Kingdom Holding Company (KHC) and Bahrain Telecommunication Company (Batelco) today announced that all news surrounding the acquisition of 25 per cent of the stake of Zain Group in Zain Saudi Arabia are unsubstantiated and speculative in nature. The companies went on to say that negotiations between all concerned parties are still underway and all parties are committed to starting the due diligence process and to concluding this transaction successfully. Both KHC and Batelco will keep their respective shareholders and regulators informed of any material development.

The statement follows speculation earlier this week that the deal for the KHC/Batelco consortium to acquire the stake in Zain Saudi could run aground as a result of Batelco not being guaranteed management control of the cellco. It had been suggested Batelco would consider lowering its offer for the stake if it was not able to secure management rights, a move that could affect the entire transaction being ratified.

UAE telco Du has successfully conducted and completed its first pilot on LTE on its mobile network supporting mobile broadband speeds up to 150 Mbps. The pilot was conducted in April 2011. Commercial launch of LTE services is slated for the second half of 2011.

This move follows closely on Du’s launch of the latest 42 Mbps mobile broadband services, after having recently upgraded its network to next-generation DC-HSPA+ technology.

An Indian superior court today rejected bail to five company executives charged in a multi-billion dollar telecom corruption scandal that has rocked political and business establishments in the country.

Shares in the three firms linked to the executives fell after Judge Ajit Bharihoke read out his order in the courtroom of the Delhi High Court.

Sanjay Chandra, the managing director of Telenor’s India partner Unitech; Vinod Goenka, chairman of Etisalat’s India partner DB Group; and three executives from Reliance ADA Group have been held in jail since April 20, after a lower court had denied them bail.

They are among 14 individuals and three companies charged with rigging a 2007/08 grant of lucrative telecom licences. The scandal may have cost state coffers as much as US$39 billion in lost revenue, a sum equivalent to the country’s defence budget.

Etisalat said in February that it had no involvement in the corruption scandal.

Bharihoke said the accused were highly influential persons who could try to influence witnesses, especially those in their companies, if released on bail.

Police have already arrested former telecom minister Andimuthu Raja, a member of government ally DMK party.

A further two telecommunication companies are reported to be seeking government licences to offer mobile re-seller services in Oman, according to Naashiah Al Kharusi, a member of Telecommunications Regulatory Authority (TRA).

Awasif Company is seeking a licence to operate as a mobile reseller, while Madakhil is looking to provide mobile telecommunication services to fishermen.
Should the applications be granted, this would raise to seven the number of companies in Oman licensed to operate as re-sellers. Current licensees are Friendi Mobile, Renna, Mazoon, Injaz and Samatel.

Nokia Siemens Networks (NSN) has entered an agreement with Saudi Arabian telecom specialists, Al Sarya Telecommunications Company and Belal Company, to form a joint-venture to expand its business in the kingdom.

The joint venture company, which will be called Nokia Siemens Networks al Saudia Ltd, will combine the local knowledge of Al Sarya Telecommunications Company and Belal Company with the scale and expertise of NSN to tap growth opportunities in Saudi Arabia.

The joint venture will complement and not replace NSN’s existing business in Saudi Arabia, focusing on service delivery and implementation. NSN’s Saudi office will focus on sales of equipment and services.

Under the terms of the deal, the joint venture will offer operators services in four main areas comprising: network implementation; business solutions; managed services; and hardware and software maintenance.

The new venture will be led by executive director Ali Damiri, who previously headed up NSN for Saudi, the Levant and Iran sub-region, covering six countries.

Al Sarya Telecommunications Company and Belal Company are both members of the Ghazzawi Group of Companies.