For a total investment of up to half a billion dollars

Hinnawi: We seek to change market dynamics and double internet penetration in Jordan through the establishment of mobile and fixed 4G networks

Amman, September 7, 2015

Umniah Telecom announced today that it has officially obtained a license to launch its 4G wireless network with a frequency of 1800 MHz, at a value of approximately $100 million. By the end of 2017, Umniah's investment in the expansion and modernization of its wireless network will reach $500 million, including the launch of its 4G fixed broadband services. This latest milestone is part of the company's long-term strategy to promote and expand its mobile 4G services to reach all segments of the Jordanian society.

At a joint press conference held today with Minister of Information and Communications Technology H.E. Mrs. Majd Shweikeh and the CEO of the Telecommunications Regulatory Commission Ghazi Al-Jobor, the company confirmed that it will commence work on the 4G wireless network, which is designed to provide seamless high performance mobile broadband services to individuals. The company will also launch its fixed 4G network to target both homes and businesses, with super high speeds of up to 150 Mbps.

Commenting on the company's latest achievement, Uminah CEO Ihab Hinnawi explained, "Umniah seeks to change the dynamics of the telecommunications market, double the number of Internet users in the Kingdom and promote the spread of these services in all governorates with the increasing reliance on data services." Hinnawi went on to add, "When Umniah entered the local market ten years ago, it made a quantum leap in the telecommunications sector, as the number of cellular phones and service subscribers doubled, and that figure has risen from 26% in 2005 to 147% today. Umniah is now seeking to bring about the same leap, in record time, and double the number of Internet subscribers in the Kingdom."

He added that Umniah was able to double its subscribers in the corporate and business sector during the last three years through the high quality of its services that cater to all economic sectors and categories. Hinnawi added: "Umniah will make investments of up to $300 million this year, including the 4G fixed and mobile license fees, as well as build a new network and expand its existing 3G network."

He stressed that the company's strategy aims to provide access to broadband Internet services to all segments of society, and that the total volume of this investment is expected to reach up to $500 million by the end of 2017.  Hinnawi continued by saying that this significant investment

by Umniah's mother company in Bahrain, Batelco, reflects its confidence in the importance of the Jordanian market and its promising possibilities.

According to Hinnawi, Umniah is looking to open this technology to everyone, whether individuals or institutions, at highly competitive prices points. The company's 4G network services are ideally suited for both individual consumers as well as businesses, providing them with speed, high quality, stability and durability. The services should commence commercial rollout by the beginning of 2016.

Umniah has begun construction of its 4G networks and will launch them in early 2016, with comprehensive coverage of all populated areas in the Kingdom. Furthermore, the upgrade and expansion of its 3G network is one of the largest expansions the Kingdom might witness, and will be completed by the end of November 2015, meeting the country's growing demand for wireless broadband services.

During the press conference, the company also announced that it will continue to invest in strengthening its basic infrastructure, its fiber optic network, as well as its supporting systems in order to provide its customers with the high quality of service they have come to expect.

The latest official figures show that Internet users in Jordan currently number around six million users; smartphone penetration in the Kingdom is estimated to be around 70% of all mobile phones. The launch of this new network corresponds with an obvious increase in demand for fast and reliable Internet and technology services, whether from individuals or organizations. It will also create an increasing dependence on Internet services, which will contribute to doubling productivity and efficiency, and will facilitate the provision of such services as the Internet of Things, Smart Cities, Machine-to-Machine services as well as video and music content.

Although global figures and studies show that 4G is still a nascent technology, recent research by Arab Advisors shows that nine Arab countries already provide 4G services, while 17 provide 3G services. GSMA, a global organization of mobile operators, predicts that the 4G coverage around the world will reach up to 35% of the populated areas by the end of 2015, making Umniah's latest launch very timely.

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© Press Release 2015