Jordan working on policy to privatise postal services

Jordan expects to finalise a policy on how to privatise its postal services within the next three months.

The Hashemite kingdom - which hopes to have all its citizens connected by 2004 - has selected J.P. Morgan as financial advisor for its planned public offering of part Jordan Telecom shares this October.

And, it expects interest from Etisalat, according to Dr. Fawaz Al Zu'bi, Jordanian Minister for Information and Communic-ations Technology.

"We expect and hope that Etisalat would show interest in Jordan and in all centres around us," Al Zu'bi told Gulf News in an exclusive interview here yesterday. He was here to address a Jordanian Business Council dinner meeting.

The minister also revealed that by end of August, a study should be completed on how to go further in the mobile market - whether to have a fourth operator (besides Mobilecom, Fastlink and Mirsal, a pager company) as well as how to go forward on the 3G services.

He also announced that within a "couple of weeks", Jordan will award the first licence for radio trunking. He, however, would not reveal who it would go to.

"We have completed the corporatisation of the postal services. It is not operated by the ministry any more. There is now a board of directors and a managing director, and immediately we are moving over the next three months to finalise a policy on how to privatise it," Al Zu'bi said.

He said Jordan Telecom's initial public offering (IPO) is on schedule. Over the past two years, 40 per cent of the government monopoly was sold to France Telecom (which has management control) and Arab Bank.

"We are trying to reduce government shareholding - but in stages. There is no need to go all the way right now," Al Zu'bi said when asked if the Jordanian Government was willing to dilute its majority stake to a minority one.

He said the size of the IPO is not yet decided, but the October offering is on schedule.

"So far we are on target. We have just signed J.P. Morgan as financial advisor. We should have a legal advisor by July 10th. Then we will do the due diligence, following which will be the IPO. How much of its share the government will sell will be determined by market conditions," the minister said.

"Today, the management (of Jordan Telecom) is in the hands of our strategic partners - France Telecom and Arab Bank - until 2005 when the monopoly ends. Then the management pact will be up for review."

The Jordanian minister was all praise for Dubai's advancements in the IT sector, and pointed to the complementariness of both Jordan and Dubai in this regard.

"Dubai has excelled at creating and marketing a logistics hub and we can very well be an engine for it," Al Zu'bi said when asked if Dubai could adopt a front office role with Jordan taking over some of its back office operations.