palestinian telecommunications company

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Palestinian Telecommunications Company

Palestinian Telecommunications Company (Paltel) is a Palestine-based public

shareholding company engaged in the provision of telecommunications, datacommunications, mobile, payphone and other related products and services

across the Palestinian Territories. The Company operates through its

completely owned subsidiaries: Palestine Cellular Communication Ltd (Jawwal),

which provides mobile telecommunications services; Hadara Technology

Investments Co, which provides Internet services; Palestine Media Co

(Palmedia), which offers media services, and Solutions for Information

Technology Co, which provides information technology service. Paltel offers

fixed line, Internet and other value-added services targeting businesses and

individuals, through two main divisions, namely Business Services and HomeServices. The Company is listed on Palestine Securities Exchange and Abu

Dhabi Securities Market.

Subscribers Base

Palestine telecommunications

subscribers base reached 2.249

million subscribers at the end of

2009; a growth of 28.89%

comparing to 2008 despite the

illegal competition from the

illegitimate operators of internet

and data communications, and the

entrance of VOIP providers in addition to launching the operations of the

second mobile operator.

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Palestinian

Telecommunications

Company

&

Jordan Telecom Group

Shireen Esmail 1095336

Firas Abdelrahman 1105372

Hammouda Abu Aziza

1105008

Nizar Salem 1085009


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The main shareholders of PALTEL include Palestine Development and

Investment Company (PADICO) with 24.52%, Arab Bank with 4.80%, Palestine

Investment Fund (PIF) with 5.86%, and Cairo Amman Bank with 4.48%, PALTEL

shares held on Abu Dhabi Market with 3.31%. Other companies and individuals

are also major shareholders of the company 57.00%.

On November 15, 1996, PALTEL was granted a 20-year license by the

Palestinian National Authority (PNA) to develop and provide telecom services

within the PNA territories. Under the terms of the agreement, PALTEL has the

exclusive right to provide such services in the PNA's territories for a 10-year

period for fixed line services. It also has the exclusive right to provide such

services for mobile users for a 5-year period or upon reaching 120,000

subscribers, whichever comes first. According to the agreement, PALTEL has to

pay the PNA 7% of its annual operating revenues in license fees.

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Jordan Telecom Group

Jordan Telecom, also known as Jordan Telecom Group, is a Jordan-based

holding company that offers telecommunication services in Jordan. France

Telecom holds 51% of the shares of the Company. Its operating businesses areorganized and managed according to four segments: Orange Home business

unit specializes in offering Small and Medium business (SMEs), fixed and

Internet offers to the residential customers; Orange Personal business unit

specializes in meeting the requirements of customers looking for mobile line

solutions; Orange Enterprise business unit specializes in gathering and

combining all aspects of the relationship with corporate customers such as

companies, banks, public and private institutions under one (mobile, fixed and

Internet), and Orange Innovations and Corporate Integrated solutions business

unit handles group offers such as Internet Protocol TV (IPTV) and managesprojects implementation.

History

The history of Telecommunications in Jordan can be traced back to early 1921.

After the foundation of the Hashemite Kingdom of Jordan, the Ministry of Post,

Telegraph and Telephony

was established which

further developed the

country's

Telecommunications

Services. In 1961, the first

automatic telephone switch

service was introduced

utilizing an

electromechanical switch

with a capacity of

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http://en.wikipedia.org/wiki/Hashemite_Kingdom_of_Jordanhttp://en.wikipedia.org/wiki/Hashemite_Kingdom_of_Jordan


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approximately 5000 lines. In 1971, a new government-controlled body, the

Telecommunications Corporation (T.C.C) was set up to take over the day to day

running of the communications services such as telephone, telegraph and

telex. Also a satellite earth station at Baqa was in operation using Intelsat

facilities. From 1973 to 1985, Jordan TeleCom's network underwent significant

expansion as part of a government investment program. In 1993 the

government was able to initiate a development program known as the NationaTelecommunications Program (NTP).

Subsidiaries

Service Types

Fixed LinesFixed line dominated the communication arena for a considerable period of timeas it was the first mean to be introduced. Fixed line services continued to witnessconsiderable developments supported by the fact that liberalization of JordanTelecom has shown its positive reflection on services and prices.Fixed lines users are capable of conducting local, national, international and landto mobile calls smoothly; subscribers can also access the internet via computersmodems using their fixed lines. Jordan Telecom enjoys the exclusiveadministration of fixed line service provision despite the end of its monopoly in2005.Nevertheless, the demand on land lines retreated back for the favor of mobileservices, by the year 2009 subscribers of fixed phone reached 501,238 retreatingby 24.09%% when compared to 2001s figure. Penetration rate decreased by35.88% to reach 8.5% in 2009 compared to 13.1% in 2001.

Mobile Services

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http://en.wikipedia.org/wiki/Baqahttp://en.wikipedia.org/wiki/Baqa


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Mobile technologys massive dissemination by the beginning of this centurylevered by the intensive competition led number of subscriber to jump up to

6,014,366 in 2009, from866,000 subscribers in 2001,with penetration rate

jumping above 100% for the

first time in 2009 settling at101% by the end of the year.Mobile infrastructurereceived the highest portionof investments among altelecom segments as JD 65million were allocated in2008, comprising 56.52% oftotal telecom investments.

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In Jordan, apart from Orange there are twocompeting GSM operators and one radiooperator as follows;

Zain JordanZain was the pioneering mobile operator in

Jordan since 1995, it also instigated the

MMS services on the Middle East level, thefirst to introduce WAP (WirelessApplication Protocol) connectivity to Jordanand the first to enter a mobile bankingpartnership.Zain Kuwait took over the company in 2007through one of the largest acquisitiondeals in the Middle East and Jordansprivate sector.

UmniahUmniah won the third GSM license in 2004for an amount of JD 4 million to become thethird GSM services provider in Jordan.Since its introduction, the company wasable to increase its market share from 32%to over 60% despite the fierce competitioncharacterized the sector all the time.Umniah was able to capture a significantcustomers base with 1.43 millionsubscribers by end of 2008 and apenetration rate of 24.4%.

The company offers high quality internetconnection through ADSL technology(Asymmetric Digital Subscriber Line) forbusiness and corporate clients,connectivity speed reach up to 2 Mbps withmultiple download options. In addition, thecompany also introduced the WiMaxtechnology to Jordan and provides internetrelated business solutions for variousneeds.

XpressBy the year 2004, Xpress brought in a newtype of telecom services to Jordan and tothe Arab world called iDEN (IntegratedDigital Enhanced Network) after it wasgiven exclusivity of deployment by theinternational corporation Motorola, whodeveloped that technology in 1994 toprovide solutions that satisfy business

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sector needs. Such technology combines both the mobile capabilities and DirectConnect (walkie-talkie) service.

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Internet JTEL has the sole authority to grant network access to all ISPs in its differentforms of connectivity including analogue telephone lines, ISDN (Integrated ServiceDigital Network), and dedicated lease lines among others.Internet subscribers reached 244,513 in 2009, growing from 66,000 subscribers in2001. Whereas users of internet reached 1,741,866 in 2009 compared to 238,000users in 2001 driving internet usage penetration rate to 29% in 2009, up from

4.8% realized in 2001; such massive growthin usage is still under the aspirations of thegovernment as the ministry is targeting aninternet usage penetration rate of 50% by2011.

The wide spread of internet was validatedthrough the entry of the City of Ibid intothe Guinness Book of World Records ofInternet cafes.

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Economic Analysis

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Industry Analysis

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Paltel Analysis

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