In a development that echoes the 2005 ousting of Turkcell as winner of Iran’s second mobile licence in favour of second-placed bidder MTN of South Africa, a consortium led by Zain, which was runner-up for the Persian country’s third mobile concession, is reported to have been handed Iran’s third mobile licence, following Etisalat’s alleged failure to comply with obligations.

Etisalat’s planned entry into Iran lies in ruins, should reports regarding its ousting from the third licence award prove to be true  

Mohammad Reza Farnaqi, a spokesman for Iran’s Communications Regulatory Authority is quoted as saying the consortium led by Etisalat had had its participation in the process cancelled, and that second-placed bidder Zain was now in a position to negotiate in order to be awarded the licence.

“With the elimination of Etisalat’s … consortium from the third operator project, the Zain Iran consortium, which was runner-up in the bidding, takes over the project,” Farnaqi, was quoted as telling media in Iran.

In January, Etisalat confirmed that together with Iran’s Tamin Telecom it had become the successful bidder for the country’s third mobile licence, at an upfront licence fee of around US$400 million. At the time, it had been suggested that Etisalat agreed to pay an amount of no less than 80 per cent of US$5.6 billion to the Iranian government during the course of its 15-year licence, which amounts to US$4.48 billion.

It was understood that in comparison, second-placed bidder Zain pledged to pay up to 80 per cent of US$3.8 billion (US$3.04 billion) over the life of the licence. Thus Etisalat’s pledge amounted to an annual payment of US$299 million in revenue share to the government, while Zain’s bid would have resulted in an annual payment of US$203 million a year for every year of the licence’s validity. At this time, it remains unclear whether Zain will have to raise its revenue share offer in order to secure the licence.

“There is nothing to confirm at the moment,” commented a source close to Zain. “I believe Zain is only likely to make an official comment later in the week, as negotiations are still ongoing.”

Failure to win in Iran will be a significant blow to Etisalat, which has aspirations of becoming one of the top 10 operators in the world by 2010.

Majan Telecom today announced the launch of its mobile reseller operation branded Renna, eight days after rival Friendi Mobile launched services on April 28.

Nielsen says the company is looking to offer transparent services and rates

Renna’s packages comprise two price plans with no monthly or hidden fees:

Renna 6-6 is a classic peak/off-peak price plan that provides customers with a tariff of 38 Bz (US$0.10) from 6pm

Renna 24/7 is a “flat rate” price plan that offers the same price day and night, and is designed to suit customers who make most calls during the day

Renna has also focused on those who make frequent international calls by offering the choice of calling three international telephone numbers of choice at a low rate as part of the price plans.

“To us, simplicity and transparency are instrumental. Mobile prices are often complicated or contain ‘fine print’ that make for unpleasant surprises unavoidable. We want to make it easy for our customers to understand the specific prices in the plans they have selected, and to be comfortable that they get what they pay for,” commented Niklas Nielsen, CEO of Renna.

Renna has also introduced a range of added services that include Call Me Back, Credit Warning, Credit Transfer, and Credit In Advance. With ‘Credit in Advance’, Renna customers who run out of credit can receive a small amount of credit in advance from Renna in order to make important calls and can simply pay the balance the next time they recharge.

Starting today, Renna SIM cards are available at over 250 outlets across Oman. SIM cards can be bought for RO 2 with RO 2 credit included. In addition, customers receive 20 free SMS. Recharge cards can be bought at thousands of points of sale, and Renna has also opened two of its own fully branded shops located at its head quarters in Al Athaiba and in the Dhofar building in Ruwi High Street.

Friendi Mobile launched with the release of starter packs also costing RO 2, which included the SIM along with an introductory promotion of 100 free minutes and 100 free SMS for those who were among the first to purchase a starter pack.

Friendi Mobile’s call rate for ‘on-network’ Friendi Mobile calls is a flat rate of 39 Bz per minute anytime, with no peak or off-peak timing, while Friendi Mobile users can call other local networks for 39 Bz per minute off- peak.

Zain Group recorded consolidated revenues of KWD 567.2 million (US$1.96 billion) in Q109, an increase of 25 per cent year-on-year, with the operator’s consolidated EBIDTA increasing by 40 per cent for the same period to reach KWD 245.4 million. Net profit for the three months to the end of March amounted to KWD 75.7, an increase of three per cent year-on-year. 

Al Barrak says Zain has performed well despite the increased cost of financing and volatility in currency rates

Customer growth across the Middle East and Africa amounted to 41 per cent with the Zain Group serving 64.7 million managed active customers as of March 31, 2009.

“Despite the challenges imposed by the global economic crisis and the competitive markets in which we operate, these impressive first quarter results are testament to the sound management practices of the group and a reflection of our unwavering commitment to reach our 2011 target of being a top-ten global mobile operator,” commented Saad Al Barrak, Zain Group CEO.

Al Barrak confirmed that Zain is working on several fronts to overcome the changes in global markets such as the increasing cost of financing and the sharp volatility of currency rates, pointing out that Zain was able to achieve realistic results despite the fact that volatility of currency rates cost the company KWD 18.4 million.

At a strategic meeting with senior Zain executives from, Zain Group CEO Saad Al Barrak this week announced a new programme to propel the company towards its 2011 target of being a top ten global mobile telecommunications operator. ‘Drive2011’ will focus on customer-facing services and commercial activities while centralising or outsourcing some back office/non-core functions to strategic partners.

The programme will look maximise economies of scale and realise significant efficiencies, allowing Zain to provide communication services such as voice, SMS and data at an optimum cost level. Drive2011 is expected to improve Zain’s operating margin by 5 per cent within 12 months.

The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain reducing its current 15,500 global workforce by 2,000 – a 13 per cent reduction across the board. Zain’s operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone have already begun the process.

In a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US$6 billion EBITDA, Al Barrak also announced several senior management changes at both group and country operation level.

Omani mobile reseller Friendi Mobile today announced that its services would go live tomorrow, Tuesday April 28, marking the much anticipated official launch of the first mobile reseller/MVNO in the MENA region. 

The launch will see the release of Friendi Mobile starter packs across hundreds of shops in Oman, at a cost of RO 2 (US$5.20), which includes the SIM along with an introductory promotion of 100 free minutes and 100 free SMS for those who are among the first to purchase a starter pack.

Friendi Mobile offers three different recharge card values, with the users being able to choose from amounts of 500 Bz, RO 1.5 and RO 4. In addition, the reseller permits users to choose recharge amounts as low as 10 Bz, which is a first in the Omani market.

“A Friendi Mobile SIM will not only offer a competitive rate for local calls as well as exciting value added services, but our international call rates are the lowest mobile rates in the market, with for example calls to the UK for as low as 179 Bz and India 159 Bz, commented Antti Arponen, CEO of Friendi Oman. “We have been looking forward to launching our product in Oman. In a nutshell, Friendi Mobile provides great prices, a high quality customer experience plus exciting and relevant services, setting us apart from the competition.”

The call rate for ‘on-network’ Friendi Mobile calls is a flat rate of 39 Bz per minute anytime, with no peak or off-peak timing, while Friendi Mobile users can call other local networks for 39 Bz per minute off- peak.

Friendi Mobile starter packs are now available from Lulu, Safeer, Zahra phones, KM Trading, Zahrath Al Hanna and hundreds of other outlets throughout Oman. The launch will also give those who pre-booked their numbers prior to the Friendi Mobile launch the chance to be allocated their chosen numbers.

Friendi Group CEO, Mikkel Vinter told Comm. recently that the reseller had registered a significant five digit number of pre-booked subscribers during the campaign.

Oman’s second mobile reseller, Renna, expects to launch commercially in the coming weeks.