Kuwait Telecom News Kuwait’s Wataniya net profit declines by 22.5% (From WirelessFederation.com, March 4, 2010) - With a year-on-year loss of 22.5%, a net profit of KWD11 million (USD37.9 million) has been posted by Kuwait-based National Mobile Telecommunications Company (Wataniya), for the fourth quarter of 2009. However, its full year net profit was up to KWD108.3 million in 2009, from KWD82.4 million in 2008. No reasons have been revealed by the company behind its declining bottom line. Its parent company Qatar Telecom (QTel) is also expected to release its preliminary results for the full year 2009 soon, with a full disclosure scheduled for March 7. Wataniya’s operating market includes Algeria, Tunisia, Saudi Arabia and the Maldives. Kuwait's Zain launches mobile phone service in Saudi (August 25, 2008) KUWAIT CITY (AFP) – Kuwait's telecom giant Zain will launch its mobile phone service in Saudi Arabia on August 26, the group said Monday in a statement. Last year, a Zain-led consortium won the third mobile phone license in the oil-rich kingdom after making the highest bid of 6.1 billion dollars. At the start, Zain in Saudi Arabia will cover 95 percent of the population, using 3.5G broadband technology to half the population, the statement said. With the launch of service in Saudi Arabia, Zain now operates in 22 countries in Africa and the Middle East and connects customers in 16 of them to the "One-Network" service. The service allows clients to make calls across borders and be treated as local customers in terms of pricing. Zain plans to extend the service to other countries. Zain in Saudi Arabia plans to invest between six and eight billion dollars in the next five years. "We are delighted to launch services in the economic powerhouse of the kingdom of Saudi Arabia and we intend to fulfill our promise to offer the community world class telecom services," Zain CEO Saad al-Barrak said. Barrak said that Zain is working to expand its customer base to 150 million clients in 2011, from 45 million at present, and become one of the top 10 global operators. Founded in 1983, Zain is capitalized at 27 billion dollars. Wataniya Telecom launches Collect Call based on the Nobill(R) Platform from Symsoft (From BusinessWire, March 3, 2008) STOCKHOLM - The innovative and forward-thinking Wataniya Telecom is the first operator in Kuwait to launch the collect call service, which allows the costs of a mobile call to be taken over by the called party pending his consent. The service is easily accessed and works for both prepaid and postpaid subscriptions and on virtually any handset. Symsoft's Nobill Collect Call platform offers prepaid subscribers a peace of mind that they can reverse the charges even if the prepaid account is depleted. The service appeals to people with limited assets, for example children calling their parents. In other markets, the service has also proved very popular among business users who, instead of using their private mobile subscription, places collect calls that will be charged on the company phone bill. These capabilities will enable Wataniya to improve customer satisfaction and capture incremental revenues that may have been lost otherwise. "We are delighted to be able to introduce the Collect Call service for the first time in Kuwait and to offer our customers an easy and seamless way to communicate with their families and friends, even in the moments when they do not have enough funds to place a call. We found in Symsoft a reliable partner, that responded very well and in a cost-effective manner to our comprehensive technical requirements and to our aggressive time schedule," says Scott Gegenheimer, GM&CEO of Wataniya Telecom. "The co-operation with Wataniya is an important achievement and strengthens Symsoft's position in the Gulf and the Middle East region. In all markets where Collect Call has been introduced, the usage has increased much faster than anticipated, generating substantial added revenues for the operator. The excellent collaboration between our teams has paved the way for a great and long term success and helps Wataniya to tap into new revenues meanwhile enhancing the service offering to its customers," says Bogdan Sacuiu, General Manager, Symsoft Middle East and Africa. Behind Symsoft's success lies a strategy to build all service layer applications on a common, generic and IP-based platform, the Nobill Platform. The Nobill brand covers multiple solutions within charging and value added services that are optimal for future growth in the evolving next generation networks. Each Nobill product offers not only a point solution, but is also a building block that seamlessly integrates with other Nobill products. Symsoft's solutions help boost revenue and cut costs on an increasingly competitive mobile market. Wataniya Telecom teams up with Cisco (From ameinfo.com, October 29, 2007) - Wataniya Telecom is set to maximize business continuity and deliver downtime-free connectivity by deploying a new Wnet Corporate Offering. Designed and implemented over Cisco infrastructure, the Wnet Corporate Offering includes Primary and Backup wireless Wide Area Network (WAN) solutions, which will enable Kuwait's red carpet telecom company to deliver secure and uninterrupted data, voice, video and mobility services, anytime and anywhere. The solution is the most cost-effective corporate wireless broadband solution in Kuwait that allows offices to be connected any place, at anytime. . "Ensuring customer connectivity is at the core of our strategy and Wataniya is continuously seeking state-of-the-art solutions to fulfill customer needs' said Engineer Tareq Beidas, Data & Messaging Products Manager at Wataniya. 'We've been monitoring corporate demand for ongoing connectivity for crucial data traffic and the highest-availability access to business applications for remote sites and branch offices and have found that Cisco will be able to provide us with the reliable and scalable infrastructure that is rapidly deployable and will help ensure an effective alternative to wired connectivity." Implemented by Wataniya and its partners, the solution will increase network availability, deliver automatic failover for business continuity and offers rapid deployment at temporary offices or nomadic sites, including construction sites and temporary points of sale. The solution further improves operational efficiency, leveraging existing IT resources on a single device to manage and maintain Mr Beidas added: "The deployment of the wireless backup solution builds upon our commitment to provide our customers with faster connectivity speeds, mobility, reliability and secure business continuity. Our strategic collaboration with Cisco will enable us to boost our business to the next level'. Tarek Ghoul, General Manager for Cisco North Gulf, said: "Enterprises are always looking for ways to reduce costs, increase revenue, and enhance business continuity. Improved network speed, reliability, coverage, and advances in wireless modem and gateway technology, will encourage businesses in Kuwait to become more innovative, agile and dynamic. Ghoul added: "Wataniya has been heavily investing in providing the business sector in Kuwait with evolving connectivity solutions. Through offering an uninterrupted connection to its customers, Wataniya Telecom will be able to provide businesses with the latest releases of flexible connectivity solutions that would help them to develop their operations." Kuwait telecom giant MTC changes brand name to Zain (September 8, 2007) KUWAIT CITY (AFP) - Kuwait's telecom giant MTC Group on Saturday began operating under the new brand name Zain as part of its bid to climb into the top 10 of global telecom operators, officials said. "The move will bring all the company operations in 21 countries under one brand name. It is a part of our strategy to become one of the top 10 global companies," the CEO and general manager for Kuwait, Barrak al-Sabeeh, told a press conference. The company's operations in Kuwait, Jordan, Bahrain and Sudan will immediately come under the new name, while its operations in 14 African countries, Iraq and Lebanon will change later. MTC in Saudi Arabia, slated to launch in early 2008, will operate as Zain. The company has been awarded the third mobile licence in the oil-rich kingdom for 6.1 billion dollars. Sabeeh said that Zain headquarters will shortly be based in neighbouring Dubai or Bahrain or in the Dutch city of Amsterdam. He said the company will continue to expand globally by chasing every investment opportunity. Currently, Zain is bidding for licences in Qatar and Algeria. The company's customer base increased 40 percent to 32.15 million on June 30 compared to 22.9 million subscribers a year ago. The group, in which the Kuwaiti government has a 24.6-percent stake, saw its capitalisation double to 28 billion dollars, after making a number of multi-billion-dollar acquisitions in the past few years. It is one of two mobile operators in Kuwait, along with the National Telecommunications Co (Wataniya). A third company is currently being established with operations expected in the first quarter of 2008. Qtel buys 51% stake in Wataniya for $3.72b (March 3, 2007) Kuwait (Reuters) - Qatar Telecommunications (Qtel) has agreed to buy 51 per cent of Kuwait's National Mobile Telecommunications (Wataniya) for 1.075 billion dinars ($3.72 billion), the largest telecom acquisition in the Gulf region. "We have reached an agreement to sell 51 per cent of the capital of Wataniya ... to Qtel," Faisal Al Ayyar, chief executive of Kuwait Projects (Kipco), told a news conference in Kuwait yesterday. Kipco, which owned around 24 per cent of Wataniya, was appointed last week by the consortium of shareholders to lead negotiations with buyers. Qtel would pay shareholders 4.6 dinars per share, Al Ayyar said. The share closed at 3.1 dinars on Wednesday, the last trading day of the week. Qtel, which is bracing for the end of its monopoly in Qatar this year, was one of three Gulf operators named as potential bidders for the stake put up for sale by a group of Wataniya shareholders. Qtel has been less active on the acquisition trail than other rivals in the world's biggest oil-exporting region. The company operates a subsidiary in Oman and bought a 25 per cent stake in Asia Mobile Holdings, a unit of Singapore Technologies Telemedia, in January. It borrowed $2 billion in November mainly to finance acquisitions. Emirates Telecommunications (etisalat), the second largest Arab telecoms firm by market value, said on Tuesday it had dropped plans for a bid for Wataniya. The other potential buyer was Dubai-based Oger Telecom, owned by conglomerate Saudi Oger. It said on Wednesday it was not in talks on the stake but declined to say whether it would consider a bid. Kuwaiti telecom giant MTC posts record 2006 profits (February 19, 2007) KUWAIT CITY (AFP) - Kuwait's Mobile Telecommunications Co (MTC) announced record net profits of 305.3 million dinars (1.056 billion dollars) in 2006, a 67.9 percent year-on-year rise. MTC became the first Kuwaiti private company to post net income of over one billion dollars. It also more than doubled its revenues to 4.18 billion dollars from the two billion dollars it posted in 2005, the company said in a statement. The company's customer base increased from 14 million subscribers at the end of 2005 in 19 countries to 27 million at the end of last year in 20 countries, the statement said. "MTC is proud of achieving these excellent results and recording this profit which is unprecedented in the history of Kuwait's private sector," chairman Asaad al-Banwan said. "2006 represented an important turning point for MTC's financial and operational performance," he added. Banwan said the company is eying the third mobile operator license in neighboring Saudi Arabia, for which bids are expected to start by the end of this month The jump in MTC's profits and revenues came mainly after the group acquired Dutch firm CelTel, which operates in 13 African nations, at a cost of around 3.4 billion dollars about two years ago. CelTel later bought majority stakes in Madagascar's Madacom and Nigeria's Vmobile. MTC also completed the acquisition of Sudan's premier mobile company Mobitel in a deal worth 1.332 billion dollars. Last month, the company announced a new ambitious strategy that aims to triple its customer base to 70 million subscribers and increase capitalization to 30 billion dollars by 2011. Its capitalization reached 17 billion dollars at mid February, the company said. The group also expects its revenues to hit six billion dollars by 2011, its deputy chairman Saad Barrak said. Apart from Kuwait, MTC, in which the state owns a 24.6 percent stake, also operates in Jordan, Bahrain, Iraq, and Lebanon. MTC is one of two mobile operators in Kuwait, along with the National Telecommunications Co (Wataniya). Kuwait-based Celtel to acquire majority share in Nigerian telecom firm (April 18, 2006) LAGOS (AFP) - Kuwaiti MTC-owned Celtel International has entered into a deal to acquire a 65 percent stake, worth one billion dollars, of Vmobile, the Nigerian telecommunications firm said in a statement. "Vmobile announces that it has today (Sunday) entered into a conditional agreement with Celtel International whereby Celtel will acquire a 65 percent stake in the company for a total consideration of around one billion dollars (850 million euros)," the statement said. The remaining shareholders have an option to sell their shares to Celtel at a similar valuation at a later date, it said. Celtel, previously owned by a Dutch firm, operates in 14 African countries, including Sudan, Tanzania, Uganda, Zambia, Burkina Faso, the Democratic Republic of Congo, Kenya, Chad and Gabon. It was acquired in May 2005 by MTC of Kuwait, a leading operator in the Middle East, for 3.4 billion dollars. Vmobile began its operations in Nigeria on August 5, 2001, becoming the first GSM company to launch its services in the country. Kuwait go-ahead for third telecom firm (From Gulf Daily News, April 4, 2006) KUWAIT CITY - Kuwait's parliament yesterday approved setting up a third mobile telecom company, but the government said it would oppose the plan in the absence of a feasibility study. The vote came a day after the cabinet approved "in principle" the plan, but linked it to a study into the need for another operator in the small Gulf state of 2.7 million people which already has two telecom firms. The approved bill did not include the feasibility study. Before the vote, Deputy Prime Minister Mohammad Sharar told MPs that the government "does not accept the principle of setting up a company through a bill and we will refer this issue to the constitutional court". He said the bill was interference in government prerogatives. If the government opposed the bill, it will have to be approve again by a two-thirds vote to become law - an outcome MPs say they believe is achievable. MP Walid Al Jiri said a third telecom company was a necessity to open up the sector. He said the government should back the plan if it is serious in pushing reform. "A referral of the issue to the Constitutional Court will not stop this bill's passage ... If it (government) sends the bill back to parliament, the house will also play its role and vote on it and pass it with the special majority," Jiri added. State news agency KUNA said parliament's draft law asks the government to license a third mobile telecom firm with a capital of 100 million dinars ($342.5m). It also stipulates that the government bear the subscription as a grant from the emir. Newspapers have reported that 40 per cent of the new company's shares was to be held by a state pension body. Kuwait is served by Mobile Telecom (MTC) and smaller rival National Mobile Telecom Co, also known as Wataniya Telecom, which together have more than 2 million local customers and operations abroad. MTC Managing Director Saad A Barrak said last week he expected a third operator would incur losses, citing a study which put mobile phone penetration at about 105pc. Analyst Jasem Al-Sadoun of Al Shall Economic and Consulting said: "Of course it is going to be hard for the new company for the first two or three years but later on I think everything is going to be okay." "This competitive environment will increase quality and reduce prices. So it is going to be a success story." MPs say the competition between MTC and Wataniya, set up in the early 1980s and in 1999 respectively, has done little to improve the quality of services and that prices remain high. Kuwaiti MTC reports 55 percent rise in 2005 profits (February 21, 2006) KUWAIT CITY (AFP) - Kuwait's Mobile Telecommunications Co (MTC) announced record net profits of 185.9 million dinars (637 million dollars) in 2005, a massive 54.7 percent rise on the previous year. MTC also netted record revenues of about two billion dollars last year, an 80 percent increase over the 1.1 billion dollars of revenues in 2004, the company said. The company's customer base rose more than fourfold from 3.2 million users in five countries in 2004, to 14 million subscribers in 19 nations at the end of last year, it said Tuesday. "Last year was a key turning point that positively reflected on the financial performance of the group," MTC chairman Asaad al-Banwan said. During 2005, the group "achieved most of its goals on the way to become a global operator", he said. The sharp increase came mainly after MTC acquired Dutch firm CelTel which operates in 13 African nations, at a cost of around 3.4 billion dollars. CelTel later bought a majority stake in Madagascar's Madacom. MTC prematurely repaid a 2.4-billion-dollar bridge facility it received last year from regional banks through doubling its capital, raising 2.28 billion dollars, and also by acquiring a 750-million dollar Islamic loan from six regional Islamic banks. Earlier this month, MTC completed the acquisition of Sudan's premier mobile company Mobitel in a deal worth 1.332 billion dollars by purchasing the remaining 61 percent stake from the Sudanese government. Apart from Kuwait, MTC, in which the state owns a 24 percent stake, also operates in Jordan, Bahrain, Iraq, Jordan and Lebanon. The telecommunication company has a capitalization of 14 billion dollars and its shareholders equity rose from 1.3 billion dollars in 2004 to 4.1 billion dollars last year. MTC is one of two mobile operators in Kuwait, along with the National Telecommunications Co (Wataniya). MTC bids for Egypt's 3rd license (February 7, 2006) KUWAIT (Reuters) - Kuwait's Mobile Telecommunications Co. (MTC) confirmed on Sunday it was bidding for Egypt's third mobile phone license. "We look forward to having an opportunity to support Egypt's burgeoning telecommunications infrastructure and growing economy," Managing Director Saad al-Barrak said in a statement that noted MTC "is bidding for the third GSM license in Egypt." Egypt said in late January it would start a bidding process within two weeks for the third license, which will be for both second generation (2G) and 3G mobile services. The new network is expected to start operating by the end of 2006 or early 2007. Emirates Telecommunications Corp. (Etisalat) has confirmed it plans to bid for Egypt's third license, while Saudi Telecom has said it was studying that and Cairo's Raya Holding said it was part of a consortium including South Africa's MTN that had been formed to consider bidding. Vodafone Egypt and the Egyptian Company for Mobile Services (Mobinil) currently operate the only two mobile networks in Egypt, which has a population of more than 70 million. Both companies provide a 2G mobile service. MTC, which has about 15 million customers, said recently it was interested in Iran, India, Pakistan, Turkey as well as Egypt, which the company said it considered as a very important project. The fast-growing telecom market in Egypt is relatively young with a mobile penetration of 16 per cent, according to the statement from MTC, which operates in Kuwait, Iraq, Jordan, Lebanon, Bahrain and sub-Saharan Africa through subsidiary Celtel. "By combining both our experience in Africa with that of MTC's experience in the Middle East, we are confident that we can provide a competitive service for Egypt," Mohamed Ibrahim, chairman of Celtel International, said. MTC buys Sudan firm for $1.3bn (From Gulf Daily News, February 7, 2006) KUWAIT CITY - Mobile Tele-communications, Kuwait's largest mobile operator, has acquired Sudan's premier mobile company in a deal worth $1.33 billion, MTC said yesterday. MTC, which has held 39 per cent of Mobitel through its African subsidiary CelTel, acquired the remaining stake from the Sudanese government in a deal concluded on Sunday to become the sole owner of the company, the statement said. "We are very excited about this opportunity and we believe that this transition will add great value to the MTC Group and will offer attractive returns to MTC shareholders," chairman Asaad Al Banwan said. Mobitel increased its customer base by 70pc last year to 1.9 million users, Banwan said. MTC said it plans to invest around $500m through 2007 to develop Mobitel and further expand its customer base. Last year, MTC acquired Dutch firm CelTel which operates in 13 African nations at a cost of around $3.4bn. In December, CelTel bought a majority stake in Madagascar's Madacom. Wataniya boosts broadband connectivity across Kuwait (From menareport.com, December 19, 2005) - Wataniya Telecom, the red carpet company, has announced the availability of wireless connectivity all over Kuwait, accessed using the W-Net card. The W-Net Card offers customers the ability to have wireless internet access via their laptop anywhere in Kuwait, by means of the EDGE network that was deployed earlier this year. “Wataniya Telecom has upgraded its network significantly in the course of 2005, building one of the world’s most advanced and capable mobile networks and the most technologically advanced mobile networks in the Middle East region. We have launched a series of new products and services this year, consistent with our core strategy to offer customers the services that matter to them. One of these products is the W-Net card which will undoubtedly serve as a facilitator for enterprise mobility in Kuwait,” said Harri Koponen, CEO & General Manager, Wataniya Telecom. The W-Net wireless data card comes in the form of a PC Card that can be easily installed on any laptop and is automatically activated at the point of purchase. Users can enjoy wireless data speeds up to 200 Kbps and 99.9% system availability throughout the country. Initially, a one-time 120 KD fee is applicable along with 5 KD activation fee. Customers can either pay a monthly subscription fee of 10KD for unlimited use or access wireless Internet on a pay-as-you-go basis, costing 1 fils per kilobyte. The W-Net card has been available to customers since July this year, through Wataniya’s branches across Kuwait. Earlier this month, at InfoBiz 2005, Wataniya also offered its customers the opportunity to acquire the W-Net card at a special rate, which received a very strong response from business customers. “Our customers, especially businesses, can now reap the benefits of the fastest wireless data speeds available nation-wide. It not only creates mobility for business people on the move but supplies them with reliable broadband connectivity,” Mr. Koponen added. “Wataniya Telecom continues to enhance the relationship it has with customers, by acting as their Red Carpet service provider for every aspect related to mobility, connectivity and information access anywhere.” Kuwait's Wataniya Telecom third-quarter revenue up 56% (From Gulf News, October 21, 2005) Dubai - It's good to talk, it's even better to charge customers for the privilege to do so. Hot on the heels of Etisalat's 22 per cent increase in revenue to a sizable Dh3.046 billion for the first nine months of 2005, comes Kuwait's Wataniya Telecom's consolidated third quarter results. Revenues for the third quarter grew to Dh1.21 billion ($330.8 million), an increase of 56 per cent compared to the same period in 2004. On that revenue Wataniya Telecom earned a profit of Dh496 million ($133.5 million) for the first nine months of the year, a 32 per cent rise compared to the same period for 2004. Wataniya is one of the Middle East's more regional players, with operations in Kuwait, Tunisia, Iraq, Algeria, Saudi Arabia and the Maldives. It has 5.2 million customers across the region. "The company achieved excellent numbers particularly in Algeria and Iraq where we exceeded the one million subscriber mark in each operation during this quarter. "This is exceedingly good news for the group," said Faisal Al Ayyar, chairman of Wataniya Telecom. Wataniya Telecom made gains across the region. In Kuwait the telecom operator claims to have experienced "an overwhelming response to its prepaid roaming initiative," letting customers continue talking while traveling during summer vacation. Wataniya Telecom's customer base increased to 928,444 active customers. In Tunisia the company snagged a steep 40 per cent share of the total market. In Iraq, subsidiary Asiacell reached 1.1 million subscribers, and also launched service in Baghdad on July 22. Asiacell will be extending its network to the southern part of the country during the fourth quarter. Wataniya's Nedjma operation in Algeria also gained more than one million subscribers, signing up 1,164,455 users in just over one year. The company also completed a successful trial of Push To Talk over Cellular (PoC) during this quarter, as well as being the first to launch GPRS roaming on its 100 per cent EDGE capable network. In Saudi Arabia, Bravo, the first iDEN network in the GCC and the kingdom, launched service in the western sector on July 5. Specialising in providing communications solutions for groups through its Push-To-Do services, Bravo has expanded its service coverage to include Makkah, Medina, Jeddah, Dammam and Dhahran, including the Makkah-Jeddah highway. The regulator will release the remaining frequency before year-end to allow Bravo to cover Riyadh and other areas. Across the region "our focus on sound investments and technological advancements in the markets where we operate continues to be our main focus as we identify and pursue future opportunities in telecommunications," Ayyar added. Nokia wins $125m deal to upgrade Kuwait telecom  (From Gulf Daily News, May 31, 2005) KUWAIT CITY - Finnish mobile telephone giant Nokia yesterday won a $125 million deal from Wataniya Telecom to upgrade the network of Kuwait's number two mobile operator. A signing ceremony confirming the deal was attended by Finnish Prime Minister Matti Vanhanen who is in Kuwait on a four-day official visit. The deal, slated to be completed early next year, involves supplying state-of-the-art radio and core networks technology to upgrade the Kuwaiti company's network. "This relationship gives us a platform to provide the most advanced, capable and reliable network services in the region," Harri Koponen, CEO and general manager of Wataniya, said. Earlier this year, Wataniya signed a deal with Sweden's Ericsson worth $90m for modernizing its network in parts of Kuwait. "This deal will complement the Ericsson contract and will help upgrade the whole network," Wataniya chief strategy officer Niklas Sonkin said. Wataniya Telecom, which began operations in late 1999, now has 860,000 customers in Kuwait and a total of more than 3m users in Iraq, Tunisia and Algeria besides Kuwait, Sonkin said. The contract signed with Nokia is the first phase of a major modernization deal, Nokia senior vice president, Networks, Walid Moneimne said, but declined to provide details on the second phase. Nokia is currently operating in six Arab countries, Iran and Pakistan, he said. Moneimne expected that 150m new mobile users will be added to the Middle Eastern market within four years. MTC seals $2.4 billion loan agreement (From Gulf News, May 25, 2005) KUWAIT CITY - Kuwaiti telecoms operator MTC signed a one-year $2.4 billion debt deal with international banks yesterday to help finance its purchase of Dutch firm Celtel, which operates in Africa. Mobile Telecommunications officials told a news conference that the four principal banks involved are UBS, Barclays, Credit Suisse and National Bank of Kuwait. Each underwrote $600m. Another 44 regional and international banks were also involved in the deal. MTC snapped up Celtel, which has operations in 13 African countries, for about $3.36bn in March, saying it was keen to expand into fast-growing Africa from the Middle East. It bought 85 per cent of Celtel immediately and will acquire the remaining 15pc within two years. The financing arranged yesterday was a syndicated bridge facility to be replaced by longer term financing later. With the purchase of Celtel, MTC will have operations in 18 countries. MTC has said it will retain Celtel as a separate entity and keep its current management. MTC's Vice Chairman and Managing Director Saad Al Barrak said Celtel would contribute to MTC's earnings this year. Barrak said MTC's long-term plan was to increase this number to over 15 million by 2011, partly through expansion to reach 20 countries in Africa. MTC plans loan for Celtel takeover (From Gulf Daily News, April 5, 2005) KUWAIT - Kuwaiti mobile phone operator MTC will fund its recently announced $3.36 billion acquisition of Netherlands-based Celtel with existing cash and a $2.4bn loan being arranged by international bankers. Celtel says it has agreed to Co. offer (March 29, 2005) LONDON (AP) - Kuwait's Mobile Telecommunications Co. said Tuesday it has agreed to buy Celtel International, a communications network company with major interests across Africa, in a cash deal worth $3.36 billion (2.58 billion euros). MTC vice chairman and managing director Saad Al Barrak said the acquisition of Celtel, which has built and operates telephone networks in 13 African countries, will give MTC the largest regional footprint in the Middle East and Africa. "Together, MTC and Celtel will leverage the strong synergies, shared cultural values and heritage which exist between the Arab World and Sub-Saharan Africa," he said. Africa is one of the least developed regions for telecoms due to the relatively low penetration of fixed-line services. With a population of 850 million and most growth coming from South Africa, Morocco, Nigeria and Egypt, there is plenty of potential, analysts say. Mobile subscriptions across Africa rose 47 percent to 76.5 million in 2004, according to London-based research firm Informa Telecoms & Media. MTC, which is listed on the Kuwait Stock Exchange with a market capitalization of some $7 billion (5.3 billion euros), already has operations in Kuwait, Jordan, Lebanon, Iraq, and Bahrain. Under the terms of the deal, MTC will acquire 85 percent of the issued capital of Celtel immediately for $2.84 billion (2.15 billion euros), and the remaining 15 percent within two years of the closing date of the deal for $520 million (393.94 million euros). MTC said it will fund the acquisition through a combination of existing cash and new debt. Celtel will remain as a separate entity within the MTC group, retaining its existing management structures and continuing to operate under its brand name. "In the past Celtel deployed European and American funds to assist the development of telecommunications infrastructure in Africa. Today we are engaging the Middle East in this process," said Mo Ibrahim, the founder of Celtel who will join a new board following the acquisition. "This transaction represents a key step in bringing these sources of wealth to support the development of Africa." Wataniya signs deals with eight countries (From gulf-news.com, August 2, 2004) Dubai - Wataniya Telecom, the Kuwaiti mobile operator, has signed eight new GPRS and MMS roaming agreements with Singapore's Starhub, Jordan's Mobilecom, Bahrain's Batelco, Hong Kong's CSL, UAE's Etisalat, Orange from the UK, the Philippines' Smart Communications and T-Mobile of the US. Wataniya now extends to its customers the ability to send and receive photo messages, access e-mail and the Internet as well as its full range of Action services in eight countries worldwide. Through these roaming agreements, customers of Wataniya Telecom, Starhub, T-Mobile, Etisalat, Batelco, Orange, Smart Communications, Mobilecom and CSL subscribers will be able to access their GPRS and MMS services when roaming in any of these countries. The services accessible by any of the eight network operators while roaming in Kuwait will include services ranging from internet and e-mail access to MMS. Wataniya Telecom's customers will similarly be able to access Wataniya's full range of Action services, including internet, e-mail access, MMS and premium content while visiting any of the eight other markets. "We are pleased to provide Wataniya customers access to the full range of Action services when traveling outside Kuwait," said Fuad Al Ablani, Wataniya's deputy general manager. Kuwait's Wataniya Telecom launches new service (From menareport.com, July 25, 2004) Wataniya Telecom, Kuwait's leading mobile operator, has launched a new promotional roaming service for post-paid mobile users. "Roaming Without Deposit" is designed to give its post paid customers greater accessibility to roaming mobile services by eliminating the fee demanded by most operators as a deposit. The new service allows subscription to roaming services on a direct debit billing system. "Mobiles have become a huge part of our lives," said Andrei Torriani, Chief Product Development and Technology Officer, Wataniya Telecom. "From a business point of view, we are on call 24 hours a day regardless of where in the world we are. For this reason roaming services are an essential component of the services operators provide. However, many mobile users view roaming services as unattractive because of the hefty deposit charges. This service was designed to address this exact issue and ensure that our customers get what they need when they need it." "Roaming Without Deposit" provides mobile users with up to 150 KD of monthly roaming usage without the need for a deposit. Instead, billing is done through the Direct Debit Credit Card Facility provided by Wataniya. This service is a promotion throughout the summer for post-paid Wataniya Telecom customers. Subscription can be done through the Wataniya Telecom Branches, Head Sales Office or the Business and Commercial Accounts Departments. The service will be activated within 24 hours of subscription once the customer has subscribed to the direct debit payment facility. Wataniya Telecom H1 profit up 39pc (From Khaleej Times, July 15, 2004) DUBAI - Wataniya Telecom, the leading Kuwait GSM mobile operator and member of Kuwait Projects Company (Kipco), has announced net profit of KD21.03 million ($71.0 million), or 52.2 fils (17.6 cents) per share for the first half of 2004, an increase of 39 per cent compared to KD15.17 million ($51.2 million), or 40.2 fils (13.6 cents) per share earned in the same period of 2003. An increase of 12,766 Kuwait customers in the second quarter of 2004 saw Wataniya close the first half of the year with 817,180 active customers in Kuwait, maintaining an estimated 50 per cent market share. "Our customer base has increased by 1.6 per cent over the first quarter of 2004, which can be attributed to the company's on-going development of new, value added services that give customers a diverse range of compelling services to bring rich content to mobile phones," said Wataniya chairman and Kipco managing director & CEO Faisal Al Ayyar. "Market penetration in Kuwait today has reached 75 per cent, and Wataniya's market leadership continues to enhance this growth," he said. As well as expanding service offerings in Kuwaiti market, Wataniya has delivered strong regional growth, winning licenses in 2003 to operate networks in Iraq and Algeria alongside the existing Tunisia operation. The company is actively pursuing other regional license opportunities and partnerships to further build its regional portfolio. "Wataniya expanded tremendously in 2003 with three new operations in Tunisia, Iraq and Algeria," said Mr. Al Ayyar. "We are currently working on consolidating our strength in these markets and to efficiently leverage our resources to ensure that all these markets continue to gain in momentum and success. "Today, Wataniya's networks are serving over 1.7 million customers across the region, a milestone we are proud of having achieved after only five years in the market." He added: "The services offered by Wataniya are driving the region's telecommunication market, and changing the industry focus from 'line-selling', to growth of ARPU (Average Revenue per User). Our strategy is and will continue to be to expand our existing operations, and keep a close eye on emerging market opportunities." GPRS, MMS roaming services for Batelco, Wataniya customers (From Bahrain Tribune, July 8, 2004) - Bahrain Telecommunications Company (Batelco) and Wataniya Telecom of Kuwait have teamed up to become the first GSM operators in their markets to offer full GPRS and MMS access for each network's customers while roaming in Bahrain or Kuwait. The introduction of GPRS and MMS roaming signifies the commitment both operators have made to continue delivering value services to their customers. "Bahrain is witnessing dynamic growth thanks to the recent liberalization of its telecom sector, and this has pumped new energy into the market while driving a renewed approach to service excellence and customer satisfaction," said Tony Hart, Batelco chief executive. "The company has anticipated this vibrant change and is committed to ensuring that it stays at the forefront of service and technology development so that its customers will continue to receive world-class services both at home and now in Kuwait. We are pleased to offer this service with Wataniya Telecom and will continue to build on this positive momentum moving forward. The roaming service started on June 15 on a free trial basis for a limited period of time." The roaming agreement allows both Batelco and Wataniya customers to access their GPRS and MMS services when roaming in either country. Services accessible by Batelco customers while roaming in Kuwait include services ranging from Internet and e-mail access to MMS. Wataniya Telecom's customers can similarly access Wataniya's full range of action services including Internet, e-mail access, MMS and premium content. Sweden's Teleca wins MTC-Vodafone Kuwait contract (From menareport.com, April 29, 2004) - Swedish IT services company Teleca has been selected to supply an inventory management system to MTC-Vodafone in Kuwait as part of a larger agreement with prime contractor Harris Corporation. Teleca will deploy the inventory management solution based on software from Cramer, stated a press release. MTC-Vodafone in Kuwait will use the Teleca and Cramer solution to manage inventory in its GSM/GPRS network and, in combination with the Harris fault management, and ADC Metrica performance management solutions. Successful deployment in Kuwait could lead to additional commissions for operators connected with MTC in the region, Teleca said. The MTC Group operates in Kuwait and Bahrain as MTC-Vodafone; as Fastlink in Jordan and as Atheer in Iraq. The MTC Group was recently awarded the contract to take over the management of LibanCell in Lebanon. Report: competition dynamics in Kuwait's GSM market a healthy model for Gulf region (From menareport.com, April 20, 2004) - Kuwait's MTC-Vodafone maintained its postpaid edge in 2003, while Wataniya remains a predominantly prepaid service provider. With the Kuwaiti market approaching saturation, the two operators have expanded their operations outside Kuwait, establishing themselves as strong regional operators, according to a recent report by Arab Advisors Group. MTC reversed the 2002 results in 2003 and grabbed 57 percent of total market additions in 2003. This has moved its market share from 53 percent in 2002 to 54 percent in 2003. There are 1.7 million mobile subscribers in Kuwait translating into a penetration rate of 74 percent. The high penetration is the healthy result of the duopoly competition between Kuwait’s two mobile operators, MTC-Vodafone and Wataniya Telecom. As the competition for market dominance in Kuwait continues, and with the cellular market nearing saturation, the operators have been scrambling to achieve the technological edge to win over customers. Kuwaiti mobile users already enjoy services such as online bill payment, GPRS services that offer downloads of music and games, and MMS services. “Kuwait remains a predominantly prepaid market, with prepaid subscribers constituting almost 80 percent of cellular users," Arab Advisors Group’s research analyst Yaman Al-Jundi wrote in the report. "Wataniya holds the edge in the prepaid market, with a 53 percent market share. MTC-Vodafone holds a dominant 81 percent of the postpaid market share.” “The mobile market grew by 30 percent in 2003," Al-Jundi added. "MTC-Vodafone lost postpaid subscribers for the third straight year, recording a four percent drop in 2003. Wataniya recorded an impressive 90 percent growth in postpaid subscribers, but its overall postpaid subscriber base stands at only a quarter of MTC-Vodafone’s postpaid subscribers base.” The Arab Advisors Group believes the Kuwaiti mobile market to be the model for healthy competition in the Gulf region. The cellular penetration in Kuwait jumped from 28 percent in 2000 to reach an impressive 74 percent in 2003. The result of the competition has been a race to offer improved value-added services and technologies, which ultimately will benefit the individual mobile user, as well as the operators themselves, since these services will surely enhance revenues and profits. Wataniya Telecom indicates positive growth in 2004 (From menareport.com, April 11, 2004) - Kuwait's Wataniya Telecom recorded a post-tax net profit of 33.1 million Kuwaiti dinars ($112.6 million) from KD 160 million of consolidated revenue from operations in Kuwait, Iraq and Tunisia for the year 2003. Wataniya Telecom's home market showed a 48 percent increase in 2003 with KD 125.6 million, boosting net profit by 61 percent to KD 33.5 million. This significant increase in profit has been largely due to the company's ongoing cost-reduction programs and improved asset utilization, reported a bank press release. "Through the addition of regional mobile operations, Wataniya Telecom today serves around 1.5 million customers in Kuwait, Iraq and Tunis. We expect to be fully operational in Algeria this year and we will continue to strengthen our service offering in all our operations as the company continues to consolidate its operational expertise and revenue generating services," said Chairman of Wataniya Telecom, Faisal Al-Ayyar. Wataniya Telecom is part of the Kuwait Projects Company (KIPCO) group. Launched in 1999 as the second licensed GSM provider in the Emirate, Wataniya Telecom has a market capitalization exceeding $3.4 billion. The company has over 770,000 subscribers in Kuwait and 250,000 in Tunisia. Kuwait 's Wataniya Telecom signs deal with Ericsson (March 22, 2004) (MENAFN) - Kuwait's Wataniya Telecom signed an agreement with Ericsson for the supply and installation of GSM infrastructure and systems for Wataniya networks inside and outside Kuwait, Dow Jones Newswires reported. An official at Wataniya said that the agreement means that the Kuwaiti firm will use Ericsson equipment for building new networks and upgrading its existing networks in Kuwait, Tunisia, Iraq and Algeria. Al Wataniya said in a statement that the deal would allow the Kuwaiti operator to expand networks and provide additional advanced services to be launched in the near future. No financial details were immediately available. MTC eyes lucrative Saudi mobile phone market (From Gulf Daily News, March 8, 2004) KUWAIT CITY - Buoyed by impressive successes in Jordan and Bahrain, Kuwait's Mobile Telecommunications Company (MTC) is eyeing the lucrative Saudi market set to open up to competition later this year, its director general said yesterday. "We are fiercely competing to win a mobile license in Saudi Arabia ... with investments worth $1.5 billion," Saad Al Barrak told a news conference. MTC is competing for the license as part of a consortium in which it owns 40 per cent and its Saudi partners an equal share, while the remaining 20pc will be floated on the stock market, he said. The Kuwaiti company, which is already operating in southern Iraq and boasts more than two million subscribers in the region, is also competing in the Omani market and negotiating with the Lebanese government, Al Barrak said. But the main target is the Saudi market which already has some six million subscribers and major potential for more. However, the MTC consortium is facing a tough challenge from another consortium led by the international telecom company Vodafone. Vodafone entered into partnership with MTC in Kuwait in September 2002 and Bahrain in December last year. An Arab industry report predicted that revenues in Saudi Arabia's GSM market will soar to $7.9bn by 2007 on the back of the part privatization of state-owned giant Saudi Telecom and increased competition. Saudi is scheduled to open up the mobile sector to competition from local and foreign providers by the end of this year but Saudi Telecom will continue to have a monopoly over land lines and Internet services until 2008. MTC reported a 36pc increase in its 2003 net profits to 102.2m dinars ($340.2m) up from the previous year's profits of 75m. Al Barrak attributed the profit hike to the company's acquisition in January 2002 of 96.6pc of Jordan's Fastlink for $423.9m. "We are targeting net profits of around 200m dinars. We are currently operating in four countries and looking forward for more," Al Barrak said. With market capitalization of more than $3.2bn, MTC is the second largest listed company on the Kuwait Stock Exchange after the National Bank of Kuwait (NBK). Barrak said MTC's operating revenues rose by about 80pc last year and its assets grew to above $7bn. "We are looking at two to three million subscribers in Saudi Arabia and about 400,000 subscribers in Oman. Our strategy is to have five million customers by the end of 2005 in the Arab world," Al Barrak said. Kuwait's second mobile phone operator, National Mobile Telecommunications Company, began operations in 1999 and has more than 800,000 subscribers. Lawmakers have been urging the government to allow a third company to operate in the emirate which has one of the largest mobile penetration rates in the world. Wataniya Telecom’s net profit up 63 percent in 2003 (From menareport.com, February 23, 2004) - Kuwait GSM operator Wataniya Telecom reported a net profit of 33.1 million Kuwaiti dinars ($112.6 million) for 2003, an increase of 63 percent compared to KD 20.3 million earned in 2002. The board of directors has recommended a stock dividend of six percent on the outstanding shares as of December 31, 2003, and an additional rights issue of eight percent, reported a press release. Total revenues for 2003 increased by 87 percent to KD 160.4 million from KD 85.5 million in 2002. Total assets were KD 341.7 million compared to KD 257.8 million, a rise of 33 percent, and shareholders' equity grew by 53 percent to KD 93.3 million from KD 61.0 million in 2002. Wataniya Telecom is part of the Kuwait Projects Company (KIPCO) group. Launched in 1999 as the second licensed GSM provider in the Emirate, Wataniya Telecom has a market capitalization exceeding $3.4 billion. The company has over 770,000 subscribers in Kuwait and 250,000 in Tunisia. Wataniya Telecom demonstrates EDGE technology (From Khaleej Times, February 9, 2004) DUBAI - Wataniya Telecom, Kuwait's leading mobile operator, today revealed the first trial demonstration of EDGE technology in Kuwait at the InfoNet 2004 exhibition. Fuad Al Ablani, Assistant General Manager, Wataniya Telecom said: "We are proud to be the first operator in Kuwait to demonstrate this technology. Having been in the market only since 1999, Wataniya Telecom has achieved recognition on both the local and regional level for being a market leader in mobile communication services. Building on this achievement, we continue to roll out the best technology in the market for our customers, enhancing the communication portfolio we offer to maintain our leadership and exceeding customer expectations." Wataniya Telecom announced its plans to launch EDGE-based advanced network services to subscribers in Kuwait in 2004. The EDGE technology supports high-speed data access at rates up to four times the speed of current GPRS network technologies, allowing rich multimedia services, including real-time streamed video and audio, effective download of movie and sound clips and high resolution photography. Leveraging the knowledge gained through use of the existing GPRS standard, EDGE is set to deliver fundamental improvements in broadband mobile data communications technologies. EDGE, an acronym for Enhanced Data Rates for GSM Evolution, supports data rates up to and beyond four times the speed of current GPRS technologies, which means rich multimedia content can be made available to mobile users. "EDGE means giving access to the kinds of streaming video and movie clips that are so popular on the Internet today. People will be able to send and receive movie messages easily, as well as having high speed Internet to mobile devices, PDAs and laptops," said Ablani. Wataniya vows to invest in regional market (From Bahrain Tribune, January 30, 2004) DUBAI - The board of Wataniya Telecom, the leading mobile communications company in the State of Kuwait, has outlined the company's strategy to continue investing in the expansion of the Middle East regional GSM mobile market as well as driving for new services and capabilities in Kuwait. The board also finalized its recommended dividend to shareholders based on its commitment to a continued expansion and a long term strategic view of its investment in regional markets. Faisal Al Ayyar, chairman of Wataniya, said: "We are investing aggressively in our regional expansion. To this end, the board has recommended a stock dividend of 6 per cent be put forward to the General Assembly. This reflects our aim to build long term shareholder value through strategic investments in regional opportunities." Wataniya has delivered strong regional growth throughout 2003, winning licenses to operate networks in Iraq and Algeria. The company is actively pursuing other regional license opportunities and partnerships to further build its regional portfolio. Additionally, the board approved a rights issue of stock to named shareholders allowing the purchase of shares at a preferential rate of KD 1.5 per share rather than the current market price (standing at KD 2.6 as of this date). This issue will take place on the date of the General Assembly. "Wataniya's stock remains a long term investment in regional growth," said Al Ayyar. "We're expanding our market in Kuwait by continuing to be a growing, competitive driver of value added services and new mobile applications. At the same time, we're building strong regional investments for the long term." With over 800,000 subscribers in Kuwait and over 500,000 in Tunisia, Wataniya Telecom has built its success on a customer focused strategy built on the philosophy that everything the company does must bring it closer to its customer. Harris Corporation wins MTC-Vodafone network contract (From menareport.com, January 21, 2004) - Kuwait’s MTC-Vodafone has selected Harris Corporation as the prime contractor for its new multi-million dollar Integrated Network Management System (INMS) Project. The project is expected to be completed in 2004, with priority subsystems coming on-line as early as February, stated a press release. The INMS will provide integrated fault, performance and inventory management systems for comprehensive, end-to-end management of MTC's telecommunications network in Kuwait. A backup system also will be deployed for disaster recovery. Harris, one of five divisions within Harris Corporation, delivers advanced management, test, and maintenance solutions for multivendor, multiprotocol networks of public and private communications service providers. Report: Wataniya Telecom offers competitive GSM rates (From khaleejtimes.com, January 6, 2004) DUBAI - Wataniya Telecom, Kuwait's leading mobile operator has been selected as one of the operators offering the most competitive GSM rates in the region, according to an Arab Advisors Group report. As Wataniya Telecom proceeds with its aggressive regional expansion program, it has committed to continuing its drive to bring competition and value-driven GSM services that are appropriate and accessible to its customers. "The Kuwaiti GSM market provides a great case study for the positive effects of the introduction of competition to a GSM market, which has now been validated by the Arab Advisors Group's findings," said Faisal Al-Ayyar, Chairman, Wataniya Telecom. "Competition has brought a huge jump in the penetration rate, as well as giving customers better value and more extensive services. We are hoping to replicate the success that we have had in Kuwait throughout the other countries we have been awarded licenses to operate in." Wataniya Telecom's regional portfolio of mobile operations now includes; Kuwait (Wataniya Telecom), Tunisia (Tunisiana), Iraq (AsiaCell) and Algeria, following the award of the license for the country's third GSM operator last week. By the introduction of competitive strategies in these developing and maturing markets, Wataniya Telecom hopes to stimulate penetration rates and deliver more value-offerings to its regional customers-base. Wataniya Telecom-led consortium signs license for Northern Iraq (From menareport, December 24, 2003) - Asia-Cell, the consortium lead by Kuwait's Wataniya Telecom, Asia-Cell Telecommunications and United Gulf Bank of Bahrain, have signed its license for mobile operations in Northern Iraq. The license, awarded by the Iraqi Ministry of Telecommunications in October, appoints Asia-Cell to provide GSM services to Iraq's Northern region for the first year and to expand to the rest of Iraq in the second year. Initial services are already available in Sulaymaniya. Wataniya will launch commercial services in Kirkuk this week and within two weeks Mosul will follow. Rapid mobile adoption is predicted, with an estimated 500,000 new customers expected to take-up new lines in the first year of operation. The consortium is now able to provide services immediately due to the existing network infrastructure of its local partner, Asia-Cell Telecom. The Iraq license has been significant for Wataniya Telecom in its strategy to expand and develop its regional presence. The company's regional portfolio of mobile operations now includes; Kuwait, Tunisia, Iraq and Algeria. Kuwait's NMTC: Iraq mobile network roll out ahead of plan (December 20, 2003) (MENAFN) - Kuwait's National Mobile Telecommunications Co., also known as Wataniya Telecom, said it was ahead of schedule in rolling out its GSM network in northern Iraq in partnership with local Iraqi firm Asia-Cell, Reuters reported. The company added it had no knowledge of a corruption probe by the Pentagon. Earlier in October, a consortium led by Egypt-based Orascom Telecom (OT) won the license for the central region of Iraq, while a consortium led by Kuwait's MTC won the license for the south of the country. NMTC is spending $150 million over two years to build and operate the GSM network. Siemens and China's Huawei Technologies Co. are providing equipment for the network. The consortium expects one million customers in two years. NMTC operates in Kuwait and Tunisia. Earlier this month, NMTC won a license to run a GSM license in Algeria, which has a penetration rate of around five percent. NMTC has also signaled its intention to bid for a license in Saudi Arabia and potentially Iran. Kuwait's Al Wataniya wins Algeria GSM bid (December 3, 2003) (MENAFN) - Kuwaiti National Mobiles Telecommunications Co. (Al Wataniya) won the right to operate Algeria's third cellular phone license in a largely unexploited market after placing the highest bid of $421 million, Reuters reported. In addition to Al Wataniya, the other bidders were Spain's Telefonica Moviles and South Africa's MTN. There are around 1.3 million mobile phone users in the North African country, whose population of 32 million is concentrated along the Mediterranean coast. Kuwaiti mobile users get best rates in Arab world (From itp.net, November 19, 2003) - New research has revealed that Kuwait’s GSM market leads the Arab world in terms of call pricing. The UAE and Bahrain are close contenders, according to the report from the Arab Advisors Group, with Oman and Saudi Arabia coming behind. Jordan, Palestine, and Egypt straddle the middle ground. The research covers twenty-two mobile operators in fourteen different Arab countries. The Arab Advisors Group conducted a full analysis of mobile phone rates relative to the wealth of the country. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE were revealed to have low cost mobile phone rates, relative to the examined countries GDP per capita. Algeria, Egypt, Lebanon, Morocco, Syria, and Tunisia still have high cost mobile rates, relative to the examined countries GDP per capita. A new comprehensive regional trends report, Cellular Rates in the Arab World: A Regional Comparison, was released by the Arab Advisors Group’s Strategic Research Service. The 41-page report, with 36 detailed exhibits, covers twenty-two mobile operators in fourteen different Arab countries. The report fully compares the prevailing mobile phone service rates across the markets and ranks them accordingly. The report draws conclusions on the level of fairness of the prevailing rates relative to the each country's economic situation. Wataniya signs new orders with Teligent SMSC (November 5, 2003) STOCKHOLM, Sweden (PRIMEZONE) - Teligent announced today new orders from the Kuwaiti mobile operator Wataniya Telecom regarding the delivery of SMSC, SMS Router and Missed Call Alert. The delivery is planned for the first quarter 2004. Mobile data, including SMS related services, is increasingly important to mobile operators and Teligent offers various mobile data solutions, primarily within areas closely linked to the carriers' core offerings. The Teligent SMS Router is a powerful building block for SMS network enhancement. The solution provides optimization features to manage and control the distribution of increased SMS traffic, as well as offloading existing SMSCs. The SMS Router simplifies the introduction of new revenue generating services and forms a solid basis for all types of SMS services such as Missed Call Alert, SMS Voting, Broadcast Services and Information Requests such as traffic, stock and weather reports. Teligent's commitment as a supplier in the Middle East region combined with the Teligent P90/E platform technology has proven to be a strong combination for us, said Franco Ricotta, CTO of Wataniya Telecom. We are pleased to see how our initial investment in the platform technology has provided a basis for further development and for new services, which we are confident will meet both our own and our customers' needs and requirements. Teligent set up a branch office in the Middle East earlier this year and has established a market presence in prioritized markets in the region. This order is a result of our successful relationship with Wataniya, a leading operator in the region, and is a follow up order of the previously delivered Pre-Paid Broker solution, commented Ulf Lindsten, CEO & President of Teligent. I also consider this to be a confirmation of our analysis of the region as well as our possibilities to grow further in this expansive part of the telecom world. The delivery is based on the middleware platform, Teligent P90/E, which is implemented in various configurations by a large number of leading carriers in the international telecommunications market, including AT&T Wireless, BT, Telefonica, Telia, Tele2 and members of the Vodafone group. Kuwait's MTC posts profits (From gulf-daily-news.com, October 27, 2003) - Mobile Telecommunications Company (MTC), the largest mobile phone operator in Kuwait, yesterday reported a 57.5 per cent increase in net profit for the first nine months of the year. The company announced profits of 82.12 million dinars ($273.7m) to September 30, compared to 52.14m dinars ($173.8m) in the same period of last year. It also more than doubled its net profits for the third quarter, posting 31.12m dinars against 15.34m dinars in the third quarter of 2002. Earnings per share for the nine months rose to 170 fils ($0.57) from 108 fils ($0.36) in the same period of last year. Kuwait's MTC says Motorola main Iraq supplier (October 7, 2003) KUWAIT (Reuters) - Kuwait's Mobile Telecommunications Co. (MTC) said on Tuesday U.S.-based Motorola Inc. and either Germany's Siemens or Finland's Nokia Corp. will be equipment suppliers for its $120 million mobile network in Iraq. "Motorola mainly, they are our partners," Saad al-Barrak, director general of MTC told Reuters when asked who the main suppliers will be. MTC on Monday won a two-year license to build and operate a mobile telephone network in southern Iraq. Asked if there would be any other equipment providers for the project, Barrak said: "There could be either Siemens or Nokia as well; either one or the other." The matter will be decided in three or four days, he said. MTC, Kuwait's largest telecommunications firm, has said it will spend up to $120 million over the next two years to build and operate the southern Iraq network. Kuwait's National Mobile Telecommunications Co. (NMTC.KW), was awarded the license for a mobile phone network in northern Iraq on Monday, and Orascom Telecom of Egypt won the license to set up a central Iraq network. Orascom has said it will probably use Motorola or France's Alcatel as suppliers. Shares of Mobile Telecommunications and National Mobile Telecommunications soared to new 52-week highs on the Kuwait Stock Exchange, boosting the main index of about 100 stocks to a record high of 4,491.30. National Mobile Telecommunications said on Monday it expects its subscriber base in northern Iraq to mushroom to one million over the next two years from 30,000 subscribers currently, served by partner Asia Cell. Shares in National Mobile Telecommunications rose 5.15 percent to near the top of the gainers' column on Tuesday. Shares of MTC added 2.78 percent to 3.70 dinar. Wataniya gossips via MMS (From itp.net, October 5, 2003) - Wataniya Telecom has expanded its mobile offerings yet further with the introduction of a celebrity news service. Designed to keep Kuwaiti users up to date with the lives of the rich and famous, the ‘action’ service is delivered via multimedia messaging service (MMS) once a week. “Whether watching television shows or reading newspapers and magazines, teenagers and adults in Kuwait love to hear about the lifestyles of the rich and famous and stay in tune with the latest gossip and news on their favorite Hollywood stars,” says Fuad Al Ablani, assistant general manager, Wataniya Telecom. “Action now provides our subscribers quick and easy access to the latest celebrity news by bringing it directly to their mobile phones,” he adds. As with the mobile providers other Action services, users can subscribe either by sending an SMS request to 1433 with the message “sub celebrities” or through the company’s website. Wataniya expands GPRS coverage (From itp.net, August 22, 2003) - Kuwaiti mobile operator, Wataniya Telecom, has extended its GPRS infrastructure to cover the whole country. The operator has completed the second and final phase of its GPRS rollout, making the 'Action'-branded high-speed data and multimedia messaging services (MMS) it launched at the start of July available across Kuwait. Previously, the operator's GPRS network covered areas from the sixth ring road to inside Kuwait City, including Kuwait's International Airport. Action delivers a range of MMS and GRPS related services to mobile phone users in Kuwait. The service, according to Fuad Al Ablani, Assistant GM, Wataniya Telecom, is receiving considerable interest and uptake from mobile phone users in the country. "With full network coverage across the country, we expect the momentum of usage for Action services to increase dramatically as we continue rolling out at least one new service per week over the next two months," Al Ablani added. Kuwaiti firm signs $19m deal with Motorola (From khaleejtimes.com, August 21, 2003) DUBAI - Motorola's Global Telecom Solutions Sector (GTSS) yesterday announced that it signed an expansion contract worth approximately $19 million with MTC-Vodafone, Kuwait's largest mobile network operator. The contract includes network services and equipment to increase network capacity and coverage, and to enhance MTC's general packet radio service (GPRS) service by activating GPRS Coding Schemes 3 and 4 (CS314). GPRS CS3/4 enables the provisioning of data services at up to 70 kbps, providing the necessary capacity and throughput to handle most of the data services commercially available to wireless subscribers today. Motorola will begin deploying its Horizon Macro base stations to provide increased coverage in MTC's 900 and 1800 networks. All of Motorola's Horizon radio access network (RAN) solutions are compliant with the European Telecommunications Standards Institute (ETSI) standards for GPRS CS3/4. "Motorola has been a reliable supplier of network infrastructure equipment to us for many years," said Dr Saad Al Baraak, director general for MTC. "We launched our nationwide GPRS service using a Motorola network just last year, and with this latest expansion of our enhanced GPRS performance, we can offer more customers the latest applications, providing them with an even better service experience." "This important network expansion project with MTC is the latest example of how Motorola is building on its strong relationships with leading carriers in the Middle East to deliver equipment and services that can help improve the performance of their networks today, while offering long term flexibility and value for their capital expenditures," said Jeff Cherif, vice-president for the Middle East and Africa region for Motorola's GTSS. Wataniya Telecom records net profits of $31 million in 2Q 2003 (From menareport.com, July 31, 2003) - Kuwait’s Wataniya Telecom, recorded post-tax profits of 9.3 million Kuwaiti dinars ($31 million) in the second quarter of 2003, an increase of 60 percent compared to KD 5.8 million in the same quarter last year. On a quarter-to-quarter basis compared to the first quarter of 2003, profits increased by KD 2.5 million from KD 6.8 million, a growth of 37 percent. Wataniya Telecom, an affiliate of Kuwait Projects (KIPCO), recorded revenues for the second quarter of KD 31.3 million, against KD 21.7 million for the same quarter of 2002, and revenues increased by KD 4.2 million, or 15 percent, compared to the first quarter of 2003. Strong demand for Wataniya Telecom services in Kuwait continued throughout the second quarter, with the company increasing its customer base by 59,031 to close the quarter with 750,585 active customers and maintain an estimated 50 percent share of the Kuwait mobile phone market. This represents an increase of 21.9 percent over the year-end 2002 customer base of 615,791. Roaming coverage grew to 239 operators in 102 countries. Second quarter revenues at Tunisiana, Wataniya Telecom's joint venture GSM operator in Tunisia, were up 29 percent on the first quarter to KD 7.1 million, compared to KD 5.5 million. Tunisiana's active subscriber base reached 251,656 as of June 30. The net attributable loss to Wataniya Telecom from Tunisiana is one million Kuwaiti dinars to date. Wataniya Telecom was established and awarded the second mobile telephone license in Kuwait. KIPCO is a major force in financial services, and media and technology. Headquartered in Kuwait, it is the country's largest private sector company and employs more than 10,000 people internationally. MTC-Vodafone upgrades WAP gateway (From itp.net, July 23, 2003) - US mobile solutions provider, 724 Solutions, has sealed a contract with Kuwait-based operator, MTC-Vodafone, to supply its X-treme Mobility Gateway (XMG) to support WAP 2.0 premium services. The deal, which came through 724’s regional partnership with wireless product and solutions provider International Turnkey Systems, has seen the XMG deployed in MTC-Vodafone’s network in Kuwait to support live data traffic such as java downloads. "This is a significant win for both ITS and 724 in the Middle East," said Mohammad Hussam, telecommunications account manager, ITS Kuwait. "MTC is advancing ahead of other mobile operators and is furthering its position to support its increasing market growth and demand,” he added. XMG is a push/pull WAP 2.0 gateway that features a flexible and scalable platform supporting MMS, WAP 1.x and WAP 2.0. Wataniya recruits Oracle for CRM (From itp.net, June 30, 2003) - Kuwait-based mobile operator Wataniya Telecom has handed a contract to enterprise software giant Oracle to revamp its customer relationship management (CRM) system. Under the deal, Oracle will implement CRM Modules of its E-Business Suite into the core of Wataniya’s new call centre, which the operator claims will allow it serve more than 750,000 subscribers. The implementation will include Oracle’s teleservice, telesales and telemarketing modules, to provide personalized and proactive customer service, including expedited resolution for any reported problems. Wataniya’s service agents will also use Oracle’s service fulfilment manager (SFM) to remotely configure and test mobile services for customers, while also tracking service requests. The move, Wataniya says, will allow its customer service employees to access the complete history of each subscriber through the phone, e-mail and web. The operator is also implementing a data mining project using Oracle’s 9i database and application server, to better understand customer trends. “As Wataniya charts its aggressive expansion strategy both in Kuwait and throughout the region, it’s vital that we maintain the confidence of our subscribers through an understanding of changing customer needs as well as rapid response and resolution of any problems that may arise,” says Sean Rabbitte, Wataniya’s director of customer care. “The CRM project will enable us to better understand the needs of our customers, and enable us to proactively create new services to meet those requirements,” he adds. MTC-Kuwait wins second mobile license in Bahrain (From menareport.com, April 21, 2003) - The Mobile Telecommunications Company (MTC) has been selected by the Telecommunications Regulatory Authority (TRA) as the preferred applicant for the award of the second mobile license in Bahrain. The license will be granted on April 22 to a Bahraini company by the name of MTC Vodafone Bahrain, which will be 60 percent owned by MTC and 40 percent owned by Bahraini institutional and individual investors. Vodafone will enter into a cooperation agreement with the company after the license award. The National Bank of Kuwait (NBK) acted as the sole financial advisor to MTC in connection with the application. The TRA had received 10 applications for the license from various international and regional applicants on or before March 5 and decided to shortlist three applicants, including the MTC Vodafone Bahrain on March 26. Mobilink Kuwait, Swapcom enter mobile value-added services partnership (From the menareport.com, April 10, 2003) - Telecommunication and Information Technology (IT) company MobiLink and Swapcom, a French provider of mobile software systems, entered into a global partnership in mobile value-added services. MobiLink has selected Swapcom technology to roll out wireless solutions in the Middle-East area. To fulfill users’ need for personalized alerts, regular news updates as well as information pull directly from mobile phones, MobiLink now offers "SMS Airways", a brand new service enabling subscribers to check their flight information via SMS. This feature has become such an ease and convince as not a lot of users are aware of their flight numbers. This service is currently available to all users of the Kuwait International Airport (KIA), one of the world's most modern air transportation gateways. To help MobiLink deploy this "SMS Airways" service, Swapcom provided them with the "Multimedia Mobile Information Portal" (MMIP) that enables external providers to dynamically import, format and deliver multimedia contents using SMS, Cell-Broadcast or MMS. To rapidly and securely connect the solution to mobile networks, Swapcom equipped MobiLink with the "Multimedia Mobile Gateway" (MMG), an end-to-end messaging platform for mobile data exchanges over multiple supports. This solution allows companies and operators to connect to all wireless networks around the world and easily implement high revenue-generating applications. "The solid background of Swapcom and the good contacts we have with operators enables us to deploy quickly Value Added Services and offer time-to-market services ensuring seamless content delivery." said Waleed Alsayegh, Mobilink CEO. "Mobile Market is growing rapidly in the Middle-East. In this context, Swapcom's products guarantee a high scope of service for end users and represent a decisive advantage for our customers, because they improve their wireless services range and offer them a high quality of support." said Abderrahim Rochdi, sales director at Swapcom. "The key success factor for Mobilink was their awareness of the local market needs in Kuwait and their ability to rapidly implement high value-added services with Swapcom technology." MobiLink W.L.L. based in Kuwait city, Kuwait, is a value added services provider and Information Technology development company offering global software products and end-to-end solutions for GSM operators, service providers, content providers and enterprises. MobiLink main objective is to develop new technologies and to provide network and vendor independent solutions, applications and services in the emerging fields of wireless. Swapcom, based in Lyon, France, is a European provider of software systems and services. Founded in 1999 by a team of telecommunications experts, is recognized today as a pioneer in SMS, EMS/MMS and Cell Broadcast technologies. Swapcom products enable telecom operators and services providers to design and upgrade mobile network services in order to conduct simple and reliable electronic commerce and communications on wireless devices. Kuwait’s Wataniya Telecom bidding for Bahraini second mobile license (From menareport.com, March 18, 2003) - Wataniya Telecom, the mobile communications provider that brought competition to the Kuwaiti telecommunications market, has formally announced that it has joined the bid for Bahrain’s second mobile telecommunications license in a move that follows the company’s regional expansion strategy. “The move comes directly as a result of the clear and positive signal from Bahrain’s government that it has built a world-class regulatory environment in order to build a competitive telecommunications market in the Kingdom,” according to a company press release. With over 675,000 subscribers in Kuwait, Wataniya Telecom, which also owns 50 percent of Tunisian GSM operator Tunisiana, is a publicly traded company on the Kuwait Stock Exchange, an affiliated company of Kuwaiti Projects Company (KIPCO), a major diversified company with interests in finance, media and entertainment and with over $10 billion of assets under its control. Launched in December 1999, Wataniya Telecom is the second licensed GSM (Global System for Mobile Communication) mobile operator in the State of Kuwait. With a market capitalization exceeding $1.5 billion, the company has been a driving force in increasing the mobile communications market penetration in Kuwait to over 54 percent of the population. Tecnomen to deliver new messaging system to MTC (From menareport.com, February 16, 2003) - The Kuwait Mobile Telecommunications Company (MTC) has awarded Tecnomen a contract worth over one million euros to upgrade its messaging system. Tecnomen will deliver and install the latest version of its eZONER Messaging Platform in the first quarter of 2003. Replacing MTC's existing Tecnomen messaging platforms, eZONER provides additional messaging features such as unified messaging, wireless email, voice mail expansion and an integrated SMSC. It also features an email reader to allow subscribers to listen to their emails, voice control to enable subscribers to manage their messages using voice commands and Tecnomen Greetings Center which supports subscribers in managing and personalizing multiple voicemail greetings. MTC is the first and largest of two mobile and paging service providers in Kuwait with more than 600,000 active subscribers. Kuwait has a population of more than 2.3 million with a mobile penetration rate of 60 percent. It has a developed mobile network, with two mobile operators serving more than one million subscribers. The Tecnomen messaging system is a comprehensive portfolio of messaging services. It enables operators and service providers to target specific end-user groups with tailored combinations of messaging services and to add new service combinations according to their needs. Mobile Telecommunication Company launches Kuwait's first GPRS service (September 3, 2002) KUWAIT CITY (PRNewswire) - Mobile Telecommunication Company (MTC), the leading GSM network operator in Kuwait, has announced the introduction of nationwide General Packet Radio Service (GPRS) high-speed mobile data services over a Motorola network. MTC is the first company in Kuwait to introduce GPRS and currently has soft-launched the service for a small number of its customers. Complete commercial service is scheduled for September 2002. The GPRS network infrastructure contract with Motorola's Global Telecom Solutions Sector (GTSS), valued at an estimated $4.6 million, was signed in June 2002. It will provide for the countrywide implementation of Motorola's GPRS Core network solution that includes the Service GPRS Support Node (SGSN) and OMC-G supplied by Motorola Computer Group and the Gateway GPRS Support Node (GGSN) from Cisco Systems, Inc. The announcement reflects the continuing strong relationship between Motorola and MTC, which began in 1994 when Motorola began supplying MTC with Global System for Mobile (GSM) communications networks. "MTC prides itself in continuously enhancing its GSM network and this latest contract with Motorola is proof of this dedication," comments Ahmad Mohammad Al Nassar, chairman and managing director, MTC. "Our strong and close relationship with Motorola ensures that our network can evolve at the same pace as new technical developments, always delivering a superb quality of service to our customers every time." "As the enabler behind MTC's deployment of its new GPRS network, we've helped MTC open the door to a new world of wireless data services and Internet-based content via a mobile terminal for their customers," said Jeff Cherif, general manager for the Middle East and Africa region for Motorola's GTSS. "We've also helped them protect their investment since the Motorola GPRS radio network is implemented over an existing GSM network with a software load and packet control unit addition." The launch of GPRS service in Kuwait is indicative of the strong and growing demand for wireless services in the Middle East, and further strengthens Motorola's position as a leading supplier of GPRS networks and wireless data solutions in this key growth market. Kuwait gets FAST Internet service (from itp.net, August 21, 2002) - FAST Telecommunications has launched local and international data communications and international voice services under license from Kuwait’s Ministry of Communication. In addition to these facilities, Kuwait-based FAST Telco also specializes in providing local and International termination services for foreign carriers. FAST Telco currently operates a network based on High Speed Optical, ATM, IP technologies. The network infrastructure covers the entire state of Kuwait, including all Ministry of Communication exchanges, over a fiber optic backbone. FAST Telco claims to be the only telecommunication services provider in the Middle East to be awarded ‘Cisco Powered Network’ status. The firm’s General Manager, Majeed Sharif, remarks: “True to our mission statement, we will aim to become the telecommunications and internetworking solutions provider of choice for the state of Kuwait.” - Wataniya and Siemens team up (from itp.net, July 1, 2002) - Wataniya Telecom, the Kuwaiti telecom giant, has signed Siemens to install a GPRS network in the country. The contract, worth 53 million Euros, will also include the extension of SSS, BSS, IN, TR/MW and services. “We support our partner by end to end customized solutions that cover all the needs of a mobile world,“ said Dr. Abdullah Tourbah, vice president for Sales Siemens ICM Networks Middle East regional Head Quarters. “As a driving force behind GPRS and UMTS, Siemens is uniquely positioned to supply leading-edge technology to the world in general and to the Middle East in particular.” Siemens ICM N has a long-standing relationship with Wataniya Telecom, dating back to 1998 when Siemens became the operator’s sole supplier of SSS, BSS and IN. Since then, Siemens ICM N has been awarded several contracts from Wataniya Telecom, including setting up an Arabic language WAP system. “Siemens is a proven provider of end-to-end solutions and we are proud to be working with such an advanced and well-established partner,“ said David Murray, CEO, Wataniya Telecom. Kuwait mobile MTC <TELE.KW> H1 net soars to $157mln (July 29, 2001) KUWAIT (Reuters) - Kuwait Mobile Telecommunications Co (MTC), the country's largest provider of mobile services, on Saturday reported a 40.2 percent rise in the first half of 2001 net profit to 48.199 million dinars ($157 million).  The figure includes a payment of 11.875 million dinars received from a United Nations body in charge of distributing Iraqi compensation for damages and losses due to Baghdad’s 1990 invasion of Kuwait.  A statement to the Kuwait Stock Exchange received said earnings per share for the period rose to 100 fils, compared with 71 fils in the first six months of 2000. There are 1,000 fils to the dinar.  The statement did not give a figure for assets that stood at 229.3 million dinars in the first half of last year.  MTC made a net profit of 69.627 million dinars in 2000 when total assets were put at 268 million dinars.  MTC has some 650,000 subscribers in a country of 2.2 million people, 825,000 of whom are Kuwaitis. It expects the number of of subscribers to reach 800,000 by the end of 2001.  In June, the state sold half of its 49.2 percent stake in MTC at a discount of 1,453 dinars a share. Sources close to the operation said that MTC's public subscription had closed six times oversubscribed at around one billion dinars.  MTC shares were trading on Saturday unchanged at 1.86 dinars, compared with a year high of 1.96 dinar in March and a low of 1.58 in January.  The company purchases, delivers, installs and manages mobile telephones and paging systems. It invests in financial portfolios managed by specialized companies and institutions.  The country's other provider of mobile telephones and pagers, National Mobile Telecommunications Co <NMTC.KW>, reported a net profit off 2.001 million dinars in the first half of 2001.  It started offering its services in the oil-rich state in late 1999, ending a 15-year monopoly by MTC.  NMTC shares on Saturday were trading up 10 fils at 630 fils, compared with a year high of 700 fils on July 10 and a low of 450 fils in January. Kuwait Nat'l mobile swings to H1 profit (July 25, 2001) KUWAIT (Reuters) - Kuwait's second mobile operator, National Mobile Telecommunications (NMTC), posted a net profit in the first half of 2001 of 2.001 million dinars ($6.5 million) against a 1.405 million dinar loss in the same period last year.  The Kuwait Stock Exchange said in a statement on Wednesday that earnings per share for the period rose to 6.7 fils compared with a loss per share of 4.71 fils in the first six months of 2000.  There are 1,000 fils to the dinar. NMTC made a net profit of 231,317 dinars in 2000, when the company decided not to distribute profits for the year ending December 31, putting earnings per share at 0.78 fils.  The company started offering its services in the oil-rich state in 1999, ending a 15-year monopoly by Mobile Telecommunications Co (MTC), which recorded a 15.8 percent rise in 2000 net profit to 69.627 million dinars. MTC has not yet announced its 2001 half year results. NMTC shares were trading on Wednesday down 10 fils at 620 fils, compared with a year high on July 10 of 700 fils and a low of 450 in January. Kuwait stops calls between mobile firms over row (July 23, 2001) KUWAIT (Reuters) - Kuwait said on Sunday it cut communications between the country's two mobile firms for failing to remove a dual charge for subscribers worth about 25 million dinars ($81.5 million) a year.  Communications Ministry Undersecretary Abbas Khajjeh told the Kuwait News Agency that the ministry cut communications between Mobile Telecomunications Co and National Mobile Telecommunications Co as a first step after both companies failed "to respond to the ministry's warnings".  He said that the ministry has asked MTC and NMTC to refrain from charging their 700,000 subscribers a fee for receiving calls from the other company.  Currently a recipient of a call from a subscriber within the same company does not pay any charges.  NMTC started offering its services in the oil-rich state in late 1999, ending a 15-year monopoly by partly state-owned MTC. MTC hands Motorola expansion contract (from the itp.net, June 9, 2001) KUWAIT - Motorola is celebrating after landing a contract worth US $270 million from MTC, Kuwait’s biggest mobile operator. The American infrastructure giant’s Global Telecom Solutions Sector (GTSS) will expand MTC’s nationwide GSM network and conduct the country’s first GPRS trials. The GSM expansion will allow the soon-to-be-privatized MTC to serve 150,000 extra subscribers, with work due to be completed by the end of this year. MTC’s dual band network has been in operation since September 1999, and the GTSS will add its Horizon Systems GSM infrastructure solution to the 900 MHz and 1800 MHz spectrums. Commercial deployment of GPRS data services, described by a senior MTC official as “very exciting” are scheduled to commence early next year. Kuwait's MTC slips ahead of state sale (May 13, 2001) KUWAIT (Reuters) - Kuwait's stock market hit a new year high on Sunday but shares in the country's largest mobiles telecommunications firm slipped ahead of a discounted public share sell off.  On Monday, a month-long sale process opens to sell about half of the state's 49.2 percent stake in Mobile Telecommunications Co (MTC), the largest and oldest of two such firms in the oil-rich country.  It is offering 113 million MTC shares at a price of 1.453 dinars a share.  When the discounted sale was first announced in March, MTC shares, one of the most popular listed firms, started a gradual 10 percent decline from a year high of 1.96 dinars.  On Sunday, it fell 1.1 percent to close at 1.76 dinars a share while the Kuwait Stock Exchange (KSE) rose to the new year high of 1,536 points before ending the three-hour session up 2.3 points at 1,534.2 points.  There are 1,000 fils to the dinar ($3.25). The KSE index, recovering from five-year lows in January, closed on Sunday up 15 percent for 2001 but it is 46 percent below an all-time high of 2,836.9 points hit in November 1997.  Finance Minister Youssef Al Ibrahim said in an interview last week that the MTC sale would be followed by other offers for state stakes. Privatization of state-run basic services like water and power is several years away and a draft law sanctioning the revolutionary step still requires parliamentary approval.  But the state has key stakes in some 21 listed local firms worth well over one billion dinars ($3.3 billion) in addition to other similar holdings mostly acquired in a rescue plan after a spectacular collapse of an unregulated bourse in 1982.  From late 1996 to 1998 the state shed stakes in several local firms in a program, which earned it some $3 billion.  The MTC sale will be open only to the some 825,000 Kuwaitis.  Experts expect it to be well oversubscribed for one of few local firms which foreign investors appear to be interested in. Local banks showed a high level of confidence in MTC by offering to cover 90 percent of subscriptions by clients.  Including an 11.875 million dinar payment by a United Nations body distributing Iraqi funds for damages during its 1990-91 occupation of Kuwait, MTC reported a 90 percent jump in first-quarter net profits to 31.707 million dinars.   It made a net profit of 69.627 million dinars 2000 when total assets were valued at 268 million dinars. Kuwait revives sale of MTC <TELE.KW> shares (May 9, 2001) KUWAIT (Reuters) - Kuwait announced a revival of a plan to sell 113 million shares at a discount by public subscription in the country's largest mobile telecoms firm MTC <TELE.KW>.  The official Kuwait News Agency reported late on Tuesday that Kuwait Investment Authority, the state's investment arm, said it will sell half its 49.2 percent stake in Mobile Telecommunications Co at 1.453 dinars.  MTC shares closed on Tuesday at 1.78 dinars. They had risen 25 percent to a year high of 1.96 dinars in March but have declined since the government announced the plan to sell its stake at a discount.  There are 1,000 fils to the dinar ($3.25). The subscription will be open from May 14 till June 11. Kuwait Mobile MTCQ1 net soars to $103mln (May 7, 2001) KUWAIT (Reuters) - Kuwait Mobile Telecommunications CO (MTC) on Monday reported a 90 percent rise in first quarter 2001 net profit year-on-year to 31.707 million dinars ($103.28 million).  The figure includes a payment of 11.875 million dinars received from a United Nations body in charge of distributing Iraqi compensation for damages and losses due to Baghdad’s 1990 invasion of Kuwait. A statement to the Kuwait Stock Exchange said earnings per share for the period rose to 66 fils, compared with 34 fils in the first quarter of last year.  There are 1,000 fils to the dinar ($3.25). The statement did not give a figure for assets which stood at 221 million dinars in the first quarter of 2000.  MTC made a net profit of 69.627 million dinars in 2000 when total assets were put at 268 million dinars.  MTC shares were trading on Monday unchanged at 1.8 dinars. They had risen 25 percent to a year high of 1.96 dinars in March but have declined since the government announced a plan to sell about half of its 49.2 percent stake at a discount.  MTC purchases, delivers, installs and manages mobile telephones and paging systems. It invests in financial portfolios managed by specialized companies and institutions. Kuwait to sell MTC mobiles shares, other stakes (April 23, 2001)  KUWAIT (Reuters) - Kuwait's government appears set to go ahead within weeks with a modified plan to sell part of its 49.2 percent stake in Mobiles Telecommunications Co (MTC), the country's largest mobile telecoms firm, for just over $500 million, despite strong objections by some parliamentarians.  The elected parliament held a final debate on Monday on the controversial sale, which had been halted previously for a further review by MPs.  The government indicated that it will now go ahead with the sale by public subscription but gave no exact dates.  Minister of Finance Youssef Al Ibrahim told parliament the MTC sale was part of a revived plan to shed state holdings in several local firms, a programme halted in October 1998 after stakes worth some $3 billion had been sold since September 1996.  The government stepped in with a near $20 billion plan to rescue the local market after an unregulated stock exchange collapsed in 1982 but in 1996 it started selling back some of the stakes it had acquired in domestic companies.  OPEC member Kuwait is a global investor with key stakes in some of the world's largest firms. Its portfolio is valued at over $80 billion. Blue chip MTC is one of the most popular of some 90 listed concerns and is among just a few firms which foreign investors are expected to show a strong interest in after trading on the Kuwait Stock Exchange is opened to all foreigners.  The sale will be open only to some 825,000 people with Kuwaiti citizenship. Local banks have already notified customers of a readiness to finance up to 90 percent of their applications.  Parliament had last month held an extraordinary session in which MPs strongly critised the sale and demanded it be halted.  The government subsequently suspended the planned sale of 113 million shares in MTC at a discount, accounting for about half of the state’s 49.2 percent stake in the largest and oldest of two local mobile firms.  Ibrahim would not say when the planned public subscription would now take place but politicians said government statements indicate that it is weeks away.  Ibrahim told MPs that some of their concerns would be taken into consideration when the sale is revived, including transparency, a pledge to meet all applications by small investors seeking the minimum 250 shares, a longer subscription period and a wider publicity campaign.  Some of the speakers on Monday expressed fears that the sale was allegedly designed for the benefit of a handful of prominent Kuwaitis, but Ibrahim dismissed the claim.  MPs, like some investors, also alleged that some Kuwaiti citizens had already sold their identity cards to key investors to buy MTC shares on their behalf.  When the sale was first announced on March 18 at 1.453 dinars a share, MTC fell 5.2 percent to 1.84 dinars in the following day's trade.  It has dipped since to 1.72 dinars a share as parliament and the government clashed over the sale. MTC shed 20 fils on Monday to close at 1.80 dinars a share after hitting a year high of 1.96 dinars on March 10 -- a 25 percent rise for the year. Kuwait sale of mobiles firm could face new delay (April 10, 2001)  KUWAIT (Reuters) - Kuwait's sale of half of its stake in the country's largest mobiles firm MTC for over half a billion dollars faced a fresh delay on Tuesday when parliament failed to give the controversial plan a final review.  But the government indicated it might still go ahead with the plan while the elected house waits to discuss the issue at its next session in two weeks' time.  The sale "is an executive decision within the government's powers and we can go ahead with it, taking into consideration remarks (reservations) made by members of parliament," Deputy Prime Minister and Minister of State for Cabinet and Parliament Affairs Mohammad Sharar said after Tuesday's session. But ministers asked by Reuters would not give clear indications on the government's next steps in the public subscription which was due to open on April 2. The government suspended the sale of 113 million shares in Mobiles Telecommunications Co (MTC) at a discount after a heated parliamentary debate last month and the issue was sent for review by the finance committee of parliament. The committee has completed its report and politicians were expecting it to be discussed on Tuesday but the agenda was crowded and the issue was left unresolved. State-owned Kuwait Investment Authority, which holds the state's 49.2 percent stake in MTC, had announced the planned sale on March 18 at 1.453 dinars a share, triggering a decline of 5.2 percent to 1.84 dinars in the following day's trade.  MTC closed on Tuesday down 20 fils at 1.76 dinars, compared with a year-high on March 10 of 1.96 dinars -- a 25 percent rise for the year. There are 1,000 fils to the dinar ($3.255). Blue chip MTC is one of the most popular of some 87 listed concerns. It is among just a few firms which foreign investors are expected to show a strong interest in after trading on the Kuwait Stock Exchange was opened to all foreigners.  Several small investors had complained that the MTC sale would eventually place the company in the hands of an alliance of a few large local market players who already hold key stakes. MTC in April raised the company's capital to 49.33 million dinars from 46.98 million dinars, increasing the number of total shares to 493.3 million shares.  MTC's net profit rose 16 percent in 2000 to 69.627 million dinars while total assets stood at 268 million dinars. Kuwait govt to sell stake in mobiles firm MTC (from the middleeastwire.com, March 28, 2001)  KUWAIT - Kuwait's government said on Wednesday a controversial plan to sell 13 million shares in the country's largest mobile telecoms firm MTC would go ahead as planned for April 2, despite resistance in parliament.  Kuwait's opposition-dominated parliament on Wednesday passed a non-binding resolution to stop the state from selling a stake in Mobile Telecommunications Co (MTC).  But the government said in parliament during a debate on the controversial sale of 113 million MTC shares at a discount that the plan will go ahead as of April 2.  Parliamnent passed the resolution by 21 votes out of 36 MPs present. Several parliamentarians later told Reuters that the resolution was non-binding.  The state had announced to sell about half of its 49.2 percent stake in blue chip MTC by public subscription at 1.453 dinars a share. When the announcement was made MTC shares were trading at 1.94 dinars.  At 08:10 GMT MTC shares were trading up 20 fils at 1.9 dinars a share. Kuwait to sell part of its stake in mobiles firm (March 19, 2001)  KUWAIT (Reuters) - Kuwait has announced plans to reactivate a long frozen privatisation programme with the sale of a fresh stake in the country’s largest provider of mobile telecommunications. The state’s Kuwait Investment Authority (KIA), will sell 113 million shares in Mobile Telecommunications Co (MTC) <TELE.KW> by public subscription at 1.453 dinars a share ($4.718), the official Kuwait News Agency (KUNA) said late on Sunday. KIA, the state investment arm, has a stake of 49.192 percent in the blue chip MTC which has total subscribed shares of 447.436 million shares. MTC shares have been on the rise in recent days hitting new year highs. MTC shares closed unchanged on Sunday at 1.94 dinars, after hitting a new year high of 1.96 dinars on March 10. In late 1994, Kuwait launched a privatisation programme which mainly focused on selling state shares in local firms.  Some $3 billion worth of shares were sold under the programme which was later halted as the Kuwait Stock Exchange index fell by 50 percent from an all-time high in 1997. A more aggressive and controversial programme to also privatise state companies running basic services like water and electricity was also planned but faced many delays. The economic committee of the country’s elected parliament on Sunday approved a draft law which will govern the process ahead of presenting it to the full parliament for debate and an eventual vote. Kuwait cuts international call costs (from itp.net, February 4, 2001) By Jon Tullett International call charges from Kuwait to several other Arab nations have been reduced, the Arab Times newspaper has reported. Effective immediately, call charges have been cut to 300 fils/minute during peak hours, and 250 fils/minute off-peak (Fridays, public holidays, and from 1pm-4pm and 11pm-7am daily). The countries to which calls will be cheaper include Algeria, the Commoros Islands, Egypt, Jordan, Lebanon, Libya, Mauritania, Morocco, Palestine, Somalia, Sudan, Syria, Tunisia and Yemen. Reductions of call tariffs to other countries including Asia and Europe are also planned. The Kuwait Ministry of Communications said it has incurred hefty losses from the operations of international call-back operators, and faces stiff competition from ISPs. Call-back operators, which are illegal in many countries, provide an international number which, when called, will call back to the original caller with an open line, allowing calls to be made via alternative routes (such as via the US) where tariffs are cheaper. Although several countries have legislation forbidding the operation of call-back operators, they are a popular choice for users who need to call internationally on a regular basis, bypassing local operators and potentially causing economic damage to regulated environments. back to the News Center

HOME	About HATIF | Quality Products | HATIF News | Contact Hatif | Site Map