The Middle East is hot. That's official.

But we're not just talking about the sizzling temperatures of the Arabian desert (up to 50 degrees celsius). The Middle East's telecom sector is experiencing growth like it has never seen before as liberalization introduces competition, especially in the mobile services sector, and operators benefit from economies flush with cash from soaring oil revenues.

While many of the operators are still quite small in terms of subscribers and revenues, as they compete against entrenched incumbents, the region does boast some heavyweight players.

The biggest, by revenues, is Saudi Telecom Co. (STC) , which features in our Top Ten: Emerging Markets Carriers, while another, Kuwait's Zain Group (formerly MTC), looks set to break into that Top 10 soon.

Both Saudi Telecom and Zain are among the carriers investing in new markets as domestic competition intensifies. The Saudi incumbent, for example, paid $908 million in November to snap up Kuwait's third mobile license.

As a result of the intensifying competition and the rash of new license awards, there's a current ramp in network investments in the Middle East.

A recent report from research firm Proleads suggests that the six oil-rich Gulf Cooperation Council (GCC) countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – will invest as much as $375 billion on the expansion of telecom and related infrastructure during the next decade.

This report attempts to provide a comprehensive breakdown of the carriers in the region, laying out where they operate and what services they provide.

Table 1: Middle East Carriers

The "Middle East" is a somewhat fluid term, but for the purposes of this report, it includes the 15 countries listed below. Although Turkey is generally considered part of the Middle East region, it's not included here, because its operators define themselves as Eastern European, perhaps more for political than geographic purposes.

Click on the links below for a look at the players in each of these fast-growing markets:

Light Reading welcomes any additional information that can be added to this report. Please use the message board at the foot of this page or contact us by email at [email protected].

— Nicole Willing, Reporter, Light Reading

Next Page: Bahrain

Bahrain (population 710,000) is one of the most liberalized telecom markets in the Middle East, having introduced competition in 2003.

It has two main operators and three alternative carriers.

Bahrain Telecommunications Co. (Batelco)
Bahrain Telecommunications Co. (Batelco) is listed on the Bahrain Stock Exchange and is owned by a combination of government entities, commercial organizations, and private investors.

Bahrain's former monopoly, Batelco, dominates the underdeveloped fixed-line market of about 194,000 lines and is strong in mobile, where it has 650,000 subscribers. It recently began offering broadband services and has signed up 60,000 customers.

The carrier is investing $16 million in the third phase of a $57 million project to upgrade to a next-generation network (NGN). (See Batelco Migrates to NGN and Batelco Invests in NGN.)

Batelco, which reported a profit of 78.2 million Bahrain Dinars ($208 million) for the first nine months of 2007, has subsidiaries in Jordan, Kuwait, and Egypt that provide business communications services. The carrier also holds a 96 percent stake in Jordanian mobile operator Umniah, and a 20 percent stake in Sabafon, a mobile operator in Yemen.

Batelco has been under pressure from Bahrain's Telecommunications Regulatory Authority to reduce charges for other operators to use its network infrastructure, and it is facing increasing competition.

The carrier recently said it plans to spend at least $4 billion to expand via foreign acquisitions and is considering investments in Lebanon, Oman, and Syria. (See Mideast Carriers Line Up Credit.)

Read more about the carrier on its Website.

Zain
Kuwait-based Zain Group (formerly known as MTC-Vodafone in Bahrain) launched in the country in December 2003.

The mobile operator has a 35 percent market share, with 319,000 subscribers at the end of September 2007. Zain claims the first 3G network in the Middle East and launched a commercial WiMax network on September 30, offering a bundle of 2-Mbit/s Internet access, voice, and mobile services.

Read more about the carrier on its Website.

Lightspeed Communications
Alternative operator Lightspeed Communications offers fixed-line services to residential and business customers. In April, the company formed a strategic partnership with Jordan Telecom, part of the Orange (NYSE: FTE) group, to offer bundled broadband voice and Internet services. Jordan Telecom holds a 51 percent stake in the company.

Read more about the carrier on its Website.

Kalaam Telecom BSC
Kalaam Telecom BSC received fixed-line, international, and ISP licenses in 2005 and launched its services in March 2006. The carrier offers international call packages, VOIP, and Internet services to both residential and business customers.

Read more about the carrier on its Website.

Mena Telecom
Mena, a subsidiary of Kuwait Finance House, offers satellite-based voice and data services and is currently deploying a WiMax network, having signed an equipment and network management deal with Motorola Inc. (NYSE: MOT) in July 2007. It is also bidding to win Bahrain's third mobile license.

Read more about the carrier on its Website.

Next Page: Egypt

All but the Sinai Peninsula physically lies in North Africa, but Egypt (population 80 million) is still considered part of the Middle East. The country saw its third mobile operator launched this year.

Telecom Egypt
Incumbent Telecom Egypt is 80 percent owned by the Egyptian government; a 20 percent stake was listed in a double IPO on the Cairo and Alexandria Stock Exchanges (CASE) and the London Stock Exchange.

Telecom Egypt has the largest number of fixed-line subscribers in the Middle East, reaching 11.03 million at the end of September.

The carrier provides a full range of retail and wholesale fixed-line services, with its TE Data subsidiary handling Internet and other data services. TE Data also operates in Jordan.

Telecom Egypt owns a 44.79 percent stake in Vodafone Egypt (see below) and a 50 percent stake in a joint venture with Orascom Telecom – Consortium Algerien de Telecommunications (CAT), which operates Algeria's second fixed-line operator under the brand Lacom.

Read more about the carrier on its Website.

Mobinil
Mobinil was founded in 1998 by Orange (NYSE: FTE), Orascom Telecom, and Motorola Inc. (NYSE: MOT). Motorola exited the company in 2000, selling its stake to its co-founders. France Telecom's Orange France holds a 71.25 percent stake, while Orascom owns the remaining 28.75 percent.

Egypt's largest mobile operator, Mobinil had 13.72 million subscribers in September for its GSM-based services. The operator received a 3G license in October and plans to launch services in the second quarter of 2008.

Read more about the carrier on its Website.

Vodafone Egypt
Vodafone Group plc (NYSE: VOD) holds a 54.9 percent stake in Egypt's second largest mobile carrier. Vodafone Egypt had 12.19 million subscribers at the end of the third quarter.

In June 2007, Vodafone Egypt took full ownership of Raya Telecom, an enterprise-focused service provider, to beef up its business services portfolio.

Read more about the carrier on its Website.

Etisalat Misr
Etisalat Misr is Egypt's newest operator. United Arab Emirates-based Etisalat led a consortium to win the auction for Egypt's third mobile license in July 2006, paying $3.1 billion. In the six months following the mobile operator's launch in April, it has racked up 3 million subscribers.

The carrier provides network coverage in all of Egypt's major cities and intends to extend its network nationwide by the end of next year. In November, Etisalat upgraded its 3G network to HSPA.

Read more about the carrier on its Website.

Next Page: Iran

Iran's mobile phone users exceeded its fixed-line subscriptions for the first time during the second quarter of 2007, reaching more than 24 million among its two national and three regional mobile operators. Iran (population 65 million) is to increase mobile competition further in 2008 with plans to award two more national mobile licenses.

Telecommunication Company of Iran (TCI)
State-owned Telecommunication Company of Iran (TCI) is the sole provider of fixed-line services in Iran, with around 23 million lines in service. The Iranian government has announced plans to privatize 51 percent of the company in an IPO on the Tehran Stock exchange by 2008.

Since TCI was established to manage Iran’s entire telecom network, the company has several subsidiaries responsible for developing and equipping the national long-distance network, including Iran Telecommunication Manufacturing Co. (ITMC), Iran Telecommunication Industries (ITI), Telecommunication Network Planning and Development Co., and Optical Fiber and Solar Cell Fabrication Co.

Read more about the carrier on its Website.

Mobile Telecommunications Company (MTC)
TCI also controls the country's largest mobile operator – Mobile Telecommunications Company (MTC) – which has more than 19.5 million subscribers.

MTN Irancell
MTN Irancell is Iran's other national mobile operator, launched in October 2006. South African heavyweight Mobile Telephone Networks (MTN) owns a 49 percent stake in the carrier, with the rest held by Iran Electronic Development Co.

Irancell had signed up 3.7 million customers by the end of September 2007 to its GSM-based network.

Read more about the carrier on its Website.

Taliya
Rafsanjan Industrial Complex Islamic Cooperative Co. (RIC) teamed up with Millicom International Cellular SA (Nasdaq: MICC) in 2005 to launch Taliya , a pre-paid GSM network in the Iranian capital of Tehran. Millicom exited the partnership in 2006 citing operational difficulties. Taliya has issued more than 1 million SIM cards to date.

Mobile Telecommunications Company of Esfahan (MTCE)}
Mobile Telecommunications Company of Esfahan (MTCE) has offered mobile services in the city of Esfahan since 1996. The network is managed by Celcom Malaysia , the mobile unit of Telekom Malaysia Bhd.

Read more about the carrier on its Website.

Telecommunication Kish Co. (TKC)
Telecommunication Kish Co. (TKC) operates on the island of Kish, initially offering services in 1995. In 2001, the company launched a new GSM network, a project managed by former Lebanese mobile operator LibanCell on behalf of the Kish Free Zone Organization.

Read more about the carrier on its Website.

Next Page: Iraq

Iraq's telecom infrastructure has been hit hard by war and sanctions, but mobile penetration has been growing, and now Iraq (population 27.5 million) has more than 10 million mobile phone users.

The government auctioned three 15-year mobile licenses in August for a total of $3.75 billion to replace three short-term contracts that were awarded after the U.S.-led invasion in 2003.

Iraqi Telecommunications and Posts Company (ITPC)
The IPTC provides Iraq's fixed lines, although it's set to face competition from wireless local loop (WLL) operators that were awarded licenses in September 2006.

MTC Atheer (Zain)
MTC Atheer is set to be renamed, as part of parent company MTC's rebranding, as Zain. The carrier operates in the southern and central regions of Iraq, serving 3.79 million customers as of Sept. 30, 2007.

The operator paid the $1.25 billion for a new GSM license and plans to extend its network into northern Iraq.

Along with messaging, international calls, and roaming services, the carrier recently introduced GPRS and voicemail.

Read more about the carrier on Zain's Website.

Iraqna
Orascom Telecom established Iraqna as the first mobile operator to provide service in Baghdad following the 2003 invasion, and it now has about 3 million subscribers.

But the carrier dropped out of the bidding for a long-term license, citing the $1.25 billion price tag as too high.

Orascom initially formed a partnership with license holder Korek Telecom to continue its operations but has pulled out of the agreement, announcing on December 2, that it would sell Iraqna to Zain and exit the country completely. (See Zain Bets Billions on Emerging Markets.)

Once the sale is completed, Zain will have more than 6.8 million customers, about two thirds of the total mobile market.

Asiacell Telecommunications Co. Ltd.
Asiacell Telecommunications Co. Ltd. launched GSM services in the Kurdish North in 1999 and now has about 3.7 million customers. The company is owned by Asiacell Company for Telecommunication, with a 51 percent stake, while Qatar Telecom subsidiary Wataniya holds 30 percent. Asiacell also picked up a new license in August.

Read more about the carrier on its Website.

Korek Telecom Ltd.
Korek Telecom Ltd. was the third national license winner in August. Launched in 2001, it was previously licensed to operate in Erbil – the capital of Iraqi Kurdistan – and the province Duhok, serving 1.5 million subscribers with its GSM network.

With its new license, the carrier is focusing on rapidly deploying a nationwide network.

Read more about the carrier on its Website.

Sanatel Telecommunication Ltd. (SanaTel)
Regional operator Sanatel Telecommunication Ltd. (SanaTel) , owned by Halabja General Trading Co., was established in 2002. It received a license in 2003 to operate in eight cities in Kurdistan, building a customer base of more than 100,000.

Read more about the carrier on its Website.

Moutiny Wireless Telecommunication
VitalTel Ltd., trading under the brand name Moutiny Wireless Telecommunication , has built a CDMA 1xEV-DO wireless local loop (WLL) network, primarily in the central and southern regions of Iraq, to offer residential and business services. (See Tecore Wins Iraq Deal.)

Read more about the carrier on its Website.

Iraqtel (Telephone Al Iraq)
Iraqtel is a subsidiary of the Al Emaar Holding Group, which has diverse interests in oil and gas, shipping, and construction, and was awarded a WLL license covering southern Iraq in 2006. The company last year began deploying a WiMax network and also said it would offer CDMA-based services. (See Iraqtel Picks Redline for WiMax.)

Next Page: Israel

Israel (population 6.5 million) has a fixed-line incumbent, a major cable operator, and four mobile players.

Bezeq
Bezeq, The Israel Telecommunications Corp. Ltd. (OTC: BZQIF) was Israel's fixed-line monopoly until 2005, when the government sold its controlling stake in the carrier to Ap.Sb.Ar. Holdings Ltd. (the Apax/Saban/Arkin consortium).

Bezeq had 2.77 million subscribers at the end of the September 2007, a 90 percent market share.

Bezeq's subsidiaries include mobile operator Pelephone (see below); Bezeq International, which manages its international network and Internet services; satellite TV provider YES (in which it holds a 49.8 percent stake); and call center firm Bezeq On-Line Ltd.

Read more about the carrier on its Website.

HOT
Cable operator HOT was formed in 2003 from a consortium of Matav, Tevel, and Golden Channels. Along with supplying cable TV services to more than 900,000 customers, the company provides local voice service to nearly 290,000 users and broadband access to 590,000 subscribers.

HOT has the bundled TV/voice/broadband market to itself at the moment, as Bezeq's license stipulates that its fixed voice line market share must fall below 85 percent before it can also offer triple-play services.

Read more about the carrier on its Website (if you understand Hebrew or Russian).

Cellcom Israel
Cellcom Israel Ltd. operates UMTS/HSDPA, GSM, and TDMA networks. In addition to mobile calling, it provides a range of business services including VPN, global roaming, voice-activated dialing, and conference calling.

Cellcom had 3.02 million subscribers at the end of the third quarter.

The company's ownership includes a 56 percent stake held by Discount Investment Corporation Ltd. (part of the IDB Group), a 5 percent stake by Leumi & Co. Investment House Ltd., and 4 percent by Goldman Sachs.

Read more about the carrier on its Website.

Partner Communications Co. Ltd. (Orange)
Partner Communications Co. Ltd. (Nasdaq: PTNR; London: PCCD) is majority owned by Hutchison Telecommunications International Ltd. (NYSE: HTX), which holds a 50.25 percent stake. Israeli shareholders account for a 5.16 percent share, while the remaining 44.59 percent is publicly listed on the Nasdaq, London, and Tel Aviv exchanges.

Israel's second largest mobile operator, Partner had 2.8 million subscribers on its GSM and 3G networks by the end of September.

Read more about the carrier on its Website.

Pelephone Communications Ltd.
Bezeq subsidiary Pelephone Communications Ltd. operates CDMA-based services in Israel and had 2.56 million subscribers by the end of September 2007.

The operator, which launched CDMA2000 1x EV-DO services in 2004, plans to invest 1 billion New Israel Shekels (US$253 million) in upgrading its network to UMTS/HSPA.

Read more about the carrier on its Website.

MiRS Communications Ltd.
MiRS is a small iDEN (Integrated Digital Enhanced Network) operator owned by Motorola Inc. (NYSE: MOT), with more than 100,000 subscribers.



Next Page: Jordan

Jordan (population 6 million) is one of the few countries in the region with a private fixed-line carrier. The former Jordan Telecom Group is part of France Telecom's Orange, and competes in mobile services with three other carriers.

Jordan Telecom Group (Orange)
Jordan Telecom was privatized in 2000, and in 2006 Orange (NYSE: FTE) increased its stake in the company to 51 percent. The carrier has now been rebranded as part of the Orange group, combining its fixed, Internet, and mobile (formerly MobileCom) services.

The carrier has 2.3 million customers in total, of which 1.7 million use mobile services, nearly 660,000 have a fixed line, and 56,000 have a broadband connection. The carrier plans to launch IPTV services some time in the near future.

Read more about the carrier on its Website.

Zain
Zain Group acquired its Jordanian subsidiary (previously Fastlink) in 2003. Originally Jordan Mobile Telephone Services Co. Ltd., it launched its GSM network in 1995, as the first mobile provider in Jordan.

The operator had 2.03 million mobile subscribers by the end of September 2007, giving it a 47 percent market share.

Read more about the carrier on its Website.

Umniah
Umniah received Jordan's third GSM license in 2004, launched operations in 2005, and now has 1 million customers.

Bahrain Telecommunications Co. (Batelco) acquired a 96 percent stake in the company in June 2006.

In addition to mobile services, Umniah launched the first phase of a WiMax network in the capital Amman in November. The network will provide high-speed Internet services under the brand UMAX.

Read more about the carrier on its Website.

Xpress Telecommunications
Xpress Telecommunications launched in 2004, offering mobile services based on Motorola Inc. (NYSE: MOT)'s Integrated Digital Enhanced Network (iDEN) technology. Xpress's services include mobile voice, push to talk (PTT), GPS, and data services.

Xpress's largest single shareholder is VTEL Holdings, a Dubai-based company with telecom interests in the Middle East, Africa, Commonwealth of Independent States (CIS), and Latin America. VTEL holds a 28 percent stake in the operator, while several Saudi and Jordanian companies account for the remaining 72 percent.

Xpress won a digital trunking license in October 2006 to offer push-to-talk service in Palestine for JOD2.2 million (US$3.1 million).

Read more about the carrier on its Website.

Next Page: Kuwait

Kuwait (population 2.5 million) awarded its third mobile license in November to Saudi Telecom Co. (STC) , which won the auction with a bid of $908 million. The country does not yet have an independent regulatory authority, though a telecom regulator is expected to be established within the next year.

Kuwait's mobile penetration is above 100 percent of the population, and both of its mobile operators have built extensive operations abroad to pursue further growth.

Kuwait Telecom
State-owned Kuwait Telecom remains the country's fixed-line monopoly.

Zain
Kuwait-based Zain Group 's operations, formerly Mobile Telecommunications Co. (MTC), has evolved from one of the Middle East's first mobile operators, which launched in 1983. The company received a GSM license in 2000 and launched 3G services in April 2006.

Zain had 1.54 million subscribers in its domestic market at the end of September, a 58 percent market share.

Zain operates in six countries in the Middle East, in Sudan, and in 14 other countries in Africa through its Celtel International B.V. subsidiary, for a total subscriber base of 24.77 million as of Sept. 30. The carrier has since acquired Westel in Ghana.

Read more about the carrier on its Website.

Wataniya Telecom
Wataniya Telecom launched mobile services in Kuwait in 1999 and now has more than 1 million subscribers in its domestic market.

The company was acquired by Qatar Telecom QSC (Qtel) from Kuwait Projects Company Holding KSC (KIPCO) group in March this year for $3.7 billion.

Wataniya upgraded its domestic GSM/UMTS network to HSDPA in 2006.

Outside Kuwait, Wataniya International has operations in Algeria, the United Arab Emirates, Saudi Arabia, Tunisia, Iraq, and Palestine. Wataniya's total customer base at Sept. 30 was 8.2 million.

Read more about the carrier on its Website.

Next Page: Lebanon

Lebanon's liberalization plans have been disrupted by political instability, and its telecom operators have remained government owned. Mobile services reportedly provide the Lebanese government with its main source of revenues, generating about $900 million annually.

However, in October 2007 the Telecommunications Regulatory Authority launched the privatization process for its two mobile networks, which will come with 20-year licenses. The licenses are expected to be awarded in a public auction on February 21, 2008, and the government hopes to raise as much as $7 billion from the sale. A third mobile license is expected to be auctioned later in 2008. Lebanon (population 3.9 million) has a relatively low telecom penetration rate at 25 percent, making it an attractive investment in the region.

Ogero
Ogero (Organisme de Gestion et d'Exploitation de l'ex Radio Orient) operates Lebanon's fixed-line network, providing national and international voice and data services to business and residential users. The carrier has more than 700,000 landlines in service and several hundred DSL subscribers, following the launch of broadband services earlier this year. Ogero is expected to be privatized and renamed Liban Telecom as part of the liberalization process.

Read more about the carrier on its Website.

Zain
In June 2004, MTC (now Zain Group ) was authorized by the Lebanese government to manage and operate one of the country’s two GSM networks (Mic2) for four years. Branded as MTC Touch, the operator had 614,000 subscribers by the end of September 2007, representing a 52 percent market share.

Read more about the carrier on Zain's Website.

Alfa
Fal Dete Telecommunications has managed the Mic1 network in Lebanon under the brand name Alfa since 2004. It also has around 600,000 subscribers.

Fal Dete is owned by Detecon International GmbH, which is a subsidiary of T-Systems International GmbH and has a 51 percent stake; FAL Holding Arabia Co. Ltd. with 45 percent; and Detasad (Detecon Al Saudia Co. Ltd.) at 4 percent.

Read more about the carrier on its Website.

Next Page: Oman

Oman (population 3.2 million) has a fixed-line incumbent and two mobile operators.

Omantel
The Omani government holds a 70 percent stake in fixed-line incumbentOman Telecommunications Co. (Omantel) . The other 30 percent was floated in an IPO in 2005. The government has recently indicated it's looking for a long-term investor to take on a stake of up to 19 percent, leaving it with a 51 percent majority share.

In November Omantel made its first foray abroad, acquiring a 60 percent stake in WorldCall Communications Pakistan for $185.6 million. Worldcall offers wireless local loop and long-distance telephone services.

Read more about the carrier on its Website.

Oman Mobile Telecommunications Company LLC
Oman Mobile Telecommunications Co. LLC is Omantel's GSM-based subsidiary. It was separated out from its parent in February 2004, but Omantel retains 99 percent ownership of the company. The carrier, which has about 1.35 million customers, offers mobile voice, messaging, and wireless Internet services.

Read more about the carrier on its Website.

Nawras
Omani Qatari Telecommunications Co. was awarded Oman's second mobile license in October 2004, and launched services as Nawras in March 2005.

Nawras is a joint venture of Qatar Telecom QSC (Qtel) , Denmark's TDC A/S (Copenhagen: TDC), and several Omani partners.

The operator had 897,000 subscribers in September, giving it a 40 percent market share against Oman Mobile's 60 percent. In November, Nawras announced it was preparing to "soft launch" HSDPA-based services.

Read more about the carrier on its Website.

Next Page: Palestinian Territories

Despite the instability of the region (estimated population of 4 million) and competition from Israeli operators providing coverage from across the border, Palestinian telecom services have been growing. Its mobile monopoly will end in 2008 with the launch of second operator Wataniya Palestine, which was awarded a license in October 2006.

Palestinian Telecommunication Co. (PalTel)
In 1997, incumbent PalTel Corp. launched local and international telephone services, Internet, data communications, value-added services, payphones, and next-generation services. The company is listed on the Palestine Securities Exchange.

Read more about the carrier on its Website.

Jawwal
Jawwal is PalTel's mobile arm, offering GSM-based services. In November Jawwal signed up its millionth customer after eight years in operation.

Read more about the carrier on its Website.

Next Page: Qatar

Qatar (population 900,000) is in the process of telecom liberalization, and its new regulator, ictQATAR , has announced a shortlist of seven bidders for the country's second mobile license. (See Qatar Shortlists Mobile Cos.) The regulator is also expected to auction off a second fixed-line license.



Qatar Telecom
Publicly listed Qatar Telecom QSC (Qtel) runs the country’s telecom monopoly, providing a range of services such as national and international fixed-line voice, Internet and data services, cable TV, and mobile. Qtel runs and manages the Qatar Data Centre, which hosts AT&T Inc. (NYSE: T)'s first global node in the Middle East.

In preparation for the end of its monopoly, Qtel is on an expansion kick. The company acquired Wataniya Telecom for $3.7 billion in March and invested $635 million in a partnership with Singapore Technologies Telemedia Pte. Ltd. (ST Telemedia) back in January. (See Qtel Spends $3.7B for Wataniya Stake.)

Qtel also owns Omani mobile operator Nawras .

But that's not all. Qtel owns 38 percent of NavLink, a joint venture with AT&T, which provides enterprise data services for multinational companies in Qatar, the United Arab Emirates, Saudi Arabia, and Kuwait. (See Qtel Takes NavLink Stake.)

NavLink has plans to expand into Morocco, Egypt, and Bahrain.

Qtel will also launch services in Jordan and Pakistan next year through ATCO-Clearwire, a fixed-wireless and broadband joint venture that acquired a 75 percent stake in Burraq Telecom earlier this year. (See Qtel Completes Buy.)

Qtel had 1.1 million domestic mobile subscribers in September, and its group subscriber base was 14.2 million.

Read more about the carrier on its Website.

Next Page: Saudi Arabia

Saudi Arabia (population 27.6 million) is the largest market in the Middle East and boasts a high average revenue per user (ARPU) for telecom services. More competition is set to arrive in the market next year, with the launch of alternative fixed-line operators and a new mobile operator.

Zain Group paid a whopping $6.11 billion for the third mobile license, the highest amount ever raised by a mobile license auction in the region.

Saudi Telecom Co. (STC)
State-run Saudi Telecom Co. (STC) operates the country's fixed-line monopoly, and, having generated revenues of $4.55 billion in the six months to September 2007, it's the largest carrier in the region by revenues. That distinction earns it a spot on Light Reading's Top Ten: Emerging Markets Carriers.

Saudi Telecom, which has about 4 million fixed lines in service, operates landline services, card phones, public telephones, prepaid card services, and business services through its Al Hatif unit, and Internet services through Saudi Data.

The last of the region's big players to expand abroad, STC invested $3.05 billion in Malaysian operator Maxis Communications Bhd. 's holding company in June 2007. (See Saudi Telecom Invests $3B in Maxis.) In November, the carrier won the auction for Kuwait's third mobile license for $908 million.

Saudi Telecom's fixed-line monopoly is due to be broken with the introduction of services by three consortia that were awarded licenses this year -- led by Bahrain Telecommunications Co. (Batelco) /Atheeb, Verizon Communications Inc. (NYSE: VZ), and PCCW Ltd. (NYSE: PCW; Hong Kong: 0008).

Read more about the company on its Website.

Al Jawal
Al Jawal is Saudi Telecom's mobile operator, with around 16 million mobile subscribers.

Mobily
Saudi Arabia's second mobile operator, Etihad Etisalat Co. (Mobily) , launched in May 2005 and is controlled by United Arab Emirates-based Etisalat . It has more than 7 million subscribers.

Etisalat holds a 35 percent stake; six private Saudi investors own 45 percent between them; and the remaining 20 percent is listed publicly.

Mobily upgraded its GSM/UMTS network to HSPA in 2006 and says it plans to invest at least 4 billion riyals ($1.07 billion) over the next two years to build broadband and wireless networks. The operator bid unsucessfully in the country's fixed license auction.

Earlier this year, Mobily acquired Bayanat al-Oula, one of two operators with WiMax licenses.

Read more about the company on its Website.

BravO! Telecom
A sister company of Xpress Telecommunications in Jordan, bravO! Telecom operates an iDEN-based service under an agreement with Saudi Telecom. Launched in 2005, bravO! offers professional radio service to the corporate and government sectors. Wataniya International owns a 38 percent stake in the operator.

Read more about the company on its Website.

Next Page: Syria

The fixed-line market in Syria (population 19.3 million) remains monopolized, and its two mobile operators run on build/operate/transfer contracts with the incumbent.

Syrian Telecom Establishment (STE)
Syrian Telecom is the country's fixed-line and Internet service provider, 100 percent owned by the Syrian government.

Syriatel
Syriatel was launched in 2001 under a 15-year management contract with STE to provide GSM services and has about 3.2 million subscribers (55 percent market share). In 2004, a 10 percent share of the company was listed publicly on the Dubai stock exchange. The rest of the company is owned by various private Syrian investors, including prominent Syrian businessman Rami Makhlouf, whose Drex Technologies holds a 50 percent stake.

Turkcell Iletisim Hizmetleri A.S. (NYSE: TKC) is currently evaluating whether to bid for a majority stake in the operator as part of its regional expansion strategy.

Syriatel also has a stake in Yemen's new mobile operator, HiTs Unitel.

Read more about the carrier on its Website.

MTN Syria (formerly Areeba)
Mobile Telephone Networks (MTN) also operates under a 15-year management contract with the Syrian government and had almost 2.9 million subscribers at the end of September, giving it a 45 percent market share.

MTN acquired a 75 percent stake in Areeba Syria as part of its takeover of Investcom, and the carrier is its largest operation in the region.

Next Page: United Arab Emirates

The United Arab Emirates (population circa 4.2 million) was monopolized until February 2007, when a second operator launched its services.

Emirates Telecommunications Corp. (Etisalat)
Etisalat is the incumbent carrier in the UAE and provides a full range of fixed, mobile, cable TV, and enterprise services. The carrier expects to complete its upgrade to a next-generation network by the end of the year.

At the end of the third quarter of 2007, Etisalat reported 6.2 million mobile subscriptions (a mobile penetration rate of 150 percent), 1.32 million fixed lines, and 2.5 million Internet users.

The company also has extensive operations abroad, providing mobile services in Afghanistan, Benin, Burkina Faso, the Central African Republic, Ivory Coast, Egypt, Gabon, Niger, Saudi Arabia, Sudan, Tanzania, Togo, and Pakistan.

Read more about the carrier on its Website.

Emirates Integrated Telecommunications Company PJSC (du)
Emirates Integrated Telecommunications Co. (du) broke Etisalat's monopoly in February 2007. The carrier's ownership breaks down as follows: UAE government 40 percent; 40 percent divided equally between Mubadala Development Co. and Tecom Investment; 20 percent traded publicly.

Du offers voice, data, video, and content services over fixed and mobile networks to both residential and business customers. The mobile network was launched in February, while fixed-line services went live in July.

Du crossed the 1 million subscriber mark for its mobile services in November.

Read more about the carrier on its Website.

Next Page: Yemen

Yemen (population 22.2 million) has one fixed-line operator and five mobile service providers.

Yemen Telecom
Yemen's Public Telecommunications Corporation (PTC) owns incumbent Yemen Telecom, which provides the country's only fixed-line services. It is believed to have about 1 million lines in service.

Its international services operation is Yemen International Telecoms Co. LLC (TeleYemen). In 2003, France Telecom signed a five-year agreement to manage the TeleYemen network, which is connected to the Falcon subsea cable. (See Yemen Invests in Falcon.)

PTC also owns Yemen Telecom's ISP, Y.Net, and a majority stake in Yemen Mobile (see below).

MTN Yemen
Formerly known as Spacetel when it was part of Investcom Holding , the mobile operator is now 45 percent owned by Mobile Telephone Networks (MTN) .

Providing GSM-based prepaid and postpaid services, MTN Yemen had 1.3 million subscribers as of Sept. 30.

Read more about the carrier on its Website (which seems to be inoperative at the moment).

Yemen Company for Mobile Telephony (Sabafon)
Sabafon is Yemen's largest GSM operator with 1.6 million subscribers. Launched in 2001, it provides mobile coverage to around 70 percent of the population.

Investors include Al-Ahmar Group, Bahrain Telecommunications Co. (Batelco) (which holds a 20 percent stake), Saeed Anam & Co. Ltd., and Foreign Investment Company (IFIC).

Read more about the carrier on its Website.

Yemen Mobile
Yemen Mobile provides CDMA-based wireless local loop services including voice, messaging, and corporate push-to-talk (PTT). The carrier is majority owned by the government's PTC, while an 18.34 percent stake is traded publicly.

Read more about the carrier on its Website.

HiTS Unitel
HiTS Unitel is Yemen's newest service provider, switching on the country’s third GSM network in September. The network is set to initially cover nine of Yemen’s 21 regions.

Unitel is a joint venture among China Mobile Ltd. (NYSE: CHL) and a group of businessmen from Yemen, Saudi Arabia, Kuwait, and the UAE. It merged with Saudi-based House for Integrated Technology Systems (HiTs Telecom ) last year to form HiTs Unitel.

Syriatel has a 50:50 joint venture agreement with HiTs to manage and operate the network.