At last month's GSM>3G Middle East conference in Dubai, at which I had the pleasure of moderating a number of the sessions, the panel of speakers included Farid Lekhal, Chief Commercial Officer at Vodafone's Partner Markets business unit. I hope his comments on mobile broadband added a useful perspective for an audience largely representing telcos headquartered in the MENA region. MENA operations in which the Newbury, UK-based giant cellco has equity currently only number two. Vodafone Egypt is an established outpost of the company's global empire. Much newer is the operation in oil and gas-rich Qatar, where I believe services are expected to be launched in March this year.
Notwithstanding Vodafone's recent foray into Qatar, My guess is that across the Middle East the entry of a group with European roots to any market selling further licenses will be comparatively rare going forward. It looks far more likely that MENA-based groups will continue to grow their footprints in the region. One recent example: Saudi Telecom acquiring Bahrain's third mobile licence for USD 230 million, according to yesterday's report from Gulf News. The story indicates that three other firms had registered interest in the auction, something which Global Mobile Daily told me only eleven days ago in a piece which led me to infer that the Bahraini regulator was planning to launch a lengthier tender process. However, yesterday's Gulf News piece suggested that STC's bid was the only one received. The story also reveals the previously unknown prospective bidders, indicating that Mohammed al-Amer, Chairman of the Telecommunications Regulatory Authority of Bahrain, had said these named Bahrain's TwoConnect and Mena Telecom as well as a consortium including France Telecom subsidiaries Orange and Jordan Telecom.
Another major intra-regional move was the recent win in Iran by the Etisalat, where the UAE-based telco has snapped up the country's third national mobile licence. My colleague Matthew Reed, Editor of our Middle East and Africa Wireless Analyst publication, feels the deal was a bargain, noting that the license fee was only US$399 million, of which Etisalat is paying 49%, in line with its 49% stake in the consortium that won the license. Etisalat’s local partner is Tameen Telecom, an Iranian public-sector investment fund. Matt notes that the new operator will reportedly pay 23.6% of revenues to the Iranian government, though MCCI and MTN Irancell pay 28%.
Matt feels that Etisalat's new operation will enjoy - and exploit - the significant competitive advantage conferred by its licence, which confers the right to be the only 3G operator in Iran for two years. Matt notes that "perhaps more than any of its peers, Etisalat has put new technology at the heart of its strategy, saying that in this way it can future-proof itself because it will be able to offer the most up-to-date services and because the latest systems are cheaper in the long run."
Matt points to the example of Egypt, where Etisalat launched a 3.5G network on its debut in the country in May 2006, becoming the country’s first 3G operator. In Egypt, Etisalat had the 3G market to itself only briefly, since Vodafone launched its own 3G network within a couple of weeks, and Egyptian market leader Mobinil launched a 3G network in September. In Iran, Etisalat will look to make the most of a much longer period of 3G exclusivity.
Matt notes that "when Etisalat launches services - in six to nine months, according to company executives - it will most likely offer HSDPA services from the outset, as it did in Egypt." Matt feels this will enable Etisalat to offer data services such as mobile broadband and target Iran’s largely untapped broadband market, without any meaningful competition.
Showing posts with label Qatar. Show all posts
Showing posts with label Qatar. Show all posts
25 Sept 2008
Middle East face European competitors at home and go hunting for new markets worldwide
I expect the discussions and the audience profile at our annual GSM>3G Middle East event in Dubai to reflect the flow of strategic telecoms investment monies into and out of the Gulf region.
Vodafone is entering the Qatari market and is set to offer both mobile and fixed-line services. Turkcell has been interested in extending its footprint into the Middle East for some time. After an abortive attempt to enter the Iranian market in 2005-06, the Turkish MNO has more recently been rumoured to have an interest in Syria. Both of these companies are represented at CxO level at our conference.
Telcos headquartered in the Middle East, meanwhile, have been shopping for opportunities in emerging markets in other regions. For example, the African mobile scene is now dotted with subsidiaries of Zain, Etisalat and Comium.
The next target looks to be India. Telecoms.com yesterday reported Etisalat's agreement to buy 45% of Indian mobile operator Swan Telecom for $900m in cash, with the UAE telco's Chairman Mohammad Hassan Omran, commenting: "Our entry in India, one of the largest and fastest growing mobile markets in the world today, marks an acceleration of our expansion strategy and brings to us an opportunity which matches the scale of our ambitions."
Etisalat, leading sponsor of our December conference and exhibition in Dubai, will doubtless field many questions from participants about this and other elements of the company's international expansion strategy.
Vodafone is entering the Qatari market and is set to offer both mobile and fixed-line services. Turkcell has been interested in extending its footprint into the Middle East for some time. After an abortive attempt to enter the Iranian market in 2005-06, the Turkish MNO has more recently been rumoured to have an interest in Syria. Both of these companies are represented at CxO level at our conference.
Telcos headquartered in the Middle East, meanwhile, have been shopping for opportunities in emerging markets in other regions. For example, the African mobile scene is now dotted with subsidiaries of Zain, Etisalat and Comium.
The next target looks to be India. Telecoms.com yesterday reported Etisalat's agreement to buy 45% of Indian mobile operator Swan Telecom for $900m in cash, with the UAE telco's Chairman Mohammad Hassan Omran, commenting: "Our entry in India, one of the largest and fastest growing mobile markets in the world today, marks an acceleration of our expansion strategy and brings to us an opportunity which matches the scale of our ambitions."
Etisalat, leading sponsor of our December conference and exhibition in Dubai, will doubtless field many questions from participants about this and other elements of the company's international expansion strategy.
16 Sept 2008
Vodafone on the convergence trail in Qatar?
I am back in the UK, having spent much of last week at our annual Americas Com conference in Brazil. My marketing folks need me to write up the stories coming out of that gathering for our post-event press materials. Much of that can be re-purposed for this blog, so I'll share some of what I heard in Rio later this week.
I've returned to an interesting snippet of news from the Middle East.
We've known for some time now that Vodafone will be entering the Qatari mobile market. I understand that this is on track to happen in March 2009, despite reports earlier this year that a 2008 launch was on the cards. This week's news item concerns Vodafone's acquisition of a fixed-line licence in Qatar, breaking the monopoly of state-controlled QTel, whose mobile business has also owned the whole market in the cellular space up until now.
Vodafone and its consortium partners prevailed over a number of other interested parties, including AT&T, Verizon, Batelco (Bahrain), Jordan Telecom and BT.
According to these reports, fixed-line services from Vodafone Qatar should come on line at some stage next year. I am not clear on whether there will be a significant gap between this and the launch of mobile services, but I will certainly be interested to see if Vodafone exploits what looks like a great opportunity to build a fully integrated FMC player from scratch. With no hard data to back my hunch, I minded to guess that plans could well be in place to build a single core network, an integrated billing system and all the other elements needed to offer services seamlessly across fixed and mobile networks. I wonder if from the very start the business will also be structured such as to avoid creating distinct fixed and mobile silos within the organisation. Having heard so many telco execs describing the myriad challenges around integrating previously distinct fixed and mobile business units, it would seem to make sense to avoid all of that from day one.
Whatever route the new Vodafone operator takes, the man at the helm is certainly someone I know to be a highly charismatic leader. Grahame Maher got the CEO role back in April this year, having previously led Vodafone's Czech Republic operator. Maher was in this role when I had the pleasure of meeting him last year and in 2006. For both my previous company and here at Informa Telecoms & Media, I was charged with developing and hosting CEE region conferences. Prague was the venue in both cases. Maher was a very persuasive and innovative speaker at these events, notably in 2006, when he eschewed the use PowerPoint slideware. He chose instead to work the room dressed in the jeans-and-a-sweater look seemingly still favoured by the top management at Vodafone CZ, this being something of a trademark kept on when the giant cellco acquired the former Oskar-branded operator from Telesystem International Wireless of Canada. Maher wanted to make the point that customers don't want to get their heads around complexity or to understand how services work. They want it all cheap and simple. To demonstrate this, Maher had plucked a young Vodafone customer from the streets of Prague and placed him among the grey-suited telecoms executives in the conference room. The young man was asked to stand up and was then bombarded with questions about his tariff, about access network technologies and more. Naturally, he failed to answer any of these questions in detail. But he did say he cared about price and didn't want to think too much about his Vodafone service.
Maher's new role in Qatar means we have had to look elsewhere for exciting speakers at this week's CEE Com conference (again in Prague), which kicks off tomorrow. I was not able to be there this year but know that our team at the event will be working hard to make the delegates' time in the Czech capital enjoyable as well as productive.
I am hopeful that Mr Maher may be able to join us at our Middle East event this December. I know he's great value on the panel of speakers so we will try to make that happen.
I've returned to an interesting snippet of news from the Middle East.
We've known for some time now that Vodafone will be entering the Qatari mobile market. I understand that this is on track to happen in March 2009, despite reports earlier this year that a 2008 launch was on the cards. This week's news item concerns Vodafone's acquisition of a fixed-line licence in Qatar, breaking the monopoly of state-controlled QTel, whose mobile business has also owned the whole market in the cellular space up until now.
Vodafone and its consortium partners prevailed over a number of other interested parties, including AT&T, Verizon, Batelco (Bahrain), Jordan Telecom and BT.
According to these reports, fixed-line services from Vodafone Qatar should come on line at some stage next year. I am not clear on whether there will be a significant gap between this and the launch of mobile services, but I will certainly be interested to see if Vodafone exploits what looks like a great opportunity to build a fully integrated FMC player from scratch. With no hard data to back my hunch, I minded to guess that plans could well be in place to build a single core network, an integrated billing system and all the other elements needed to offer services seamlessly across fixed and mobile networks. I wonder if from the very start the business will also be structured such as to avoid creating distinct fixed and mobile silos within the organisation. Having heard so many telco execs describing the myriad challenges around integrating previously distinct fixed and mobile business units, it would seem to make sense to avoid all of that from day one.
Whatever route the new Vodafone operator takes, the man at the helm is certainly someone I know to be a highly charismatic leader. Grahame Maher got the CEO role back in April this year, having previously led Vodafone's Czech Republic operator. Maher was in this role when I had the pleasure of meeting him last year and in 2006. For both my previous company and here at Informa Telecoms & Media, I was charged with developing and hosting CEE region conferences. Prague was the venue in both cases. Maher was a very persuasive and innovative speaker at these events, notably in 2006, when he eschewed the use PowerPoint slideware. He chose instead to work the room dressed in the jeans-and-a-sweater look seemingly still favoured by the top management at Vodafone CZ, this being something of a trademark kept on when the giant cellco acquired the former Oskar-branded operator from Telesystem International Wireless of Canada. Maher wanted to make the point that customers don't want to get their heads around complexity or to understand how services work. They want it all cheap and simple. To demonstrate this, Maher had plucked a young Vodafone customer from the streets of Prague and placed him among the grey-suited telecoms executives in the conference room. The young man was asked to stand up and was then bombarded with questions about his tariff, about access network technologies and more. Naturally, he failed to answer any of these questions in detail. But he did say he cared about price and didn't want to think too much about his Vodafone service.
Maher's new role in Qatar means we have had to look elsewhere for exciting speakers at this week's CEE Com conference (again in Prague), which kicks off tomorrow. I was not able to be there this year but know that our team at the event will be working hard to make the delegates' time in the Czech capital enjoyable as well as productive.
I am hopeful that Mr Maher may be able to join us at our Middle East event this December. I know he's great value on the panel of speakers so we will try to make that happen.
4 Sept 2008
Bahraini WiMAX-er signs up for our Middle East speaker panel
Today I received the welcome news that MENA Telecom are to be represented at a high level on the panel of speakers at our December Middle East region telecoms conference/exhibition in Dubai. So I look forward to meeting the company's Deputy CEO Mr Laith Sadiq when we assemble the great and the good of the region's burgeoning telecoms sector.
When working out what to feature on this year's conference agenda, we got mixed reviews about the business case for WiMAX in the Middle East, with answers varying widely across markets and across the types of telecoms service provider with which we were having conversations. So it seems that there continues to be a live debate about the prospects for WiMAX technology in the region. With this in mind, we are sure that MENA Telecom will be a very useful contributor to the discussions. The Bahrain Tribune reported in July that the company was busily adding friendly user accounts during the testing phase of its new WiMAX 802.16e network. A full nationwide lauch is "on the horizon" according to the report.
Something I am not clear about is whether the company plans to enter the mobile services arena. Back in January, Informa Telecoms & Media's fortnightly research service 'Middle East and Africa Wireless Analyst' reported that the Bahraini Telecoms Regulatory Authority was considering whether to license a third mobile operator. The MEAWA story reported TWA frustration with relatively limited price and service competition. The small Gulf state's two current mobile players are the mobile arm of incumbent operator Batelco and the local subsidiary of the Zain group.
In the article, MEAWA's Matthew Reed speculated that Vodafone, which won the contest for Qatar's second mobile license might also be interested in Bahrain. Reed noted that both "both countries offer high ARPUs, have aggressive economic-development plans and are located in the strategically significant Gulf, midway between Vodafone operations in Egypt, Turkey and India."
I don't know how much signifance to attribute to the fact that one of the very first speakers to confirm his participation at our December conference was Hatem Dowidar, Vodafone's CEO of the Partner Markets area of the business. If the nature and extent of the giant global cellco's interest in the Gulf markets is unclear by December, I daresay some conference participants will ask Mr Dowidar for his opinion.
Reed also noted that Saudi Telecom, which had earlier won the another recent Gulf license contest, for the third operator in Kuwait, migth have Bahrain in its sights. However, Reed went on to note that "another option would be to remove the mobility restriction on fixed-wireless licenses, of which the TRA has issued two." The licensees? Mena Telecom and Zain. I really couldn't say how seriously this option is being considered now by the Bahrain TRA. Again, if this notion has any substance to it, I'd guess that some delegates at our event will attempt to probe MENA Telecom's Sadiq in Q&A sessions and/or offline during the many networking breaks.
Whatever happens in Bahrain between now and December, I am really pleased to have secured the participation of Mr Sadiq. Our event has rejoiced in the name GSM>3G Middle East for some years - and was known as GSM Middle East before that. We really need to think more broadly than that as network standards, services and business units converge everywhere, making the old fixed/mobile distinction fuzzier and fuzzier with each moment that passes.
When working out what to feature on this year's conference agenda, we got mixed reviews about the business case for WiMAX in the Middle East, with answers varying widely across markets and across the types of telecoms service provider with which we were having conversations. So it seems that there continues to be a live debate about the prospects for WiMAX technology in the region. With this in mind, we are sure that MENA Telecom will be a very useful contributor to the discussions. The Bahrain Tribune reported in July that the company was busily adding friendly user accounts during the testing phase of its new WiMAX 802.16e network. A full nationwide lauch is "on the horizon" according to the report.
Something I am not clear about is whether the company plans to enter the mobile services arena. Back in January, Informa Telecoms & Media's fortnightly research service 'Middle East and Africa Wireless Analyst' reported that the Bahraini Telecoms Regulatory Authority was considering whether to license a third mobile operator. The MEAWA story reported TWA frustration with relatively limited price and service competition. The small Gulf state's two current mobile players are the mobile arm of incumbent operator Batelco and the local subsidiary of the Zain group.
In the article, MEAWA's Matthew Reed speculated that Vodafone, which won the contest for Qatar's second mobile license might also be interested in Bahrain. Reed noted that both "both countries offer high ARPUs, have aggressive economic-development plans and are located in the strategically significant Gulf, midway between Vodafone operations in Egypt, Turkey and India."
I don't know how much signifance to attribute to the fact that one of the very first speakers to confirm his participation at our December conference was Hatem Dowidar, Vodafone's CEO of the Partner Markets area of the business. If the nature and extent of the giant global cellco's interest in the Gulf markets is unclear by December, I daresay some conference participants will ask Mr Dowidar for his opinion.
Reed also noted that Saudi Telecom, which had earlier won the another recent Gulf license contest, for the third operator in Kuwait, migth have Bahrain in its sights. However, Reed went on to note that "another option would be to remove the mobility restriction on fixed-wireless licenses, of which the TRA has issued two." The licensees? Mena Telecom and Zain. I really couldn't say how seriously this option is being considered now by the Bahrain TRA. Again, if this notion has any substance to it, I'd guess that some delegates at our event will attempt to probe MENA Telecom's Sadiq in Q&A sessions and/or offline during the many networking breaks.
Whatever happens in Bahrain between now and December, I am really pleased to have secured the participation of Mr Sadiq. Our event has rejoiced in the name GSM>3G Middle East for some years - and was known as GSM Middle East before that. We really need to think more broadly than that as network standards, services and business units converge everywhere, making the old fixed/mobile distinction fuzzier and fuzzier with each moment that passes.
13 Aug 2008
Middle East market liberalisation offering opportunities for strategic investors
Most of my attention is on the Middle East right now - we are working hard to improve further one of the two largest events in the Com World Series, our annual conference and exhibition in Dubai, at which we gather telco execs from all over (and beyond) the region. This year's iteration will take place 15-16 December. So I find myself paying most attention to news items relating to the Middle East this week.
Telecoms.com reported yesterday that the Government of Oman has opened bidding on a new fixed line telecommunications licence to be made available in the country, opening up the market to overseas investors. As the report notes, this may be an attractive opportunity for some, given that Oman's fixed line penetration rate is approximately 10%, with even lower broadband penetration. There is clearly ample room for growth. However, we will watch with interest to see if the overall scale of the opportunity catches the attention of major regional and global players.
As the telecoms.com story point out, Oman is not a very large market, with a population of approximately 2.75 million. While that population enjoys good living standards, the county's oil reserves are limited in comparison with those of some of its neighbours, which may make for an uncertain economic outlook.
A far larger market which will pique the interest of some in 2008 is the Islamic Republic Iran, home to over 70 million people. Earlier this year, I heard first-hand about a number of investment opportunities in Iran. Both our Eurasia Com conference in Turkey and our Russia & CIS Com conference in Moscow were attended by an Iranian Government delegation keen to flag up these opportunities. Infer what you will from the fact that the Iranian group was speaking to an audience drawn in part from Russia's 'big three' mobile operators (MTS, MegaFon, Vimpelcom) on each occasion.
At both event, I heard about how mobile penetration of only around 40% means that the new licensee will enjoy access to a market with a high level of pent-up demand. In the short term, the Iranian Government expects the new operator to acquire over 5 million subscribers by 2010. One attraction of the new licence may prove irresistible - the new operator will enjoy two years' exclusivity in the provision of 3G services.
This is just one of three opportunities in Iran, the sale of WiMAX-friendly spectrum/licences and the privatisation of incumbent fixed-line carrier TCI being the others.
In the next few weeks, I will be working to secure the participation of a high-level Iranian delegation at our Dubai event in December. Delegates from around and beyond the Middle East are sure to be interested to keep abreast of these developments.
It is exciting to be working on one of Informa Telecoms & Media's most important events and it's been gratifying to receive unsolicited expressions of interest from companies like Vodafone and Turkcell. The UK-headquartered global cellco will be represented on the panel of speakers by Hatem Dowidar, CEO the company's Partner Markets unit. Vodafone made the news earlier this year by confirming it's entry to the Qatari market, purchasing that country's second mobile licence. Turkcell, represented at our conference by Tayfun Çataltepe, Chief Corporate Strategy Officer and International Expansion Officer, was reported earlier this year to be interested in acquiring a stake in Syrian MNO SyriaTel, albeit with a background of US Treasury Department pressure to drop out of the deal.
With so much going on in the region, it is proving very absorbing to be studying developments and working to get the big players on board for our conference.
Telecoms.com reported yesterday that the Government of Oman has opened bidding on a new fixed line telecommunications licence to be made available in the country, opening up the market to overseas investors. As the report notes, this may be an attractive opportunity for some, given that Oman's fixed line penetration rate is approximately 10%, with even lower broadband penetration. There is clearly ample room for growth. However, we will watch with interest to see if the overall scale of the opportunity catches the attention of major regional and global players.
As the telecoms.com story point out, Oman is not a very large market, with a population of approximately 2.75 million. While that population enjoys good living standards, the county's oil reserves are limited in comparison with those of some of its neighbours, which may make for an uncertain economic outlook.
A far larger market which will pique the interest of some in 2008 is the Islamic Republic Iran, home to over 70 million people. Earlier this year, I heard first-hand about a number of investment opportunities in Iran. Both our Eurasia Com conference in Turkey and our Russia & CIS Com conference in Moscow were attended by an Iranian Government delegation keen to flag up these opportunities. Infer what you will from the fact that the Iranian group was speaking to an audience drawn in part from Russia's 'big three' mobile operators (MTS, MegaFon, Vimpelcom) on each occasion.
At both event, I heard about how mobile penetration of only around 40% means that the new licensee will enjoy access to a market with a high level of pent-up demand. In the short term, the Iranian Government expects the new operator to acquire over 5 million subscribers by 2010. One attraction of the new licence may prove irresistible - the new operator will enjoy two years' exclusivity in the provision of 3G services.
This is just one of three opportunities in Iran, the sale of WiMAX-friendly spectrum/licences and the privatisation of incumbent fixed-line carrier TCI being the others.
In the next few weeks, I will be working to secure the participation of a high-level Iranian delegation at our Dubai event in December. Delegates from around and beyond the Middle East are sure to be interested to keep abreast of these developments.
It is exciting to be working on one of Informa Telecoms & Media's most important events and it's been gratifying to receive unsolicited expressions of interest from companies like Vodafone and Turkcell. The UK-headquartered global cellco will be represented on the panel of speakers by Hatem Dowidar, CEO the company's Partner Markets unit. Vodafone made the news earlier this year by confirming it's entry to the Qatari market, purchasing that country's second mobile licence. Turkcell, represented at our conference by Tayfun Çataltepe, Chief Corporate Strategy Officer and International Expansion Officer, was reported earlier this year to be interested in acquiring a stake in Syrian MNO SyriaTel, albeit with a background of US Treasury Department pressure to drop out of the deal.
With so much going on in the region, it is proving very absorbing to be studying developments and working to get the big players on board for our conference.
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