Telecoms & ITC

Gulf telcos expect higher competition

Higher competition and a further drop in average revenue per user (ARPUs) is expected as Gulf telecom players are on an expansion spree following steps taken by Saudi Arabia, Bahrain, Oman, and the UAE to allow additional service providers in the respective countries, according to Global Investment House report. The report said service providers should aim to increase their market shares by providing differentiated value added services and providing content-based services (like mobile video streaming) to enhance the ARPUs.The Gulf registered a decline of 6.9 per cent in fixed line subscribers from 5.8 million subscribers in 2006 to 5.4 million in 2007 on account of increasing shift of customer base to the more convenient mobile voice services. The report said increasing disposable income and convenience of use is encouraging the cellular penetration in the region.

Telecom Egypt says still eyeing regional deal

Telecom Egypt, the largest Arab fixed-line phone operator by subscribers, was still looking to buy a telecom firm in the region to reduce dependence on its home market, its chairman said. The company, which faces market saturation in Egypt where it has a monopoly, said in August it could spend at least $1 billion on an acquisition in the Middle East or North Africa. "We always have three preferences, the MENA (Middle East and North Africa) region, an existing operation rather than greenfield and an integrated fixed and mobile operation; this is the ideal target for us," Akil Beshir said.

Oman rolls out 3.5G network

Oman Mobile is preparing to roll out a 3.5G network across the Sultanate in a bid to outpace its competitor, Nawras. On January 21 the mobile operating branch of the national carrier announced it had launched the new network, though the operator will not embark on a nationwide rollout until after it proves satisfactory to a consumer test panel composed of Omani corporations.

Job cuts mount, Dubai port freezes growth

Major European employers including Philips and ING announced thousands of job cuts this month and Dubai container port operator DP World halted all development as the downturn hit. News that a giant US$68 billion takeover of US-based Wyeth by world number-one drug-maker Pfizer was close offered evidence that big corporate deals can still be done. And shares in British bank Barclays, hammered in mid-January, leapt after it said its projected 2008 pre-tax profit of more than £5.3 billion (US$7.3 billion) would include the impact of £8 billion in gross write-downs.

Telecom firm wins Gabon mobile licence

Bahrain-based Bintel announced that it has been awarded a 15-year mobile licence from Gabon's telecommunications regulatory authority Artel. The firm becomes the fourth entrant into the African country's competitive mobile telephony market, and is expected to roll out its services in Gabon in the third quarter of this year. With this award, Bintel estimates its initial investment this year in Gabon to be in excess of $50 million. Bintel is licensed to provide the latest voice and data services to customers in Gabon.