UAE’s Du gets $207 million financing for mobile TV

Rebecca Hawkes ©RapidTVNews | 16-09-2010



A US $207 million export credit agreement, announced by Du, will lead to a new infrastructure roll out, upgrading and expanding the operator’s mobile, internet and pay-TV services across the United Arab Emirates (UAE).

The finance agreement was facilitated by Nokia Siemens Networks (NSN), which will provide the infrastructure for Du’s 2G and 3G expansion, and funding will be given by KfW IPEX-Bank - part of the German KfW Bankengrouppe.

“A high demand [continues to exist] throughout the UAE for improved coverage and capacity,” said Osman Sultan, CEO of Du. “This financing deal with Nokia Siemens Networks and KfW IPEX-Bank will enable us to carry on meeting this demand head on. The new equipment will facilitate the continued roll out of our 2G and 3G network, greatly benefiting Du’s customer base, while simultaneously expanding our coverage and capacity within the UAE.”

Kevin Raistrick, Structured Finance, NSN Middle East and Africa, said: “We are extremely pleased to be able to arrange an export credit facility to Du for the second time this year, reaching a total of $475 million in 2010.”

Du entered the UAE mobile telecommunications arena in February 2007, a space previously occupied solely by Etisalat.

In addition to its mobile network, Du also provides internet and pay TV services in some of the free zones of Dubai, and has a dedicated broadcast division offering a communications platform for broadcasters via its Samacom teleport and master control room facilities.

In order to move to full fixed line competition, Etisalat and Du have this year been negotiating an agreement—under the supervision of the UAE Telecommunications Regulatory Authority (TRA)— to allow them to provide voice, internet, data and TV services across each other's copper and fibre networks.

Du is 39.5% owned by Emirates Investment Authority, 19.75% by Mubadala Development Company, 19.5% by Emirates Communications and Technology LLC, and the remainder by public shareholders