Zain bids for state operators
Zain, the Kuwaiti mobile-phone group formerly known as MTC, is preparing multi-billion-dollar bids for Algerie Telecom and Telecommunications of Iran (TCI), two of the last big state-owned telecoms operators to privatise. The Algerian and Iranian governments plan to privatise their telecoms operators in 2008.
'Both markets are extremely important to us,' says Saad al-Barrak, chief executive officer of Zain. 'I would not distinguish between them.'
However, the Kuwaiti group's plans to buy both operators could be jeopardised if the two governments delay their privatisation processes.
Iran has already postponed the flotation of the first tranche of shares in TCI, which had been due to take place in September. Algeria's government has also failed to announce a firm date for the privatisation of Algerie Telecom.
Zain could buy Algeria's second mobile licence holder, Wataniya Telecom Algerie, if the privatisation of Algerie Telecom drags on, according to Al-Barrak.
'Algeria is a great market, but it is a very challenging market. Entering the market will be done through the acquisition of an operator, either public or private,' he says.
The Iranian government has valued TCI's mobile phone subsidiary Mobile Company of Iran (MCI) at more than Zain is willing to pay.
The company, which has 18 million customers, has been valued at $4,200 million, according to Hamid-Reza Nikoofar, an adviser to the subsidiary's chief executive officer (MEED 7:9:07).
'They think they are Microsoft,' says Al-Barrak. 'We have a totally different perspective. Value is in the eye of the buyer, not the seller.'
The Iranian government needs to strengthen the power of the telecoms regulator and 'completely liberalise' the telecoms market to reduce the risk faced by an operator starting up in the country, according to Al-Barrak.
www.meed.com/telecomsit
Zain, the Kuwaiti mobile-phone group formerly known as MTC, is preparing multi-billion-dollar bids for Algerie Telecom and Telecommunications of Iran (TCI), two of the last big state-owned telecoms operators to privatise. The Algerian and Iranian governments plan to privatise their telecoms operators in 2008.
'Both markets are extremely important to us,' says Saad al-Barrak, chief executive officer of Zain. 'I would not distinguish between them.' However, the Kuwaiti group's plans to buy both operators could be jeopardised if the two governments delay their privatisation processes. Iran has already postponed the flotation of the first tranche of shares in TCI, which had been due to take place in September. Algeria's government has also failed to announce a firm date for the privatisation of Algerie Telecom. Zain could buy Algeria's second mobile licence holder, Wataniya Telecom Algerie, if the privatisation of Algerie Telecom drags on, according to Al-Barrak. 'Algeria is a great market, but it is a very challenging market. Entering the market will be done through the acquisition of an operator, either public or private,' he says. The Iranian government has valued TCI's mobile phone subsidiary Mobile Company of Iran (MCI) at more than Zain is willing to pay. The company, which has 18 million customers, has been valued at $4,200 million, according to Hamid-Reza Nikoofar, an adviser to the subsidiary's chief executive officer (MEED 7:9:07). 'They think they are Microsoft,' says Al-Barrak. 'We have a totally different perspective. Value is in the eye of the buyer, not the seller.' The Iranian government needs to strengthen the power of the telecoms regulator and 'completely liberalise' the telecoms market to reduce the risk faced by an operator starting up in the country, according to Al-Barrak. www.meed.com/telecomsitThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
If you are already a subscriber to the MEED package and have activated your online subscription, sign in
If you are already a subscriber to the MEED package but have not activated your online subscription, please activate here
If you would like to subscribe to the full MEED package and get access to the whole of the website, please subscribe here
If you are a MEED magazine only subscriber and would like full access to MEED.com, please contact Customer Services who will upgrade your subscription.
