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Doha, 05 March 2010 (The Peninsula)

Middle Eastern mobile operators have outperformed their western counterparts for the first time, which have led to profitable growth and overseas expansion, a recent study shows.

PRTM, a global management consultancy firm, stated in their report "The Future of Mobile Telecommunications--New Operating Strategies for a New World," that seven multinational operators with origins in this region--Etisalat, Orascom, Qatar Telecommunications (Qtel), STC, Zain from the Middle East, and MTN and Millicom in Africa--have more than 300 million subscribers and have expanded across Africa and parts of Asia to sustain growth momentum.

The study also showed that Egypt's Orascom Telecom has become the eighth largest mobile network in the world by customer numbers, overtaking some of the well-established international operators. The research showed that fundamental change of operational models is central to sustained leadership and that significantly emerging markets have altered the telecommunications landscape.

"The past decade has been a highly successful one for the leading Middle Eastern and African operators. Supported by typically affluent and growing home markets and benign competition, both revenue growth and cash flow have been strong. And the leading operators have used this cash flow, supplemented by the ready availability of private capital, to build regional multinationals," said Anil Khurana, lead director of PRTM's Middle East Region and co-author of the report. Ameet Shah, head of PRTM's mobile services practice, served as lead author of the report.

Between 2003 and 2009, the leader board of the world's 30 largest mobile operators changed dramatically, according to this first-of-its kind report. The report identifies 19 new mobile leaders worldwide, measured either by number of subscribers or revenue. A common thread among these leaders is the continuous adaptation of their operating models to address new market conditions--crucial within a mobile industry where the game can change rapidly and where new players can quickly overtake yesterday's leaders.

"The rise of operators from emerging markets is testament to two factors: the rapid growth in their domestic markets, and their drive to play in multiple markets. But, as their existing markets start to mature, it is not yet clear that these companies will be able to revamp their operating models and sustain continued growth based on innovation, cost management, outsourcing, and the like," added Khurana, who calls these operators the "new multinationals."

The analysis reveals that the highest ranking mobile players over the past five years have modified their business models in ways that have led to profitable growth and support from shareholders, resulting in acquisitions and overseas expansion.

Telefónica and Telenor are prime examples of companies that have successfully ridden the boom of mobile usage in developing countries through strategic changes to their operating models.

This trend is evident in the emergence of large multinational operators from Russia, Africa, the Middle East and Latin America. It is also reflected through market consolidation within the US and through the growing importance of the leading Chinese and Indian operators. Those who have not adapted their operational models, including some major European operators, have experienced relative decline.

The report argues that operators that create the right operating models will increase performance and win investor backing in the international M&A game that is rationalizing many individual operators into global groups.

Consolidation during the next five years will mean an operator may need 300 million subscribers, or $50bn in revenue, to be among the global top 10 in 2014.

China National Petroleum Company (CNPC) will start work on the Iraqi Halfaya project in the second half of this year, Jiang Jiemin, the chairman of CNPC's subsidiary PetroChina (0857.HK), said on Friday.

Jiang also said it would take a fairly long time to finalize the purchase agreement for a deal to buy 2 million tones of liquefied natural gas per year from Qatar, and that his company planned to put two Chinese LNG terminals into operation next year, in Dalian and Jiangsu.

(Reporting by Chen Aizhu; Editing by Jonathan Hopfner)

(Reuters)

loomberg reports that Iraq raised the official selling prices for crude delivered to the U.S. and lowered them for Europe.

The March price for Basra Light oil for delivery to the U.S. rose by 80 cents, to a discount of $4.35 below West Texas Intermediate crude, according to a statement from Iraq's Oil Ministry. The price for Europe declined by 20 cents to a $1.70 discount to Dated Brent, while the Asia price fell to a 45-cent discount to the average of Oman and Dubai oil prices.

The price of Kirkuk crude to the U.S. increased by 40 cents to 75 cents below WTI, and dropped by the same amount for Europe to a discount of 90 cents below Dated Brent, the ministry said.

Meanwhile, Reuters reports that the benchmark for pricing sales to the US will change in April to the Argus Sour Crude Index (ASCI).  According to Falah Alamri, head of Iraq’s State Oil Marketing Organization (SOMO), “Switching to Argus was the best solution for us to ensure stable prices and also to satisfy our customers.”

The ASCI better represents the type of oil exported from the country. (Both the UAE and Qatar publish an outright price for their crude, rather than a differential, and do not publish different prices for different destinations).

Iraqi crude oil production rose 14 percent in January from a year earlier, averaging 2.46 million barrels a day, according to the U.S. State Department.

(Sources: Bloomberg, Reuters)

In an important step for developing the Iraqi telecommunications infrastructure, Gulf Bridge International (GBI), the Middle East's first privately owned submarine cable operator, and  Iraqi Telecom & Post Company, the leading telecommunications service provider in Iraq,  today announced the signing of a agreement to land GBI's new undersea telecommunications cable in Iraq. The announcement was made in the presence of H.E. the Iraqi Minister of Communications and H.E. the Ambassador of Iraq to Qatar.

The Gulf Bridge International Cable System (GBICS) is planned to connect Iraq with the Gulf region and the rest of the world, via a reliable, high capacity fiber optic cable linking the region to India and the Far East (East Route) and Europe (West Route).

Commenting on the importance of the GBI-Iraqi Telecom agreement, Iraqi Minister of Communications H.E. Eng. Farouq Abed Al-Qader said: "The signing of an agreement to land GBI's new undersea telecommunications cable in Iraq comes within the policy of the Iraqi Ministry of Telecommunications to build a strong communications infrastructure which supports development in all areas through establishing communications network contributes in reducing the digital gap between the government sectors, in addition to strengthening Iraqi economic and informational relations with the countries of the region and the world."

Board Member and Chief Executive Officer Eng. Ahmed Mekky stated: "Our partnership with the Iraqi Ministry of Communications - representing Iraqi Telecom & Post Company - to land a high capacity marine cable in Iraq is an important step in GBI's vision to provide the latest underwater cable technology for all Gulf countries".

In turn, Qasim Mohamed Jasim Al-Hasani, Director General of ITPC stated: "The agreement signed today is a major step to provide an undersea option which helps in facilitating the passage of international communications and upgrading the level of international services provided by ITPC to the Iraqi people".

Designed to operate for 25 years and enter service during 2011, GBICS will exploit the commercial opportunity provided by the increasing demand for reliable high-speed telecommunications capacity in the Gulf region. In order to achieve this, GBICS will have very high capacity capable of meeting all current and future GCC demands with a design capacity of 5 Terabits per second on certain routes.

The Qatar-based Gulf Bridge International (GBI) and the Iraq Telecommunications and Post Company (ITPC), a leading telecom company in the country signed a $445m deal to establish a landing for GBI's advanced submarine telecommunication fiber-optic cable in Iraq, here yesterday. The GBI-ITPC agreement is the first in a series of Landing Party Agreements that the Doha-based Middle East's first privately owned submarine cable operator is expected to sign this year.

"The modernization of Iraq's communications infrastructure is as important to us as the contracts Iraq had recently signed with international companies to develop the oil fields," said Dr Farooq Abdelqader, Iraq Minister of Communication. "The agreement reflects the true brotherhood between Qatar and Iraq.

The project will support development in all sectors in Iraq through the establishment of communications network and contribute to reducing the digital divide. It will also help in forging closer ties with Iraq's economic and information with all Gulf states and the countries of the world," he said prior to signing the Landing Party Agreement for Iraq's first international fiber optic cable connection.

Dr Abdelqader also stressed that Iraq chose the Doha based company due to the latest infrastructural facilities it provided connecting to Europe and Asia. He confirmed that the submarine cable landing agreement will enhance the capabilities of Iraq. Added to this, the contract does not involve any investment in the project from the side of the telecommunications company.

"GBICS provides infrastructure for national telecom systems to support the aspirations of the countries involved for a sustainable development. The extension of the cable to Iraq will provide new services of unprecedented quality and reliability to its people," said Rashid Al Nuaimi, Chairman, and GBI.

Meanwhile, Ahmed Mekky, GBI board member and CEO, told The Peninsula, that Tyco Telecommunications, the main contractor, has by now completed the part of the project in the Mediterranean Sea, from Italy to Alexandria. The stretch between the Red Sea and the Arabian Gulf and the final landings in various countries is currently being estimated. Tyco Telecommunications is responsible for the design, manufacturing, permitting, deployment, and testing of GBI's undersea cable network, as well as onward connectivity to Europe and India.

GBI's International Cable System undersea cable network is planning to connect the Gulf region states in a 'Gulf Ring' system, in addition to onward telecommunications connectivity to the Far East (East Route) and Europe (West Route).

Commenting on the importance of the GBI-ITPC MoU, GBI Chairman Rashid Al-Noaimi said: "The landing of GBI's new undersea telecommunications cable is a historic event, as it is the first cable to be landed in Iraq. This step will certainly improve Iraqi economic performance especially the telecommunication sector, motivate the development process and facilitate various business investments".

GBI International Cable System is the first cable to be landed in Iraq and will contribute to develop telecommunications services for both individuals and companies. The cable will provide high capacity internet services especially with Gulf countries, and will help in reconnecting Iraq with the rest of the world through high speed, reliable cable networks.

"This MOU reflects strong Qatari-Iraqi relations, and it opens doors for more co-operations in other fields in the future. We look forward for the best mutual investments between Iraq and Qatar, as well as our people's interest," said Jawad Al-Hindawi, Iraqi Ambassador to Qatar.

Qasim Mohamed Jasim Al-Hasani, Director General of ITPCITPC stated: "The landing of the GBI cable in Iraq will provide unprecedented services, and will support other sectors which will benefit from the rapid and immediate communication the GBI cable will offer."

The GBI International Cable System offers options to upgrade to a true 64 x 40Gbps per fiber pair system, enabling real-time communications for telecommunications operators and major industries.

New Arab Advisors Group's research revealed that 338 local FM radio stations broadcast in 18 Arab countries, by July 2009. The regional landscape varies widely: Algeria and the UAE have the highest number of local government-owned FM radio stations while Palestine, Iraq and Lebanon have the highest number of private local radio stations.

The research revealed 8 regional radio stations that broadcast on FM frequencies in multiple countries. These regional stations raise the total of FM radio stations to 346 FM radio stations in the 18 covered countries.

Liberalization in several Arab countries was a key factor for the growth in private FM radio stations. Out of the 18 countries, five do not allow private radio stations, with Libya and Oman being the latest to liberalize their markets in 2006. In addition to the liberalization of the sector, the need to broadcast in multiple languages to cater for expatriates enhances the number of FM radio stations even in countries where private FM radio stations do not exist. The UAE is a clear example of this as it hosts FM radio stations broadcasting in Arabic, English, Malayalam, Hindi, Urdu and Filipino.

A new report, 'FM Radio in the Arab World 2009' was released to the Arab Advisors Group's Media Strategic Research Service subscribers on October 22, 2009. The 81-page report, which has 42 detailed exhibits, provides a detailed analysis of the FM Radio regulations and landscape in the 18 Arab countries of Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, UAE and Yemen. The report includes analysis and profiles of the main FM radio stations (private and state owned) in the region.

"State-owned radio stations in the Arab World still outnumber private radio stations, although the number of private ones is growing and approaching the number of state-owned radio stations," Mrs. Faten Bader, Arab Advisors senior research analyst wrote in the report.

"State-owned radio stations reached 176 by July 2009, up from 157 stations by February 2008, a growth rate of 12.10%. Private radio stations increased from 150 stations by February 2008 to 162 by July 2009, translating into a growth rate of 8%," she added.

"Algeria ranks first with 50 state-owned radio stations (28.41% of the total number of state-owned radio stations). The UAE follows with 24 state-owned radio stations. On the opposite side, Iraq, Lebanon and Palestine lead all Arab countries with the number of private radio stations," Mrs. Bader added.

The Arab Advisors Group's team of analysts in the region has produced over 1,700 reports on the Arab World's communications and media markets.