Ethiopia: Paving the Way for Dubai 2020 Expo

Dubai has been climbing the ladder of economic prosperity during the past thirty or so years. Recently a small city in the United Arab Emirate (UAE) , Dubai, has secured the opportunity to host the upcoming World Expo in 2020.

In relation to the 2020 Expo, and eying more business ties, the Dubai Chamber of Commerce and Industry is joining hands to promote the expo. Last week, Hassan Al Hashemi, vice president of international relations for the chamber, was in Addis Ababa to confer with the East and Southern African countries' diplomats. In addition to improving business ties with the region, he has a mission to prepare Africa for the Dubai expo.

On that occasion, Al Hashemi sat down with Birhanu Fikade of The Reporter to discuss Dubai business community's interest in Ethiopia and its challenges. Excerpts: The Reporter: I understand that you [members of the Dubai Business community] are showing interest in Ethiopia's banking and telecom sectors. Did you approach the government in this respect?

Hassan Al Hashemi: What we have been hearing from the business community in Dubai is that there is a lot of potential in Ethiopia. Surely, we can bring a lot of know-how to these sectors that you mentioned. But the banking sector needs to be opened to foreign investors. It's an important sector. I know from our members that they are very much interested to be able to set up representations in the banking industry. I know the telecommunication sector as well interests them . Our major telecom operator, Etisalat, is very much interested in the Ethiopian market. We understand the policy of the government; and we respect it. According to the our member businesses, there is a lot to improve in those industries like the retail trade, telecommunication, and banking. More specifically, Islamic banking modality is very important to the market.

source: www.allafrica.com

M2M world allaince delivers first multi operator global solution

The M2M World Alliance, which is comprised of Etisalat, KPN, NTT DOCOMO, Rogers, SingTel, Telefonica, Telstra and VimpelCom, today officially unveiled its solution which aims to simplify and promote the adoption of machine-to-machine (M2M) communications worldwide.

The unique solution will leverage the operators' combined global presence to benefit customers who are looking for regional or global M2M deployments. It allows companies to enjoy connectivity throughout the Alliance coverage area with in-market rates. Additional benefits include easier compliance with local market regulations and the potential for multinationals to provide global technical support from a single market.

The name "M2M World Alliance" has recently been created to identify the group's coordinated operations.  Its multi-coloured logo represents the Alliance's aspiration to coordinate the delivery of M2M services globally.

"We believe that our unique and seamless solution will drive rapid growth in the adoption of M2M communications worldwide by giving our customers the ability to operate connected devices globally at a reduced cost," said Angel David Garcia Barrio, Chairman of the M2M World Alliance. "With operations in more than 60 countries, the Alliance's global footprint presents multinational organizations with a seamless approach to deploying connected devices in multiple countries at one time."

M2M communications are used when machines - a broad term for equipment used in all sorts of industries, including consumer electronics, utilities, agriculture and construction - connect and exchange information with information technology infrastructure. It is considered by many as the latest stage in the internet's evolution: when cyberspace reaches beyond the traditional confines of computers to connect to any device with a microprocessor.

Major growth areas identified by the M2M World Alliance for its global solution include connected cars, fleet management, smart meters, consumer electronics, game consoles, wearable electronics, telehealth and security solutions.

"Access to a simple, seamless SIM solution on a global platform presents a significant growth opportunity for global businesses deploying connected devices," said Mansell Nelson, Vice President, M2M, Rogers Communications. "Our single SIM card makes it easier for businesses to deploy connected devices in multiple countries and will drive further growth for the machine-to-machine business at Rogers."

source: www.newswire.ca

Etisalat Seeks Back Up For $5.79b Maroc Telecom Acquisition

Abu-Dhabi-based telecoms operator, Etisalat, last week called on banks to financially back its €4.2 billion ($5.79 bn) acquisition of a 53 percent shareholding in Maroc Telecom, Morocco’s main telecommunications firm.

In April this year, Etisalat had agreed to an $8 billion loan to fund its purchase of 53 percent of Maroc Telecom from Vivendi, the French telecoms firm, according to Reuters.

Reuters also quoted one banker as saying: “Banks have had the loan commitment on their balance sheets for eight months but will not earn any money until the acquisition is completed and Etisalat signs and draws down the loan, which is expected in January.”

Earlier this year, Morocco’s state investment vehicle, Caisse de Depot et de Gestion (CDG), said it could partner with the Dubai-based Etisalat in an effort to acquire the 53 percent shareholding in Maroc Telecom (Maroc).

CDG CEO, Anas Alami, also said legislation permitted them to usurp up to 10 percent of Maroc.

 source: www.ventures-africa.com

Qualcomm cooperates with Egyptian mobile operators

Qualcomm, provider of the processors for many notable mobile brands, tablets and smart-devices as well as developer of internet wireless network in Egypt, attended the Information and Communications Technology (ICT) conference to launch their latest project and showcase their support for the Egyptian technology and communication industry.

The Daily News Egypt spoke with Moheb Ramsis Senior Director of Business Development for Qualcomm in North Africa in order  to discuss Qualcomm’s latest projects in Egypt, their cooperation with mobile operators as well as plans for investment in the future.

Our strategy in Egypt is focused on a variety of things. Qualcomm in has a major interest in two particular things. One is the processors and this is the main business for Qualcomm. Many of the mobiles today are using Qualcomm chips.

Secondly we focus on licensing, for the 3G and 4G technology.  We played a key role in the development of the 3G and 4G networks and as a result earn royalties on these licenses. This is a major revenue stream for Qualcomm.

Egypt specifically is a market that is very price and brand sensitive. At the high-tier of smartphones today, most of the big names are using our chips. These include Samsung, LG, HTC and Song. We are focusing on Smartphones and tablets, which are connected to Egyptian 3G networks. Our strategy has two main focuses. The first strategy is concerned with enabling and empowering more entry level Smartphones, using the 3G network. This is done through the marketing of popular brands to the user. In this effort we are attempting to bring Smartphones to the lowest price possible while maintaining quality.

For example Etisalat recently released a tablet which uses a Qualcomm processor and which draws on a “Qualcomm reference design”. Which is the name of our initiative and it basically concerns selling supplier the chips cells and designs which will save the supplier money, time and resources. Allowing manufacturers to develop design and focus more on user interface and differentiating their technologies. This allows manufacturers to develop products of optimal quality and price.

source: www.dailynewsegypt.com

Airtel may exit from Sri lanka by selling telecom business to Etisalat

Telecom service provider Bharti Airtel is likely to exit from Sri Lankan mobile market by selling its business to Etisalat.

Hindu Business Line reported that negotiations between Bharti Airtel and Etisalat have advanced to final stages.

An announcement from Airtel is expected before the return of Manoj Kohli, managing director and chief executive officer (International) of the company, in January to India. Kohli is also in-charge of the company’s operations in Africa, Bangladesh and Sri Lanka.

Bharti Airtel, which launched its Sri Lanka operations in 2009, has less than two million users in the country. Airtel has invested over $300 million to roll out services in Sri Lanka but continues to make losses.

In Sri Lanka, Airtel operates across 25 administrative districts with distribution network of over 41,400 retailers. Airtel, which did not bid for 4G spectrum, offers 3.5G services which are present across major towns in Sri Lanka.

source: www.telecomlead.com

African telecom landscape looks towards high speeds

number of factors have contributed to Africa’s increasing adoption of mobile phones for internet use over PCs — cost and lack of ethernet infrastructure for two. The cost of computers versus the lower prices of mobile phones in addition to the lack of physical internet cable implementation has spurred the growth of mobile devices in Africa — a trend that is now of global proportion. But Africa’s mobile scene presents unique challenges, and the recently reported interest in the continent’s digital communications from Mideast and European telcos has spun a larger conversation over the future of the continent’s growth.

MidEast telcos have been developing their presence in North Africa for a while. Etisalat — an Emirates-based telco — took over France’s Vivendi’s stake in Maroc Telecom in July, heightening its presence in West Africa. ( Maroc Telecom was also Morocco’s largest operator, according to reports.) And European companies such as Orange have been increasing their investments in various countries to get a foothold in the developing markets. These growing investments from operators have accumulated throughout the year, and made for conversation at AfricaCom 2013 — a telecom conference held in Cape Town, South Africa earlier in November which calls together global technology leaders.

An executive from Gemalto — a digital security company — spoke after the conference and called for operators to take advantage of the unique communications landscape in Africa in order to bypass 3G implementation and escalate quickly to 4G. While attaining high speed wireless seems unlikely in regions that have barely reliable 2G, Sherry Zameer, head of Africa and Middle East telecommunications for the company, described the lack of regulation and restrictive platforms actually make Africa ripe for the buildout of 4G.

source: www.blouinnews.com

Gulf groups gets serious in Africa

Etisalat's deal to buy a stake in Maroc Telecom is a sign of renewed commitment to African telecoms, but some players with smaller stakes are continuing to withdraw.

When French group Vivendi decided to sell its 53% stake in Maroc Telecom last year, two Gulf-based mobile operators – Etisalat and Ooredoo – emerged as front- runners.

Middle Eastern telecoms groups are no strangers to the African continent. After a decade of mixed fortunes, including some faltering first steps and a cluster of disparate investments, they are re-engaging in earnest to boost international revenue.

"Middle Eastern markets are getting more competitive, particularly in the GCC [Gulf Cooperation Council], so that's created a push factor for Middle Eastern operators to look elsewhere for continued growth, to adjacent less-advanced markets," says Matthew Reed, principal analyst for the Middle East and Africa at Informa Telecoms & Media in Dubai.

In the end, it was United Arab Emirates-based Etisalat that came out top of the Maroc Telecom bidding war, entering into exclusive talks in July with Vivendi and agreeing to pay $ 5.3 bn for the stake in early November.

We call Maroc Telecom a cash machine because it is a very profitable company, thus many bidders were interested," explains Jawad Kerdoudi, director of the Institut Marocain des Relations Internationales.

"But I think Morocco would be happy to see a UAE company buying Vivendi's share as it will reinforce our relations with the Gulf region," he says. A source within Morocco's parliament, who asked not to be named, said the move could be "considered an extra step towards our GCC membership."

Etisalat did not respond to requests for an interview about the deal negotiations.

source: www.theafricareport.com

Etisalat wins performance award at commsMEA

Etisalat, a leading telecom operator in the Middle East and Africa, has won the industry award as the ‘Overall Operator of the Year’ at the recent CommsMEA Awards 2013 in Dubai.

The annual award was presented to the operator that has managed to stand out from all the rest, either in a specific field or across a number of disciplines. The judging criteria focused on numerous aspects of businesses, including growth, financials, innovation and quality of service.

The eighth edition of the annual CommsMEA awards and acknowledges operators and individuals who have taken a leadership role in the region’s fast growing and rapidly changing telecoms sector.

This achievement was possible mainly due to the huge investment in setting up the network made by Etisalat UAE which exceeded Dh19 billion ($5.17 billion). Etisalat has also pioneered mobile services in the UAE including the first 3G, 3.5G, 3.75G and 4G services in the region. The operator is credited with building the UAE’s first and the region’s widest 4G LTE network. Etisalat successfully tested the world’s fastest speed of 300Mbps over its 4G LTE network.

Saleh Al Abdooli, Etisalat CEO, said: "Etisalat has always been at the forefront of providing customers with the latest services and technologies. There is always an effort to provide a number of unique benefits to customers and businesses alike through the provision of an advanced and scalable network, reliability, and best customer service along with faster response time.”

“The award recognises these efforts and is well deserved for the successes achieved this year. This was all possible due to our dedicated team and partners helping us to deliver highest quality, innovative services and technologies, making UAE one of the most connected countries in the world,” he added.

Roger Field, editor, CommsMEA said: “Etisalat continued to achieve growth in its home market in the face of tough competition by launching a raft of offers to increase uptake of services, from IPTV packages to mobile broadband and business packages. It also invested in its network and successfully completed testing voice over LTE earlier in the year, allowing it to launch HD-quality voice services.


source:www.tradearabia.com

Etisalat to buy Vivendi 53% stake in Maroc telecom

The cash transaction also includes 7.4 Moroccan dirhams per share paid by Maroc Telecom to the French company. The purchase will give the UAE telecom operator control over the largest carrier in Morocco.

“It is a perfect bit for etisalat and they are in the right direction. They can use their products and services which are highly acceptable in this part of the world. Africa is a prefect building ground for etisalat,” Bhanu Chaddha, senior telecom analyst at research firm International Data Corporation, told Gulf News.

Since the UAE market is getting saturated, he said etisalat needs to look at diversification. The international operations are now delivering the benefits for etisalat and that strategy is moving in the right direction.

Etisalat, which is present in 15 countries across the Middle East, Africa and Asia, recorded a revenue of Dh699 million from its Africa cluster in the third quarter, up one per cent in comparison to the same period last year.

“Going forward, it is more important for etisalat. The recent regulatory changes in the UAE are expected to increase the competitive dynamics. But etisalat is more carefully evaluating the market,” Chaddha said.

“Closing of the acquisition of Vivendi’s stake in Maroc Telecom by etisalat is subject to a number of conditions,” etisalat said in an emailed statement.

These include, among others, the execution of a shareholders’ agreement with the Kingdom of Morocco regarding Maroc Telecom, securing competition and regulatory and approvals in the Kingdom of Morocco and certain other relevant jurisdictions in Maroc Telecom’s footprint.

Maroc has minority stakes in other African markets — Burkina Faso, Gabon, Mali and Mauritania.

These are emerging markets and there are “opportunities for expansion

Maroc Telecom posts revenue drop, big rise in African subscribers

Maroc Telecom, the leading Moroccan telecommunications company currently the subject of an acquisition bid by Etisalat, has reported a 4.7 per cent drop in revenue for the first nine months of 2013 compared to the same period last year.

HumanIPO reported last month Etisalat had been given until  to complete negotiations with Vivendi over the acquisition of the latter’s 53 per cent stake in Maroc Telecom, but there has been no further update regarding the takeover.

Etisalat posted its own , which included a 38 per cent hit on its earnings before interest, tax, depreciation and amortisation (EBITDA) in Africa for the third quarter of 2013.

Maroc Telecom has, however, continued to grow its customer base, with a 15.2 per cent rise in postpaid mobile subscribers, 31.2 per cent increase in 3G internet customers and a 21.8 per cent rise in ADSL subscriptions.

“Despite ongoing intense competition and a difficult economy, Maroc Telecom Group is seeing its strategies pay off,” said Abdeslam Ahizoune, chairman of the management board at Maroc Telecom.

“As a result of the quality and innovation that characterize its offers, and thanks to cost-cutting efforts, the Group is able to maintain its annual targets.

“To satisfy the rapid growth of voice and internet use over all its networks, the Group continues to invest in Morocco and in its sub-Saharan African subsidiaries, with an emphasis on providing a rapid transition from high-speed to very-high-speed broadband.”

Maroc Telecom also has African operations in Burkina Faso, Gabon, Mali and Mauritania.

The results showed that its international businesses grew by 9.5 per cent during the first nine months of 2013, with operations in Gabon performing the strongest with a 13.1 per cent increase in revenue, followed by Mali, where revenues rose by 10.7 per cent.

Despite revenue growing by 8.4 per cent in Mauritania, its customers numbers dropped by 8.8 per cent to 1.88 million.

In Burkina Faso, Maroc Telecom increases its subscriber numbers by 11.4 per cent to 4.22 million, while in Gabon the operator now has 975,000 customers, an increase of 21.3 per cent.

Etisalat to pay vivendi $5.3 billion for maroc telecom stake

The two companies had signed a shareholder agreement for the sale after weeks of wrangling over the deal. Etisalat made a binding offer in July that valued Vivendi's stake in Maroc Telecom at €3.9 billion ($5.27 billion). It will also pay Vivendi €300 million in cash; equivalent to the 2012 dividend of 7.40 dirhams a share set aside by Maroc Telecom for the French investor.

The deal, which is still subject to regulatory approval in Morocco, adds four countries to Etisalat's business—Morocco, Mauritania, Burkina Faso and Mali—and creates a West Africa cluster of operations that is likely to be managed by executives at Maroc Telecom, according to a person familiar with the matter.

Etisalat, which currently operates in 15 countries across the Middle East, Africa and Asia, is eager to rapidly expand again in emerging markets after holding off acquisitions during the financial crisis.

In addition to Maroc Telecom, Etisalat is in talks to buy India-based Bharti Airtel's  operations in Sri Lanka, and one of its subsidiaries in Pakistan, PTCL, has bid for competitor Warid Telecom for an undisclosed sum.

"Markets have to consolidate," Ahmad Julfar, chief executive of Etisalat, recently said. "I think all the markets in the world will consolidate to two or three [operators],"