Jordan’s Umniah launches 5G services

AMMAN (Reuters): Jordanian mobile operator Umniah said on Wednesday it had launched fifth-generation (5G) mobile services in major urban areas in a move ahead of its two main competitors.

Umniah had, since obtaining the license this year, partnered with Ericsson in a first phase of the rollout, upgrading its existing 4G network, Chief Executive Faisal Qamhiyah told Reuters.

The firm will invest an extra $300 million in the next four years in expanding the network to cover half the population.

Jordan’s telecom services market is valued at $1.2 billion, according to industry experts. Kuwait-based telecommunications group Zain, the market leader, and Orange Jordan are its main operators alongside Umniah.

Umniah is majority-owned by Bahrain-based Beyon, which owns Bahrain Telecommunications Company Batelco BSC.

The government awarded the three main operators 5G licenses in a deal that netted around $100 million, officials say.

Batelco had already invested around $700 million since it acquired Umniah. The Jordanian firm’s market valuation was expected to top $1 billion within four years, Qamhiyah said.

Umniah has around 1.4 million subscribers with a market share of 30% in the mobile market and a leading 42% in broadband services, Qamhiyah said.

The 5G rollout will allow Umniah to get ahead of its competitors in a market with a near 100 percent penetration and where 4G services were saturated, Qamhiyah said

Industry experts say mobile and data broadband growth has stabilized around 5 percent annually after a fierce turf war among the three operators and following a period of fast growth.

Minister of Digital Economy and Entrepreneurship Ahmed Al-Hanandeh said the 5G rollout will bring more foreign investments and expand Jordan’s role as regional hub for technology startups.