Batelco invests $70m in Jordan subsidiary

25 January 2012

The group recorded a drop in profit for 2011

Bahrain mobile operator Batelco has invested $70m in Jordanian subsidiary Umniah to purchase a third generation (3G) licence.

The services will be launched between the second and third quarter of this year. Jordan’s two other mobile operators Kuwaiti-owned Zain Jordan and France Telecom’s Orange Jordan already have 3G services.

“With the kingdom setting its sights on becoming the Middle East and North Africa (Mena) region’s ICT [information and communications technology] hub, it is paramount that we empower industry players to embrace the latest technological developments and advancements in the field,” says Basem al-Rousan, Jordan’s Information and Communications Technology Minister. “We feel that Umniah’s investment in 3G is a step towards greater industry readiness to take on the challenge of driving the innovation curve in the region.”

Batelco has a 96 per cent stake in Umniah, which now has more than 2.3 million subscribers with a 31 per cent market share.

The Batelco Group recorded a net profit of $212m for 2011, a decrease of 8 per cent since 2010. Revenues declined 4 per cent from $902.7m in 2010 to $867.4m at the end of 2011. About 30 per cent of the revenues came from the group’s international operations.

The group’s subscriber base increased 20 per cent year-on-year to more than 11 million, of which 8 per cent came from broadband subscribers.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications