South African mobile telecoms provider MTN Group today reported interim results for the six months to end-June, recording a 53 per cent growth in subscribers year-on-year to 74.1 million, and revenues of R46.1 billion (US$5.99 billion), up 35 per cent year-on-year.

MTN is Africa’s pre-eminent mobile telecoms provider, but has failed to ratify deals with Indian investors in recent months.

EBITDA for the six months to end-June amounted to R19.6 billion, up 29 per cent year-on-year, with the group taxation charge increasing by R2.4 billion compared to the six months ended June 2007. MTN explained this relates mainly to the ending of pioneer status tax holiday in Nigeria in March 2007 resulting in a tax charge of R2.9 billion for the period under review as compared to R1.0 billion for the period ended June 2007.

MTN’s network spans 21 markets across Africa, the Middle East and the Mediterranean, and performance in its three largest markets was robust The number of MTN South Africa subscribers increased by five per cent to 15.6 million in June 2008 from 14.8 million in December 2007. This was mainly due to strong growth in prepaid subscribers, which grew by six per cent to 13 million and to a lesser extent the four per cent growth in postpaid subscribers to 2.6 million.

Average revenue per user (ARPU) of the prepaid segment remained stable at R92 while postpaid ARPU increased by R9 to R405. The prepaid ARPU performance was positively influenced by the continued success of the low denomination vouchers. Blended ARPU, as a consequence of the movement in postpaid ARPU and increased contribution of prepaid subscribers, showed a decline by R4 to R145 from December 2007.

MTN reported that during the six months additional nodes were introduced to increase capacity on the voice and data core networks of 25 per cent and 30 per cent respectively. SMS capacity was also increased by over 40 per cent.

MTN’s subscriber base in Nigeria increased 12 per cent to 18.6 million subscribers from December 2007. ARPU declined slightly to US$16 from US$17 reported at the end of last year. The operator believes the trend is in line with the increasing competitive environment and the deeper mobile penetration into the market, which is now at 31 per cent. Market share marginally declined to 43 per cent from 44 per cent in December 2007.

Aggressive network roll out continued during the first half of the year and 758 new BTS sites were integrated into the network, with MTN reporting that 494 3G sites are now live. Over1,200 kms of new microwave backbone routes are already in progress and shall be completed by the end of 2008.

In Iran, MTN’s subscriber base grew 93 per cent from December 2007 to 11.6 million users. The aggressive subscriber acquisition rate can mainly be attributed to the ‘buy one get one free’ campaigns, competitive SIM pricing, which lowered upfront cost of ownership, and attractive basic and promotional tariff plans. Market share increased from 23 per cent in December 2007 to 32 per cent at the end of June 2008, while mobile penetration moved up from 37 per cent to 50 per cent over the same period.

Iran’s ARPU declined marginally from US$10 in December 2007 to US$9 for this half-year period as the operation continued to attract low income subscribers, MTN reported.

During the half-year period, 696 new BTS sites were rolled out bringing the total live sites to 2,649. At the end of June 2008, 454 cities had been covered by the network, of which 220 were switched on this year, and a total of 4,027 kms of road coverage has been put on the ground (2,918 kms at December 2007). Population coverage has increased from 50 per cent in December 2007 to 57 per cent in June 2008.

MTN Iran now has seven established dealers of its products with 6,000 registered dealer outlets and 40,000 points of sale countrywide.

Sources close to Hits Telecom Uganda have told Comm. that the licensee would launch service in a matter of weeks, in line with licensing conditions, and thereby circumvent threats from the regulator that the concession may be withdrawn.

Edwin Rowell (left), CEO of Hits Telecom Uganda, receiving the universal licence in February 2007

  At the end of July, Uganda’s telecoms regulator, the Uganda Communications Commission (UCC), warned that Hits Telecom Uganda risked losing its operating licence if it did not commercially launch its network by September. The licensee was granted a mobile concession in March 2007 and was given 18 months from that date to start offering services.

Hits Telecom Uganda is reported to have built part of its network, which is supplied by Alcatel-Lucent, and carried out test calls. However planned launch dates have so far been missed.

Hits Telecom Uganda – not to be confused with Hits Africa – is currently backed by Middle East and African Investment Company (MEAIC), which is a private equity company registered in the UAE, and owned by a number of high profile individuals and institutions of significant means, predominantly from within the Gulf region.

The universal service licence Hits Telecom Uganda possesses allows it to operate a range of access technologies including CDMA, GSM, WCDMA and WiMAX, and also permits the licensee to deploy an international gateway.

The source claimed that Hits Telecom Uganda would soft launch services in the coming weeks with the current shareholder structure, though after the launch the operator is likely to be subject to a significant shift in shareholding, with a European telecoms operator becoming the majority owner.

Hits Telecom Uganda is required to launch services with the same shareholders that were granted in the licence agreement, and it is only after coming to market that it is permissible for changes in shareholding to be made.

Hits Telecom Uganda is said to also be in possession of other operating licences in Africa, which following the change in shareholding, the operator would like to pursue and bring to market.

Zain today launched commercial services in Saudi Arabia, joining the’ One Network’, Zain’s borderless mobile service offering over 45 million Zain customers in 16 countries favourable rates, free of roaming charges for cross-border communications.

On launch, the operation will have 160 official Zain outlets and over 3,000 authorised distribution points of sales

Zain’s planned coverage area extends to 95 per cent of Saudi Arabia’s population, though the operators own mobile network will initially cover 53 per cent of the population in 36 major cities and 14 highways spanning over 4,000 kilometres. The remaining coverage area will be attained initially through a countrywide roaming service.

Zain will introduce high-speed 3.5G broadband technology to approximately half of the Saudi population offering the latest 3.5G services that include television, video-calling, rich multimedia content and fast Internet access. Zain’s network will be further expanded in stages to eventually cover the entire kingdom.

“We are delighted to have launched services in the economic powerhouse of Saudi Arabia and we intend to fulfil our promise to offer the community world-class telecoms services,” commented Zain Group CEO Saad Al Barrak.

“From day one onwards, our focus is to provide the Saudi community the best services and value for money that mobile technology has to offer,” said Marwan Alahmadi, CEO of Zain Saudi Arabia.

Zain Saudi Arabia has committed investments of over US$1.5 billion in the development of the network. From July 26, Zain offered people the opportunity to reserve a number, with tens of thousands registering their request. On launch date, the operation will have 160 official Zain outlets, over 3,000 authorised distribution points of sales and estimates that over 40,000 independent businesses will act as resellers of recharge cards. The operation currently has a 2,100 strong workforce.

Zain Saudi Arabia is a publicly listed company on the Saudi Stock Exchange ‘Tadawul’, first trading on March 22, 2008.

Kuwait’s third mobile network licensee, Kuwait Telecommunications Co. is reported to be seeking to raise as much as KWD25 million (US$93 million) in an initial public offering on the Kuwait Stock Exchange, commencing August 24. The company, in which Saudi Telecom Company (STC) will hold a 26 per cent stake, is selling 50 per cent of its capital in the IPO, which closes September 18. Only Kuwaiti nationals will be permitted to participate in the IPO.

50 per cent of the shares in the new operator will be offered to the Kuwaiti public between August 24 and September 18

Fuad Al-Hajeri, a member of the Kuwait Telecommunications Co’s founding committee is reported as saying he expects up to 700,000 Kuwaitis to buy shares in the company. ”We’re selling 250 million shares at 100 fils each, with 5 fils for service fees.”

STC won its stake in the licensee in November 2007, and Kuwait’s cabinet ratified the award in June this year. The new entrant is expected to launch operations before year-end.

The IPO is likely to be an early litmus test for the perceived viability of the new entrant, which faces an uphill struggle to carve out a business in a mobile market that comprises two accomplished performers – Zain and Wataniya. Numerous market commentators have questioned the prospects for a third entrant in a market with a population of fewer than 3.5 million.

Mobile satellite services company Inmarsat yesterday confirmed the successful launch and acquisition of the third Inmarsat-4 satellite.

The Proton Breeze M is one of the few launch vehicles capable of lifting the I-4 satellite – the size of a London double-decker bus and weighing six tonnes – into geostationary transfer orbit.

The satellite was launched on a Proton Breeze M rocket from the Baikonur Cosmodrome in Kazakhstan on August 18.

The satellite is the third in the I-4 constellation, concluding a decade of development and a US$1.5 billion investment. The current constellation of two Inmarsat-4 satellites delivers mobile broadband services to 85 per cent of the world’s landmass, covering 98 per cent of the world’s population. The third I-4 will complete the global coverage for Inmarsat’s broadband services.

“The Inmarsat-4s are the world’s most sophisticated commercial network for mobile voice and data services, and the successful launch of the third I-4 allows us to complete the global coverage for our broadband services,” stated Andrew Sukawaty, CEO and chairman of Inmarsat. “Once the third I-4 is operational, Inmarsat will have the only fully-funded next-generation network for mobile satellite services.”