Qtel wins "Telecoms Deal of the Year" award for Indosat investment

In winning the award, Qtel successfully came ahead of a wide range of global and international operators who have looked to grow in the Middle East and Asian markets over the past 12 months.

It is the second year running that Qtel has received the award, which aims to honor the transaction that creates the highest value for stakeholders and greatest long-term benefits for the market. In 2007, the company received the award for its acquisition of a controlling interest in Wataniya Telecom of Kuwait.

His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of Qtel, collected the award on behalf of the company.

His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani said:

"2008 has been a year of highlights for Qtel, and we are particularly proud to receive this award for one of the most far-sighted and important investments that we have undertaken this year. Our investment in Indosat provides us with a firm foundation to grow our business in one of the world's most populous markets, and ensure that our stakeholders are rewarded with high value and long-term development potential."

Indosat is one of the leading providers of telecommunications and data services in Indonesia. Qtel's acquisition of a stake in the company was one of the most ambitious transactions in the company's recent history of rapid international expansion. Qtel initially acquired a 40.8% interest in Indosat from Asia Mobile Holding Pte. Ltd. for $1.8bn in June 2008.

With the transaction subject to a ruling from the Indonesian Supreme Court, the acquisition was seen as an important indicator of the extent to which Indonesia was opening up to foreign investment and also a reflection of the potential for Qtel to extend into some of the world's fastest developing markets.

Qtel's success at the Supreme Court opened the door for the launch of a tender offer that will enable the company to acquire more of this key asset in the coming months.

Indosat is already providing significant value for Qtel's stakeholders, with the Indonesian market contributing 17% of revenue for the first nine months of 2008 post-acquisition, making it Qtel's second most important market after its home nation of Qatar.

Indonesia's mobile phone market also offers major potential for development, with penetration rates of approximately 48% of a population of 230 million people. Average monthly minutes of use per subscriber stand at 175, compared with 300 in China and 500 in India, creating significant scope for adding value within the existing customer base.

Qtel is therefore in a position - through long-term investment and strategic management - to deliver significant benefits to Indosat shareholders and to the entire communications market in Indonesia.

"Indonesia is already a major contributor to the wider success of the Qtel Group, which has set new performance and development records in 2008. This award was made possible by the vision and support of our Board of Directors and shareholders, as well as the expertise of the whole team involved in the transaction," noted His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani.

"We will apply that vision, support and expertise in not only making our operations in Indonesia a success, but also by expanding across the continent as the first telecommunications consolidator in Asia from within the Middle East," he concluded.

Since concluding the Indosat acquisition, Qtel has announced a number of new initiatives designed to increase its presence within Asia. On the eve of the CommsMEA Awards, the company completed a Telecommunications Memorandum of Understanding with the San Miguel Corporation (SMC), one of the Philippines' leading business conglomerates, as part of the Group's ongoing plans for expansion within the Philippines.

The award for Best Telecoms Deal is the second major industry award presented to Qtel is as many months, with Dr. Nasser Marafih, Chief Executive Officer (CEO) of Qtel, winning the "Outstanding Leadership" award at the 2nd annual Telecoms World Awards Middle East in November.