Paltel Group

Group Overview

PALTEL was established at the outset of the Peace process in the Middle East and started its operations in Palestine in 1997 as a public shareholding company providing state of the art telecommunication services to the Palestinian end user. Its bundled services include: Local and international telephone services, internet, data communications, mobile services, payphones and next generation services.  PALTEL was able to achieve the highest standard in telecommunication services by investing in modern technologies, an advanced telecom infrastructure and human resource development.  PALTEL’s continued investments have allowed the Group to enjoy sustainable growth in all its operational and financial indicators in order to maintain its competitive edge and strive as a market leader within the community.

The Group Companies

Today, PALTEL Group is an integrated economic Group consisting of PALTEL, the Palestine Telecommunications Company for fixed line services; Jawwal, the Palestine Cellular Communications Co., for mobile communications and the first mobile operator in Palestine; Hadara, a major data services provider; Reach, the first contact center in Palestine; Palmedia, a multimedia services provider and; Hulul, the IT support services provider.  By end of June 2014, Jawwal has retained 2.63 million mobile subscribers and PALTEL has 401 thousand fixed and 230 thousand ADSL lines. 

 Operational and Financial Brief

PALTEL Group’s net earnings grew from USD$ 12.1 million in 2000 to USD$ 130 million in 2013, thus providing the Group with financial stability to further invest in technology and synergies across the ICT industry.   In turn, this raised the Group’s contribution to the GDP to surpass 80% of the overall ICT contribution of the Palestinian GDP.    The Group is the largest employer in the Palestinian private sector with more than 3,000 employees in the West Bank and Gaza Strip.  PALTEL stock represents 33% of the total market CAP of the Palestine Exchange (PEX).  PALTEL stock is the dominate stock on the Palestine Stock Exchange, representing the highest and most influential stock in Al-Quds Index to reach 40% of the index sample according to the PEX, bringing its value up and is attracting regional and international investors to the Palestinian Capital Market.

 Challenges

Although the company was to enjoy exclusivity in the Palestinian market from the outset for a phased out period, however, the company’s mobile operator unit; Jawwal, faced fierce competition from 4 large scale Israeli mobile operators since day one of operation. The company was able to grow and further develop despite early competition, gaining market recognition for operating in highly adverse conditions and a difficult business environment.

 Off-shore operations

The Group has participated in offshore investments with a vision to tap into international markets via its strategic investment in VTEL holdings and VTEL MEA.  VTEL is a telecom operator, which has invested in different parts of the world, mainly emerging markets in various telecom technologies, i.e. broadband, GSM and WIMAX.  VTEL has acquired licenses in Africa, the Caribbean and the Middle East.  Recently, VTEL MEA received the license to provide 4G (LTE) services, through its subsidiary “Newroz Telecom” operating in the Kurdistan province of Iraq.  

 VTEL was incorporated at the Dubai International Financial Center (DIFC) in 2006, the most prestigious financial hub in the region.  Fundamental to its growth and business plan will be its future listing of shares in the DIFC.  PALTEL Group currently own 25% of VTEL, but seeks to further strengthen the relationship with VTEL in the imminent future.

 Corporate Social Responsibility: PALTEL Group Foundation

PALTEL Group contributes to the social development of Palestine through the PALTEL Group Foundation, the independent arm of the Group.  PALTEL Group’s total expenditures during H1 2014 is around USD $3.36 million, in addition to USD 43.8 million expensed for major development projects performed by our CSR Department and the Foundation from 2005 till 2013.