|
::: Strategic Investments
|
|
| |
Combining our understanding of the communications industry with our specialist expertise in emerging telecom markets in the GCC region and other developing countries in the Middle East, our Investment Division rigorously evaluates new investment and business opportunities that arise in and outside the Arab region.
|
|
| |
Vision
The Arab countries, home to more than 250 million people, are yet to have truly liberalized communications sectors that will bring in what competition elsewhere brought: Better service, expanding bases of consumers of communications services and cost-based pricing. Liberalized markets will also enhance global investor interest in the countries as opportunities attract international operator, vendors and finance.
MTG’s vision is to enter and expand its business in emerging markets and developed countries. Our expertise in the economic and commercial issues in such countries positions us well to enter into strategic investment alliances and ventures with renowned telecom companies and investor from around the Globe.
|
|
| |
Due Diligence
Thorough market forecasts, competitive analyses and detailed financial evaluations, MTG interests range from investment in GSM operator licenses to investment in pan-Arab telecom projects, MTG has allocated an excess of AED 100 Million through 2005.
The major functions of our Investment division include:
|
|
| |
Research and Analysis
|
| |
| |
 |
Identifying market opportunities in technology or operations worldwide or in specific regions
|
| |
|
Sizing and prioritizing markets
|
| |
|
Evaluating demand and affordability
|
| |
|
Evaluating user needs and profiles
|
| |
|
Analyzing competitive situation
|
| |
|
Screening telecoms policy and regulatory environment
|
| |
|
Appraising the investment opportunity
|
|
|
| |
Entry Strategy
|
| |
| |
|
Planning effective approaches to market opportunities
|
| |
|
Commercial feasibility studies
|
| |
|
Developing business plans
|
| |
|
Financing and funding possibilities
|
| |
|
Network development
|
| |
|
Design of product and service offerings
|
| |
|
Tariffs
|
| |
|
Marketing support and sales planning
|
| |
|
Distribution solutions and roll-out strategies
|
| |
|
Commercial viability improvement
|
| |
|
Technical solutions and technology transfer
|
|
| |
Opportunities in a Pan Arab Deregulated Telecommunications Market
The Arab world is taking wide leaps on the way to become a properly deregulated telecom market. Private participation turns out to be permitted in all segments of the services – international long distance, basic, GSM, internet, radio, and value-added services.
MTG’s participation, as a private sector player, also aims at positively influencing the liberalization of the sector with the following objectives:
|
| |
| |
|
Effectively regulate the sector, facilitate growth and development, promote transparency and ensure fair competition
|
| |
|
Provide universal access to basic and value-added telecom services at affordable prices
|
| |
|
Benchmark telecom services with global standards
|
| |
|
Introduce all innovative value added services available internationally
|
| |
|
Achieve higher telecom penetration Relaxation of investment norms in the telecom sector
|
| |
|
Achieve maximum MTG equity participation in domestic and foreign investment ventures
|
|
| |
Opportunities
Operator investments in the Arab world have reached approximately $15 billion in 2002. However, it has been estimated that the region would need to invest more than $35 billion from 2000 to 2005 in order to meet the expected demand and adopt new technologies. These figures stress the need for continuous development of the Telecom and Information Technology (ICT) infrastructure. Higher revenues and investments in the telecom sector will create a ripple effect, spreading to the much-needed development of the Internet economy including e-commerce services.
Based on these facts we estimate that:
|
| |
| |
|
Opportunities may exist in acquiring full or partial licenses issued to existing operators, as divesting equity stakes to foreign investors remains an option laid before both the operators and investors
|
| |
|
Governments will plan to divest its holdings in state-owned enterprises as prescribed by the GATT and WTO agreements
|
| |
|
The rapid and sustained growth in the telecom market in the Arab countries also provides major investment opportunities for manufacturing and marketing telecom equipment and supporting services
|
|
|
