fbpx
Connect with us

Telecoms

Saudi’s CITC fines several operators for violating telecom laws

Inside Telecom Staff

Published

 on

Saudi Arabia’s Communications and Information Technology Commission (CITC) fined late last week, a number of local telecoms providers for violating several telecommunications laws in the Kingdom.

CITC imposed fines reaching more than SR40 million ($10.67 million) for making promotional offers in violation of CITC’s decisions, using frequencies without licenses, failing to comply with the CITC’s decisions regarding a number of user complaints, violating SIMs, and failing to provide CITC with information required within the specified deadlines.

The penalties targeted each of STC, Etihad Etisalat Co. (Mobily), Mobile Telecommunication Company Saudi Arabia (Zain KSA), and Etihad Jawraa Telecommunications and Information Technology Company (Lebara Mobile KSA).

STC was fined SR31.4 million, Mobily was handed a fine of SR1.2 million, Zain KSA (SR996,000), and Lebara Mobile (SR366,000), while other operators were fined SR6.16 million.

Other violations include causing damage to public telecommunications networks by cutting off a communication cable, sending Spam messages, and providing SMS service without obtaining a license.

Advertisement

We’re a diverse group of industry professionals from all corners of the world. Our desire is to provide a high-quality telecoms publication that caters to an international market, offering the latest and most relevant telecoms information to businesses, entrepreneurs and enthusiasts.

Telecoms

Deutsche Telekom suggests upcoming towers partnership

Karim Hussami

Published

 on

Deutsche Telekom suggests upcoming towers partnership

“Because everybody does something, this is exactly why I’m not doing it,” Tim Hoettges, Chief Executive Officer of Deutsche Telekom said, referring to the current trend of telecoms operators selling off tower assets for sizeable sums of money. “It might be right that you have to monetise your towers to deleverage your balance sheet… [but] we don’t need that today,” he said.

Deutsche Telekom will not part with its tower assets, despite recently reaching` a deal of that nature in the Netherlands, but it could look to float its passive infrastructure business or seek out a tower partnership.

Orange CEO Stéphane Richard recently named Deutsche Telekom as an ideal partner in the towers space; while the telco wants to retain control of its own towers, that could mean co-control with another big operator, Richard explained.

There were no formal talks happening with Deutsche Telekom – or Vodafone, Orange’s other perfect partner – when the CEO made the revelation.

Deustche Telekom appears to be following a similar strategy to Orange.

“It always takes two to tango,” said Hoettges, speaking at the German incumbent’s 2020 results call on Friday. “We might have a partner, where we have synergies and a value-enhancing story,” he said, a comment that doubtless caught the attention of executives at the operator’s French peer.

Passive infrastructure assets

Telefonica is one of the big names selling off towers, and it was honest about the fact that debt reduction was one of the main drivers of the €7.7 billion deal it inked with American Tower in January.

But for Deutsche Telekom, towers and their growing value are a strategic asset, “not just selling something and getting the money,” as Hoettges put it.

The operator brokered a deal for towers partnership in January, to combine its towers in the Netherlands with those of Cellnex and simultaneously create a fund in partnership with the towers firm to invest in passive infrastructure assets.

“This is a classic DT deal. We create optionalities for value-enhancing businesses outside…of our strategic envelope,” he said.

Benefits of towers partnership

As for the benefits that comes out of sharing networks, they include: the increase in the speed of opening new fields and enables the subscribers to provide network coverage to wide areas in a faster way with lower CapEx potential.

Operators also have chance to satisfy their customers with the quicker network coverage, as well as operators will start making money as of the first day by removing the field installing process.

Continue Reading

Telecoms

MTN faces rocky situation in Syria, hampering Middle East exit

Inside Telecom Staff

Published

 on

MTN faces rocky situation in Syria, hampering Middle East exit

South African operator MTN is facing a rocky situation in Syria, as the company was placed under a judicial guardianship following a court battle that went in favor of the country’s telecoms regulator.

The Syrian Telecommunications and Post Regulatory Authority had previously accused the provider of mismanagement and violations of its licensing contract. According to Reuters, the state had claimed that the alleged violations deprived it of revenue, while MTN denied the allegations and said last week that it intended to appeal.

The regulator filed a lawsuit against the South African courier before the administrative court of Damascus seeking interim measures against MTN’s Syrian operations. The move cripples the company’s exit from the Syrian market, as it was reportedly hoping to settle a deal worth $65 million, amounting to 75 percent of MTN’s Syrian unit, Reuters reported.

It is worth mentioning that the administrative court of Damascus appointed MTN Syria minority shareholder Tele Invest as its guardian, which was primarily tapped to become the buyer of the Group’s 75 percent stake in its Syrian office.

The judicial guardian is responsible for managing its day-to-day operations.

The sale to TeleInvest is meant to be part of MTN Group’s plan to exit the Middle East, corresponding with its new strategy to focus on its core African markets in the medium-term future.

MTN Group highlighted in a statement late last week that it “strongly disagrees with the allegations made before the court” — which have yet to be made known — as well as the decision and intends to file an appeal. In addition, the group is also considering other appropriate steps to take in light of the ruling.

According to the provider, in the six months to June 2020, MTN Syria contributed 0.7 percent to the group’s reported earnings before interest, tax, depreciation and amortization. At that time, the net assets attributable to MTN Syria in the MTN Group accounts had been written down to the estimated recoverable amount of $80 million.

Reuters had also reported that MTN’s operations in the Middle East have been the center of wide controversy, with allegations over its use of bribes to win a 15-year operating license in Iran, while, in parallel, aiding militant groups in Afghanistan; MTN, however, denies all the allegations.

Continue Reading

Telecoms

STL signs record high $100 million deals across MEA

Inside Telecom Staff

Published

 on

STL

India-based digital network integrator Sterlite Technologies (STL) announced on Monday that it has renewed and extended deals with leading telecoms providers in the Middle East and Africa region (MEA).

According to a company statement, the deals are worth more than $100 million, taking STL’s order book to a record high, while exhibiting the company’s unwavering focus on building future-ready digital networks within the region.

“STL is building solutions to empower its customers in the MEA region for optical connectivity and network software, enabling FTTH and 5G deployments.  We are proud to be a part of the progress of the Middle East and Africa. With our deep technology expertise and growing talent base, we will continue to deliver on the full potential of digital networks, providing enhanced experiences to consumers and businesses alike,” speaking on the deals, Sandeep Girotra, Global Sales Head, STL, said in a statement.

The global pandemic has pushed many telcos to heavily invest in building digital networks to be able to meet the rising demand for connectivity from people remaining indoors due to lockdown measures. STL has capitalized on this and expanded its presence in the region with their fully 5G ready Opticonn and Software Solutions.

“Our unique end-to-end solutions enables customers to build 5G hyperscale networks at a fast pace with lower long-term Total Cost of Ownership (TCO). These multi-years, multi-million-dollar deals range from optical connectivity solutions to network solutions,” the company said.

According to STL, one of the large-scale deals has been signed with a leading telco in the UAE to advance its 5G, 4G and FTTX network infrastructure through STL’s Opticonn Solutions, including onshore logistics and warehousing. Another multi-million-dollar digital transformation partnership has been formed with the leading telecommunications group in North Africa.

The unnamed telco will deploy STL’s digital billing solutions to 7 million subscribers across the region.

Continue Reading

Trending