Qatar Telecom’s recent purchase of 48% of Wataniya Telecom it di not own has solidified its position as the leading telecom company in the Middle East. The $2.2 billion purchase is now part of the government-backed company’s other recent acquisitions, notably in Europe.
Many Gulf nations have changed tactics and are investing their gas dollars at home, or within the region. Qatar Telecom has led the fore, but its small population in comparison to neighboring Arab countries has allowed it to spend on both domestic and international acquisitions. This deals are rejuvenating the region, which has faced several political and economic crises the past year. The purchase of Kuwait’s largest telecom company is expected to bring a resurgence to the telecommunications industry.
In other news, US-based LightPointe Communications is turning its attention to the India after focusing its mobile backhaul services in North America and Europe. VP for Sales, John Taylor, noted how India’s population, the second largest in the world, is now clamoring for faster connection services through wireless backhaul.
The remainder of Kuwait’s Wataniya Telecom has been offered to be purchased by Qatar Telecom for $2.2 billion in one of the biggest deals this year in the Middle Eastern telecommunications market. Kuwait’s telecommunications company has been seen by Qatar telecom as one of the better performing companies and amidst increasing competition at home base, are planning to invest on them.
Read more about the purchase here.
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Qatar Telecom (QTEL) QSC offered to buy a stake valued at about $1.9 billion in Kuwait’s National Mobile Telecommunications Co. as it steps up acquisitions amid competition at home.
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Qatar Telecom has raised 6.8 billion riyals ($1.87 billion) from a fully subscribed rights issue, the firm said in a statement on Tuesday.
The capital will be used for general corporate purposes and to refinance existing debt, according to a regulatory filing to the London Stock Exchange where Qtel has bonds listed.
DUBAI, April 29 (Reuters) - Qatar Telecom 7010.SE (Qtel) on Sunday reported a 12 percent drop in first-quarter net profit, citing mainly foreign exchange losses, but the former monopoly still beat forecasts.
Qtel made a profit of 711 million riyals ($195.29 million) in the three months to March 31, down from 811 million riyals in the year-earlier period.
“Net profit during the period was adversely impacted by movement in the Indonesian currency,” Qtel said in an emailed statement. “Net profit decreased mainly due to foreign exchange losses in (Indonesian subsidiary) Indosat.”