Dubai-based FRiENDi Group has signed an agreement with leading telecom group Zain to provide mobile virtual network services through Zain’s existing network and offer services and packages to specific customer segments.

With this pact, FRiENDi Group will become the first Mobile Virtual Network Operator (MVNO) in Jordan.

Zain CEO Dr Abdul Malek Al Jaber and FRiENDi Group CEO Mikkel Vinter signed the deal, considered to be the first of its kind in the Kingdom.

FRiENDi Group said it aims to start offering its services to the Jordanian market during the second quarter of 2010 and plans to target the prepaid consumer market.

"A mobile virtual network operator is an operator that can provide mobile telephony services through leveraging capacity offered from an existing network operator, under its own name and brand," Vinter explained.

According to him, this will be FRiENDi's second operation in the Middle East after launching services in Oman last year.

"The agreement is in line with Zain’s overall strategy based on targeted and segmented acquisitions as well as meeting the needs of specific market segments and offering quality service in light of current market situation which has reached saturation with the number of subscriptions exceeding the number of inhabitants," Al Jaber said after signing the deal.

Al Jaber pointed out that Zain was currently working on expanding its network to serve the needs of the growing number of customers.

Zain owns a subscriber base of around 2.7 million and is the pioneer in the market with a market share of around 47 per cent, he added.

He said the company had assigned JD100 million ($140.8 million) this year to develop its network and increase its overall capacity.

According to Vinter, the agreement with Zain will allow the company to serve targeted segments of consumers and contribute to covering the needs of the Jordanian market that is eager for new and unique technologies through Zain’s network.

“Jordan is the second market destination for FRiENDi Group within the region after launching mobile services in Oman during the third quarter of 2009. Our services have been very successful with high demand, something we expect to see in Jordan too,” he added.-TradeArabia News Service