Qatar Telecom (Q-Tel)

However, this has not been an easy achievement. After the 1998 initial public offering for a 45% stake in Q-Tel, the share price tanked below the issue price of QR 60 and it took some months to recover.

But since then the share price has strengthened and proved an exceptional performer compared with the recent global rout of telecom stocks. For Q-Tel has low debts and is investing in a major programme to expand its infrastructure.

GSM mobile phone operations have been a runaway success in recent years. In the year to end of September 2002 pre-paid GSM subscribers jumped by 70% to 105,451, while post-paid subscribers were up 30% to 130,407.

At the same time Internet subscriber numbers grew by 45% to 19,005. This sort of growth is reflected in the bottom line with the last set of figures available showing a 13% rise in profit to $212 million for the first nine months of 2002, a very high profit margin on revenues of just $337million.

The company is running a two-year programme called Q-Turn that intends to turn it into the most efficient telecoms company in the region. Developed by US management consultants McKinsey this is centred on optimizing products and service to clients.

This is clearly a telecom company that is doing all the right things in an industry that has done the reverse for some years. For Q-Tel the challenge is how to broaden out into regional markets as its domestic market is limited by the geographic size and population of Qatar.

Q-Tel has already taken small stakes in telecommunications satellites such as Thuraya. But the lack of the ability to purchase interests in most state controlled regional ventures is a problem. This may change as the region opens up through privatization and the encouragement of inward investment.