Telecoms & ITC

Saudi Arabia: Heated competition

Telecommunications is arguably the most exciting sector in Saudi Arabia, especially when it comes to mobile telephony. Once the sole domain of incumbent Saudi Telecom Company (STC), the mobile segment has become a dynamic, fast-growing and fiercely competitive one, with three operators fighting an aggressive battle for subscribers, revenues and profits. According to the recently released “GCC ICT Infrastructure Report” from Kuwait Financial Centre (Markaz), the mobile subscriber base in the Kingdom has expanded 596 per cent from 5 million in 2002 to 34.8 million in the first nine months of 2009, representing a penetration rate of 134 per cent. Driving the growth was a combination of large-scale infrastructure investments and the rapid entry of new players, leading to new offerings and an improvement in quality and customer service. The report predicts this trend will continue as Saudi Arabia is expected to account for over 50 per cent of ICT spending in the GCC over the next three years. Of the nearly US$90 billion expected to be spent on ICT infrastructure in the Kingdom by 2012, US$67 billion is projected to be spent on telecommunications. Since it launched its services in 2005, Etihad Etisalat (Mobily) has posted impressive numbers – both in subscribers and profits – and 2009 was no exception. The company posted the strongest growth numbers among mobile service providers for 2009. Mobily’s services revenues rose 21 per cent to reach SR13.06 billion (US$3.48bn) versus SR10.79 billion (US$2.88bn) the previous year. Net income rose 44 per cent to SR3.01 billion (US$804m) from SR2.09 billion (US$558m) in 2008. (Source: OBG)

Etisalat gets its claws into Korek

UAE-based telco Emirates Telecommunications Corporation (Etisalat) is close to buying a majority stake in Iraqi operator Korek Telecom as it continues to look for expansion opportunities abroad, news agency Reuters reports, citing Etisalat’s chairman Mohammad Omran. “Etisalat is almost near to finalizing a deal with Korek,” Omran revealed at a press conference, adding that the telco was in talks to buy a majority stake in the northern Iraq-based firm. Etisalat earlier in February revealed it was looking to expand into six markets in the Middle East and North Africa, with Iraq, Libya, Lebanon, Oman, Syria and Morocco revealed as targets due to their low penetration levels.

Samsung eyes 40pct market share in Qatar

Samsung Electronics, a leading name in consumer electronics and information technology, is planning to increase its market share in Qatar from 22 per cent to 40 per cent, according to a senior company official. “Samsung has a 40 per cent market share in the United Arab Emirates and we aim to increase our market share in Qatar to the same level. We are confident to achieve that in near future,” Fazal Ahmad, project manger of digital printing division, Samsung Gulf, said. On the impact of economic meltdown on Samsung sales in the region, Ahmad said, “We have not seen any decline in sales. On the contrary, we have achieved a sales growth of 40 per cent in 2009.” The Samsung official said the company had a very good range of products and the company had the distinction of manufacturing all the components for its product.

Microsoft and Qtel sign strategic alliance

Microsoft Corp. and Qatar Telecom (Qtel) announced the signing of a broad strategic alliance to bring together integrated cloud-based services, software applications, mobile services and devices over Qtel’s converged network. The alliance aims to expand Qtel’s service portfolio, helping redefine the digital work style and lifestyle of their subscribers. The announcement was made at Mobile World Congress 2010. The alliance is designed to enable both companies to bring together their respective assets and collective strengths to offer a range of products and services that help drive productivity while enabling customers to be more agile in their everyday technology needs. It will also look to deliver a number of new digital entertainment experiences for consumers to enjoy in the home and on the go. The companies plan for the first products to be introduced in the market by mid-2010.

South Korea to help Kuwait’s IT projects, e-government

The Kuwait - South Korea Joint Information Technology (IT) Cooperative Committee held its second meeting in Seoul to implement a bilateral MoU on IT signed in March 2007, the Kuwaiti Embassy in Seoul in February. During a two-day meeting concluded in the last week of February, both sides discussed ways to enhance cooperation between the CAIT and the South Korean ministry under the 2007 IT agreement, highlighting South Korea's advice provided to the CAIT that will help it follow-up and improve the performance of the Kuwait Information Network and its development, as well as to review and evaluate the requirements of the second phase of the Kuwait Government Online (KGO) Portal for gaining access to the integration of e-government services. The talks also covered the implementation of some vital projects in Kuwait, such as the Kuwait Center for emergency computer and security management system in the event of disasters.

BNP Paribas says mobile banking will take off in Egypt

Mobile banking will take off quickly in Egypt by bringing services closer to those who don’t normally have access to banks, Philippe Joannier, head of territory and managing director of BNP Paribas Egypt, said. The bank expects approval of a mobile banking license applied in partnership with Mobinil by March 2010. BNP’s M-Wallet, Joannier said, will make banking services such as money transfers and bill payments available in rural areas via mobile phones. “Not everyone in Egypt has a bank account, but everyone has a mobile phone,” he said. “In Egypt, if you have a village with 1,000 people, you won’t find five bank branches there, unlike in other parts of the world,” he said, adding that mobile banking will help fill this gap. BNP Paribas recently launched mobile banking operations in the Ivory Coast that allow customers to conduct transfers and take out loans, though the latter will not be available in Egypt right away.

Bharti eyes Africa in US$11 billion bid for Zain assets

Bharti Airtel is in exclusive talks to buy most of Kuwaiti telecom group Zain's African business, the Indian firm's third attempt at gaining a foothold in a continent that offers a last opportunity for major subscriber growth. Under the exclusivity period the companies have until March 25 to seal the US$10.7 billion deal -- the second largest in the industry this year after Mexican tycoon Carlos Slim's move to consolidate his telecoms empire. Bharti, controlled by billionaire Chairman Sunil Mittal and Zain said the deal was still subject to due diligence and regulatory approvals. But Mohamed Al Kharafi, chairman of Kuwait's Kharafi group, which owns 11.47 per cent of Zain through one of its units, told Indian television he was confident a deal would go through and that an all-cash transaction was planned.