Jordan Telecom Group (JTG) fired a shot across the bows of the Jordanian telecoms regulator in an attempt to maintain its 3G exclusivity in the Hashemite Kingdom.
The Group, 60% owned by the government and the rest split between France Telecom and the…
Jordan Telecom Group (JTG) fired a shot across the bows of the Jordanian telecoms regulator in an attempt to maintain its 3G exclusivity in the Hashemite Kingdom.
The Group, 60% owned by the government and the rest split between France Telecom and the Arab Bank, paid JD50m (US$70.5m) for the country’s first 3G licence in August and had been granted exclusivity for 3G services until February 2011.
Kuwait’s Zain Telecom also bid for a 3G licence, but was initially rejected for not meeting the Telecommunications Regulatory Commission’s (TRC) requirements. Since then, however, media reports have surfaced that claim Zain has now been granted a 3G licence by TRC.
“No licence should be given to any operator before the year of exclusivity ends. We have information that the TRC has already received JD50 million from Zain to provide it with a licence,” JTG CEO, Nayla Khawam claimed.
Khawam told local English-language national, The Jordan Times: “The decision to grant the licence to another operator is wrong and the TRC left us with no choice but to resort to legal channels,” adding that the decision is “wrong and affects investors’ confidence in the government’s policies.”
JTG hopes that its investment in 3G will enable it to catch up with Zain. Orange, which is the brand name for Jordan Telecom, had a 28% share of the mobile phone market at the end of September, compared with Zain’s 45%. Orange has also come under increasing pressure from third-placed operator Umniah, which has built up a market share of 26%.
In remarks to the press following the launch of a regional terrestrial fibre optic network connecting the Middle East and Asia via Jeddah, Amman, Damascus and Istanbul, Jordan’s Minister of Information and Communications Technology Marwan Juma said granting 3G licences does not violate the JTG’s rights as an exclusive provider.
“The licence will be given to Zain and any other operator that applies, but there cannot be any launch of commercial 3G services until after the JTG’s exclusivity period expires,” he said.
Jordan has just under 6.2 million mobile phone users – representing a population penetration level of 96% – and these are served by four mobile network operators and three WiMAX networks.
Jordan recently emerged as the country with the most competitive telecom sector in the Arab world, closely followed by Saudi Arabia and Palestine, according to a survey from research firm Arab Advisors Group.
