STC was late to expand abroad compared with the UAE’s Etisalat and Qatar Telecom but now owns 80 percent of Indonesia’s Axis, 35 percent of Turkey’s Oger Telecom and a quarter-stake in Malaysia’s Maxis.
It also has mobile licenses in Kuwait and Bahrain.
The foreign push comes amid stiffening competition at home from rivals Mobily and Zain Saudi.
STC’s first-quarter profit dropped 11 percent.
“Our strategy now is to look at majority stakes in everything we do - any transactions or acquisitions would aim to bring majority control to STC,” Ghassan Hasbani, chief executive of STC’s international operation, said.
“The focus is on growth markets in southeast Asia and the Middle East. The Middle East takes even more emphasis now, given the opportunities that are re-remerging.”
Analysts say the scope for greenfield operations in the Middle East is limited, while governments have majority control in 10 of 15 Gulf mobile licenses, making consolidation problematic, but Hasbani is more upbeat.
“We also see potential for consolidation in the markets, some companies are looking for exits, others are looking for the right opportunity to partner,” said Hasbani.
“We are not in discussions with anyone with regards to a specific opportunity ... but the possibilities are emerging, with private equity groups in many cases looking to exit the industry.”
STC and Qtel are the final two bidders for Syria’s third mobile license, but Syria has delayed the process amid a crackdown against protesters in a nine-week-old uprising. No new date has been set for the auction.
The US and European Union have imposed sanctions on senior Syria government officials but Hasbani said this turmoil has not reduced STC’s interest.
“We are still where we started,” he said.
“As far as we are concerned there is no change at all in the process.”
