Kuwaiti mobile telcoms boom ...

Kuwait's Mobile Telecommunications Co. (MTC) in which the state has a 24% stake, announced a 55% rise in profits to USD$637 this week on revenues of USD$2Bn up from USD$1.1 last year. User numbers soared from 3.2 million to over 14 million in 19 countries.

During the year MTC acquired Dutch firm CelTel the leading cellular operator in Sub-Saharan Africa (operates in 13 countries)for USD$3.4 Bn. CelTel later bought a majority stake in Madagascar's Madacom one of Madagascar’s mobile telecom operators which services more than 200,000 customers. As of December 31, 2005, Celtel managed 8.81 million customers in the following countries: Burkina Faso, Chad, Rep, Congo, Democratic Republic of Congo, Gabon, Kenya, Malawi, Niger, Sierra Leone, Sudan, Tanzania, Uganda, and Zambia, with Madagascar being acquired in December 2005.

MTC have also acquired Sudanese Mobitel taking on the Sudanese government’s remaining 61% stake for USD$1.4Bn
MTC Atheer , operating in Iraq (with 100% local Iraqi employees) had 1.07 million customers at the end of 2005, up from 244 = 339% increase with revenues rising from USD$65Mn to USD$ 123 Mn . MTC Atheer expects the mobile sector in Iraq to become one of the largest mobile markets in the Middle East in 2006. Saddam of course had banned the introduction of mobile phones.

Traded on the Kuwaiti Stock Exchange the The Company’s share price as at December 31, 2005 was 3,520 Fils, giving a Kuwait Stock Exchange market valuation for MTC of KD 3.86 billion (USD 13.2 billion). Shareholders equity stood at USD$4.1 Mn.
Mobile phones have not only had a major social impact they have made the investors in Mid East telecom IPO’s rich .A USD$1,000 investment since the listing date in Etihad Etisalat, Mobinil, Orascom Telecom and MTC would have generated US$14,500, US$12,000, US$11,500 and US$33,500, respectively.


Speaking at Egypt's ICT Cairo Conference in Cairo earlier this month where the company had applied for a third GSM license Mohamed Ibrahim, Chairman of Celtel International, said ,

“The communications market in both the Middle East and Africa is one of the fastest developing markets in the world, especially since penetration rates are still far from those in Europe. We believe that mobile telecommunications is essential in developing the economies of these countries, while providing better means of communication for rural areas. By combining both our experience in Africa with that of MTC’s experience in the Middle East, we are confident that we can provide a competitive service for Egypt.”

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