FINANCIAL MANAGEMENT

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 Palestinian Telecommunications Company

Palestinian
Palestinian Telecommunications Company (Paltel) is a Palestine-based public
shareholding company engaged in the provision of telecommunications, data
Telecommunications
communications, mobile, payphone and other related products and services
across the Palestinian Territories. The Company operates through its

Company
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

Jordan Telecom Group

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

Subscribers Base

Palestine
Shireen Esmailtelecommunications
1095336
subscribers’ base reached 2.249
Firas Abdelrahman
million 1105372
subscribers at the end of
2009; a growth of 28.89%
HammoudatoAbu
comparing Azizadespite the
2008
1105008competition
illegal from the
illegitimate operators of internet
Nizar
and Salem
data 1085009
communications, and the
entrance of VOIP providers in addition to launching the operations of the
Baha Qutairi 1095395
second mobile operator.

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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 are
organized 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 manages
projects 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 National
Telecommunications Program (NTP).

Subsidiaries

Service Types

Fixed Lines
Fixed line dominated the communication arena for a considerable period of time
as it was the first mean to be introduced. Fixed line services continued to witness
considerable developments supported by the fact that liberalization of Jordan
Telecom has shown its positive reflection on services and prices.
Fixed lines users are capable of conducting local, national, international and land
to mobile calls smoothly; subscribers can also access the internet via computers’
modems using their fixed lines. Jordan Telecom enjoys the exclusive
administration of fixed line service provision despite the end of its monopoly in
2005.
Nevertheless, the demand on land lines retreated back for the favor of mobile
services, by the year 2009 subscribers of fixed phone reached 501,238 retreating
by 24.09%% when compared to 2001’s figure. Penetration rate decreased by
35.88% to reach 8.5% in 2009 compared to 13.1% in 2001.

Mobile Services
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Mobile technology’s massive dissemination by the beginning of this century
levered by the intensive competition led number of subscriber to jump up to
6,014,366 in 2009, from
866,000 subscribers in 2001,
with penetration rate
jumping above 100% for the
first time in 2009 settling at
101% by the end of the year.
Mobile infrastructure
received the highest portion
of investments among all
telecom segments as JD 65
million were allocated in
2008, comprising 56.52% of
total telecom investments.

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In Jordan, apart from Orange there are two
competing GSM operators and one radio
operator as follows;

Zain Jordan
Zain was the pioneering mobile operator in
Jordan since 1995, it also instigated the
MMS services on the Middle East level, the
first to introduce WAP (Wireless
Application Protocol) connectivity to Jordan
and the first to enter a mobile banking
partnership.
Zain Kuwait took over the company in 2007
through one of the largest acquisition
deals in the Middle East and Jordan’s
private sector.

Umniah
Umniah won the third GSM license in 2004
for an amount of JD 4 million to become the
third GSM services provider in Jordan.
Since its introduction, the company was
able to increase its market share from 32%
to over 60% despite the fierce competition
characterized the sector all the time.
Umniah was able to capture a significant
customer’s base with 1.43 million
subscribers by end of 2008 and a
penetration rate of 24.4%.
The company offers high quality internet
connection through ADSL technology
(Asymmetric Digital Subscriber Line) for
business and corporate clients,
connectivity speed reach up to 2 Mbps with
multiple download options. In addition, the
company also introduced the WiMax
technology to Jordan and provides internet
related business solutions for various
needs.

Xpress
By the year 2004, Xpress brought in a new
type of telecom services to Jordan and to
the Arab world called iDEN (Integrated
Digital Enhanced Network) after it was
given exclusivity of deployment by the
international corporation Motorola, who
developed that technology in 1994 to
provide solutions that satisfy business
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sector needs. Such technology combines both the mobile capabilities and Direct
Connect (walkie-talkie) service.

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Internet
JTEL has the sole authority to grant network access to all ISPs in its different
forms of connectivity including analogue telephone lines, ISDN (Integrated Service
Digital Network), and dedicated lease lines among others.
Internet subscribers reached 244,513 in 2009, growing from 66,000 subscribers in
2001. Whereas users of internet reached 1,741,866 in 2009 compared to 238,000
users in 2001 driving internet usage penetration rate to 29% in 2009, up from
4.8% realized in 2001; such massive growth
in usage is still under the aspirations of the
government as the ministry is targeting an
internet usage penetration rate of 50% by
2011.

The wide spread of internet was validated

through the entry of the City of Ibid into
the Guinness Book of World Records of
Internet cafes.

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Economic Analysis

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Industry Analysis

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Paltel Analysis

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