MTC Atheer secures 15 year mobile license in Iraq for USD$1.25 billion
17 August 2007, Amman, Jordan
MTC-Atheer, the leading mobile operator in Iraq with over 3.6 million active customers announces that it has made a successful bid for one of the three licenses auctioned by the Iraqi Communication and Media Commission (CMC) today in Amman, Jordan.
The successful bid of USD$1.25 billion secures a 15 year nationwide license, effective from the date of license signing expected on 30 August 2007. The payment to the Government of Iraq is phased over three instalments.
Commenting on the transaction, Dr. Saad Al Barrak, Chief Executive Officer of MTC Group of Companies, stated:
“We are delighted to have secured a 15 year license in Iraq, continuing the commitment we made to the people of Iraq when we started operations in December 2003. Now with such clarity, the license awarded will allow us to more effectively utilize our synergies across the Group continuing to expand and invest in the network to better serve our customers offering much needed mobile services to more communities across Iraq. Securing the license underscores MTC’s leading position in the Middle East, in line with our aspirations of becoming a top-ten global mobile operator by 2011.”
As the market leader in Iraq with a 40% market share and over 3.6 million active customers (June 30, 2007) of which 97% are prepaid, MTC Atheer’s GPRS mobile network offers the most advanced mobile services in Iraq. It has the widest reaching mobile telecommunications network in the country spanning over 6,000 kms, the company having invested over $600 million to date.
Ali Al Dahwi, General Manager of MTC Atheer said “We are very appreciative of the professionalism demonstrated by the Iraqi authorities, the CMC and its advisors in the auction process. The outcome of this process affirms and is testimony of MTC-Atheer’s market leadership, commitment and long-term dedication to the future of Iraq. Importantly it facilitates our expansion plans to grow nationwide inclusive of the northern part of Iraq.”
One of MTC Atheer’s stated objectives is to support the local community, offering employment and creating business opportunities. Today, MTC Atheer employs over 1500 Iraqis with training and personal development are at the forefront of its recruitment and HR policies. It sponsors and supports various cultural organizations such as the Olympic National Football Team and the Iraqi National Orchestra as well being very active in supporting NGOs and health organisations.
Key highlights
* Iraq is a key regional market
- Iraq is the 6th largest economy in the Middle East with a population of 27 million
- The long term license confirms MTC-Atheer’s market leadership in Iraq and solidifies MTC’s position as the 4th largest mobile operator worldwide by geographical coverage footprint inclusive of Africa and in the Middle East, where it has a presence in Kuwait, Jordan, Bahrain, Lebanon, Sudan and soon Saudi Arabia.
* Iraq is a fast growing and attractive market
- low mobile penetration of approximately 32% with low fixed line penetration of 2%
- young and fast growing population
- relatively attractive blended market ARPUs of US$14.5 that is expected to grow
* Synergies that will ensure MTC-Atheer’s continued success
- The MTC Group spans 21 countries, MTC Atheer will continue to benefit from Group synergies in branding, human resources, procurement and best business practices. MTC has operations in five neighbouring countries, namely Kuwait, Jordan, Bahrain, Lebanon and soon Saudi Arabia.
* UBS Investment Bank acted as MTC Atheer’s sole advisor in the auction process
About the MTC Group
The MTC Group is a pioneer in mobile telecommunications in the Middle East and on the African continent. The company was incorporated in 1983 in Kuwait as the region’s first mobile operator and since the initiation of its “3x3x3” profitable expansion strategy in 2003, it has grown very rapidly.
MTC is a leading mobile operator, now in 6 Middle Eastern (soon KSA) and 14 sub-Saharan African countries with over 13,000 employees, providing a comprehensive range of mobile voice and data services to over 32.145 million active individual and business customers (as of June 30, 2007).
The company already operates in Kuwait and Bahrain as mtc-vodafone, in Jordan as Fastlink, in Iraq as mtc atheer, in Lebanon as mtc touch, in Sudan as Mobitel and in 14 sub-Saharan countries in Africa as Celtel: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia.
In January 2007, MTC launched ACE-an implementation strategy to realize the target of the 3x3x3 vision of becoming a top-ten global mobile operator by 2011. ACE seeks to extract superior value from existing assets through three main thrusts: Accelerating the growth in Africa; Consolidating the existing assets; and Expanding into adjacent markets.
The company’s market capitalisation at 15 August, 2007 exceeded US$29 billion. For more please visit
www.mtctelecom.com