The strategic agreement signed by Zain’s CEO Dr. Abdul Malek Al Jaber and Friendi Group’s CEO Mikkel Vinter is considered to be the first of its kind in the Kingdom.
A mobile virtual network operator is an operator that can provide mobile telephony services through leveraging capacity offered from an existing network operator, under its own name and brand.
Friendi Group will start to offer services to the Jordanian market during the second quarter of 2010 and will target the prepaid consumer market. Friendi Group will be the first Mobile Virtual Network Operator (MVNO) in Jordan and this will be their second operation in the Middle East after launching services in Oman last year.
Upon signing the agreement, Zain CEO, Abdul Malek Al Jaber, said, “The strategic agreement with Friendi Group is in line with Zain’s overall strategy that is based on targeted and segmented acquisitions as well as meeting the needs of specific market segments and offering quality service in light of the current market situation which has reached saturation with the number of subscriptions exceeding the number of inhabitants.”
Al Jaber further added that this pushed Zain to offer services that distinguish it from other operators, while averting from engaging in a price war.
Al Jaber further noted that Zain currently works on expanding its network to serve the needs of the growing number of customers. The company has assigned JD100m this year to develop its network and increase its overall capacity. Al Jaber confirmed that Zain will continue with the development work to emphasize its commitment to developing its infrastructure which is in line with HM King Abdullah’s vision to develop Jordan into a regional center for telecommunications and information technology and attract foreign investments.
The prepaid segment constitutes the majority of subscriptions in Jordan. Zain owns a subscriber base of around 2.7 million and is the pioneer in the market with a market share of around 47%.
Vinter added, “Jordan is the second market destination for Friendi Group within the region after launching mobile services in Oman during the third quarter of 2009. Our services have been very successful with high demand, something we expect to see in Jordan too.”
He also noted that the agreement with Zain will allow the company to serve targeted segments of consumers and contribute to covering the needs of the Jordanian market that is eager for new and unique technologies through Zain’s network.
Vinter further added, “Friendi Group looks forward to entering the Jordanian market as the newest GSM Mobile provider and we are delighted to have finalized an MVNO agreement with Zain Jordan, Mobile consumers in Jordan can look forward to some exciting and innovative offers from Friendi Group and we plan some first-to-market products and services for the Jordanian Market that we are sure the customers will enjoy.”
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