-ME-WE 5

UAE telco Du has joined an international consortium comprising of several telcos to build South East Asia – Middle East -Western Europe 5 (SEA-ME-WE 5). An agreement was signed in Kuala Lumpur to mark the project.

SEA-ME-WE 5 is an undersea cable system with an approximate length of 20,000 km passing Southeast Asia to Europe. This mega project will connect 15 countries. SEA-ME-WE 5 cable system will branch to the UAE with Du’s landing station in Fujairah. With a direct connection of the UAE to the SEA-ME-WE 5 cable system, the capacity will increase the quality of data service and Internet from the UAE to Europe and South East Asia.

MTN and Telkom talk network sharing

South Africa’s fixed-line incumbent Telkom wants to cut a network sharing deal for its loss-making mobile operation with rival MTN.

In a statement, Telkom confirmed negotiations with MTN “involving the potential outsourcing of the operation of the Telkom radio access network (RAN) to MTN…”.

In addition, the two companies are talking about expanding their existing roaming relationship, it said.

For its part, a deal holds attractions too for MTN which wants to acquire Telkom’s spectrum.

Telkom said at the end of last year it was in talks about the future of its mobile unit, without being specific about potential partners or what was planned.

It mentioned negotiations during a results meeting in which it also announced a widening loss for the first half of 2014.

Orange posts US$2.6 billion profit for 2013

Orange talked up its success in the European 4G market, as it reported its full-year financials for 2013.

It said that it had reached its objective of signing one million 4G customers in France and that, with more than 4,200 sites, its 4G network covers 50 per cent of the population.

In Spain, Orange had 530,000 4G customers, and more than 1,600 sites deployed covering 30 per cent of the population. In Poland, 4G was launched in Warsaw, while in the UK EE had more than two million 4G customers as of early January 2014.

The company reported a net income attributable to shareholders of €1.87 billion (US$2.6 billion), more than doubled from €820 million in the prior year, on revenue of €40.98 billion, down 5.8 per cent from €43.52 billion.

It said it had demonstrated “its outstanding ability to work collectively to adapt and control costs”, with savings of €929 million offsetting nearly half of its decline in revenue.

And its bottom line also benefitted from “a significantly lower level of goodwill impairment in 2013 compared to 2012”.

It noted the impact of regulatory measures, although excluding these the company still saw a sales decline.

Orange ended the year with 178.5 million mobile customers, an increase of 3.5 per cent year-on-year.

For its Rest of World segment, revenue increased by 1.3 per cent due to growth of 4.7 per cent in Africa and the Middle East, while Europe, “marked by the downturn in Belgium and Slovakia”, fell by 2.8 per cent.