The FRiENDi Group is to set up a 'strategic partnership' with Virgin Group's South African telecom operations to create Virgin Mobile Middle East and Africa (VMMEA) - with the new entity to 'consider' its options to introduce the Virgin Mobile brand in Oman.
To be headquartered in Dubai and headed by FRiENDi Group CEO Mikkel Vinter, VMMEA will manage the operations of Virgin Mobile in South Africa and FRiENDi Group in Oman, Jordan and Saudi Arabia, as well as develop and operate other mobile telecom businesses in the region.
The new entity will initially have more than 1mn customers, but VMMEA has plans to launch in a range of new markets and have a subscriber base of 5mn by 2015.
Speaking to Muscat Daily, FRiENDi Oman CEO Antti Arponen said there would be 'no change' to FRiENDi in Oman, but added that the company 'will consider' its options for introducing the Virgin Mobile brand in the sultanate.
He said, "We have a two-brand strategy, which means that we now have two brands available to us. FRiENDi is very successful and continues to grow. There is no slowing down in that. We will consider our options for Virgin Mobile in Oman. We will consider what to do with it, but there are no timelines, whatsoever."
Upon completion of the deal, which was announced on Monday, Virgin Group will become the largest individual shareholder in the combined group holding a significant minority stake.
In a press release, Sir Richard Branson, founder and president of Virgin, said that Virgin Mobile and FRiENDi 'bring complementary skills and assets' to the new entity.
He said, "We are delighted to have agreed to this strategic partnership with FRiENDi Group to create Virgin Mobile Middle East & Africa, and together we will create the undisputed regional leader in the MVNO space."
Vinter added that 'the Virgin Mobile brand is one of the most successful' MVNO brands in the world with an 'excellent track record' of mobile reseller operations.
© Muscat Daily 2012
