Research and Markets: Kuwait – Telecoms, Mobile & Broadband

DUBLIN–(Business Wire)–
Research and Markets
(http://www.researchandmarkets.com/research/4c15f4/kuwait_telecoms) has
announced the addition of the “Kuwait – Telecoms, Mobile & Broadband” report to
their offering.

BuddeComms annual publication, Kuwait- Telecoms, Mobile and Broadband, provides
a comprehensive overview of the trends and developments in the
telecommunications and digital media markets in Kuwait.

Kuwait is one of the wealthier members of the GCC, ranking third in GDP per
capita behind Qatar and the UAE. The vast majority of its government income is
derived from oil revenues. Like the other smaller GCC members, it has a very
high expatriate population, forming at least two thirds of the whole. As in
other similar countries, this makes its total population very fluid and thus all
penetration statistics very unreliable and distorted.

Kuwaits telecoms industry is something of an anachronism in the region due to
the lack of liberalisation of the market. Not only does Kuwait not have an
independent regulator, the Ministry of Communications is both the regulatory
entity and also the operating entity for fixed-line services. Plans were drafted
for the establishment of a telecommunications regulatory authority in 2007 but
have yet to come to fruition.

The Ministry does not charge customers for calls made from fixed lines to mobile
phones. It also controls the international gateway and does not have an
interconnection system with any of the mobile operators. As the Ministry
controls all international charges, this prevents local mobile operators from
offering promotions and discounts on overseas calls. It has also preventing
mobile operator Zain from extending its One Network service, which gives free
voice and data roaming for subscribers across most of its network, to its
subscribers in its home base of Kuwait.

A further problem with the lack of independence and corporatisation in the
fixed-line sector is a lack of available information on the sector.

Competition does exist in the Internet provision sector, now with four major
ISPs. In July 2009 the Ministry of Communications stated that it would suspend
the licences of a number of ISPs who had begun providing WiMAX services. The
Ministry said it was preparing to submit a fresh tender for wireless Internet
and WiMAX services.

Kuwaits mobile sector presents a different picture to its fixed-lines sector.
For many years two very strong operators have shared a comfortable duopoly. They
have enjoyed high tariffs in their home market and have used this base to extend
internationally. MTC, known as Zain, had extended its operations to 24 countries
by mid-2009. However, its profits from its Kuwaiti operations still made up
around 50% of its total Group profit at end-2008. Likewise its competitor
Wataniya, now a subsidiary itself of Qtel of Qatar, has extended into five
countries in total but its Kuwaiti profits were higher than its Group profits at
end-2008.

The two incumbent mobile operators, who have shared the market for the past ten
years, were joined in December 2008 by a third operator, Kuwait Telecom Company
- known as Viva, with Saudi Telecom Company as a major investor. All three
mobile operators have the government as a major shareholder, owning
approximately 25% in each case.

By end-March 2009 Viva was reported as having secured a 10% market share. Based
on numbers reported by Zain and Wataniya, Vivas gain would appear to have come
mostly at Zains expense.

Key Topics Covered:

1. Executive summary

2. Key statistics

3. Telecommunications market

4. Regulatory environment

5. Telecom operators in Kuwait

6. Telecommunications infrastructure

7. Broadband and Internet market

8. Convergence

9. Digital media

10. Mobile communications

For more information visit

http://www.researchandmarkets.com/research/4c15f4/kuwait_telecoms

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2010

UPDATE 1-Kenya’s Equity Bank H1 profit up 46 pct,sees growth

NAIROBI, July 20 (Reuters) – Kenya’s Equity Bank (EQTY.NR) posted a 46 percent rise in first-half pretax profit on Tuesday and its chief executive forecast earnings would rise further on easing costs and economic growth in the region.

Equity, which has operations in neighbouring Uganda and Sudan, said profit rose to 3.88 billion shillings ($47.65 million) during the first six months of the year.

Depositors jumped by 400,000 to nearly five million, mainly due to a new mobile phone service called M-Kesho, run jointly with Kenya’s biggest mobile operator Safaricom (SCOM.NR), which allows users to access credit, earn interest on deposits and buy insurance. [ID:nLDE64H1DF].

Equity’s CEO James Mwangi told investors the bank’s recent expansion costs had started to taper off and combined with better economic growth prospects in the region this signalled further profit gains.

“The profitability of the bank is likely to accelerate because of costs. Most of the costs are now fixed,” Mwangi said.

Equity’s loan book expanded by just over a quarter during the period while bad debt provisions rose 211 percent to 920 million shillings to clean out the threat of defaults, Mwangi said. (Editing by James Macharia)

Spanish stocks – Factors to watch on Monday

July 19 (Reuters) – The following Spanish stocks may be affected by newspaper reports and other factors on Monday. Reuters has not verified the newspaper reports, and cannot vouch for their accuracy:

TELEFONICA (TEF.MC)

The Spanish telecoms operator dropped its offer for Portugal Telecom’s (PTC.LS) stake in Brazilian cellphone company Vivo on Saturday after the offer expired. [ID:nLDE66G02D] Telefonica is confident that PT will agree before the end of the month to sell its stake in Vivo, despite opposition from the Portuguese government, because PT is close to a deal to buy a stake in Brazilian mobile operator Oi, El Economista reported on Monday, citing sources with knowledge of the deal.

BANKS

The European Union is set to release stress tests assessing the solvency of the economic bloc’s banking system on Friday. Tests are set to cover 95 percent of Spain’s banks. [ID:nLDE66F0X].

LA SEDA (SED.MC)

Small cap Spanish chemical firm La Seda is due to hold a press conference on its new company strategy.

For real-time moves on the Spanish blue-chip index IBEX please double click on .IBEX

For IBEX constituent stocks highlight .IBEX in the command box and press the F3 button on your keyboard

For latest news on Spanish stock moves double click [HOT-ES]

For Spanish language market report double click on [.MES]

For latest Eurostocks report please double click on [.EU]

Indian shares turn positive on earnings optimism

July 19 (Reuters) – Indian shares recovered from early lows on Monday morning, on optimism over quarterly earnings and a newspaper report Etisalat was close to buying a stake in Reliance Communications (RLCM.BO), the no. 2 mobile operator.

At 10:20 a.m. (0450 GMT), the 30-share BSE index .BSESN was up 0.03 percent at 17,961.03 points, with 16 components advancing. It had declined as much as 0.6 percent early.

The 50-share NSE index was barely changed at 5,394.10.

Reliance Communications was up 2.2 percent at 191.30 rupees after a Financial Times report Emirates Telecommunications (ETEL.AD) (Etisalat) was close to buying 26 percent stake in the Indian firm. [ID:nSGE66I05B] (Reporting by Ami Shah)

Etisalat close to buying 26 pct in Reliance Comm: report

(Reuters) – Emirates Telecommunications ETEL.AD (Etisalat) is close to buying 26 percent in Indian telecoms Reliance Communications (RLCM.BO), the Financial Times said on Monday, sending Reliance shares up nearly 4 percent.

Citing people familiar with the negotiations, the newspaper said the deal was estimated to be worth $3 billion.

The two groups are also considering merging Reliance Comm, India’s No. 2 mobile operator, with Swan Telecom, the Indian company in which Etisalat holds a 45 percent stake, it said.

Reliance Comm and Etisalat could not be immediately reached for comment.

Shares in Reliance Comm, valued by the market at $8.3 billion, jumped as much as 3.9 percent on the report in a subdued Mumbai market.

An alliance between the two groups could be completed as soon as mid-August, the Financial Times reported, citing a person close to the matter. Another person told the paper it could take up to the end of the year. Reliance Comm and Etisalat declined to comment on any specific negotiations, the paper said.

A successful outcome hinges on how fast Etisalat can free itself of the stake in Swan Telecom, a joint venture it acquired in 2008, as Indian regulations do not allow one company to own more than 10 per cent in two telecom groups, the paper said.

Several potential suitors cited in media reports based on unnamed sources have denied being in talks with Reliance Comm, controlled by billionaire Anil Ambani.

So far, only Abu Dhabi-based Etisalat has acknowledged that it is considering a deal with Reliance Comm, the only major local cellular carrier without a foreign strategic investor in the world’s fastest-growing mobile market.

Anil Ambani has been in dealmaking mode since ending a pact in May with his long-estranged brother, Mukesh Ambani, that forbade the two from competing on the other’s turf, freeing Anil to bring new investors into his debt-laden company.

That pact had enabled Mukesh Ambani, the world’s fourth-richest man, to assert a right of first refusal two years ago that blocked a deal between Reliance Comm and South Africa’s MTN (MTNJ.J).

Last month, Reliance Comm agreed to merge its telecoms communication towers business with that of GTL Infrastructure Ltd (GTLI.BO) in a deal that a source said would cut its debt by $3.9 billion.

By 0443 GMT, shares in Reliance Comm were up 2.3 percent at 191.40 rupees, while the main BSE index .BSESN was flat.

(Reporting by Pratish Narayanan and Tony Munroe in Mumbai; Stanley Carvalho in Abu Dhabi; Editing by Ranjit Gangadharan)

UPDATE 1-Etisalat close to buying 26 pct in Reliance Comm-FT

MUMBAI, July 19 (Reuters) – Emirates Telecommunications ETEL.AD (Etisalat) is close to buying 26 percent in Indian telecoms Reliance Communications (RLCM.BO), the Financial Times said on Monday, sending Reliance shares up nearly 4 percent.

Citing people familiar with the negotiations, the newspaper said the deal was estimated to be worth $3 billion.

The two groups are also considering merging Reliance Comm, India’s No. 2 mobile operator, with Swan Telecom, the Indian company in which Etisalat holds a 45 percent stake, it said.

Reliance Comm and Etisalat could not be immediately reached for comment.

Shares in Reliance Comm, valued by the market at $8.3 billion, jumped as much as 3.9 percent on the report in a subdued Mumbai market.

An alliance between the two groups could be completed as soon as mid-August, the Financial Times reported, citing a person close to the matter. Another person told the paper it could take up to the end of the year. Reliance Comm and Etisalat declined to comment on any specific negotiations, the paper said.

A successful outcome hinges on how fast Etisalat can free itself of the stake in Swan Telecom, a joint venture it acquired in 2008, as Indian regulations do not allow one company to own more than 10 per cent in two telecom groups, the paper said.

Several potential suitors cited in media reports based on unnamed sources have denied being in talks with Reliance Comm, controlled by billionaire Anil Ambani.

So far, only Abu Dhabi-based Etisalat has acknowledged that it is considering a deal with Reliance Comm, the only major local cellular carrier without a foreign strategic investor in the world’s fastest-growing mobile market.

Anil Ambani has been in dealmaking mode since ending a pact in May with his long-estranged brother, Mukesh Ambani, that forbade the two from competing on the other’s turf, freeing Anil to bring new investors into his debt-laden company.

That pact had enabled Mukesh Ambani, the world’s fourth-richest man, to assert a right of first refusal two years ago that blocked a deal between Reliance Comm and South Africa’s MTN (MTNJ.J).

Last month, Reliance Comm agreed to merge its telecoms communication towers business with that of GTL Infrastructure Ltd (GTLI.BO) in a deal that a source said would cut its debt by $3.9 billion.

By 0443 GMT, shares in Reliance Comm were up 2.3 percent at 191.40 rupees, while the main BSE index .BSESN was flat. (Reporting by Pratish Narayanan and Tony Munroe in Mumbai; Stanley Carvalho in Abu Dhabi; Editing by Ranjit Gangadharan)

UPDATE 1-MTN proposes $1.1 bln black empowerment deal

JOHANNESBURG, July 15 (Reuters) – South Africa’s MTN Group (MTNJ.J) proposed an 8.1 billion rand ($1.1 billion) black empowerment deal to sell up to four percent of the company’s shares on Thursday.

South African companies are encouraged to increase black ownership under rules established to address economic imbalances after the end of apartheid in 1994.

MTN, Africa’s biggest mobile operator by subscribers, said it would mean black ownership of up to 29 percent of South African operations. (Reporting by Tiisetso Motsoeneng; Editing by Matthew Tostevin)

Market Chatter — Corporate finance press digest

July 15 (Reuters) – The following corporate finance-related stories were reported by media on Thursday:

* Top Chinese automaker SAIC Motor Corp (600104.SS) might continue to slash its holdings in troubled South Korean carmaker Ssangyong Motor (003620.KS), the China Business News said on Thursday. [ID:nTOE66E01D]

* India’s Reliance Communications (RLCM.BO) may have to lower the value of its tower assets being sold to GTL Infrastructure (GTLI.BO) in view of a likely stake sale in the No. 2 Indian mobile operator to Abu Dhabi’s Etisalat (ETEL.AD), the Economic Times reported. [ID:nSGE66E03H]

* Financial services firm Religare Enterprises Ltd (RELG.BO) has agreed to buy a part of Citigroup’s (C.N) home loan portfolio in India for nearly 5 billion rupees ($107 million), the Economic Times said. [ID:nSGE66E04X]

* U.S. investor York Capital is seeking a stake in Germany’s Conergy (CGYG.DE) by taking over loans to the solar company which at a later stage will be converted into Conergy shares, German paper Handelsblatt said on Wednesday. [ID:nLDE66D1X1]

* American International Group Inc (AIG.N) has floated a plan to partially pay down its U.S. bailout debt by selling stakes in two entities that were created to take toxic assets off its books, Bloomberg said on Wednesday. [ID:nN14131409] (Compiled by Anirban Sen in Bangalore)

Indian shares rise as telcos soar on stocks upgrade

MUMBAI, July 9 (Reuters) – Indian shares rose 1.1 percent on Friday, with telecom stocks cheering an upgrade by Credit Suisse, and Infosys Technologies (INFY.BO) testing new high on better earnings expectations ahead of its quarterly results next week.

Top mobile operator Bharti Airtel (BRTI.BO) soared as much as 10.4 percent, while rivals Reliance Communications (RLCM.BO) and Idea Cellular (IDEA.BO) climbed as much as 3.9 percent and 14.7 percent respectively.

Credit Suisse upgraded Bharti to “outperform” from “neutral”, Reliance Communications to “neutral” from “underperform”, and Idea Cellular (IDEA.BO) to “outperform” from “underperform”.

“We believe that concerns on competition, regulation, 3G auction fee and RIL’s entry have been overstated,” Credit Suisse said in a note on Thursday.

By 11:59 a.m. (0629 GMT), the 30-share BSE Index .BSESN was trading up 1.05 percent at 17,836.50 points, with 25 of its components in the green.

“There are expectations built that IT and telecom stocks may surprise market on the positive side at June-quarter results,” said Deven Choksey, managing director and CEO of KR Choksey Shares.

“As far as telecom stocks are concerned, the valuations are cheap. All negatives are priced in, and prices cannot dip from here.”

The benchmark is up 2.2 percent so far this week. It has gained 0.8 percent this month on the back of around 107 million inflows from foreign funds.

IT bellwether Infosys, which unveils its quarterly earnings on June 13, rose as much as 1.9 percent to a record high of 2,879.90 rupees. Its earnings are often dubbed as a trendsetter for the sectoral peers.

“We expect robust results from Tier 1 IT vendors to demonstrate the underlying demand strength,” Macquarie said in a note. It expects Infosys to raise fiscal year 2011 U.S. dollar revenue growth guidance to 17-19 percent from 16-18 percent.

Its peers Tata Consultancy Services (TCS.BO) and Wipro (WIPR.BO) rose 0.1 percent and 0.9 percent respectively.

Lenders continued to rise on expectations that credit demand would pick up on the back of robust economic growth.

The country’s top lender State Bank of India (SBI.BO) was up 0.8 percent while leading private-sector rivals ICICI Bank (ICBK.BO) and HDFC Bank (HDBK.BO) gained 0.8 percent and 1.6 percent respectively.

Bajaj Auto (BAJA.BO) rose 0.5 percent after the auto player signed an agreement with Renault-Nissan alliance (RENA.PA) (7201.T) to manufacture an ultra low-cost car to be sold in India and other emerging markets, which would be a rival to Tata Motors’ (TAMO.BO) Nano. [ID:nSGE6670H5]

In the broader market, gainers were nearly double the losers in a volume of 191 million shares.

The 50-share NSE index was up 1 percent at 5,351.95 points.

STOCKS ON THE MOVE

* Pratibha Industries (PRTI.BO) was up 1.1 percent at 415 rupees as the construction firm said it has won a project from National Highways Authority of India for two-laning of a section of NH-86. [ID:nWNBS0455]

* KPIT Cummins Infosystems (KPIT.BO) rose after the software firm said on Thursday it is considering buying a German automotive product company with revenue earnings below $5 million at its board meeting scheduled on July 13. [ID:nWNBS0452]

MAIN TOP THREE BY VOLUME

* Idea Cellular on 8.5 million shares

* Bharti Airtel on 5.7 million shares

* Shree Ashtavinayak (SACV.BO) on 2.3 million shares

FACTORS TO WATCH * For technical analysis double click on www.reutersindia.net * Indian rupee report [INR/] * Indian bond report [IN/] * Euro holds near 2-mth highs, high-yielders firm [FRX/] * Oil set for 5 pct weekly gain on U.S. demand [O/R] * Asian stocks lifted by US data; euro holds gains[MKTS/GLOB] * Wall St up for 3rd day on data, retail sales [.N] * For closing rates of Indian ADRs INADR (Reporting by Ami Shah; editing by Malini Menon)

UPDATE 1-India’s Bharti surges over 10 pct after stock upgrade

MUMBAI, July 9 (Reuters) – Bharti Airtel (BRTI.BO), India’s leading mobile operator, rose more than 10 percent on Friday to its highest level in nearly three months after Credit Suisse upgraded the stock citing stable call tariffs.

India, the world’s fastest-growing mobile market, is signing up new mobile subscribers at a monthly average of 16 million, but call prices have fallen to as low as 0.4 U.S. cents a minute amid stiff competition in the crowded 15-operator market. Credit Suisse, which upgraded Bharti to “outperform” from “neutral”, said tariffs had been stable in the last eight months and high cost for 3G mobile spectrum had crimped mobile operators’ ability to go for further price war.

At 11:16 a.m. (0546 GMT), the stock was trading 8.7 percent higher at 305.25 rupees, after rising as much as 10.4 percent to their highest since April 15. The stock is still down 5.7 percent so far this year.

Rival Reliance Communications (RLCM.BO) was up nearly 3 percent at 193.30 rupees, while the Mumbai market .BSESN was trading 1 percent higher. Reliance Communications and the main index are up 13 percent and 2.2 percent, respectively, in 2010.

India’s three biggest carriers — Vodafone’s (VOD.L) India unit, Bharti and Reliance — each won key licences in May to offer 3G services in Delhi and Mumbai — the biggest markets in the country.

The auction yielded the Indian government $14.6 billion in revenues, nearly twice what it had expected. [ID:nSGE64J07X]

“Revenue market shares are steady, high auction prices could force most players to avoid competitive actions and regulatory risks could be exaggerated,” Credit Suisse analysts wrote in the research report.

“Reasonable valuations could protect downside and lead to a favourable risk-reward profile. We are, therefore, turning positive on the sector.”

Bharti, which completed its $9 billion acquisition of African operations from Kuwait’s Zain (ZAIN.KW) last month, trades at 13 times its one-year forward earnings compared to 14 times in Reliance Communications, according to Starmine data. ($1=46.8 rupees) (Editing by Ranjit Gangadharan)

India’s Bharti up about 9 percent after stock upgrade

(Reuters) – Shares in Bharti Airtel (BRTI.BO), India’s leading mobile operator, rose nearly 9 percent on Friday after Credit Suisse upgraded the stock to outperform from neutral.

At 10:10 a.m. (12:40 a.m. ET), the stock was trading up 8.4 percent at 304.50 rupees, after hitting 305.65. In comparison, the main Mumbai market .BSESN was up 1 percent.

(Reporting by Sumeet Chatterjee; Editing by Ranjit Gangadharan)

UPDATE 1-Zain in stake talks with Etisalat-paper

KUWAIT/ABU DHABI, June 27 (Reuters) – Kuwaiti telecoms firm Zain (ZAIN.KW) is in talks with Abu Dhabi’s Emirates Telecommunications Corp (ETEL.AD) (Etisalat) about selling a majority stake in the group, a Kuwaiti newspaper report said on Sunday.

Both firms held meetings last week to discuss the potential deal, daily al-Seyassah said.

“Etisalat does not comment on market speculation and rumours,” Ahmed Bin Ali, group senior vice president for corporate communications at Etisalat told Reuters on Sunday.

The Abu Dhabi operator has said it is looking at options in India, including taking a 26-percent stake in the country’s second-biggest mobile operator Reliance Communications (RLCM.BO). [ID:nSGE657020]

On Sunday Reliance agreed to sell its telecoms tower business to GTL Infrastructure (GTLI.BO) but said it was still seeking to pursue the sale of a 26 percent stake in the firm. [ID:nSGE65Q00V]

A Zain spokesman could not be reached for comment on the report.

Earlier this month Zain’s chief executive Nabeel bin Salama said the firm was not in talks to sell further assets, after it closed the sale of its African assets, excluding Sudan and Morocco, to India’s Bharti Airtel (BRTI.BO) in a $9 billion deal. [ID:nSGE6570D2]

Zain shares were trading down 1.8 percent at 1023 GMT on the Kuwait bourse, on Sunday while Etisalat shares were trading flat on the Abu Dhabi bourse. (Writing by Eman Goma; Additional reporting by Stanley Carvalho; Editing by Dinesh Nair, Greg Mahlich)

UPDATE 1-MTS, Comstar boards approve merger, shares up

MOSCOW, June 25 (Reuters) – The boards of Russia’s top mobile operator MTS (MBT.N) and its Comstar (CMSTq.L) fixed line unit on Friday recommended a merger between the two in an up to $1.03 billion bid to cut costs and offer more services.

MTS, which currently holds 62 percent in Comstar, has offered to buy another 9 percent from minority shareholders at 220 roubles ($7.08) per share, implying an 8 percent premium from Thursday’s close of $6.55 in the London-listed GDRs.

Those who do not take up the offer will then be able to swap each of their shares in Comstar for 0.825 of a shares in MTS, the two companies said in a joint statement.

Shares in MTS (MTSI.MM) were up 2.3 percent at 241.94 roubles and shares in Comstar (CMST.MM) were up 2 percent by 0800 GMT, outperforming a flat broad market index MICEX .

The deal — which will create the largest integrated telecommunications provider in Russia and the CIS — is expected to be completed in the second quarter of 2011.

The parameters were in line with figures reported earlier by Kommersant business daily. [ID:nLDE65O03J]

Any MTS or Comstar shareholders who vote against the deal will be able to sell their shares back to the company concerned, at 245.19 and 212.85 roubles respectively, as per Russian law.

“In the event of full election of the cash alternatives, through the VTO and the sale of shares back to Comstar, the implied transaction value could be up to $1,030 million,” the statement said.

“The merger will enable the full integration of the Comstar and MTS customer bases and the provision of bundled service offerings across Russia, which we believe will further enhance our combined competitive position,” MTS Chief Executive Mikhail Shamolin said in a statement.

“In particular, the merger is expected to streamline common business processes and further optimise operating and capital expenditure.”

Analysts at Troika reiterated their “buy” recommendation on both stocks, saying the deal would be “value accretive”. (Reporting by Dmitry Sergeyev and Toni Vorobyova; Editing by David Holmes) ($1=31.06 Rouble)

Bharti adds 3 mln mobile users in May – industry

June 15 (Reuters) – Bharti Airtel (BRTI.BO), India’s top mobile operator, added 3 million mobile subscribers in May, taking its total to 133.6 million, data from an industry body showed.

Telecommuncations Services

Vodafone Essar, the third-biggest mobile operator in India and controlled by Vodafone (VOD.L), gained 2.59 million mobile subscribers in May to have a total of 106.3 million, the Cellular Operators Association of India said. (Reporting by Devidutta Tripathy; Editing by Ranjit Gangadharan)

UPDATE 2-OT sale talks continue after MTN deal fails-paper

CAIRO, June 13 (Reuters) – Egypt’s Orascom Telecom (ORTE.CA) is still negotiating the sale of some of its African assets, a newspaper reported on Sunday, reviving hopes for a possible deal after failed talks with South Africa’s MTN (MTNJ.J).

MTN had been in discussions to buy some or all of Orascom’s operations, a deal which could have created the world’s third-largest mobile operator if all the Egyptian firm’s assets had been included.

The talks collapsed after the Algerian government refused to let Orascom sell its lucrative unit Djezzy, seen as the deal’s crown jewel, to MTN. [ID:nLDE6582CH]

“Orascom Telecom Holding continues to hold a number of negotiations to sell its African units, with the exception of its (Algerian) unit Djezzy,” the daily al-Mal said, citing an unidentified source closely connected with the talks.

Orascom said it had no comment on the report.

In April, a source close to Orascom’s negotiations told Reuters the firm was also talking to a regional operator and a European group present in emerging markets, but did not name the firms. [ID:nLDE63Q2L1]

Analysts say there are plenty of candidates to buy the Egyptian firm’s far-flung operations, which run from North Korea to North Africa.

“A deal to sell African assets, excluding Algeria, should be easier, given the obstacles placed by the Algerian government for the sale of Djezzy,” Beltone analyst Sally Gerges said.

“However, the inclusion of Djezzy should have made the deal much more attractive to potential buyers.”

The Algerian government says that, under a law enacted in 2009, it has a right to bid on Djezzy before any foreign buyer.

POSSIBLE CANDIDATE

Gerges said the most likely buyer in any African asset sale excluding Djezzy was France Telecom (FTE.PA), Orascom’s partner in Egyptian mobile operator Mobinil (EMOB.CA). Mobinil leads the most populous Arab country’s mobile market by subscribers.

Abu Dhabi-listed Etisalat ETEL.AD has also surfaced as a possible candidate after its chairman was quoted as saying it was interested in Djezzy. [ID:nLDE61H10V]

Etisalat competes through a subsidiary with Orascom’s Mobinil in Egypt, but trails Mobinil and a local unit of Britain’s Vodafone (VOD.L) by number of subscribers.

Shares in Orascom tumbled last week after news the MTN talks had ended stamped out lingering speculation that the Egyptian firm might salvage a deal to sell some smaller African assets, such as its Telecel Globe-branded sub-Saharan units, to MTN.

Analysts said a deal excluding Djezzy would have little meaning for MTN, which is eager to expand and needs a foothold in North Africa.

Orascom also owns a 50-percent stake in a Tunisian operator and operators in Pakistan, Bangladesh and North Korea. It has an equity stake in a Canadian startup wireless carrier and a management contract with a Lebanese operator. (Additional reporting by Alastair Sharp; Editing by Paul Tait)

MTN shares surge after Orascom talks fail

(Reuters) – Shares in MTN Group (MTNJ.J), Africa’s biggest mobile phone operator, rose over four percent on Thursday after the collapse of talks with Egypt’s Orascom Telecom (ORTE.CA) about a potential acquisition.

Hot Stocks

MTN and Orascom Telecom said in separate statements on Wednesday that talks had been called off, sinking a deal that could have created the world’s third-largest mobile operator.

While investors have sold off shares of MTN in recent weeks on concerns it would overpay for Orascom’s assets, not all markets participants saw the end of the deal as a positive.

“There can be little doubt that MTN shareholders are growing impatient and there is now likely to be a great deal of pressure on the group’s executive management to deliver new growth streams and revenues,” said Lindsey Mc Donald, an analyst at Frost & Sullivan.

MTN has now failed to seal a deal four times in the last three years, underscoring its desperation to grow beyond core markets of South Africa, Nigeria and Iran.

The failure of the Orascom talks could also fuel more speculation about a potential deal with India’s Reliance Communications (RLCM.BO).

Reliance Comm, India’s No.2 carrier, said on Sunday its board had agreed to sell up to a 26 percent stake of the firm.

Market players have speculated that MTN and Abu Dhabi’s Etisalat (ETEL.AD) could be looking to buy the stake. MTN has said it is not in talks with Reliance Comm.

Shares of MTN were up 4.4 percent at 105.85 rand as of 0927 GMT, outperforming a 1 percent gain in the Top-40 index .JTOPI.

MTN said in late April it was in talks about acquiring Orascom or some of its assets. The deal was hampered by Algeria’s government, which wants to buy Orascom’s unit in that country.

Without the money-spinning Algerian unit, Djezzy, the deal would have little meaning for MTN, which is desperate to expand and needs a foothold in North Africa.

But Frost & Sullivan’s Mc Donald said there were still some investment opportunities for MTN in Africa.

“It is now up to management to decide whether they are going to follow their traditional approach of acquiring an entire group, or if they would consider the purchase of a telecoms company operating in a single market.”

(Editing by Matthew Tostevin and Simon Jessop)

India’s Bharti Airtel rises more than 3 pct

June 10 (Reuters) – Shares in India’s Bharti Airtel rose more than 3 percent on Thursday, extending gains for the second day after the top mobile operator said on Tuesday it completed its $9 billion acquisition of Zain’s (ZAIN.KW) Africa operations.

Telecommuncations Services

On Wednesday, a top official had told Reuters that Bharti will offer affordable rates in Africa to boost usage but has no plan to launch a price war. [ID:nSGE6580JD]

The stocks was up 3.03 percent at 280.40 rupees by 0551 GMT, while the main stock index .BSESN was up 0.7 percent.

Bharti shares had closed 5.6 percent higher on Wednesday, logging their best single-day percentage-point gain in more than six months. (Reporting by Ami Shah; Editing by Unnikrishnan Nair)

Indian shares rise 0.6 pct; Reliance, Bharti gain

MUMBAI, June 10 (Reuters) – Indian shares climbed 0.6
percent on Thursday, in tandem with a recovery in Asian markets
after robust Chinese exports underlined strong growth, but
investors were hesitant to build large positions.

Until the debt problems in the euro zone are resolved and
foreign funds resume investment, the market will find it hard
to push ahead, traders said.

Energy conglomerate Reliance Industries (RELI.BO) topped
the gainers after the Economic Times reported it was looking to
enter the telecoms market when the opportunity arises, with a
focus on selling phone and Internet services to companies.
[ID:nSGE65903K]

Bharti Airtel (BRTI.BO) climbed 1.7 percent after a top
official told Reuters the leading mobile operator would offer
affordable rates in Africa to boost usage but has no plan to
launch a price war. [ID:nSGE6580JD]

By 10:30 a.m. (0500 GMT), the 30-share BSE index .BSESN
was trading up 0.63 percent at 16,762.69, with 27 of its
components advancing.

“The turbulence in Europe needs to settle before any
meaningful buying happens to drive the market higher,” said R.
Ganesh, director of Systematix Shares.

Foreign funds are net buyers of about $84 million of stocks
so far this month after dumping nearly $2 billion in May. The
benchmark stock index is down more than 4 percent in the year
to date.

Traders Federal Reserve Chairman Ben Bernanke’s assurance
on Wednesday that the U.S. economic recovery was on solid
footing helped sentiment.

Reliance Industries, which has the highest weight on the
Sensex, climbed 0.5 percent to 1,011.90 rupees.

Financials gained on positive outlook for loan demand in
the world’s second-fastest growing major economy.

No. 1 lender State Bank of India (SBI.BO) rose 1.9 percent
while HDFC Bank (HDBK.BO) climbed 0.8 percent. Mortgage lender
Housing Development Finance Corp (HDFC.BO) firmed 1.2 percent.

In the broader market, nearly three shares advanced for
every share that declined on volume of 74 million shares.

The 50-share NSE index was up 0.6 percent at
5,032.25.

The MSCI’s measure of Asian markets other than Japan
.MSCIAPJ and Japan’s Nikkei .N225 were each up 0.9 percent.

STOCKS ON THE MOVE

* Non-ferrous metals producer Sterlite Industries (STRL.BO)
was down 0.8 percent at 624.55 rupees, as London copper dipped
0.7 percent. [ID:nSGE65906Z]

* Oil explorer Cairn India (CAIL.BO), an unit of Cairn
Energy (CNE.L), climbed 1.1 percent to 293.70 rupees as crude
oil prices climbed towards $75 a barrel.

MAIN TOP 3 BY VOLUME

* Unitech (UNTE.BO) on 3.2 million shares

* IFCI (IFCI.BO) on 2.2 million shares

* KPIT Cummins (KPIT.BO) on 1.9 million shares

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee report
[INR/]
* Indian bond report
[IN/]
* Aussie jumps after strong data, giving euro a lift
[FRX/]
* US crude rebounds towards $75 on China exports
[O/R]
* Asia stocks rise, euro steady on China data
[MKTS/GLOB]
* Wall St slides as BP plunge hurts sentiment
[.N]
* For closing rates of Indian ADRs
INADR

Research and Markets: Kuwait – Telecoms, Mobile, Broadband and Forecasts – Kuwait is One of the Wealthier Members of the GCC, Ranking Third in GDP Per Capita

DUBLIN–(Business Wire)–
Research and Markets
(http://www.researchandmarkets.com/research/ba228e/kuwait_telecoms) has
announced the addition of the “Kuwait – Telecoms, Mobile, Broadband and
Forecasts” report to their offering.

Kuwait is one of the wealthier members of the GCC, ranking third in GDP per
capita behind Qatar and the UAE. The vast majority of its government income is
derived from oil revenues. Like the other smaller GCC members, it has a very
high expatriate population, forming at least two-thirds of the whole. As in
other similar countries, this makes its total population very fluid and thus all
penetration statistics very unreliable and distorted.

Kuwait’s telecoms industry is something of an anachronism in the region due to
the lack of liberalisation of the market. Not only does Kuwait not have an
independent regulator, the Ministry of Communications is both the regulatory
entity and also the operating entity for fixed-line services. Plans were drafted
for the establishment of a telecommunications regulatory authority in 2007 but
have yet to come to fruition.

The Ministry does not charge customers for calls made from fixed lines to mobile
phones. It also controls the international gateway and does not have an
interconnection system with any of the mobile operators. As the Ministry
controls all international charges, this prevents local mobile operators from
offering promotions and discounts on overseas calls. It has also preventing
mobile operator Zain from extending its One Network service, which gives free
voice and data roaming for subscribers across most of its network, to its
subscribers in its home base of Kuwait.

A further problem with the lack of independence and corporatisation in the
fixed-line sector is a lack of available information on the sector.

Competition does exist in the Internet provision sector, with four major ISPs,
but again it is limited. In July 2009 the Ministry of Communications stated that
it would suspend the licences of a number of ISPs who had begun providing WiMAX
services. The Ministry said it was preparing to submit a fresh tender for
wireless Internet and WiMAX services.

Kuwait’s mobile sector presents a different picture to its fixed-lines sector.
For many years two very strong operators have shared a comfortable duopoly. They
have enjoyed high tariffs in their home market and have used this base to extend
internationally. MTC, known as Zain, had extended its operations to 24 countries
by mid-2009. However, its profits from its Kuwaiti operations still made up
around 50% of its total Group profit at end-2008. In March 2010 it sold its
African operations, with the exception of those in Sudan and Morocco, to Bharti
Airtel of India, leaving it with operations in just 9 countries.

Zains competitor Wataniya, now a subsidiary itself of Qtel of Qatar, has
extended into six countries in total but its Kuwaiti profits were slightly
higher than its Group profits at end-2009.

The two incumbent mobile operators, who have shared the market for the past ten
years, were joined in December 2008 by a third operator, Kuwait Telecom Company
- known as Viva, with Saudi Telecom Company as a major investor. All three
mobile operators have the government as a major shareholder, owning
approximately 25% in each case.

By end-2009 Viva would appear to have gained a market share of over 10%. Based
on numbers reported by Zain and Wataniya, Vivas gain would appear to have come
mostly at Zains expense. The introduction of more competition has had a
substantial effect on reducing ARPU levels.

Key Topics Covered:

1. Executive summary

2. Key statistics

3. Telecommunications market

4. Regulatory environment

5. Telecom operators in Kuwait

6. Telecommunications infrastructure

7. Broadband access market

8. Digital economy/digital media

9. Digital broadcasting

10. Mobile communications

11. Related reports

For more information visit

http://www.researchandmarkets.com/research/ba228e/kuwait_telecoms

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2010

T.Italia investor attacks Telefonica stake

June 3 (Reuters) – A big Telecom Italia (TLIT.MI) shareholder on Thursday attacked Telefonica’s (TEF.MC) stake in the Italian phone giant, saying the Spanish company had a conflict of interest.

Stocks | Mergers & Acquisitions | Global Markets

The Telco group of Telefonica and Italian investors Generali (GASI.MI), Intesa Sanpaolo (ISP.MI) and Mediobanca (MDBI.MI) controls Telecom Italia with a 22.45 percent stake.

Telefonica has played down speculation in recent months that it might launch a takeover bid for Telecom Italia and instead has offered a sweetened 6.5 billion euros ($7.99 billion) for Portugal Telecom’s (PTC.LS) stake in Brazilian mobile operator Vivo (VIVO4.SA). [ID:nN01124414]

“Telefonica’s leadership has declared that it has no plans to do a deal with Telecom Italia,” Marco Fossati, who holds a stake of about 5 percent in Telecom Italia, told Reuters.

“They’ve shown their main interest in Brazil with the offer on Vivo … I ask myself what advantage Telecom Italia has by having a Spanish shareholder. The conflict of interest seems evident to me.”

Fossati said Telecom Italia’s plans to sell its stake in Argentine phone company Telecom Argentina (TEC2.BA) because of antitrust concerns related to Telefonica’s stake in the Italian company was one example of the Spanish giant’s conflict of interest. [ID:nN02246176] ($1=.8131 Euro) (Reporting by Stefano Rebaudo; Editing by Jon Loades-Carter)