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Vodafone's Qatar move may be blueprint for region

By CAROLINE GABRIEL

Published: 16 September, 2008

READ MORE: Vodafone

One of Vodafone's key growth strategies is to move into fixed line broadband and fixed/mobile convergence. While it has been buying or partnering with fixed operators in many of its key territories, it can make faster progress in new areas where it can acquire providers more cheaply and has a more open market to play for. So as part of its Middle Eastern push, it has bought a fixed line license in Qatar to add to the mobile franchise it gained last December, in a ploy that is likely to be a blueprint for many countries in the EMEA region.

Vodafone won the new license - like the mobile one - in partnership with the Qatar Foundation Consortium. In both cases, it is only the second licensee, breaking the former monopoly of Qatar Telecom (Qtel), in this small but rich and influential state. Qtel is itself eyeing an international expansion program in the Middle East, Africa and Asia and recently acquired Indosat in Indonesia. Last week it reported a 102% increase in first half group revenues, to QAR8.1bn ($2.2bn), with net profit up 33% year-on-year at QAR1.18bn ($324m).

Financial terms of the Vodafone deal were not disclosed, although a Reuters report states that Qatar's telecoms regulator, the Supreme Council of Information and Communication Technology, said in December the fixed license would be sold for a fixed fee of QAR10m ($2.8m) and services should start in 2009.

The mobile joint venture with the Foundation will start GSM services in the first quarter of next year. Vodafone owns 51% but the venture is set to sell 40% of its shares to the public before the end of the year.,

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