Saudi Telecom (STC), the biggest Arab operator by market value, acquired Bahrain's third mobile license for BD86.68 million ($230 million), the company said in a statement on Thursday. Dr. Muhammad Al-Jasser, STC chairman, said “we are very pleased to win the 3rd mobile license in the Kingdom of Bahrain. This investment is considered a very positive and strategic step for us due to many considerations such as the geographic location of the Kingdom of Bahrain to the Kingdom of Saudi Arabia in addition to the strong bilateral political, economic, and social ties between both countries.” “In addition to that, the Bahraini telecommunications market is a very promising and attractive market in the region, adding to that the increasing level of growth and income per user which is what STC kept in mind when entering the bid for the 3rd license,” he added. Eng. Saud Al-Daweesh, STC president & CEO, said the expansion will provide STC with an ideal platform to launch its highly advances services in the telecom sector in the Kingdom of Bahrain. “By entering the Bahraini market, its will enable STC to transfer its extensive experience in operating and managing mobile telecom operations in the region. A prime example of this success is the recent launch of the 3rd mobile license in Kuwait. And by entering the Bahraini market, we will work to provide value to customers, which will in turn reinforce Bahrain's position in the telecom and IT sectors in the region,” he pointed out. “This win for STC represents an extension of the distinctive services that we provide to more than 70 million customers around the global. We believe this will contribute directly in the enhancement of the telecom services in the Bahraini market due to the Company's experience and expertise in 9 geographic locations considered one of the fastest growing markets in the telecom sector globally,” Al-Daweesh added. He also confirmed that the company will work hard to begin operations in terms of service before 2010. Fahad Bin Mushayt, director of mergers and acquisitions at STC, told a news conference that “economic and social integration between the two kingdoms, illustrated by the cross-boarder trade and travel, makes STC the natural partner.” Several million people cross a causeway linking Bahrain to Saudi Arabia every year, and analysts have said the license would help STC guard against losing customers to Kuwaiti rival Mobile Telecommunications Company (Zain), which operates in all three countries. Bin Mushayt said STC plans to start operations in Bahrain in the second half of the year and aims to acquire a 20 percent market share over the next 10 years from the two existing operators Zain and Bahrain Telecommunications (Batelco). He declined to say how much the company plans to invest. STC has committed itself to establish a $300 million venture capital fund in Bahrain that will nurture information and communications companies in the country and the region. Three other firms had registered interest in the auction, but did not bid. Mohammed Al-Amer, chairman of the Telecommunications Regulatory Authority, said on Thursday at the press conference that these were Bahrain's TwoConnect and Mena Telecom as well as a consortium including France Telecom's mobile arm Orange and Jordan Telecom. Mena Telecom is an investment subsidiary of Islamic lender Kuwait Finance House. Separately, Man United Target is reported eyeing Saudi Telecom in a £125 million deal to be the Premiership clubs new shirt sponsors. Manchester United are believed to be renegotiating their current 5-year contract with Saudi Telecom, currently worth £15million a year and allowing the company to use the club's branding in their own country. The new deal is understood to be worth £25million a year and would see the telecoms company as the new shirt sponsors of Manchester United. __
