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

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

North Africa telecommunications report Q4 2013

The North African telecoms markets continue to demonstrate variable growth on several levels. Symptomatic of this trend is a lack of creativity and diversity in the type and scope of services on offer, even in mature markets such as Morocco and Tunisia, where mobile broadband is taking off. Nevertheless, Morocco, Libya and Algeria appear to be on the brink of new growth potential as the sale of Maroc Telecom progresses, Libya prepares for a third mobile operator and Algeria issues 3G licences. Although these developments bode well for increased competition and liberalisation in North African telecoms markets, their political and business environments remain challenging and prone to sudden collapse.
Mobile growth continues to be driven by prepaid services, which does little to add value to mobile ARPUs and income relating to non-voice services. However, in Morocco and Algeria, there are signs that operators are seeing better growth in the more lucrative postpaid market. More needs to be done to develop locally relevant content if services are to appeal to more consumers.
- The possibility for increased foreign investment in Libya, through a third mobile licence and/or the privatisation of Libyana, and the launch of 3G in Algeria should boost competition and open up untapped growth potential in the two markets from 2014.
- Fixed-line and broadband growth remains variable as demand for traditional fixed telephone lines fluctuates and affordability issues continue to hamper broadband adoption. Maroc Telecom has announced ambitious plans to invest in its fixed broadband network, but this may be undone by a likely upcoming change in ownership at the company.

source: www.sbwire.com

African telecom landscape looks towards landscape

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.

Naturally, this lofty goal still seems out of reach given the general lack of connectivity around the continent in the face of obstacles like cable theft and the availability of spectrum. But some regions have made more hefty moves in the 4G direction than others; Rwanda made significant progress in late October signing a deal with Korea Telecom to deliver 4G to its citizenry over the next three years. And Alcatel-Lucent just partnered with YooMee Africa to bring LTE to Cameroon and other countries.

As foreign investors and native companies alike band together to develop high-speed wireless in Africa — despite the tangible results from work in 2013 likely being years away — the continent will still see increasing web traffic as more mobile devices connect to the internet through these new, spreading networks.

blogs.bloiun.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.

Maroc telecom launches sVOD offer

Maroc Telecom has launched a subscription video-on-demand service for MAD 50 per month. Unique in Morocco, the SVoD service provides access to a wide choice of films and series produced by the biggest Hollywood studios (Miramax, Disney, Sony, HBO). For MAD 50 per month, the customer can watch as many movies as he wants from a wide catalogue (comedy, action, adventure, drama, thriller) which will be updated weekly. The new SVoD service completes the Maroc Telecom IPTV offer which counts more than 100 national and international TV and radio channels.

source : telecompaper.com

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],"