UAE-based incumbent Etisalat has ruled itself out of a bid on the third mobile licence in Syria, while Qatari incumbent QTel has said it remains interested, according to reports.
Etisalat said that it was withdrawing from the bidding because of the…
UAE-based incumbent Etisalat has ruled itself out of a bid on the third mobile licence in Syria, while Qatari incumbent QTel has said it remains interested, according to reports.
Etisalat said that it was withdrawing from the bidding because of the government’s condition that the buyer pay it a 25% revenue share, but did not say whether the country’s escalating civil unrest and political uncertainty was also an issue. The regional heavyweight called off its US$11.7bn attempt to acquire 46% of Kuwait-based Zain earlier this month, blaming regional uncertainty as well as Zain’s own internal disagreements and protracted due diligence efforts.
In remarks following his company’s AGM, QTel chairman Sheikh Abdullah bin Mohammed bin Saud al-Thani was quoted saying that the board had decided to go ahead with the Syrian bid since “we think [Syria] is an important country to be in”.
QTel indicated that it would be restructuring debt in the near term, and that raising new capital was also an option. Finally, the company confirmed that it had agreed to acquire another 25% stake in Tunisian mobile operator Tunisiana. QTel acquired Orascom’s 50% holding in that group in January, while Wataniya owned the other 50%.
Earlier this month, Syria’s deputy telecoms minister Mohammad Al-Jallali government placed a minimum US$122m reserve price on third mobile licence. The auction is due to take place on 12 April. Turkcell, France Telecom, STC, Etisalat and Qtel had all prequalified, while a sixth suitor, Iran’s state-owned Tamin Telecom Company (Tamco), did not qualify.
France Telecom, however, appears to have reservations, with its EVP of group strategy and development Elie Girard being quoted saying that the frequencies on offer are in a lower band than that occupied by existing operators MTN Syria and SyriaTel. As such, the winner would have to build a “denser and therefore more expensive network”.
