Tawasul Telecom Eyes Further Expansion

Tawasul Telecom has secured an additional US$16mn in funding from the Gulf Investment Corporation (GIC) to finance the next phase of its expansion and growth, according to a press release by the company. Tawasul Telecom occupies a unique position in the Middle East's telecoms market as it provides access to key countries in the region . Tawasul Telecom has not provided details of its expansion plans. However, we expect it to consolidate the company's network coverage and expand its service portfolio amid increasing investments in rival networks across the region.

Extensive Footprint Is Key Advantage
Tawasul Telecom Coverage, March 2012

Tawasul Telecom provides MPLS Layer 2 and MPLS layer 3 services across multiple borders in the Gulf Cooperation Council (GCC) and some countries in the Middle East and North Africa (MENA), including Egypt. The company serves Tier 1 network operators, internet service providers (ISPs) and large firms in other industry verticals, including financial services, across the region. Tawasul Telecom's key selling point is its extensive footprint, which enables it to provide access to all the GCC countries and Egypt as a single market. The company is a greenfield project by the GIC and the National Technology Enterprise Company (NTEC), a fully owned subsidiary of the Kuwait Investment Authority (KIA).

BMI notes that the demand for MPLS and IP-based network solutions are rising in the MENA region owing to the rapid uptake of data-centric enterprise services such as cloud computing. In addition to traditional IT enterprise solution providers, the region's leading telecoms service providers have announced plans to play actively in the corporate solutions market by offering various forms of managed services to small and medium-sized enterprises as well as large multinationals. We expect this to be the main growth driver for IP-based solutions in the future, an opportunity of which Tawasul Telecom is keen to take advantage.

However, the firm is not the only player eyeing opportunities in the region. Other leading MPLS VPN service providers expanding across the MENA region include PCCW Global, Tata Communications, Level 3 and Cable & Wireless Worldwide (CWW). While the company may not have the financial muscle or technical and commercial expertise of its global rivals, we expect it to take advantage of its expansion plans and existing relationships in the region to remain competitive in the market.

This article is tagged to:
Sector: Telecommunications
Geography: Middle East, Egypt, United Kingdom

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