TECOM takes Axiom stake

TECOM Investments, part of the Dubai Holding group, has snapped up a 40% stake in mobile phone distributor and retailer Axiom Telecom for an undisclosed sum. TECOM claims that the deal will allow it to tap into growth areas and will also be a valuable addition to the group in terms of synergies with future technology projects.

  • E-Mail
By  Stuart Wilson Published  December 14, 2005

TECOM Investments, part of the Dubai Holding group, has snapped up a 40% stake in mobile phone distributor and retailer Axiom Telecom for an undisclosed sum. TECOM claims that the deal will allow it to tap into growth areas and will also be a valuable addition to the group in terms of synergies with future technology projects. “This tie up will ignite regional and international growth for Axiom,” said Faisal Al Bannai, CEO at Axiom Telecom. “It adds major value for Axiom to be a part of TECOM and its management company Dubai Holding. The relationship will enable Axiom to further accelerate its expansion plans and strengthen its market position using TECOM’s parent company Dubai Holding’s vast infrastructure, which has interests in sectors such as ICT, media, tourism and more.” Axiom has a network of 363 retail points of presence and is an authorised distributor and retailer for major mobile phone vendors including Nokia, Sony Ericsson, Motorola, Siemens and i-mate. The company claims to be the largest distributor and retailer of wireless products in the Middle East with sales of US$680m in 2004. “TECOM’s strategic objective is to diversify its business interests by investing in high-growth technology sectors. Axiom Telecom is one of the UAE’s fastest growing companies and we look forward to a long and fruitful relationship with Axiom Telecom,” said Ahmad bin Byat, chief executive officer at TECOM Investments. Axiom will continue to operate as an independent company and the existing management team will remain intact. TECOM plans to work closely with Axiom to extend its presence within the region and beyond. Axiom is also a service provider for Thuraya Satellite Company providing one of the telecommunications biggest airtime generators. With TECOM widely tipped to play a significant role in the development of a second UAE telecoms operator, the acquisition of a stake in Axiom takes on greater relevance. As the new operator looks to challenge incumbent Etisalat, having a strong channel-to-market coupled with the ability to convert customers from one service to another will be vital. Axiom is the perfect vehicle for pursuing these goals.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code