Friendi Group, a pan-regional mobile virtual network operator (MVNO) has announced an equity investment by Oman based Dolphin International LLC and global top-10 venture capital firm ePlanet Ventures.

Dolphin International LLC is a privately owned Omani company established in 1985 that holds a diverse portfolio of investments in banking, infrastructure, education, healthcare, bio-technology, advertising, real estate, construction, surgical products and energy.

ePlanet Ventures is a venture capital company with 10 offices across Asia, North America and Europe. It has funded over 90 innovative high-growth companies worldwide, including landmark investments such as Baidu, Skype and Focus Media. ePlanet has already participated in an earlier round of funding in Friendi Group.

“We have raised this additional double-digit US dollar millions equity to further improve our financial readiness for launching multiple MVNO operations in quick succession across the region, now that we have validated the MVNO model in the region with the launch of our operation in Oman”, said Mikkel Vinter, founder and CEO of Friendi Group.

A deal that would herald the launch of a mobile virtual network operator (MVNO) in Jordan is imminent, according to Jordan Telecom Group’s chief strategy officer Philippe Vogeleer. Speaking to Comm., Vogeleer said there is a particular MVNO that has been able to make a business case for itself, and that Jordan Telecom is in advanced discussions with the party.

“Some MVNOs have launched services in the region, and a great deal of experience has been learnt from it, allowing mobile operators like us to see concretely the benefits of tying up with an MVNO,” Vogeleer said. “We saw one MVNO entering an agreement that targeted Indians in Oman and the MVNO was successful because it had the correct distribution method, establishing a call centre that speaks Hindi and not English. Frankly we don’t have time to develop these things in-house and we believe there is potential for these niches,” he added.

Philippe Vogeleer says MVNOs in the region have grown in experience and stature

Friendi Group and i2 were licensed by Jordan’s TRC about two years ago to introduce reseller services in the country, but the two companies have been unable to secure a commercial agreement with any of Jordan’s three GSM operators. One significant sticking point to reaching such an agreement is the lack of protection offered to network operators should they open their networks up to an MVNO. As the TRC’s position stands at the moment, should a network operator agree to allow one MVNO to operate on its network, it is required to offer other prospective licensed reseller players the same terms, with the onus being placed on the operator to justify not signing up an additional MVNO player.

While Vogeleer is negotiating with the prospective MVNO under a non-disclosure agreement and is thus unable to reveal the party’s identity or the nature of their negotiations, a process of elimination points to Friendi Group, the MVNO that operates in Oman and which in July announced the launch of a programme called Reach Out, allowing customers in Oman and those out of the country to make calls between India and Oman at competitive call rates.

Avaya announced it was selected to acquire Nortel Enterprise Solutions for US$900 million in proceeds to Nortel and an additional pool of US$15 million reserved for an employee retention programme.

The announcement follows the completion of an auction, and the final transaction is subject to court and customary regulatory approvals in Canada and the US.

“Our successful bid brings us closer to adding Nortel and its complementary channel, portfolio, research and development, and global presence to Avaya,” said Kevin Kennedy, president and CEO, Avaya. “We believe the acquisition brings inherent value to both organisations’ customers, employees and partners, and we look forward to its successful conclusion.”

Leading investors in Zain Group have signed an agreement with a Malaysian-Indian consortium for the sale of a 46 per cent stake in the Kuwait mobile operator. The consortium consists of Malaysia’s Al-Bukhari Group and India’s Bharat Sanchar Nigam Ltd. (BSNL), India’s largest communications service provider, Mahanagar Telephone Nigam Ltd. and Vavasi Group.

Bader Al-Khorafi, a top executive of Kuwait’s Al-Khorafi Group, the largest private shareholder in Zain, told a press conference earlier in the month that the sale would be carried out within four months. He said the value of the sale, expected to be around US$14 billion, would be paid in one time in according with Kuwait Stock Exchange rules. Kuwait’s National Investments Co. is arranging the deal on behalf of the Kuwaiti investors, he said

The sale of the stock is set for a price of KWD 2 (US$ 7.10) per share, representing a premium of around 45 per cent.

The government owns the largest stake in Zain, amounting to 24.6 per cent. The 46 percent of shares would give buyers a controlling stake in Zain since 10 percent of the shares are held by the board of directors in the form of treasury shares, which do not enjoy voting rights.

Farid Arifuddin, managing director of Vavasi Telegence, which is part of India’s Vavasi Group, said the new shareholders did not plan to offload the African operations. “The consortium will not sell its African assets,” a Vavasi official said. “Our plan is to consolidate networks further and roll out larger networks and cover greater markets… It’s not to sell for sure,” he said at a news conference.

Zain Group shareholders accounting for 46 per cent of the mobile operator’s stock are reported to have reached a preliminary agreement in a deal rumoured to be worth about US$15 billion. CEO Saad Al Barrak said that the executive management of Zain was not driving the process forward; rather it was being led by shareholders including the family-owned conglomerate the Kharafi Group.

An Asian investor is said to be looking to pay as much as KWD 2 (US$7.10) per share, which would represent a 45 per cent premium to the share price at the end of play September 8.

Kharafi Group holds around 11 per cent of Zain, and is understood to be seeking cash to fund other areas of the business. Earlier reports linking the Zain stake sale to the Abu Dhabi Investment Authority (ADIA) have been denied.

This development follows a decision ratified earlier this month whereby Zain shareholders agreed to cancel articles that limited individual ownership to two percent of the company’s capital and restricted public shareholding companies to holding no more than five percent. This move paved the way for Zain shareholders to offer their stakes to an interested bidder/s.

Should Zain shareholders successfully sell their shares, it would be a situation akin to the 2007 sale of Wataniya Telecom to Qatar Telecom, when 24.9 per cent Wataniya Telecom shareholder KIPCO (Kuwait Projects Company Holding) formed a consortium of shareholders holding a total of 51 per cent of the operator’s capital and sold it to Qtel. Wataniya International CEO at the time, Ahmad Haleem, recalled how he was notified of the deal by KIPCO chairman Faisal Al-Ayyar after the negotiations had already gotten underway.