MTC modifies co-branding deal with Vodafone in Kuwait

MTC managing director and deputy chairman Saad Al-Barrak had said that his company was set to end its co-branding arrangement with Vodafone in Kuwait when the deal expired at the end of October.

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By  Tawanda Chihota Published  October 29, 2005

On the back of comments made by MTC Group's managing director recently, which were published by CommsMEA earlier this month, the Kuwait operator has issued a statement clarifying the future of its co-branding agreements with leading UK operator Vodafone in Kuwait and Bahrain. MTC managing director and deputy chairman Saad Al-Barrak had said that his company was set to end its co-branding arrangement with Vodafone in Kuwait when the deal expired at the end of October, and would look to do the same when a similar arrangement expired in relation to its operation in Bahrain in eighteen months’ time. “As far as we are concerned it’s done. We have learnt what we need to (from Vodafone) and now are ready to shape our own destiny,” Al Barrak said. This has not turned out to be the case, with MTC stating that it has renewed its co-branding agreement with Vodafone in Kuwait, be it with modified clauses to the original deal penned in 2002. MTC Kuwait and Vodafone have recently signed a new agreement for a period of two years commencing September 2005 that will see a “segmented dual branding” arrangement being put in place, entailing co-branding only at the borders of entry into Kuwait and co-launched products. The two companies have also extended their cooperation agreement, which will see an increase in access by MTC Kuwait to more Vodafone services on top of the initial set previously agreed upon. MTC Kuwait and Vodafone are set to launch at least two new products per year. The five-year agreement entered into between MTC Bahrain and Vodafone and initialled in 2003 will continue in its original guise, incorporating a full branding agreement as well as cooperation agreement on products and service launched. “The modification of the agreement in Kuwait is due to nothing other than a change in the situation of MTC since the initial agreement was signed,” MTC’s statement reads. “MTC Kuwait in 2002 was a one-country operator; today MTC is present in 18 countries across the Middle East, Gulf and Sub Saharan Africa. The sheer magnitude of these changes entails a new structure to the previous cooperation agreement that better serves MTC and Vodafone.”

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