Batelco attributed a 20 per cent decline in net profits to increasing competition in its domestic market, as well as growing start-up costs for its Indian venture S-Tel. Net profit decreased to BHD 22.3 million (US$59.2 million) from BHD 27.9 million a year earlier, while revenues tightened by 2.4 per cent to stand at BHD 84.8 million.

“Gross revenues did not grow in the first half predominantly due to the entry of the third mobile operator in the Bahrain market,” chairman Shaikh Hamad Bin Abdulla Al Khalifa said in a statement, referring to the entry in March of Viva Bahrain, a subsidiary of Saudi’s STC. Zain is the second mobile provider in the country.

“Reduced market share for mobile and broadband services and strong price erosion adversely affected our revenues and profits,” he added.

Active mobile subscribers surged 47 percent during H110 to reach 6.88 million, while broadband Internet users increased 54 percent to 230,600. The group’s total number of subscribers is 7.3 million.

Qatar’s regulator has announced that Qtel will face a fine and appropriate action in regards to its launching of Virgin Mobile-branded services in May. It was determined by ictQATAR that Virgin Mobile’s services did not constitute a third mobile licensee and therefore breach the terms of Vodafone as second licencee, however, the way it was marketed did deceive consumers as to its genuine nature.

“IctQATAR  has concluded that Virgin Mobile services were represented by Qtel to the public between May 13 and 18 in a manner, which misled or deceived people about who was providing the services. Some people were misled into thinking that Virgin Mobile was a new telecommunications operator or service supplier in Qatar,” a statement by the regulator read.

“This had the effect of distorting competition, as it presented another apparent third operator or service supplier option to customers or potential customers. In reality, there are only two licensed telecommunications service providers in Qatar who are permitted to sell mobile services to the public – Qtel and Vodafone Qatar.”

Vodafone ended the state-owned operator’s monopoly in 2007 when it paid US$2.1 billion for the right to be the nation’s second telecommunications provider.

IctQatar has referred the case to the Office of the Attorney General where an appropriate penalty against Qtel will be settled upon.

On May 17, four days after the launch by Qtel of Virgin Mobile services, the regulator issued orders to Qtel requiring certain changes in the marketing and presentation of Virgin Mobile services, followed by further instructions on May 20 on the same matter. On July 15, Qtel was ordered to “correct any wrong or misleading perception created by Qtel about Virgin Mobile services, and to ensure compliance with the telecommunications law”.

The requirements imposed upon Qtel dealt with branding and naming of the services, the use of logos in advertising materials, the branding and use of retail outlets, call centres and information presented to the public in person and on websites.

Nokia Siemens Networks (NSN) and Motorola today jointly announced that the companies have entered into an agreement under which NSN will acquire the majority of Motorola’s wireless network infrastructure assets for US $1.2 billion in cash. The companies expect to complete closing activities by the end of 2010.

As part of the transaction, NSN expects to gain incumbent relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone.

NSN expects that based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the #3 wireless infrastructure vendor in the United States, the #1 foreign wireless vendor in Japan, and strengthen its current #2 position in the global infrastructure segment.

“This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders,” said Rajeev Suri, CEO of NSN. “NSN will see the benefits of a deal that is expected to enhance profitability and cash-flow and to have significant upside potential.”

“Motorola is very proud of the operational and financial performance of our Networks business and its employees, who will now become a valuable addition to NSN,” commented Greg Brown, Co-CEO of Motorola. “We are excited to have reached this agreement to combine our Networks team with such an industry leader.”

Motorola’s networks infrastructure business extends to GSM, CDMA, WCDMA, WiMAX and LTE.

Around 7,500 employees are expected to transfer to NSN from Motorola’s wireless network infrastructure business when the transaction closes, including large R&D sites in the US, China and India. Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business and other selected assets.

NSN’s Suri, who was appointed CEO last September, says the acquisition will enhance profitability and cash-flow, as well as have significant upside potential

NSN and Motorola also are exploring a global relationship in the public safety arena. This relationship would combine Motorola’s leadership in providing solutions to public safety organisations with Nokia Siemens Networks’ commercial LTE solutions.

Just last month, Bruce Brda, Motorola’s senior vice president and general manager of Home & Networks Mobility at Motorola told Comm. that as a standalone business, Motorola’s network business generated revenues amounting to US$4.9 billion in 2009, making it amongst the smaller members of the highly competitive global telecom infrastructure suppliers’ club.

Smaller annual revenues meant smaller amounts that could be invested in R&D, meant less opportunity to take leadership positions in new technologies and developments, meant being faced with the potential of a shrinking market share. Brda said he was aware of such constraints but believed Motorola’s strategy to focus on the customers it already services, and focus on technologies in which it already enjoyed strong positions in, would be the correct one to assume in its post-separation life.

Nawras’ long-anticipated home broadband and voice services will be launched this Tuesday July 20, breaking the monopoly of Omantel as Oman’s sole fixed voice and Internet provider. Nawras will operate the Sultanate’s first WiMAX network, which currently covers 54 per cent of households across the Sultanate and which is expected to expand to reach 80 per cent of households during 2011.

Every Nawras broadband Internet customer receives a fixed voice connection at no additional charge

The ‘plug and play’ simplicity of the Nawras home broadband and voice packages allows customers to set up internet access within minutes. The operator has also posted coverage maps on its website so customers can see exactly which services are available within their town or village.

Postpaid packages start from OMR 15 (US$39) per month, which include a 6 GB data allowance with up to 1 Mb/s downlink speed, spend capping to control broadband Internet budgets, and a free-of-charge telephone connection with no extra line charges.

The operator is also introducing the country’s first prepaid Internet service, starting at OMR 5 per week with a 2 GB data allowance and up to 1 Mb/s downlink speed. Alternatively subscribers can choose a monthly plan with the same prices and benefits as the postpaid options. Customers who sign up for a postpaid or prepaid package will receive double data allowances for free, plus 50 per cent off Nawras broadband modems until October 13 as part of the launch promotion.

With the fixed telephone connection, subscribers can take advantage of further discounted international call rates with the option of a unique voice over internet protocol (VoIP) service to India, Pakistan, Bangladesh, Indonesia, Sri Lanka and the Philippines. By simply dialling ‘0902’ before a number, the phone call is automatically switched to VoIP for that call, offering the most attractive call rates to the six Asian destinations.

Zain Saudi Arabia yesterday announced increased revenues for the three months ending June 30, reaching a break-even point for profit before interest on its Murabaha loan, taxes and depreciation (EBITDA) for the second quarter of 2010. This was achieved within a period of 22 months since commencing operations in August 2008.

Revenue was up 107 per cent to SAR 1.45 billion (US$387 million), compared to SAR 702 million in Q209, with gross profit rising 357 per cent to SAR 608 million compared to SAR 133 million for the same period in 2009. Operational losses decreased by 55 per cent to SAR 314 million compared to SAR 706 million for the same period last year.

Zain Saudi Arabia took its total customer base to over seven million. The operator reported a reduction in net loss by more than 26 per cent, to SAR 632 million compared to SAR 857 million in 2009, in addition to significant growth in gross profit of 42 per cent compared to the first quarter of 2010.

Zain is looking to expand its network to cover 93 per cent of the populated areas of Saudi Arabia by the end of 2010.