Zain Group reports flat Q2 results, with net income down 2%

Zain Group today reported that in Q214 to end-June the company generated consolidated revenues of KD316 million (US$1.12 billion) up two per cent year-on-year. EBITDA for the quarter amounted to US$474 million, down three per cent on Q213, resulting in an EBITDA margin for the period of 42.2 per cent. Net income for the quarter was US$209 million, down two per cent.

For the first six months of 2014, Zain Group generated consolidated revenues of US$2.23 billion, up three per cent year-on-year. The company’s consolidated EBITDA for the period reached US$943 million, reflecting an increase of one per cent. EBITDA margin stood at a 42.3 per cent at the end of the period, while net income increased by three per cent to US$407 million.

The operator added 2.1 million new active customers in the twelve months to end-June to serve 46.5 million customers, up five per cent year-on-year.

David Gaul appointed head of Central, East and West Africa for Nokia Networks

Nokia Networks today announced the appointment of David Gaul as head of Central, East and West Africa (CEWA) effective today. In his new role, Gaul is responsible for overall sales and operations of Nokia Networks across the CEWA region in the Middle East and Africa (MEA). Previously, he headed the delivery for the CEWA from 2012. He has held a number of senior management positions in European and African telecom companies, including Vodafone in the UK and Ghana.David Gaul Nokia Networks

Born in the UK, he holds an undergraduate degree in Engineering, and has an MSc in Design of Information Systems from Cranfield University, an MA in Defence Studies from Kings College London, and an MBA from the Open University.

Zimbabwe looks to raise US$173 million from 4G spectrum award

Zimbabwe’s government is looking to auction off 4G licences later this year, with the aim of raising at least US$173 million from the country’s three mobile networks.

The government has set the target to be raised as the cost of the digital migration programme, which will see the spectrum released by television broadcasters. That project is due to be completed by next June.

Network operators Econet Wireless, NetOne, and Telecel are already testing LTE-based services, and Econet ran a small test network for a UN conference held last year on the border with Zambia.

NetOne has also signed a network upgrade contract with Huawei, which also aims to build LTE cell towers.

China establishes joint infrastructure company for mobile operators

China’s three leading mobile operators are to jointly establish a new firm to construct, maintain, and operate their cellular infrastructure, as they face the massive rollout of 4G across the country.

In a filing, the three companies agreed to set up a new firm called China Communications Facilities Services Corporation with a share capital of RMB10 billion (US$1.6 billion).

China Mobile will hold 40 per cent of the venture while rivals China Unicom and China Telecom will each have 30 per cent stakes.

China Mobile said the joint venture will reduce duplication and unnecessary construction of cellular towers, so improving investment efficiency. The country’s largest operator said the move would also enable it to better utilise existing assets.

The Chinese operators announced their intention to set up the venture at the end of April.

Discussions are at a preliminary stage in terms of which assets will be included in the deal, which will handle construction, maintenance and operation of infrastructure.

The three operators do not explicitly mention 4G but all three face a massive project to rollout LTE services across the country.

ZTE expects H114 net profit surge on the back of 4G successes

China’s ZTE has raised its forecast for first half profit as the company says it has maintained strong momentum in its 4G infrastructure operations.

Net profit attributable to shareholders of the listed company will be between RMB 1 billion and RMB 1.15 billion (US$161 million and US$185 million) in the first six months, an increase of between 223 per cent and 271 per cent from a year earlier, according to the revised guidance published by ZTE.

This is compared with earlier guidance of between RMB 800 million to RMB 1 billion.

In the first six months, 4G infrastructure accounted for an increased proportion of revenue. The company retained its position as the leading vendor of 4G infrastructure to China Mobile, achieving increased market share in the tender this year.

Following the launch of new LTE multiband smartphones this year, the company forecasts that 4G devices will account for 40 per cent of total terminals shipments in 2014.

ZTE expects its business to benefit from the award of FDD-LTE licences in China, and the investment in 4G networks in markets such as Japan and India.