Mobile money has been rolled out in seven countries so far, with Uganda already topping 680,000 subscribers 

Net profit declined by 4.3 per cent from ZAR 15.315 billion in 2008 to ZAR 14.65 billion a year later. EBITDA was 6.7 per cent higher at ZAR 46.063 billion. Capital expenditure grew 10.6 per cent to ZAR 31.2 billion.

A better distribution network and a focus on segmented product offerings contributed to subscribers increasing by 28 per cent to 116 million. As a breakdown, 45 per cent of the total subscribers were based in the West and Central Africa region (WECA), 32 per cent in Middle East and North Africa (MENA), with the remaining 23 per cent in South and East Africa (SEA).

MTN committed US$191 million to submarine cables with the group having access to cable capacity on the SAT-3/SAFE and TEAMs cables which are both currently operational, as well as future access to EASSy and EIG which are due to become operational in H2 2010 and WACS in H2 2011.

Mobile money was rolled out in South Africa, Uganda, Rwanda, Ghana, Cote d’Ivoire, Benin and Yemen, with Uganda surpassing 680,000 subscribers.

Maritime revenue grew 7.4 per cent on the back of strong take up and usage of Inmarsat’s Fleet and FleetBroadband services

During the three months to end December 2009, the company also lowered its cost of debt by refinancing US$650 million, and completed the acquisition of Segovia’s government solutions business.

Full year results saw total revenues increase by 4.2 per cent to US$1.038 billion, while the Inmarsat Global MSS revenue contribution was up 10.4 per cent to US$682.8 million. EBITDA was 11.9 per cent higher than the previous year at US$594.2 million.

The global mobile satellite communications provider saw growth across a number of its sectors with maritime revenue growing 7.4 per cent on the back of strong take up and usage of its Fleet and FleetBroadband services. The land mobile sector increased 3.3 per cent mainly due to the growth in subscribers of the BGAN service and a migration from older devices. BGAN ARPU strengthened in the second half of the year and reached US$288 per month in the fourth quarter.

The aeronautical and leasing sectors also experienced strong revenue growth by 18 and 30 per cent respectively. In-flight cellular services for airline passengers made good progress during the year, but remain at an early stage in revenue contribution.

Inmarsat’s outlook for 2010 is positive based on an expected rise in demand from commercial and government customers, particularly for its data services. The company is entering the handheld satellite phone voice market and believes this represents an attractive new growth opportunity for the future. Allowing for approximately US$10 million in capital expenditure which the firm has deferred from 2009 to 2010, it expects the total cash capital expenditure to be around US$160-170 million.

Oman’s Nawras grew subscriber numbers by 23.2 per cent, despite facing fresh competition in the form of MVNOs Friendi and Renna

Highlights for the year included sturdy customer growth in Iraq, Algeria and Indonesia, contributing to 76 per cent of revenues being generated outside Qatar. Wataniya Palestine and Wi-Tribe Pakistan were also launched. However, subscribers of Indonesia’s Indosat contracted, dropping from 37 million at the end of 2008, to 33.7 million at the end of 2009. Qtel attributed this to “successfully removing a significant proportion of the lower-value, calling card type behaviour subscribers”.

Chief executive Nasser Marafih commented that the group focused on improving network infrastructure to upgrade capacity and capabilities, particularly in relation to data and Broadband services, which is expected to capture future growth.

“We have also faced changing competitive dynamics in a number of our key markets and have demonstrated the resilience of our market strategies, particularly in Qatar where our focus on products and services, targeted pricing and customer service have enabled us to successfully adapt to these changes,” Marafih added.

Qtel, Qatar

Facing the end of its monopoly in Qatar with the launch of Vodafone, Qtel’s service offerings including a new customer loyalty programme, dedicated data packs and a range of BlackBerry and data solutions for business devices helped drive an increase in subscribers to 2.4 million and raised revenues 4.4 per cent to QAR 5.7 billion.

Indosat, Indonesia

The company continued to invest in expanding its reach to areas outside of its Java core, with the launch of the Palapa-D satellite system and Jakabare submarine cable, as well as enhancing its capacity to support new, value-added services. Revenue for the twelve months was QAR 6.6 billion, compared to QAR 4.2 billion in 2008 post-acquisition. EBITDA reached QAR 3.2 billion from QAR 2.1 billion in 2008 post-acquisition.

Wataniya Telecom

Wataniya Telecom operates in Kuwait, Tunisia, Algeria, Saudi Arabia, the Maldives and Palestine. Wataniya faced competition in its home market of Kuwait with the entrance of Viva and launched commercial operations in Palestine. Overall customer numbers grew by 38.8 per cent to 15.2 million, however the subscriber growth failed to boost income, with revenues decreasing to QAR 6.1 billion from QAR 6.5 billion a year earlier.

Nawras, Oman

A ten-fold increase in prepaid broadband users and new services such as mobile TV, helped Nawras continue to perform positively despite the introduction of mobile resellers Friendi and Renna during the second half of the year. Subscribers increased 23.2 per cent during the period to 1.86 million. Revenues increased from QAR 1.3 billion in 2008 to QAR 1.6 billion during 2009. EBITDA performance improved by 62.7 percent to QAR 827 million.

The firm continues to work towards the commercial implementation of its fixed-line operation, with an international gateway expected to become operational in 2010.

Asiacell, Iraq

Asiacell achieved a 20.4 per cent increase in subscriber numbers to finish the year with 7.35 million customers. Revenues grew by 40.4 per cent to QAR 4 billion, from QAR 2.8 billion a year earlier. EBITDA also increased 43.9 per cent year-on-year to QAR 2.2 billion.

"We are not in any talks to sell a stake," Sawiris stated in response to a report from the UAE’s The National. The newspaper quoted him as saying he preparing to cede control of Orascom Telecom (OT), with the firm assessing possible buyers of a majority stake or partner in a merger.

"People like me need to start thinking, ‘I cannot keep controlling my company, I need to cede control in exchange for shared control’," Sawiris was cited in The National. "But I don’t want to be an insignificant shareholder."

However, it is unlikely that the firm would be involved in a stake sale, with the firm still engrossed in a dispute with the Algerian government over a backdated US$600 million tax bill for the fiscal years 2004 to 2007. On March 7, Algerian tax authorities rejected an appeal from OT filed in December for a tax reassessment. OT intends to file an appeal before the Central Commission, which under Algerian law requires payment of 20 per cent of the balance of taxes and penalties alleged to be owing, equating to around US$110 million.

Additionally, OT has been engaged in legal action in Egypt to block France Telecom from taking full control of their joint venture Mobinil.

Sawiris founded the operator in 1998, which has grown to 89 million subscribers as of September 30, 2009. OT operates GSM networks in Algeria, Pakistan, Egypt, Tunisia, Bangladesh and North Korea. Through its subsidiary Telecel Globe it operates in Burundi, Central African Republic, Namibia and Zimbabwe. The Egyptian firm also has an indirect equity in Globalive Wireless (Wind Canada).

“We have invested directly or indirectly US$300 million in Afghanistan and around 10,000 Afghans are supported by us and our distribution partners. We will continue to reach more areas of Afghanistan and introduce more voice and data services,” Al Hamili added.

Since launching in 2007, Etisalat’s network has reached approximately 90 per cent of Afghanistan, despite the security issues and geographical conditions.

In comparison, competitor Roshan says it is the leading service provider in the country with coverage in 230 major cities and towns, and more than 3.4 million active subscribers. Roshan entered the market in January 2003 and has since invested almost US$400 million in expanding and maintaining its network.

Company CEO Nayla Khawam said that as part of Orange’s commitment to utilise the full scope of content-driven 3G+ services, the integrated operator had signed a strategic agreement with Arab television network MBC. Several of the network’s popular programs and series will be streamed exclusively through Orange’s 3G+ network directly to subscriber’s handsets.

Commenting on service fees and prices, Khawam reassured subscribers that Orange does not intend to raise tariffs on essential voice calling and SMS services for subscribers migrating to the new 3G+ network. The new network will offer a variety of new services, such as video calling, mobile broadband, access to exclusive personalised and Live TV – all of which will be reasonably priced in accordance with regional standards.

"The services that will be delivered by Orange’s 3G+ network will greatly bolster internet penetration in the kingdom, which conforms to the national strategy that aims at increasing internet penetration by 50 per cent in the kingdom by 2011," Khawam added.

The company intends to roll out 3G+ services in April to reach the rest of the capital. During summer of 2010, network coverage will have reached most urban locations in Jordan, delivering services to approximately 70 per cent of populated areas, which equates to roughly around two million people.

Saud Al-Duwaish, CEO of the STC Group announced Viva customers will be able to take advantage of broadband services for free, calls to other Viva or STC subscribers at no cost, as well as enjoying up to 90 per cent reduction on international calls. This promotion is open to all Viva customers for the first three months.

The company plans to distinguish itself through a modern communications network that is not only the most sophisticated in the region, but also at a global level. Viva’s network is based on the HSPA+ technology that will allow it to provide all of Bahrain with high-speed broadband, which the company says is the fastest in the region allowing up to 21.1 megabits per second.

Viva is the third operator in Bahrain after Batelco and Zain Bahrain. The Saudi operator won the country’s third licence in March 2009 with a bid of US$231 million.

STC Group, the largest regional operator by market value has more than 100 million subscribers in Malaysia, Indonesia, India, Kuwait, Turkey, South Africa, Lebanon, Jordan and Saudi Arabia.

The issuer default rating (IDR) has been rated ‘BBB-’, the senior secured revolving credit facility at ‘BBB’, senior unsecured notes at ‘BBB-’, and short-term IDR and commercial paper program rating at ‘F3′.

The ratings and negative outlook reflect Fitch’s expectations that revenue growth in 2010 will likely be reliant upon the timely introduction of the company’s mobile devices business (MDB) and market acceptance of a substantial number of new smartphone models. However, MDB should benefit from significant headcount reductions and platform operating efficiencies implemented in 2009. As such, Fitch expects the MDB unit to generally be around free cash flow breakeven for the year in comparison to significant cash usage over the prior two years.

Fitch believes revenue growth within Motorola’s Enterprise Mobility Solutions (EMS) and Home and Networks (H&N) segments will likely be flattish in 2010, pressured by weak consumer spending and housing starts in the US, as well as tepid enterprise spending.

Overall, Fitch expects Motorola to generate positive consolidated free cash flow in 2010 after taking into account severance payments and incremental expenses associated with the spin-off. Funding for the company’s pension shortfall could ramp up in 2011. Free cash flow expectations also take into account the company maintaining meaningfully lower than historical inventory levels, which could prove challenging given MDB’s plan to launch at least 20 new smartphone models in 2010. Fitch estimates that the company generated more than US$1.3 billion of its US$240 million of free cash flow in 2009 from inventory reductions.

The ratings and outlook also reflect Fitch’s belief that the consummation of the proposed separation of MDB and Home from EMS and Networks in the first quarter of 2011 will be contingent upon MDB achieving its objective of introducing as many as 20 new smartphone models and achieving market acceptance. Fitch believes that MDB’s failure to do so could undermine the company’s smartphone strategy and product roadmap, resulting in free cash flow usage for 2010 and potentially delaying the proposed separation.

Zain confirmed on February 14 that it had received an offer from Bharti Airtel for US$10.7 billion for the African operations, excluding Sudan and Morocco. The two companies are in exclusive talks until March 25.

Zain Africa, formerly branded Celtel, includes approximately 42 million subscribers and represents around 58 per cent of the operator’s customers as of end-September 2009. Bharti Airtel is India’s largest operator and has almost 125 million subscribers across India.

The Arab world’s largest telecom company by market value has expanded aggressively in the past two years outside the kingdom’s borders to now have operations in Malaysia, Indonesia, Turkey, India, South Africa, Kuwait and Bahrain. The operator’s most recent foray was the launch of mobile services in Bahrain under the brand Viva.

STC posted a Q409 net profit of SAR 2.94 billion (US$784 million), an increase of 154 per cent year-on-year from SAR 1.16 billion in the fourth quarter of 2008. The state-owned integrated operator attributed this partly to the floating in November of a 25 per cent stake in Malaysian subsidiary Maxis, which added SAR 684 million to its coffers.