Virgin Mobile launch tests regulatory parameters in Qatar

Qatar’s regulator ictQatar has been forced to issue a statement affirming that only two licensed telecom operators are permitted to provide services in the country. It is a move aimed at pacifying Vodafone Qatar, Qatar’s second licensed operator behind Qtel, which is challenging Qtel’s arrangement with Virgin Mobile for the UK MVNO to offer prepaid services in the emirate.William_Fagan web

William Fagan has made it clear that Qatar still only has two licensed telecom providers, which are encouraged to use innovative practices

In the middle of last month Virgin Group announced it had introduced Virgin Mobile services in Qatar, in a brand partnership with Qtel. Thus Virgin Mobile acts as a reseller of Qtel minutes that are offered under the Virgin Mobile brand. However, Vodafone Qatar argues the introduction of an additional telecom brand as vibrant and active as Virgin Mobile has virtually the same impact as the entrance of a third player, and is thus challenging Virgin Mobile’s right to operate.

Vodafone Qatar has instituted legal action against ictQATAR, viewing the ‘unlicensed’ launch of Virgin Mobile as a breach of the conditions of its contract. Vodafone paid QAR 7.7 billion (US$2.12 billion) for the second mobile licence in 2007.

“ictQATAR does not object to licensed telecommunications operators using innovative practices to provide different products and services to the public,” commented William Fagan, assistant secretary general and executive director of the Regulatory Authority at ictQATAR.
“However, ictQATAR does not want the public in Qatar to be misled in any way about who is actually providing these services. To be clear, there is no third licensed mobile operator. There is also no licensed mobile virtual network operator (MVNO).”

Zain concludes Zain Africa sale to Bharti Airtel

Zain announced today it has satisfied all required conditions precedent to the closing of the sale of 100 per cent of Zain Africa to Bharti Airtel, excluding Sudan and Morocco for US$10.7 billion.

The transaction has resulted in aggregate net cash proceeds of US$8.968 billion. As of June 8, Zain has received US$7.868 billion of cash proceeds from the Indian operator. Over the next six months the Kuwaiti group expects to receive up to an additional US$400m upon certain milestones being achieved. The balance of US$700 million is due one year from completion as per the original agreements signed March 30.

In fulfilment of its debt obligations, Zain has repaid its US$4 billion revolving credit facility which the company entered into in July 2006. Going forward the company intends to utilise the remaining proceeds to pay dividends and to attend to other corporate matters.

Under the terms of the original agreements, Zain has licensed the use of the ‘Zain’ brand and related trademarks to Bharti in all 15 African operations for an interim period.

"This sale crystallises the significant value we have created for our shareholders over the last five years. The board of directors will consider the best use of the remaining proceeds to further enhance value for all stakeholders," commented Asaad Al Banwan, chairman of the board of directors at Zain.

Alcatel-Lucent wins US$500 million African submarine cable contract

Alcatel-Lucent has signed a turnkey contract worth more than US$500 million with the Africa Coast to Europe (ACE) submarine cable network. ACE will link Cape Town in South Africa to Penmarch in France via a 17,000 kilometre cable, offering 40 Gigabits per second of capability, with a design capacity of 5.12 Terabits per second. The consortium is headed by France Telecom-Orange and consists of 20 operators.

Upon expected commercial launch in the first half of 2012, the network will bring broadband optical data connectivity for the first time to the people of Mauritania, Gambia, Guinea, Sierra Leone, Liberia, Sao Tome and Principe, and Equatorial Guinea.

The other operators in the consortium are: Baharicom Development Company, Benin Telecoms, Cable Consortium of Liberia, Orange Cameroun, Companhia Santomense de Telecomunicações, Côte d’Ivoire Telecom, Expresso Telecom Group, Gambia Telecommunications Company, International Mauritania Telecom, Office Congolais des Postes et Télécommunication, Orange Guinea, Orange Mali, Orange Niger, PT Comunicações, the Republic of Equatorial Guinea, the Gabonese Republic, Sierra Leone Cable, Société des Télécommunications de Guinée and Sonatel.

ACE’s costal route will link South Africa to France via Namibia, Angola, Democratic Republic of Congo, Gabon, Equatorial Guinea, Sao Tome and Principe, Cameroon, Nigeria, Benin, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Guinea, The Gambia, Senegal, Mauritania, Tenerife (Spain) and Portugal, and will have 21 landing points along the route. 

Libya’s Lap Green Networks takes control of Zamtel for US$257 million

Zambia’s government has sold a 75 per cent stake in Zambia Telecommunications (Zamtel) to Libya’s Lap Green Networks for US$257 million, and may offer the remaining share to the public in the near future. Lap Green Networks competed with Angola’s Unitel, Russia’s Altimo and India’s BSNL in the bidding for the fixed-line incumbent, which also owns mobile operator Cell-Z and Internet service provider Zamtel Online.

"The government of Zambia has today paved the way for completing the most significant privatisation in the history of Zambia," minister of finance and national planning Situmbeko Musokotwane stated.

According to the deal signed June 7, the Libyan company will invest a further US$75 million in taking over government guarantees and to settle redundancy packages for more than 2,000 Zamtel employees, as well as US$62 million in network expansion, making a total commitment of US$394 million.

Zain currently dominates the Zambian mobile market with an approximately 70 per cent market share, followed by MTN with 20 per cent and Zamtel with 10 per cent.

Lap Green Network’s investments include Uganda Telecom, Sonitel Niger, Sahel Com Niger and Rwandatel, as well as Green Network operations in Cote D’Ivoire, Sierra Leone, Togo and Sudan.

Qadri takes over from Hinedi at Wi-tribe

Sohail Qadri has been appointed group CEO of Wi-tribe, replacing Sami Hinedi, and commencing duties June 1. Hinedi was in the position for three years.Sohail Qadri, wi-tribe Group CEO -JPG

Prior to this appointment, Qadri advised the boards of a number of technology, communications and venture capital and private equity firms on value creation, corporate structuring, market, product and corporate development. In his most recent corporate role, he served as the group strategy director at Telefonica with responsibility for corporate strategy, business development and innovation. Qadri also sat on Telefonica’s boards in the Czech Republic and the shareholder telco board in Italy.
Wi-tribe, an operator owned by the Qtel Group and utilising WiMAX technology, currently has a presence in Bahrain, Jordan, Pakistan and Philippines.