Asia-Cell delegation to Iraq gets first-hand look at telecoms sector progress

A visiting delegation from consortium partners Wataniya Telecom of Kuwait and United Gulf Bank (UGB) of Bahrain saw the progress being made as Asia-Cell's network expands to bring much-needed mobile services throughout the Iraqi northern provinces.

Asia Cell, a consortium of KIPCO affiliate Wataniya Telecom, Asia-Cell Telecom and United Gulf Bank of Bahrain (UGB) - KIPCO's subsidiary and investment banking arm - is based in Sulaimaniyah, where it operates a GSM network providing voice, SMS and voice-mail services, and an international gateway.

The delegation from Wataniya Telecom and UGB in Kuwait and Bahrain flew to eastern Iran and then drove overland for seven hours for the meeting in Sulaimaniyah, the second board meeting of the consortium. Their trip also involved a fact-finding tour of Asia-Cell operations in the area, and a review of progress in establishing a joint venture bank in northern Iraq between UGB and the Asia-Cell partners.

The delegation comprised Wataniya Telecom chairman and KIPCO managing director, chief executive officer Faisal Al Ayyar; UGB managing director and KIPCO Asset Management Company (KAMCO) chairman Masaud Hayat; Wataniya Telecom chief financial officer Ahmed Haleem; UGB chief executive officer William Khouri; and UGB senior vice president Corporate Finance Rabih Soukarieh.

Faisal Al Ayyar said: "As an organisation dedicated to supporting the reconstruction and development of Iraq, it was important for us to be there to meet face-to-face with our partners, and also see for ourselves the tremendous achievements being made.

"We were extremely impressed with the amount of progress carried out in such a short time. Asia-Cell has an impressive platform in place, and we believe our planned expansion of coverage and affordable mobile services throughout northern Iraq will greatly contribute to the overall development of the country," he said.

Asia-Cell has subscriber base of some 80,000 subscribers. The consortium was awarded its GSM licence by the Iraqi Ministry of Communications and the Coalition Provisional Authority three months ago. Its coverage will shortly extend to Erbil, Dahuk, Tikrit and Samarrah, while it currently covers Kirkuk, Sulaimaniyah and Mosul.

KIPCO, with assets of more than US$10 billion under management or control, is one of the leading diversified holding companies in the Middle East and North Africa, and a major regional force in financial services and media & technology, with further interests in real estate and finance. The largest private sector company in Kuwait, KIPCO employs more than 10,000 people internationally and its shares are publicly traded on the Kuwait Stock Exchange.

Winning the licence in northern Iraq was a major step for Wataniya Telecom in its strategy to expand and develop its regional presence. With a proven track record of quickly deploying GSM networks and providing affordable mobile services, Wataniya Telecom is the leading mobile operator in Kuwait and also jointly manages and owns 50 per cent of Tunisiana, the second mobile operator in Tunisia. Wataniya Telecom has also been awarded the third GSM licence in Algeria.

UGB has total assets of some US$ 950 million supported by shareholders' funds of more than US$ 230 million. Its main subsidiaries are Tunis International Bank, Tunisiana, KIPCO Asset Management Co. (KAMCO) of Kuwait, and Algeria Gulf Bank (under formation). UGB also has equity interests of 44 per cent in Jordan Kuwait Bank, 34 per cent in United Real Estate of Kuwait, and 49 per cent in United Industries, also Kuwait. Its activities include private equity and fund investments, quoted equities, asset management, corporate finance, real estate, treasury and selective commercial banking services.