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FINANCIAL MANAGEMENTBUSA632
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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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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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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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