Zain is in negotiations to seek control of Palestine’s sole operator PalTel, with PalTel’s CEO Abdul Malik Jaber to depart the company as part of the new ownership structure, according to reports.

Photos on PalTel’s website show some of the damage to telecoms infrastructure in Gaza, which occurred during last month’s attacks

Zain said in a statement on the Kuwait stock exchange that it was “engaged in negotiations to enter a strategic partnership in PalTel”, while the Palestine Securities Exchange stated it had suspended trading of PalTel at the operator’s request, until a deal was concluded.

PalTel has provided fixed, data and mobile services in the West Bank and Gaza Strip since January 1997. However, infrastructure in Gaza has been so severely damaged since the beginning of the year following Israeli attacks, that the company is in dire need of investment and rebuilding of infrastructure.

Zain currently operates in 22 countries across the Middle East and Africa, and recently raised US$4.49 billion for expansion activities. A finalised deal with PalTel would likely see the Palestinian operator rebranded as Zain across the Palestinian territories.

A second mobile operator, Wataniya Palestine, is set to launch services this year after repeated setbacks since March 2007, with a process underway to receive the staged release of radio spectrum. The company is owned by Qatar’s Qtel and the Palestinian Investment Fund.

The main shareholders of PALTEL include Palestine Development and Investment Company (PADICO) with 28.9 per cent, Arab Bank with 7.78 per cent, Palestine Commercial Services Company with 7.1 per cent, and Cairo Amman Bank with six per cent. Thirty per cent is listed on the Palestine Securities Exchange and Abu Dhabi Securities Market. Other companies and individuals make up the remaining shareholders.

Pan-regional mobile virtual network aspirant Friendi Mobile has appointed Mounir Qalam as senior vice president for business development with responsibility for the company’s activities in Africa and Mediterranean region. Qalam will be based out of Casablanca, where a representative office will officially open in February.

Mounir Qalam will spearhead Friendi Mobile’s efforts in Africa, and he will be based in Casablanca

Prior to joining Friendi Mobile, Qalam was executive VP at Wana Corporate in Morocco, heading up Wana Entreprises, the B2B business unit of Wana Corporate. He was also CEO of Wana Oteo. Wana is a new entrant alternative operator in Morocco seeking to offer residential and corporate customers a full range of fixed and mobile services.

Founded in early 2006, Friendi’s original coverage spanned 14 markets across the Middle East and North Africa, though CEO Mikkel Vinter says opportunities arising in sub-Saharan Africa as well as in South Asia have prompted the company to widen its area of interest.

“Today we have business development projects ongoing in more that 20 countries, and as we are working with local partners and mobile operators from sub-Saharan Africa and South Asia more and more, we decided to add some dedicated resources to look after these regions,” Vinter said. “We have now opened an office for our African activities and it is based in Casablanca.”

India’s Tata Communications has increased its stake in South Africa’s second fixed-line network operator (SNO) Neotel to 56 per cent after acquiring Eskom and Transnet’s 30 per cent stake.

Neotel has an agreement with mobile operator MTN to jointly build a 5,000 km fibre-optic network across South Africa

“This reaffirms Tata Communications commitment to its expansion and investment plans in the emerging regions of Asia, Africa, and the Middle East,” commented N Srinath, managing director and chief executive of Tata Communications. “We will support Neotel’s efforts to provide global quality telecoms services in South Africa.”

Neotel is a converged communications network operator, providing a range of value-added voice and data services for businesses and wholesale network operators. Neotel has an agreement with South African mobile phone operator MTN to jointly build a 5,000 km fibre-optic network to connect major cities across the country.

Last year the Tata group rebranded its communications business as part of a global expansion strategy, combining VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit, and Cipris brands worldwide into a single entity, Tata Communications.

Etihad Atheeb Telecommunications Co (Atheeb), one of three new companies to have acquired fixed-line licences in Saudi Arabia last year, intends to raise SR300 million (US$80 million) through an initial public offering scheduled to commence tomorrow.

Atheeb will compete with incumbent STC and newcomers Optical Communications and Al-Mutakamilah to provide fixed-line and Internet services, with penetration rates of 18.75 and 5.4 per cent respectively

Shareholders Batelco and private Saudi investors will offer 30 million shares, representing 30 per cent of Atheeb’s capital for SR10 each, until February 2.

Atheeb’s IPO will be Saudi Arabia’s first since August 2008, following the country’s Capital Markets Authority reportedly placed IPOs on hold until investor confidence improves. The local bourse has lost 45 per cent of its value during the past four months.

Following the IPO Batelco will retain a 15 per cent stake in Atheeb, with the remaining shareholding divided amongst Atheeb Group, Nahla Company and GOSI (General Organisation of Social Insurance).

When Atheeb launching commercial services later this year it will compete with incumbent STC and the two other licencees – Optical Communications spearheaded by the US’s Verizon, and Al-Mutakamilah Company led by Hong Kong’s PCCW.

STC has approximately 4.5 million fixed-line subscribers and 1.3 million Internet users, representing penetration rates of 18.75 per cent and 5.4 per cent respectively.

Bahrain’s Telecommunications Regulatory Authority (TRA) yesterday confirmed STC the winner of the country’s third mobile licence, with the Saudi operator having bid BD86.687 million (US$230 million) for the concession.

In addition to the US$230 million bid for the third mobile licence, STC has committed US$300 million to establish a venture capital fund to foster ICT development in Bahrain

The TRA’s general director Alan Horne said the regulator would officially award the licence to STC once the latter had completed registration of the company with the Ministry of Industry and Commerce, and after conclusion of post-evaluation obligations.

As part of STC’s bid, the operator promised to construct a robust high-capacity mobile network focused on quality and speed, as well as committing one per cent of its revenue for corporate social responsibility to support e-health, e-learning and sports facilities within in the kingdom. In addition, STC will establish a US$300 million venture capital fund in Bahrain to foster the development of information and communication technologies.

The TRA’s chairman Mohammed Al-Amer stated the other three parties that had registered but did not submit bids when the auction closed on January 11, were Bahrain’s alternative providers Mena Telecom and 2Connect, and a consortium of France Telecom’s Orange and Jordan Telecom.