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Annual Report 2013
01Etisalat
Table of contents
02 Key Highlights of 2013
04 Business Snapshot
06 Chairman’s Statement
08 Board of Director’s
10 Timeline
12 Chief Executive Officer’s Statement
14 Management Team
18 Etisalat Group Strategy
20 Awards
22 Operational Highlights
26 Our International Presence
30 Management Review
• Middle East 30
• Africa 38
• Asia 44
• Etisalat Services Holding 48
• Human Capital 50
• Corporate Social Responsibility 52
54 Corporate Governance
57 Independent Auditor’s Report to the Shareholders
58 Consolidated Income Statement
59 Consolidated Statement of Comprehensive Income
60 Consolidated Statement of Financial Position
61 Consolidated Statement of Changes in Equity
62 Consolidated Statement of Cash Flows
63 Notes to the Consolidated Financial Statements
112 Notice of General Annual Shareholders Meeting
Key highlights of 2013
148 Million
Aggregate Subscribers
38.9 AED
Billion Revenue
18.9 AED
Billion EBITDA
6.3 AED
Billion CAPEX
70 Fils
Dividend per share
7.1AED
Billion Net Profit
05Etisalat04 Annual Report 2013
Aspire
To lead
Business Snapshot
Etisalat is an
international,
lue-chip
organisation
with operations
in 15 countries
across the Middle
East, Africa and
Asia. It is one
of the leading
telecom operator
with one of the
largest market
capitalization
among Middle
East, African and
Asian telcos.
It is a highly rated telecom company with
atings from Standard & Poors, Moody’s
and Fitch (Aa3/AA-/A+); with low leverage
and strong UAE Government support.
Etisalat’s focus is on delivering innovative
solutions to transform the communities
in which it operates and fast track social
development and economic growth. This
is underpinned by its commitment to
actively develop and engineer platforms
for growth within the local markets in
which it operates through the deployment
of advanced technologies, quality
networks and customer focused services.
Etisalat became one of the world’s fastest
growing telecom operators; with customer
numbers growing from 4 million to over
140 million in less than 10 years. It’s
international acquisition programme
egan in earnest in 2004 through the
award of the second mobile license,
and the first 3G license in Saudi Arabia.
Since then the company has witnessed
apid expansion, across the Middle East,
Africa and Asia through acquisitions and
organic growth. Etisalat now has access
to a population of close to 700 million
people, with Thuraya; its satellite network
provider covering over two thirds of the
planet’s surface.
The three key pillars of our strategy
involve owning and managing an
attractive well balanced portfolio of assets
consisting of controlling stakes in well
positioned operators in target markets.
Our second pillar involves providing
differentiated, innovative service offerings
that leverage our
oadband infrastructure
and networks. Superior customer
experience resulting from Etisalat’s
operational excellence is our third pillar.
We aim to pro-actively and consistently
serve our customers with a common
set of
and values based on in-depth
customer understanding and building
trusted relationships. We will manage this
through a strong focus on the efficiency
and effectiveness of our operational
processes throughout our footprint.
For nearly 40 years, Etisalat has helped
the UAE sustain its position as the
egion’s hub for business, trade and
foreign investment by providing reliable
and high quality services. Earlier in the
year, Etisalat UAE successfully completed
the rollout of its fi
e-to-the-home
(FTTH) network across 1.3m homes in the
country. This achievement contributed to
UAE being ranked as a global leader in
connecting homes in the country on the
FTTH network. The advanced infrastructure
allows the utilisation of the most
advanced technology applications to the
UAE market.
Etisalat has launched 4G mobile services
in the UAE and Saudi Arabia, and today
operates the Middle East’s largest LTE
network with population coverage
exceeding 82 per cent. Etisalat offers
oth the Middle East’s fastest fixed
line
oadband service with speeds of
up to 500Mbps - the highest mobile
oadband connectivity speeds to
date. It has also launched several 3G
networks in its footprint including
Egypt Afghanistan; Ivory Coast and
Benin. These advancements have helped
Etisalat capture market share with the
introduction of mobile
oadband services
and affordable internet access.
Etisalat is committed to the principles of
corporate social responsibility through
strategic partnerships to increase access to
education and health care via technology.
Under the banner ‘Etisalat for Good’,
Etisalat and its operating companies
have been actively working on ‘Mobile
for Development’ initiatives in 2013, in
collaboration with its global partners.
The efforts have helped
idge the gap
etween emerging markets and developed
nations, while generating impressive
digital dividends in the form of jobs,
economic growth and stability.
07Etisalat06 Annual Report 2013
Growing Through
Innovation
Chairman’s Statement
Last year, Etisalat
witnessed
encouraging
financial results.
Increased revenues
and profits and a
growing customer
ase have put
Etisalat in a strong
position to em
ace
the changes that
are enveloping the
telecoms industry
and have enabled it
to continue to add
value to customers,
shareholders and
the communities in
which we operate.
Over the past year we have started to
detect a cultural change throughout
the corporation, as a new approach
encouraged by the leadership cascades
to our teams on the ground throughout
the Middle East, Asia and Africa. This
paradigm shift is the evolution of Etisalat
into a
and that will not just offer its
customers products and services, but one
that will provide them with a complete
experience every time they interact with
Etisalat. By putting customers at the heart
of everything we do, we are enabling our
cu
ent success and planting the seeds of
future growth.
This is an encouraging step that has
put us firmly on the path to reach our
aspiration of becoming the leading and
most admired telecoms operator in all
our operating markets. Being an industry
leader is about more than just securing
a large market share in each country. It
is about driving innovation, satisfying
customers and engaging with communities
for the benefit of all of society. We
want to be a trusted companion to our
customers, helping them navigate the
digital world. We know the technological
advances sweeping through the industry
can be daunting for many consumers,
it is therefore our job to simplify and
explain the changes in terms everyone can
em
ace. The customer’s journey is never
over and we must constantly grow to
meet their ever increasing demands.
As I have already said, proof that we
are on the right track is in our financial
esults and growth. Over the past year,
Etisalat’s revenue grew 18 per cent to
AED 38.9 billion and the consolidated
net profits after Federal Royalty of
grew 5% to AED 7.1 billion. Those are
impressive indicators by any standard and
testament to the strategic direction of the
corporation. Given such strong financials
the board decided to recommend dividend
distribution of 70 fils per share for fiscal
year 2013.
Our aspiration to grow and develop was
epitomised last year by the potential deal
with Vivendi to buy its shares in Maroc
Telecom. We reached an agreement on
key terms and signed a Share Purchase
Agreement following the completion of
a series of successful negotiations. When
Maroc Telecom profitable operations are
added to our global footprint, we will
have a very strong portfolio in West and
North Africa.
By investing in Maroc Telecom, Etisalat is
investing in the future of Africa. The deal
follows a global trend of consolidation
in the industry and it is another step
toward becoming an admired operator. By
admired, I mean that we should actively
participate in local growth, give local
usinesses and communities the means
to grow and develop, provide jobs, release
new innovative products that can be
harnessed in education and healthcare,
and give directly to good causes through
socially responsible initiatives.
Innovation is at the heart of everything
we do, whether it is pricing, developing
networks, diversifying products and
services or giving back to society. Another
area that was fertile soil for innovation
this year was in striking up partnerships
that will benefit our organisation and
add value to the end user. These include
agreements with MasterCard to
ing the
award-winning mobile commerce solution,
Flous, to some of our African operations,
and joining the machine-to-machine
(M2M) World Alliance, an organisation
dedicated to advancing this exciting new
technology.
Innovation in digital products and services
throughout the group has continued to
e led by the Digital Services Unit. This
talented group of individuals is driving
est practices across Etisalat’s operating
countries and developing transformational
innovative solutions.
Etisalat’s growth to become one of the
industry’s largest companies
ings new
opportunities, but it also
ings new
challenges. Large organisations are at
isk of becoming too slow to adapt to
changes in the marketplace, especially in
a dynamic environment such as telecoms.
We must therefore always be on our guard
and leverage the size of the network and
vast expertise amongst employees to the
enefit of each operating country.
Finally, I would like to thank the
Leadership of the UAE and our
shareholders for their continued and
unwavering support; our employees for
their dedication and – most of all – our
customers for their loyalty and faith in our
services. On the back of such a successful
year, we are looking to the future with
confidence that we will continue our
emergence as one of the best telecoms
operators in the world.
Eissa Mohamed Al Suwaidi
Chairman
09Etisalat08 Annual Report 2013
Board of Directors
Eissa Mohamed Al Suwaidi
Chairman
Investment & Finance Committee
Mohamed Hadi Ahmed Abdulla
Al Hussaini
Membe
Investment & Finance Committee
Abdelmonem Bin Eisa
Bin Nasser Alserkal
Membe
Nomination & Remuneration Committee
Sheikh Ahmed Mohamed Sultan
Bin Suroor Al Dhaheri
Membe
Audit Committee
Shoaib Mir Hashim Khoory
Membe
Nomination & Remuneration Committee
Abdulfattah Sayed
Mansoor Sharaf
Membe
Investment & Finance Committee
Khalaf Bin Ahmed Al Otaiba
Vice Chairman
Member-Investment & Finance Committee
Mubarak Rashed Al Mansouri
Membe
Nomination & Remuneration Committee
Investment & Finance Committee
Essa Abdulfattah Kazim
Membe
Chairman-Audit Committee
Abdulla Salem Al Dhaheri
Membe
Chairman-Nomination &
Remuneration Committee
Hasan Al Hosani
Corporate Secretary
Mana Mohamed Saeed Al Mulla
Membe
Audit Committee
2012
Etisalat won 3G license in
Afghanistan and Ivory
Coast and launched the
first 3G services in history
of Afghanistan.
Etisalat won three GSMA
awards in the ‘Best Mobile
Health Innovation’ and
‘mWomen Best Mobile
Product’ categories for its
mobile health innovation
Etisalat Mobile Baby, as
well as the ‘Best Mobile
Money Innovation’ award.
2011
Etisalat introduces the first
eal 4G (LTE) experience to
its customers in the UAE.
Etisalat acquires a stake
and takes management
control of PTCL, the
incumbent operator in
Pakistan.
Etisalat expands into West
Africa by taking a stake in
Atlantique Telecom whose
operations in Benin,
Burkina Faso, the Central
African Republic Gabon,
Ivory Coast, Togo, and
Niger.
2000
Mobile subscribers exceed
the 1 million mark as
mobile data services is
introduced using eWap.
Etisalat introduces the
E-Vision
and for its cable
TV services.
1994
Middle East’s first GSM
service is introduced in the
UAE.
Etisalat also launches
Emirates Data Clearing
House, now one of the
world’s leading clearing
houses - providing complete
solutions to GSM operators,
who in turn, provide roaming
facilities to their customers.
1995
Internet services are rolled
out across the country,
another first in the region.
Etisalat opens its SIM card
factory, Ebtikar, in Ajman -
now regarded as one of the
est industrial
organisations in the UAE
and a leading provider of
smart card solutions.
2004
Etisalat wins the second
license to operate in Saudi
Arabia thereby introducing
Etihad Etisalat – Mobily.
It also buys a stake in
Canar, a new fixed line
operator in Sudan.
2008
Etisalat completes the
ollout of a nationwide
fi
e optic backbone over
which next generation
services will be provided
in the UAE.
Etisalat is named ‘Largest
Ca
ier in the Middle East’
in the Financial Times Top
500 list.
2013
Etisalat signed SPA with
Vivendi to acquire Vivendi’s
53% stake in Maroc
Telecom Group.
Etisalat Benin obtained a
Universal Mobile Service
License which covers 2G,
3G, 4G and any other
mobile technologies
available in future in
Benin.
1996
Etisalat becomes one of the
founding investors in
satellite
telecommunications
provider, Thuraya.
1999
The Middle East’s first
oadband Internet service
using the latest ADSL
technologies is introduced.
Etisalat buys a stake in
Tanzanian operator Zantel,
its first step towards
ecoming a major
international telecoms
group.
2003
Etisalat launches Middle
East’s first 3G network and
offers MMS services to its
customers.
2007
Etisalat acquires a stake in
a green-field operator in
Nigeria, the largest and
fastest growing market in
Africa.
Etisalat introduces mobile
TV and officially launches
its wholesale business unit
as ‘The Smart Hub for the
Middle East’.
2009
Etisalat acquires Tigo, a Sri
Lankan operator, which is
later re
anded to Etisalat
Lanka.
2005
2006
Etisalat wins the third
mobile license in Egypt and
launched the country’s first
3G network networks.
It is also awarded a license
to provide mobile services
in Afghanistan.
Etisalat Services Holding is
formed to manage eight
usiness units that offer
mission-critical telecoms
elated services to the
industry. This includes
EDCH, e-Marine, Ebtikar,
Etisalat Academy, E-Facility
Management, e-Real
Estate, Etisalat Directory
Services and Tamdeed.
The Emirates
Telecommunication
Corporation is founded.
1983
The ownership structure
changes: The United Arab
Emirates government
acquires a 60 per cent
share in the company and
the remaining 40 per cent
is publicly traded.
1982
The Emirates
Telecommunications
Corporation launches
Middle East’s first mobile
network.
1976
11Etisalat10 Annual Report 2013
Timeline - History of Etisalat
Our Journey
13Etisalat12 Annual Report 2013
If I had to summarise
this year in one word
it would be “growth”.
As we continue our journey from
eing a provider of fixed and mobile
communications to a company that offers
and enables the use of a vast number of
innovative digital products and services,
the relationship with customers is growing
deeper too. That is why we speak about
“adding value”. We are providing our
customers with the tools to solve problems
in their daily lives.
Aspiring forward, we have adapted to this
evolution admirably so far, even though
there is more work to do. And while it is
important to recognise the challenges, it
is just as important to recognise, and take
comfort from our success, and indeed
cele
ate it. The results this year are a
clear indication that we are on the right
track. In 2013, aggregate subscribers,
grew 7 per cent to reach 148 million and
Group revenues grew by 18 per cent to
each AED 38.9 billion. Revenue continues
to be boosted by our solid growth in the
UAE and international markets, which
now account for 36 per cent of the
consolidated revenue. Our net profit after
Federal Royalty reached AED 7.1 billion, 5
per cent higher than last year.
In the UAE, we continued to cement
our position as the leading operator in
the country despite further competitive
pressures. We have continued to be the
dominant force in mobiles, driven by our
competitive pricing, innovative service
offerings and the high quality of our
network. Continued improvements in
customer service have also engendered a
spirit of loyalty among our customers and
we will continue to focus on providing a
unique customer experience and superior
service in the future.
We also have strong growth in the data
and internet segments, and revenues will
continues to grow as we benefit from our
investment in infrastructure, including
the establishment of the world’s most
extensive Fiber-To-The-Home (FTTH)
network. By utilising best technological
and innovative solutions globally available,
we are connecting government, businesses
and individuals to the services they
demand at exceptionally fast speeds.
Etisalat continued to deepen its relationship
with other international organisations that
will be important to the future of telecoms.
Our intention to innovate through global
partnerships was clearly demonstrated
last year when we joined the Machine-
to-Machine (M2M) World Alliance, a
coalition of eight major operators that are
working together to
ing the latest M2M
technologies to global markets. By being
part of the alliance, Etisalat is positioning
itself to become a leader in the global
telecom industry.
Etisalat is now the enabler of many
innovative services – most noticeably in
government. A clear example of this is
the e-government which we have seen
in the UAE for many years and which
was reinforced further by HH Sheikh
Mohammed bin Rashid Al Maktoum, Vice
President & Prime Minister of UAE, Ruler
of Dubai in his Mobile Government vision.
We are delighted with the progress being
made in the UAE and we are working with
many ministries on different turn-key
projects. Some of these are based on our
experiences in other markets – especially
in the fields of Identity, Health, Education
and Finance. All this is testament to our
visionary government and the healthy
growth which has created potential far
eyond expectations.
Etisalat has proven that mobile finance
technologies can be secure and life-
changing across its footprint in places
such as Afghanistan, Tanzania and recently
in Sri Lanka, Egypt and Niger. Mobile
money technology is now at a very mature
level and extremely secure and offers
significant benefits for communities,
especially those with lower incomes.
Another notable innovation was when
we became one of the first companies in
the world to pass the initial stages of a
procedure to obtain our own top-level
domain names. The approval paves the way
to using an extension such as “.etisalat”. This
will help our work in continuing to build
our
and as one of the most innovative
companies in the region.
Turning to our work in the community, an
event that caught the eye of the world
was Etisalat’s involvement in a bicycle
tour across five European countries to
test the latest mobile technologies that
can be used to help manage and cure
diabetes. Diabetes, of course, takes a
huge toll on many families, especially
here in the UAE, and the tour became
a symbol for Etisalat’s efforts to help
combat the disease. We hope that the
technology tested during the tour will
make a difference to people’s lives. The
combination of innovation and giving
ack is part of our efforts towards the
communities we serve.
There have also been many other positive
developments this year: higher revenues,
and successful initiatives. However, we
must not allow good news to abate our
efforts or distract us from the difficult
challenges facing the industry. Whether
our voyage is on calm or tu
ulent waters,
we must always focus on the goal of long-
term success through innovation, strong
performance and progress.
We still have a lot of work to do to build
our capabilities, be more efficient and
launch services in areas such as M2M,
e-commerce, video and cloud services.
Having said that, I’m extremely confident
that we will have more good news in the
coming years. This is because we invest in
people and empower our customers. I am
honoured to lead the Group in building
upon the success of previous’ years and into
the next stage for generations to come.
Ahmed Abdulkarim Julfa
Chef Exective Office
Aspire
Forward
Chief Executive Officer’s
Statement
15Etisalat14 Annual Report 2013
Management Team
Ahmad Abdulkarim Julfa
Chief Executive Officer- Etisalat Group
Mr. Julfar was appointed as the CEO of the Etisalat Group in August 2011. Prior to this
appointment, he was the Chief Operating Officer of EG. Mr. Julfar has more than 25 years’
experience in the telecommunication sector and has served in various management positions
including General Manager of eCompany, ComTrust and Etisalat’s Dubai region. In addition,
Mr. Julfar serves on the boards of Mobily, where he is the Chairman of the Risk Management
committee, Etisalat Misr and Etisalat Services Holding. Mr. Julfar holds Bachelor’s Degrees in
Civil Engineering and Computer Science from the USA.
Serkan Okandan
Chief Financial Officer, Etisalat Group
Mr. Okandan joined Etisalat in January 2012 as Chief Financial Officer of the Etisalat
Group. Prior to his appointment, he was the Group Chief Financial Officer of Turkcell.
Mr. Okandan started his professional career at PricewaterhouseCoopers in 1992, and
worked for DHL and Frito Lay as a Financial Controller before joining Turkcell. Mr.
Okandan is a board member and Chairman of the audit committee of Etisalat Nigeria,
PTCL, Ufone and a board member of Etisalat Services Holding. Mr. Okandan graduated
from Bosphorus University with a degree in Economics.
Essa Al Haddad
Chief Regional Officer /Africa, Etisalat Group
Essa Al Haddad was appointed as the Chief Regional Officer, Africa, of the Etisalat Group in
January 2013. Prior to this appointment, he was the Chief Commercial Officer of EG. In his 34
years of experience, Mr. Al Haddad has served in various senior leadership positions including
Executive Vice President of Engineering of Etisalat UAE, Chief Marketing Officer Etisalat
UAE and Chief Marketing Officer of EG. Mr. Al Haddad is Chairman of Zantel, Vice Chairman
of Etisalat Nigeria and board member of Atlantique Telecom, Mobily and Canar. He holds a
higher diploma in Telecom Engineering and an MBA from the UK.
Saleh Al Abdooli
Chief Executive Officer, Etisalat UAE
Engineer Saleh Al Abdooli was appointed as Chief Executive Officer of Etisalat UAE
in April 2012. A strong and charismatic leader, Saleh rose to international fame after
his resounding success in Egypt as the CEO of Etisalat Misr. He built and launched
the first 3G operator in Egypt in 7 months. In less than five years, he achieved
27% of revenue share, 28% market share, 36% of EBITDA margin, and 99% 2G/3G
coverage. Al Abdooli holds Bachelor’s and Master’s in Electrical Eng. and Telecom
from University of Colorado at Boulder, USA.
Dr. Daniel Ritz, Ph.D
Chief Strategy Officer, Etisalat Group
Daniel Ritz was appointed as Chief Strategy Officer for EG in Fe
uary 2012. Prior to
this appointment, he was the CSO at Swisscom Group where he held various positions
including Board member of each of the Group’s Executive Board, Fastweb, Belgacom
and Swisscom IT Services. He also served as Chairman of Swisscom’s Hospitality Services
and as CEO of Swisscom (Central & Eastern Europe). Prior to joining Swisscom, he was
a partner at BCG. Dr. Ritz also serves on the Board of Atlantique Telecom, Thuraya, PTCL
and Ufone. Dr. Ritz holds a Ph.D from the Hochschule St. Gallen in Switzerland.
Khalid Al Kaf
Managing Director and Chief Executive Officer, Etihad Etisalat (Mobily)
Khalid Al Kaf was appointed as Chief Executive Officer and Managing Director of Etihad
Etisalat (Mobily) in July 2005. Prior to this appointment, Mr. Al Kaf worked for over 19
years with Etisalat in various capacities. He was the General Manager of Etisalat’s Network
Services division before being appointed as the start up project manager and later CEO
for Mobily. Mr. Al Kaf is the Chairman of the Board of Directors of Etisalat Sri Lanka and
is a board member of Mobily. Mr. Al Kaf holds a Bachelor of Science degree from George
Washington University, USA.
Saeed Al Hamli
Chief Executive Officer, Etisalat Mis
Mr. Al Hamli was appointed as Chief Executive Officer of Etisalat Misr in April 2012.
Prior to this role, he was the Chief Executive Officer of Etisalat Afghanistan since 2007.
Mr. Al Hamli has more than 20 years of experience at Etisalat and Thuraya where he was
the Chief Commercial Officer before moving to Afghanistan. Mr. Al Hamli also serves on
the board of Etisalat Misr. Mr. Saeed holds a Bachelor’s of Science degree in Electrical
Engineering from USA and Executive Master’s of Business Administration degree from
the American University of Sharjah.
Jamal Aljarwan
Chief Regional Office
Asia, Etisalat Group
Jamal Al Jarwan was appointed as the Chief Regional Officer of the Asian cluster of
EG in October 2011. Prior to this position, he was the Chief International Investments
Officer of EG. Mr. Al Jarwan started his career at Etisalat in 1988 and held various
positions including Chief Commercial Officer at Thuraya. Mr. Al Jarwan is a member
of the Board of Etisalat Afghanistan, Etisalat Sri Lanka, PTCL and Ufone. He holds a
Bachelor’s degree in Business from Dayton University in the United States and an MBA
in International Management Development from Lausanne University, Switzerland.
17Etisalat16 Annual Report 2013
Nasser Bin Obood
Chief Government Relations and Corporate Communications Officer, Etisalat Group
Nasser Bin Obood was appointed as Group Chief Government Relations and Corporate
Communications Officer at EG in April 2012. Prior to this, he was Acting CEO for
Etisalat UAE. Mr. Bin Obood joined Etisalat in 1986 and held various senior positions
including General Manager of Al Ain region, Deputy CEO and Chief Corporate Affairs
Officer for Etisalat UAE and Chief Corporate Affairs Officer of the Etisalat Group. Mr.
Bin Obood serves on the boards of Thuraya and Atlantique Telecom. Mr. Bin Obood
holds a Bachelor’s degree in Science from the UAE University, Al Ain.
Management Team
Khalifa Al Shamsi
Chief Digital Services Officer, Etisalat Group
Khalifa Al Shamsi was appointed as Chief Digital Services Officer of the EG in 2012.
Prior to this role, Mr. Al Shamsi held the position of Senior Vice President of Technology
Strategy of the Etisalat Group. Since joining Etisalat in 1993, Mr. Al Shamsi has held
various key senior positions including Vice President and Senior Vice President of
Marketing of Etisalat UAE. Mr. Al Shamsi serves on the Boards of Etisalat Afghanistan
and E-vision. Mr. Al Shamsi has a Bachelor’s degree in Electrical Engineering from the
University of Kentucky, USA
John Wilkes
Chief Internal Control Officer, Etisalat Group
John Wilkes was appointed as the Chief Internal Control Officer for EG in January 2013.
Prior to this, Mr. Wilkes was the General Manager of Risk & Supply Chain of the Vodafone
Hutchison Company. He has more than 24 years of experience in companies such as KPMG
Air in New Zealand where he was the Group Internal Auditor and Stockland in Australia
where he held the position of Chief Risk Officer. Mr. Wilkes is a qualified chartered
accountant.
Abdulaziz Al Sawaleh
Chief Human Resources Officer, Etisalat Group
Mr. Al Sawaleh is the Chief Human Resources Officer (CHRO) of the Etisalat Group. Prior
to this position, he was the CHRO of Etisalat UAE. Mr. Al Sawaleh has more than 25 years’
experience in various leadership positions. He is responsible for leading the global Human
Capital strategies including the areas of talent development, organization effectiveness,
compensation & benefits and Performance Management. He is a board member of
Atlantique Telecom and Etisalat Services Holding. Mr. Al Sawaleh holds an MBA degree in
Global Leadership Management from UAE University and a BBA degree from the USA.
Obaid Bokisha
Chief Procurement Officer, Etisalat Group
Obaid Bokisha was appointed as Chief Procurement Officer of the EG in June 2012. Since
joining Etisalat, he was assigned various responsibilities contributed to the network
implementation of all existing systems covering GSM, UMTS, LTE and WiFi networks.
Positions held include Vice President Mobile Networks Planning & Int’l Support of Etisalat
UAE and Senior Vice President – Mobile Networks Optimization EG.Mr. Bokisha serves
on the board of Etisalat Misr, Zantel and Etisalat Nigeria. Mr. Bokisha has a degree in
Communications Engineering from the Etisalat College of Engineering.
Rainer Rathgebe
Chief Commercial Officer, Etisalat Group
Rainer Rathgeber was appointed as Chief Commercial Officer of EG in January 2013. Prior
to joining Etisalat, he was Senior Vice President of Marketing in Europe of the OTE Group.
Mr. Rathgeber joined Deutsche Telekom in 2002 as Head of Strategy for T-Mobile Germany,
and Executive Vice President of Sales and Service Strategy for T-Mobile International. He
then went on to serve in various positions including Executive Vice President of Market
Management for T-Mobile International, CEO of T-Mobile Croatia and Member of the
Executive Management Committee of T-Mobile International. Mr. Rathgeber holds a Diplom-
Kaufmann Degree in Economics.
Dr. Kamal Shehadi, PhD
Chief Legal & Regulatory Officer, Etisalat Group
Kamal Shehadi was appointed as Chief Legal & Regulatory Officer of EG in November 2012.
He Joined Etisalat in 2010 as Head of the Regulatory Department. Prior to that, Dr. Shehadi
was the Chairman and CEO of TRA, Lebanon. He has more than 17 years of experience in
consulting and advisory services for telecom regulatory authorities and telecom service
providers. Dr. Shehadi serves on the board of Atlantique Telecom. Dr. Shehadi has a B.A.
in Economics from Harvard University and a PhD in International Political Economy from
Columbia University, USA.
Hatem Bamatraf
Chief Technology Officer at Etisalat Group
Mr. Hatem Bamatraf was appointed Chief Technology Officer at Etisalat Group in
September 2013. Prior to this position he was the Executive Vice President of Enterprise
Business at Du. Hatem began his professional career in 1995 at Etisalat and was seconded
to Mobily in 2004 as Director of Mobile Network Development in the Central Region, KSA.
He graduated from the Etisalat College of Engineering and holds a bachelor’s degree in
Engineering. He has been recognised by Global Telecom Business as one of the 40 under
40 telecom leaders in the world.
Javier Garcia
Chief Internal Auditor, Etisalat Group
Javier Garcia joined Etisalat in December 2012 as Chief Internal Auditor of the EG. Mr.
Garcia was the head of Internal Audit at Telefonica Group before joining Etisalat. He
held various positions with Telefonica including Business Process Audit Director and
Vice President of Internal Audit (Chile) before becoming the Group Head of Internal
Audit. Mr. Garcia holds a Bachelor’s in Economics and a Master’s in Financial Markets
from the Autonomous University of Madrid
18 Annual Report 2013
Vision, Mission
and Strategic Pillars
Vision
Mission
To be the leading and most admired
emerging markets telecom group
• Provide best in class total customer
experience for retail and business
• Deliver attractive returns to
shareholders while investing in the
company’s long term future
• Support economic development and
job creation through ICT & socially
esponsible behavio
Strategic Pillars
Service
offering
Operational
Excellence
Customer
Experience
One
Company
Portfolio
People
& culture
19Etisalat
The services
provided by the
communications
industry have
never been more
in demand by both
consumers and
usinesses alike.
In today’s rapidly evolving digital society,
the role of the communications industry
has proven to be a key enabler for global
socioeconomic growth. From a strategic
perspective, the opportunities arising in the
industry are coupled with challenges. Major
telecommunications players are undergoing
significant transformation and change,
while boundaries across the value chain
are becoming increasingly blu
ed. More
than ever, it is imperative to have a clear
understanding of the forces shaping the
industry and the optimal position for each
player to gain its competitive advantage. The
worldwide telecommunications industry –
with estimated revenues of approximately
USD1.7 trillion at the end of 2013 – will
continue to represent a sizeable and attractive
industry, particularly in emerging markets.
In Etisalat’s footprint, we envisage significant
growth in the telecommunications industry.
This growth will be driven primarily by
oadband, voice in some markets, and new
evenue streams across its footprint. Etisalat’s
corporate strategy, outlined last year and
einforced this year, continues to enhance
the focus of the organisation across its
capabilities in the consumer, business and
wholesale segments. The strategy continues
to be based on six pillars, which are designed
to deliver the objectives of the organisation:
Service Offering, Customer Experience,
Operational Excellence, Portfolio, One
Company and People & Culture. The progress
achieved on these fronts during 2013 is
highly encouraging and further upsides are
expected in the coming years.
Service Offering
Etisalat’s commitment to enhance its
service offering through differentiated
and innovative services was evident in the
numerous initiatives deployed in 2013.
Enhancement of customer segmentation
and the introduction of new services allowed
the organisation to provide incremental
value to its customers. For example, Etisalat
continues to leverage its customer-value
management capabilities across its footprint
to enhance customer retention. In the new
digital space, Etisalat’s Flous M-Commerce
service was launched in seven new countries
in 2013, reaching a total of nine m-commerce
enabled operations, with a total registered
ase of 10.5 million at the end of 2013. In the
enterprise segment, Etisalat also witnessed
an increase in both market share and value
share by deploying solutions that are meeting
customer’s requirements. The increased loyalty
and uptake of services are strong indicators of
successful strategy implementation.
Customer Experience
Etisalat works continuously on providing
customer insight-based and focused
propositions, as well as on creating a positive
customer experience across all touch points.
In 2013, Etisalat initiated several programmes
aimed at improving end-to-end customer
experience, with particular emphasis on
front-facing elements. An example of these
efforts is the increased deployment of
Etisalat’s own points of sale in the form of
flagship stores across its footprint.
Operational Excellence
Despite the fact that Etisalat continues
to achieve one of the highest margins in
the telecom industry, the organisation is
committed to continuously improving its
operational excellence. In 2013, numerous
strategic initiatives across procurement,
network optimisation and capital expenditure
ecame key drivers of Etisalat’s healthy
margins. Etisalat will continue to implement
and pursue further improvements by
leveraging the international scale of the group
over the coming years.
Portfolio
Based on the established investment
guidelines of Etisalat’s corporate strategy,
which focuses on the company’s operations
in the Middle East, Africa and Asia, recent
M&A activities have been highly targeted
to enhance existing positioning. Activities
in 2013 included acquisitions of 3G
licences (e.g. Moov Benin) and initiatives to
strengthen the company’s position through
in-market consolidation in some of our
core markets. In addition, on 4th November
2013, Etisalat announced that it had signed
a share purchase agreement with Vivendi
in relation to the acquisition of Vivendi’s 53
per cent stake in Maroc Telecom. The closing
of the acquisition is subject to a number
of conditions including , among others, the
execution of a shareholders’ agreement
with the Kingdom of Morocco regarding
Maroc Telecom, securing competition and
egulatory approvals in the Kingdom of
Morocco and other relevant jurisdictions. The
potential acquisition will be EPS accretive
and will significantly enhance Etisalat’s
positioning in West Africa. From a capital
structure optimisation perspective,
Etisalat also continues to monitor its
operational requirements to ensure that
an optimal structure is in place for its
operating companies
One Company
With a strong footprint across 15 markets,
Etisalat has the scale to deliver exceptional
eturns. The company is reinforcing a strategy
which leverages this scale by enabling a
common set of
and values, enhancing
integrated systems and processes, and
ensuring robust and consistent governance,
as well as maximised economies of
scale across the Group. As an example,
Etisalat deployed group-wide finance and
procurement systems in order to enhance the
efficiency of the organisation.
People & Culture
Etisalat’s people and corporate culture are
at the heart of its strategy. Having the right
talent and processes in place will continue
to enable the Etisalat Group to deliver on its
strategic pillars successfully. In 2013 alone,
several strategic programmes were deployed
to ensure the organisation attracts, develops
and retains the right talent. Initiatives like
the High Potential Programme and Top 100
Talent are examples of the organisation’s
actions to ensure that appropriate
esources are in place for any potential
usiness requirement (e.g. succession
planning, management reinforcement
etc.). In addition, the Group continues to
identify ways to streamline its processes
to ensure that efficiency is improved.
As Etisalat grows over the next five years,
it aims to deliver exceptional customer
service and an innovative and dynamic
ange of services across an optimised
and efficient portfolio. With these
key principles in place, Etisalat will be
well positioned to achieve its vision of
ecoming the leading and most admired
emerging markets telecom group.
Etisalat Group Strategy
21Etisalat20 Annual Report 2013
Awards
Corporate
International Business Awards
Corporate Social Responsibility
Programme of the Yea
Arabia CSR Awards
First Runner-Up in NGO-partnership
Fo
es Middle East
Most powerful company in the UAE
GSMA Global Mobile Awards
Best Mobile Health Innovation
GSMA Global Mobile Awards
Best Mobile Health Innovation
International Business Awards
Most Innovative Company in the
Middle East and Africa
Arab Achievement Awards
Leader in Telecoms
International Business Awards
Most Innovative Company
African Investor of the Yea
Africa Business Awards
Asia Brand Employer Awards
Training Excellence
SAMENA Awards
Technical Leadership
Global Telecom Business Innovation
Awards
Video Services
TMT Finance Middle East
Best Broadband Provider
COMMS MEA
Best Fixed Line Provide
CommsMEA
Best Overall Operator of the Yea
GSMA Mobile World Congress
Best NFC/Mobile Money Product
or Service
Financial Times
Special Commendation -
Technology in Sustainable
Finance
Telecom World ME
Best Middle Eastern Wholesale
Ca
ie
2012
2012
2011
2011
2013
2013
Innovation and Engineering
Marketing and Customer Care
Management
GSMA Global Mobile Awards
Best Mobile Product and Service
for Women in Emerging Markets
International Business Awards
Best New Product or Service of the
Year Health
International Business Awards
Best Executive of the Year in
Telecommunications
International Business Awards
Best Customer Care
International Business Awards
Honourable Mention - Green
Programme
International Business Awards
Honourable Mention - CSR
Programme
Asian Brand Employer Awards
Asia’s Most Prefe
ed Brand
International Business Awards
Best Chairman
Mobile Money Global Awards
Best Bank Led Mobile Money
Programme (Egypt)
Mobile Money Global
Best Mobile Money Deployment in
the Middle East
Arabian Business
CEO of the Yea
2012
2012
2011
2011
2013
2013
Aggregate Subscribers (m)
2012
2013
139
148
Revenue (AED b)
2012 2013
32.9 38.9
18.9
2012 2013
EBITDA (AED b)
16.9
2012 2013
Net Profit (AED b) EPS(Fils)
85 90
6.7
7.1
23Etisalat22 Annual Report 2013
Subscribers
Etisalat Group aggregate subscriber number grew by 7% on an annual basis to 148
million in 2013 and a 3% growth by December 2013. The net addition of 9 million
subscribers in the year was mainly a factor of good subscriber growth in the UAE, Saudi
Arabia, Egypt, Nigeria, Benin and Togo markets.
In the UAE, the active subscriber base grew to 10.4 million subscribers in 2013
epresenting YoY growth of 16%. Attractive promotional campaigns and new products
and services led to the mobile subscriber base growing at 19% to 8.4 million subscribers
from 7.0 million. Fixed line subscribers declined to 1.0 million representing a 5%
decrease from the previous period. However, this is mainly attributed to the transition of
customers to the eLife segment (i.e. double play and triple play). The eLife segment had a
growth rate of 30% for the year to 0.7 million customers.
Africa cluster aggregate subscriber base, increased to 28.9 million at the end of
December 2013 representing YoY increase of 7%. Asia cluster aggregate subscriber base
eached 36.3 million at the end of December 2013, declining by 1%.
Revenues
Etisalat Group’s full year consolidated revenue increased YoY by 18% to AED 38.9 billion
driven by strong performance of domestic operations and the consolidation of Pakistan
operations. In the UAE, revenue grew by 9% to AED 24.8 billion as a result of subscriber
growth, increase in demand for data services and higher handsets sales.
Revenue from international operations increased by 47% to AED 13.8 billion,
epresenting 36% of consolidated revenues. In Egypt, revenues for 2013 of AED 4.7
illion, were down 7% from prior year mainly impacted by cu
ency devaluation.
However, revenue in local cu
ency evidenced single digit growth due to an increase in
the post-paid customer base, growth in the data segment and handset sales.
Africa Cluster consolidated revenue grew by less than 1% to AED 2.8 billion. Performance
was mainly impacted by competitive pressure in Ivory Coast and cu
ency devaluation
in Sudan. In 2013 the Asia Cluster benefited from the inclusion of full year results of
Pakistan operations with revenue growth for the year increasing three-fold to AED 6.3
illion. Excluding Pakistan operations, full year revenue would have declined by 4%.
Operational Highlights
Substantial Growth with
Aspirations to Excel
Net Profit and EPS
Consolidated net profit after Federal Royalty increased YoY by 5% to AED 7.1
illion in 2013. Despite higher depreciation and amortization charges, taxes
and lower finance income, net profit improved due to higher share of results
of associates, and lower impairment charges and other losses, and lower
Federal Royalty.
Earnings per share (EPS) increased to 0.90 fils in 2013. On 4th of March 2014
the Board of Directors has resolved to propose a final dividend for the second
half of 2013 at the rate of 35 fils per share,
inging the full year dividend
to 70 fils per share. This proposal is subject to shareholder approval at the
Annual General Meeting scheduled for the 26th March 2014.
EBITDA
Group Consolidated EBITDA grew to AED 18.9 billion representing a YoY growth
of 12%. EBITDA growth was mainly due to increase in revenue and flow through
to EBITDA. EBITDA margin declined by 3 points to 49% in 2013. This decline is
mainly due to higher interconnect & termination costs, higher proportion of
low margin handset sales, higher staff costs, network and marketing expenses as
well as the diluting impact of consolidation of Pakistan operations.
In the UAE, EBITDA in 2013 increased YoY by 4% to AED 14.0 billion leading
to an EBITDA margin of 57% in comparison to 59% in the previous year. This
decline is attributed to a higher proportion of low margin devices costs and
higher interconnection costs. EBITDA of international consolidated operations
in 2013 increased YoY by 41% to AED 4.1 billion resulting in 17% contribution
to consolidated EBITDA. In Egypt EBITDA for 2013 declined by 19% to AED
1.6 billion due to higher network costs supporting network expansion,
higher cost of sales and marketing expenses, and a one-off provision for the
interconnection dispute with another mobile operator. This resulted in EBITDA
margin declining by 5 points to 34%. Adjusting for the impact of the one-
off, EBITDA margin would have been 36%. In Africa cluster, EBITDA for 2013
declined YoY by 25% to AED 0.5 billion and EBITDA margin fell by 6 points to
19% mainly due to one-off provision in Atlantique operations. Adjusting for
these provision, EBITDA Margin in 2013 would have been 22%. In Asia cluster,
EBITDA in 2013 increased to AED 1.9 billion and EBITDA margin increased to
31% as a result of the consolidation of operations in Pakistan.
2012 2013
CAPEX (AED b)
4.2 6.3
25Etisalat24 Annual Report 2013
Profit and Loss Summary
(AED m) FY’12 FY’13 YoY
Revenue 32,946 38,853 +18%
EBITDA 16,855 18,901 +12%
EBITDA Margin 51% 49% -3pp
Federal Royalty 6,451 6,115 -5%
Net Profit 6,742 7,078 +5%
Net Profit Margin 20% 18% -2pp
Balance Sheet Summary
(AED m) FY’12 FY’13
Cash & Cash Equivalents 13,934 15,450
Total Assets 84,606 85,716
Total Debt 5,806 5,872
Net Cash 8,128 9,579
Total Equity 49,913 49,593
Operational Highlights
CAPEX
Consolidated capital expenditures increased YoY by 52% to AED 6.3 billion resulting in
capital intensity ratio of 16% in 2013. Capital expenditure during the year focused on
network expansion, network capacity and universal mobile license acquisition in Benin. In
the UAE, capital expenditures in 2013 increased by 12% to AED 2.0 billion while capital
intensity ratio remained stable at 8%. Capital expenditure in the UAE focused on ensuring
network leadership by enhancing network quality and coverage. Capital expenditures
in consolidated international operations in 2013 increased by 94% to AED 4.3 and
epresented 67% of total capital expenditures. In Egypt, capital expenditures increased
y 5% to AED 1.2 billion as compared to last year resulting in a capital intensity ratio of
26%. In Africa cluster, capital expenditures in 2013 increased significantly by 156% to
AED 1.2 billion due to universal mobile license acquisition in Benin and acceleration of
network deployment in Benin and Togo. This resulted in a capital intensity ratio of 44%.
Adjusting for the licence acquisition in Benin; capital intensity ratio would have been
31%. In Asia cluster, capital expenditure increased more than two-fold to AED 1.8 billion
due to the consolidation of operations in Pakistan.
Cash flow Summary
(AED m) FY’12 FY’13
Operating 10,486 12,974
Investing (225) (4,854)
Financing (6,327) (6,585)
Net change in cash 3,934 1,535
Effect of FX rate changes 28 (19)
Ending cash balance 13,934 15,450
Reconciliation of Non-IFRS Financial Measurements
We believe that EBITDA is a measurement commonly used by companies, analysts
and investors in the telecommunications industry, which enhances the understanding
of our cash generation ability and liquidity position, and assists in the evaluation
of our capacity to meet our financial obligations. We also use EBITDA as an internal
measurement tool and, accordingly, we believe that the presentation of EBITDA
provides useful and relevant information to analysts and investors.
Our EBITDA definition includes revenue, staff costs, direct cost of sales, regulatory
expenses, operating lease rentals, repairs and maintenance, general financial expenses,
and other operating expenses.
EBITDA is not a measure of financial performance under IFRS, and should not be
construed as a substitute for net earnings (loss) as a measure of performance or
cash flow from operations as a measure of liquidity. The following table provides a
econciliation of EBITDA, which is a non-IFRS financial measurement, to Operating
Profit before Federal Royalty, which we believe is the most directly comparable
financial measurement calculated and presented in accordance with IFRS.
(AED m) FY’12 FY’13
EBITDA 16,855 18,901
Depreciation & Amortization (3,385) (4,607)
Exchange gain/(loss) (58) (141)
Share of results of associates and Joint ventures 1,263 1,754
Impairment losses (2,825) (1,374)
Operating Profit Before Federal Royalty 11,851 14,533
27Etisalat26 Annual Report 2013
Our International
Presence
Operator Etisalat
Country United Arab Emirates
Licnese Type: Mobile, Fixed and Internet
Etisalat Ownership 100%
Population: (million) 9
Penetration Mobile 191%
Fixed: 25%
Number of operators 2
Network Coverage, population 100%
Operator Etisalat Mis
Country Egypt
Licnese Type: Mobile & Interent
Etisalat Ownership 66%
Population: (million) 83
Penetration 118%
Number of operators Mobile 3
Network Coverage, population 99%
Asia
PTCL/Ufone Etisalat
Pakistan Sri Lanka
Mobile, Fixed and Internet Mobile
23% 100%
184 21
Mobile: 73% Fixed: 3% 113%
Mobile 5, Fixed 11 Mobile 5
77% 75%
Operator Etisalat
Country Afghanistan
Licnese Type: Mobile
Etisalat Ownership 100%
Population: (million) 31
Penetration 72%
Number of operators Mobile 4
Network Coverage, population 78%
Africa
Operator Atlantique Telecom, Moov
Country West Africa
Licnese Type: Mobile
Etisalat Ownership 100%
Population: (million) 62
Penetration 65%
Number of operators Mobile 2-6 per country
Network Coverage, population 59%
Operator Cana
Country Sudan
Licnese Type: Fixed
Etisalat Ownership 89%
Population: (million) 34
Penetration 1%
Number of operators Fixed 2
Network Coverage, population 31%
Operator Etisalat
Country Nigeria
Licnese Type: Mobile
Etisalat Ownership 40%
Population: (million) 174
Penetration 72%
Number of operators Mobile 5
Network Coverage, population 82%
Operator Zantel
Country Tanzania
Licnese Type: Mobile and Fixed
Etisalat Ownership 65%
Population: (million) 50
Penetration 54%
Number of operators Mobile 6, Fixed 2
Network Coverage, population 45%
Middle East
Operator Etihad Etisalat (Mobily)
Country Saudi Arabia
Licnese Type: Mobile & Interent
Etisalat Ownership 28%
Population: (million) 29
Penetration 180%
Number of operators Mobile 3
Network Coverage, population 99%
Operator Thuraya
Country
Licnese Type: Satellite
Telecommunication
Etisalat Ownership 28%
Population: (million)
Penetration
Number of operators Satellite 4
Network Coverage, geographical 140 countries
Inspired to transform
communities
31Etisalat30 Annual Report 2013
Middle East
Etisalat UAE
In 2013, Etisalat UAE responded to
the changes in customer behavior,
technology and the country’s competitive
telecommunications landscape, following
a strategy that was in line with Etisalat
Group’s strategic pillars of innovation,
customer centricity and global family.
With the launch of new services, solutions
and products, the telecom major’s UAE
subscriber base and the number of mobile
subscribers grew to 10.2million and
8.3m respectively. Furthermore, Etisalat
cu
ently has the widest coverage of its
dual network comprising of both 3G and
4G technologies in the UAE, with 99.8 per
cent coverage across the country in 3G
and over 80 per cent penetration across
populated areas in 4G networks.
The company successfully upgraded its
network of 3G with speeds touching
84 mbps from the previous 42 mbps
providing the best quality voice and data
transmission in UAE. Etisalat UAE also
completed the successful testing of Voice
over LTE (VoLTE) and eSRVCC (enhanced
Single Radio Call Continuity) providing
more services to its subscribers over 4G LTE
network, the first in the Middle East and
North Africa (MENA) region.
Etisalat offers the widest coverage of
its network comprising of 3G and 4G
technologies in the country. Etisalat has
upgraded its telecom network in 2013
to provide the best indoor coverage in
the country by increasing the number of
indoor base stations to 6000 to provide
est indoor coverage with high quality
service and download speeds, according
to the recent report from the TRA. Etisalat
is working to increase the number of base
stations over 7500 by the end of the year
Earlier in the year, Etisalat UAE
successfully completed the rollout of
its fi
e-to-the-home (FTTH) network
across 1.3m homes in the country. This
achievement contributed to UAE being
anked as a global leader in connecting
homes in the country on the FTTH
network. The advanced infrastructure
allows the utilisation of the most
advanced technology applications to the
UAE market.
Its high-speed
oadband internet enables
users to enjoy multiple high bandwidth
applications such as IPTV and online
gaming in an integrated single interface
for landline, internet and television-based
services, providing a truly converged
digital home experience to its customers.
While Etisalat UAE already holds the
ecord for the highest internet speed of
300 Mbps in UAE, it decided to go one
step further with the announcement that
it is introducing a speed of 500Mbps for
e-Life subscribers. eLife is based on Next
Generation Fi
e Optic Technology which
allows customers to combine high-quality
voice, supersonic Internet, and high-
definition TV into one experience.
Etisalat UAE recently launched the eLife
multiscreen service becoming the first
provider to allow customers to watch TV
on tablets, PCs, laptops and Smartphones
from anywhere using WiFi or Etisalat UAE’s
high speed 3G and 4G networks.
Realising the strategic implications of
the cloud, Etisalat UAE launched its first
cloud service for small-and medium-sized
usinesses (SMBs) and enterprises. ‘Cloud
Compute’ (Infrastructure as a Service) is a
pay as you go model, reducing IT costs up
to 60 per cent and time to market faster
y up to 90 per cent. Hosted at Etisalat
UAE’s Jebel Ali data centre, it offers easy
access to infrastructure, ability to scale
up or down rapidly based on demand and
faster time to market than conventional
hosting services.
Etisalat UAE
ought smarter services
into every aspect of its 2013 offering,
providing a range of end-to-end managed
systems that offer complete solutions to
a range of industry verticals. Government
was one of the key focus areas for Etisalat
UAE in 2013, and in support of the UAE’s
goal of creating a smarter environment by
promoting digitisation initiatives, Etisalat
UAE set about permanently improving
how governments serve and interact with
the needs and expectations of the public.
In cooperation with the Roads and
Transport Authority (RTA), Etisalat UAE
launched the ‘Smart Nol’ service, which
gives Dubai commuters smoother travel
Etisalat maintained Innovation, community and customer
focus at the core of its
and values, consistently creating
value for its loyal and future customers
Management Review
via NFC-enabled mobile phones. This
service is in line with Etisalat UAE’s long-
term strategy to support mGovernment
and initiatives raising the profile of the
country, as well as impacting the lives of
the people of UAE.
The company also pioneered several
advanced ‘green’ technologies such as
Emirates Energy Star (EES) which have
directly impacting the UAE’s ca
on
footprint by reducing C02 emissions.
From December 2011 until May 2013, the
programme prohibited the emission of
more than 11,860 tons of ca
on dioxide,
which is equivalent to planting as many
as 2,546 trees. Etisalat UAE clients that
have benefitted from the programme
include Sheikh Khalifa Medical City, Dubai
Electricity and Water Authority (DEWA) and
Abu Dhabi Commercial Bank (ADCB). Other
environmentally friendly practices included
substituting traditional paper bills with
electronic bills via its eBilling initiative.
In addition to billing changes, a new
customer technical support centre was
established with highly skilled front and
ack office teams to support field staff.
This unit aim is to achieve high levels
of customer satisfaction during the
cycle of service provisioning and fault
management. Employing almost 2000
staff across the country, Etisalat UAE
oasts the biggest call centre network in
the UAE.
The telecom provider assists more than
150,000 customers every day at the
company’s three main centres in Ajman,
Abu Dhabi and Sharjah. Staff speak a
wide variety of languages including
Arabic, English and Malayalam and are
all trained in soft skills to enable them to
communicate effectively with customers.
Staying true to its commitment towards
meeting the changing requirements of
its growing customer base, Etisalat UAE
evamped its packages and introduced
new services offering flexibility and value
for money. Among the many offerings
introduced were the per-second billing
service for pre- and post-paid plans, and
attractive bundles and packages offering
customised solutions and further savings
for customers.
Etisalat UAE also came up with customised
plans to cater to the increase in data
consumption needs of customers – a direct
esult of UAE being ranked as the country
with the highest smartphone penetration
in the world. Responding to the increased
demand for data among UAE consumers,
the telecom major streamlined its data
package offerings across both prepaid and
post-paid services to enhance and simplify
the cu
ent rates.
International calling prices were also
slashed and Etisalat UAE removed
international borders for its Wasel pre-paid
customers through its call international,
pay local campaign.
In addition, the company maintained
exclusivity in product offerings by
introducing the latest smart devices --
Samsung Galaxy S4 Zoom, iPhone 5s/5c,
BlackBe
y Z30 and Nokia Lumia 625 – and
Huawei’s 4G LTE mobile
oadband devices
to the UAE market at competitive prices.
Given the UAE’s status as an international
tourism and business hub, the telecoms
major introduced competitive roaming
ates in 190 countries, thus strengthening
its leadership in this key area. With an
extensive network of 680 international
oaming partners, Etisalat UAE allows
prepaid and post-paid customers to use
their phones a
oad without the need for
a subscription or deposit. Etisalat has also
marked a regional first with the launch of
its new business roaming data packages
aimed at frequent business travellers from
the UAE, the country with the highest
smartphone penetration in the world
Etisalat UAE’s corporate social responsibility
activity continued to grow and
develop, meanwhile, and the company’s
commitment towards supporting the
community was highlighted through
projects such as the YouTube/Google
channel, Duroosi, that offers video-
ased educational tutorials for students.
Launched in partnership with the UAE
Ministry of Education, Etisalat UAE
developed 600 tutorial videos offering self-
learning options complete with visual aids
and ease of access.
Among the other smart solutions
introduced in 2013 was ‘Smart Education’,
which is the cloud web portal service
for K-12 schools designed to provide
comprehensive features and functionalities
equired for school operations as part of
Etisalat UAE managed and cloud service
portfolio.
In recognition of its outstanding efforts
and achievements, Etisalat UAE won a
number of awards in 2013 such as the ‘Best
Middle East Product and Service’ provider
at the Capacity Global Ca
ier Awards 2013.
Other accolades included being named
‘Best Wholesale Service Provider’ at the
Telecoms Review Summit, ‘Overall Operator
of the year’ at Comms MEA Awards and
winning the ‘ICT Development Customer
Care Excellence’ Award at the Middle
East Government and Business Customer
Care Excellence Awards for the second
consecutive year.
33Etisalat32 Annual Report 2013
Middle East
Mobily
With a clear focus on the consumer and
usiness market segments, 2013 saw
the realisation of several new ideas and
concepts in the region’s telecom sector
with Mobily’s launch of new products and
services. The consumer segment benefited
from services like ‘mView’ – a video on
demand application that works across
device platforms and ‘Kibot’ – a robot for
kids that serves as an educational tool.
The Arabic Letters App enhanced customer
learning experiences by providing a mobile
platform that teaches the Arabic alphabet
in an intriguing manner, using animal
names and their co
esponding sounds to
ecognise them.
Keeping in line with the company’s focus
on customers’ needs, Mobily introduced
the ‘Mushaf App’, which proved to be
invaluable for customers wishing to
ead and memorise the Holy Quran.
Additionally, while integrating GPS
capabilities into a mobile application,
the Hajj App was launched to provide
customers with a better reality guide
when on pilgrimage. The application
gave directions to specific destinations
y detecting cu
ent locations using the
phone’s camera.
Building on this innovative approach to
consumer needs, Mobily also launched
‘iBill’ – an interactive bill with the option
to view various usage and summary
graphs, and the Easy Charge App – a
unique Optical Character Recognition
(OCR) technology that allows users to
charge their prepaid cards using their
phone’s camera.
While continuing to maintain its
eputation for innovative and customer
centric solutions, Mobily introduced the
‘Earn and Burn’ loyalty points programme,
ecoming the first in Saudi Arabia to
launch a system that works across retail
segments. Other ingenious ways it reached
its consumers this year were through
the ‘Nesma3k’ App that is dedicated to
those with impaired hearing (by providing
them with an application that contains
information useful to various types of
emergencies), and through its M-Health
Portfolio, which integrates a user’s health
ecords and serves as an on-the-go
wellness device.
Leveraging on its collaborative
partnerships in 2013, Mobily served its
usiness segment by introducing public
and hy
id cloud services that employed
a multi-tiered cloud based infrastructure
and state of the art technology. As a
esult of its collaboration with IBM,
The Kingdom of Saudi Arabia’s business
sector also benefited from Mobily’s
world-class Managed Security Services
(MSS). The portfolio included a range of
integrated management services that
detect and protect businesses from virtual
security threats. Further building on
this partnership with IBM, the Business
Continuity and Resiliency Services was
also launched to provide Virtual Server
Recovery and Smart Cloud Managed Back
Up services.
In continuing to create value for the
usiness segment, Mobily launched a
Managed SAP Service that has proven to
e a crucial step in raising a company’s
operational efficiency and reducing its
IT infrastructure costs. Mobily’s unique
Cloud Advisory Service has also benefited
its business clients by helping them
create comprehensive resource utilisation
eports as a value-added service, giving
them the opportunity to transform
their IT infrastructure into a Mobily
Enterprise Cloud Service. Another key
collaboration in 2013 with the market
leading Advanced Electronics Company
esulted in the launch of the turnkey
Fleet Management Service.
Finally, in 2013, Mobily introduced a new
ecruitment scheme that gave customer
service team members the flexibility to
work from home. The programme aims
to create opportunities for women, who
could start as part-time agents and then
continue to become full-time employees.
Mobily has gained popularity and strength in the region
since its inception and has further built on its reputation
this year for strong technical capabilities and innovative
approach.
Management Review
Middle East
Etisalat Egypt
Egypt has continually shown great
potential for growth and expansion in its
mobile market. Etisalat Misr introduced
various new products and services in the
country’s telecom sector over the years
and 2013 has seen more innovative and
customer tailored services.
In recognising the country’s developing
mobile usage trends, Etisalat launched a
number of value added services during the
year including ‘Mokalma 3al Nota’ that
allowed pre-paid users to continue making
local calls for up to three minutes even
after their credit had been fully utilised.
Running out of airtime credit no longer
meant being out of touch. Its ‘Sallefni 3al
Nota’ initiative further allowed consumers
to bo
ow credit from the company that
could be used for any of its other services,
including internet packages, Blackbe
y
undles and SMS’s.
In order to maintain its leadership in the
mobile data segment, Etisalat Misr was
the first in the market to launch new data
schemes, covering the
oader spectrum of
connectivity, be it for social media usage
or daily add-on services, even offering
overdraft facilities on data packages. Its
“Mongez plan” offers customers a number
of options for Internet usage, allowing
them to choose the best speeds, with
the widest coverage while employing
the latest technology. The company also
launched its ‘Max yearly bundle revamp’
aimed at encouraging customers to
purchase Etisalat’s G-tide and Telefunken
tablets at competitive prices and data
connectivity tariffs.
During the year Etisalat Misr continued
to provide value-driven postpaid schemes
and introduced the country’s first tariff
plan that could be personalised to suit
individuals. ‘My Line’ allowed consumers
to customise and create a tariff plan that
suits their usage and lifestyle. The scheme
included four of its main services: My
Calls, My Internet Line, My Smartphone
and My Extras.
Additionally, 2013 was a successful year
for the implementation of Customer Value
Management Techniques (CVM) in Etisalat
Misr through a new CVM platform that
utilised USSDs for various customer offers.
Simultaneous targeted offerings have
tripled by combining different offers, be
it related to recharge, usage development
or mobile Internet, based on in-depth
understanding of the behavior and needs
of customers.
Continuing to gain insight on consumer
needs and deliver value-driven solutions,
the company developed the Etisalat eCam.
The novel video surveillance service allows
customers to monitor and secure their
family and assets by remotely viewing the
IP cameras anytime and on any mobile
device or PC.
Etisalat Misr continues to encourage
creativity and support innovation in the
country’s community of mobile developers
including universities, startups and
professionals through its ‘Yalla Nsyatar
Mobile Apps Competition’. The open
platform submission gathered over 300
ideas from across the nation’s
ightest
tech savvy minds, awarding the top three
mobile apps with cash prizes and co-
anding them with Etisalat Misr.
Innovative and value-driven communications solutions
that are geared towards the cu
ent and future needs of its
consumers have continued to be the mark of Etisalat Misr
in 2013.
35Etisalat34 Annual Report 2013
Middle East
Thuraya
During 2013 Thuraya unveiled a new
Innovation Division that will be focused
on spearheading strategic initiatives for
the development and implementation
of innovation in products, services and
usiness models. This organisational
enhancement comes at the back of the
successful launch of the company’s
SatSleeve for the iPhone and was
driven by Thuraya’s ambitions to further
pioneer state-of-the-art solutions in the
satellite industry.
Thuraya also secured a long-term financing
facility through Dubai Islamic Bank (DIB) for
the upgrade of its network infrastructure
and to support further development and
expansion of its product portfolio, while
enabling business expansion.
The SatSleeve is a versatile and user-
friendly device that
ings satellite
connectivity to the Apple® iPhone®. A
significant
eakthrough in the mobile
satellite industry, Thuraya SatSleeve is
the world’s first product to offer easy
and affordable access to mobile satellite
communications, which is delivered over
Thuraya’s extensive satellite network.
Only slightly larger than the iPhone itself,
the compact adaptor provides users with
the ability to turn their iPhone into a
satellite phone that provides reliable
connectivity beyond the coverage of
traditional te
estrial networks. The device
is available in both voice only and data
models. Thuraya won the Innovation
Award at the Lloyd’s List Middle East and
Indian Subcontinent 2013 Awards for the
SatSleeve product.
In March 2013, the Thuraya IP+ was
launched, expanding the Company’s
portfolio of mobile satellite
oadband
terminals. Thuraya IP+ is the fastest and
lightest mobile satellite
oadband terminal.
Without compromising on portability, it
is also designed to achieve the fastest IP
speeds, ensuring quick and reliable access
to
oadband data services over Thuraya’s
extensive satellite network. Enhanced
capabilities facilitate a wide range of
applications including live high quality
video
oadcasting, web
owsing, email,
social media communications, data transfer
and VoIP applications, as well as access to
corporate networks from remote locations.
In September, Thuraya secured a
partnership with SMART Communications,
a leading provider in the Philippines, to
provide low-cost, seamless and reliable
crew-calling utilising the Thuraya network.
The service,
anded ‘Marino PhonePal’,
is a multi-year deal that will see SMART
partner with Thuraya on network services
and hardware, and will connect thousands
of Filipino seafarers to their loved ones.
In addition to the initial agreement, the
Companies announced an amendment
in November, more than tripling the
total contract. Thuraya also partnered
with SMART to deploy emergency
communications aid following the typhoon
that struck the Philippines in November.
In November, Thuraya and SRT Wireless,
a US-based company, announced the
development of the VIPTu
o module.
This module can serve as the engine
or new
oadband terminals for the
Thuraya satellite network, enabling
manufacturers to integrate the module
into new satellite terminals, reducing
R&D costs and time to market.
Thuraya expanded its roaming coverage
across the Americas and now has a
strategic partnership with AT&T, the
premier communications holding company
and one of the world’s largest ca
iers in
the United States. Under the agreement,
AT&T will provide outbound GSM roaming
for voice and data services to Thuraya
users across the USA including Puerto Rico
and the US Virgin Islands. Thuraya has also
signed roaming agreements with Claro and
Telefonica, extending similar coverage to
11 countries in Latin and South America.
In conjunction with SoftBank Mobile, a
telecommunications leader, Thuraya is now
inging MSS services to Japan.
Thuraya’s services are available to
SoftBank users venturing outside of
te
estrial networks, or in areas where
those networks are either unavailable or
are vulnerable to natural disasters. Media,
energy, government, and all other types of
enterprises, as well as individual consumers
are able to avail themselves of Thuraya’s
services and solutions to enable them to
communicate from anywhere in Japan and
the maritime areas su
ounding it.
In a partnership with Chunghwa Telecom,
Thuraya now provides mobile satellite
service in Taiwan. The significance of
this licensing agreement means that
for the first time, Taiwanese consumers
and enterprise users alike will no longer
e required to apply for individual
licensing approval from Taiwan’s national
telecommunications regulator to use
mobile satellite services in the country.
Previously, only enterprise users were
eligible for licensing approval of MSS.
Management Review
Following the previous year’s success streak of innovative
device launches, Thuraya continues to conceptualise and
deliver quality at an affordable price.
37Etisalat36 Annual Report 2013
Leading with Vision
& Inspiration
39Etisalat38 Annual Report 2013
Africa
Atlantique
Telecom
Geographically represented in six African
countries (Benin, Côte d’Ivoire, Gabon,
Niger, Central African Republic and Togo),
Atlantique Telecom continues to position
itself as one of the leading telecom
operators in West and Central Africa.
An initiative to advance this strategy in
2013 was the establishment of direct
connectivity between the company’s
OpCos using existing equipment and
infrastructure. This led to significant
CAPEX savings of more than USD 1.4
million, while improving international QoS
and its management among OpCos. The
subsequent elimination of transit costs
esulted in further savings during the year.
Owing to the acquisition of a Universal
License in June 2013, the company
introduced Mobile Broadband (3G)
Services in the region, while maintaining
affordability at the core of its pricing
strategy. As one of the biggest revenue
generating opportunities after voice,
Atlantique Telecom leveraged on the
Group’s expertise to deliver innovative
products using 3G technologies during
the year. The availability of mobile
oadband drove the provision and
adoption of mobile Value Added Services
and vice versa.
Etisalat Group further expanded its mobile
commerce service ‘Flous’ through its
subsidiary Etisalat Moov. Also known as
‘Flooz’ in the region, it enables subscribers
to transform their mobile phones into
digital wallets. The service allows them to
pay for goods and services, transfer money
to friends and family, withdraw and
deposit cash, top up mobile phones and
even manage bank accounts. The game
changing initiative has lent a competitive
edge to the company in Francophone
Africa’s dynamic telecom industry.
Atlantique Telecom continued to target
the youth segment through the revamp
of Epiq Nation – a mobile package that
ings a number of benefits to young
subscribers. Improvements to the offer
in 2013 included free night calls, free
Internet access during fixed time
ackets
and more value driven SMS packages.
Another unique initiative during the year
was the Epiq Nation Tour, which allowed
the company to go nationwide and meet
its young subscribers in universities,
colleges and schools.
Additionally, roaming tariffs were
harmonised in the year and set at par
across zones, except for countries in which
Etisalat or Moov were present, where they
were lowered. This was an opportunity to
leverage on Atlantique Telecom’s footprint
in the region, while driving revenues
upward and providing competitive
oaming offers.
With a focus on efficiently delivering
superior customer experience and
innovative services, Global Managed
Network Services were introduced during
the year. Network operations were
outsourced to Ericsson Sweden with a
five-year contract in place for the future.
With a contract that is structured in
accordance with strict SLAs, the focus
will be on improving QoS KPIs by 15 per
cent year-on-year. Atlantique Telecom has
since benefited from the best practices,
economies of scale and Ericsson’s globally
enowned experience in managed services.
The company continued to expand its
footprint in the region with the opening
of eight new Moovstores,
inging
customers more proximity to Atlantique
Telecom’s superior service delivery.
Furthering this goal, the Crystal Customer
Care Complaint System was launched in
the year to gain a 360 degree customer
management view.
Finally, the year marked Moov Togo’s shift
to a new headquarter building called
‘Moov Etisalat.’ The new central location
and modern premises has made it a
enowned landmark in the country, further
improving the company’s overall equity. At
the same time, the ability to now house all
departments under one roof has improved
internal communication and overall
working conditions, while impacting
positively on Atlantique Telecom’s speed
to market innovative products and services
in the region.
Atlantique Telecom expanded its operations in 2013 and
continues to deliver innovative communication solutions to its
customers.
Management Review
Africa
Etisalat Nigeria
In continuing to focus on the customer,
Etisalat Nigeria introduced the Mobile
QoE (Quality of Experience) Measurement
Solution. The initiative’s objective was to
deploy a scalable, end-user and device-
ased measurement solution that allows
Etisalat Nigeria to measure service quality
as experienced by its mobile customers.
The system used embedded test apps that
integrated into smartphones, tablets,
SIMs and PCs, providing end-to-end
insight into the performance of services
from a customer’s point of view. This in
turn helped the company to make swift
and informed business decisions. Always
putting the customer first, this addition
has enabled a more efficient business
model for Etisalat Nigeria.
Etisalat Nigeria continued to focus its
efforts on widening its customer base and
with the implementation of its New Value
Extraction Model, it was able to grow its
subscriber base by almost one third. In
order to increase revenues and improve
the spend of subscribers on the network,
the company identified the inherent
evenue potential of the existing base and
leveraged it to drive usage and recharge.
Etisalat Nigeria’s strategic partnerships,
such as that with the Enterprise
Development Centre of the Pan Atlantic
University, resulted in continued growth
for the company in 2013. The partnership
was the result of an effort to launch
the Small and Medium Enterprises
(SME) Toolkit in Nigeria, a project of the
International Finance Corporation (part of
the World Bank), which provides business
tools for small and growing businesses.
Internally, Etisalat Nigeria continued to
offer a world-class working environment
for its employees, encouraging them to
provide the highest level of service to its
loyal customers. In 2012, the company
had launched a staff recognition scheme,
Empact, to cele
ate employee success
stories over the course of the year. This
year, 57 individuals and four teams
were recognised and rewarded for their
outstanding efforts. Through regular
einforcement of Etisalat’s
and values,
an increasing number of employee
achievements are surfacing across the
usiness and are being shared this way to
inspire the entire workforce.
Etisalat Nigeria further strengthened its
CSR initiatives in 2013. The company
partnered with the Standards Organisation
of Nigeria (SON) and leading CSR
consulting firm, Thistle Praxis Consulting
(TPC), to
ing two prominent initiatives
to the country for the very first time. The
esulting ISO 26000 Guidance Standard
on Social Responsibility and the Nigeria
Adoption Process (ISO26000:NAP) shone
positive light on Etisalat Nigeria,
inging
it global recognition as an industry
leader and pioneer in promoting social
esponsibility practices in the country.
In 2013, Etisalat Nigeria continued to expand its sphere of
influence in the country with an augmented subscriber base
and with renewed confidence in the market.
41Etisalat40 Annual Report 2013
Africa
Cana
Capitalising on prior years successful
launch of the WiMAX service, Canar
commercially launched its
oadband
services this year using a creative
marketing strategy that resulted in
doubled sales over a period of just one
month.
In 2013, the company also positioned
itself as an ICT service provider in Sudan,
giving customers the opportunity to see
the full scope its expertise in the market.
The new managed services portfolio
included WAN, Internet control, anti-spam
and co-location services. As a result, Canar
secured new corporate accounts in the
country and boosted its revenue streams.
The company also provided public Wifi
networks with a targeted approach to its
etail and corporate clients. Widespread
coffee shop and restaurant
anding
of the service added to the company’s
enewed efforts in acquiring
and
visibility in the country.
With a clear focus on delivering customer
centric communications solutions, Canar
launched the ‘Happy Call’ Initiative in
2013. This customer feedback programme
gave users a channel to voice their
overall satisfaction with the company’s
services, resulting in an immediate drop
in the number of repeat calls to service
centres, with a positive long-term impact
on the company’s customer satisfaction
index. Additionally, Canar launched the
KQI Checks, a quality check programme
targeted at high value corporate clients,
to help position the
and as the top
quality telecom provider in the country.
A loyalty programme for select corporate
clients that was introduced also yielded
positive results for the company’s revenue
streams in 2013.
Canar introduced the Customer Value
Management (CVM) programme to
manage customer value by developing a
comprehensive view of its customers. As a
esult, a new unit within the commercial
department was established with the aim
of providing customers more value added
services, while controlling churn.
Further building on the strength of its
strategic partnerships, Canar’s product
development team in collaboration with
Etisalat Digital Service Unit has seen its
first tangible results this year. The transfer
of invaluable industry know-how and
synergy with Etisalat Group’s
and values
are just some of the milestones achieved
thus far.
Canar also moved to its
newheadquarters in the central business
district. The new headquarters have
een designed to provide greater ease
and accessibility to its customers and
usiness clients alike, while providing
a new and improved professional work
environment for its employees.
Sudan’s telecommunications market lent great growth
potential to Canar in 2013. The company continued to build
on its successes of 2012 and introduce new incentives for
customers in 2013.
Management Review
Africa
Zantel
As one of its flagship products that has
now developed three optional offers
within it, the Epic Nation Youth Offer
capitalises on the consumption patterns
of the country’s youth by providing
cost-effective options with the maximum
possible benefits. This offer contributed
to 40 per cent of the company’s prepaid
voice revenue in 2013 and has set a
enchmark in the industry; evident in the
way other operators have been inspired to
adapt it into their own schemes.
While maintaining customer centricity
at the core of its operations, Zantel also
introduced Product IVR (Interactive
Voice Response) mechanisms to enhance
the means and effectiveness of their
product information dissemination in
the country. It allowed subscribers to
call a dedicated line where they could
immediately opt for various product
offers. Building on this, a Unified USSD
(Unstructured Supplementary Service
Data) Code was introduced to simplify the
subscription process, whereby customers
could subscribe to Zantel products using a
single code. The success of the initiatives
was evident in the subsequent drop in
customer queries to call centres.
With a deep understanding of the
importance of the Agriculture sector
to the Tanzanian economy, Zantel
in partnership with the Ministry of
Agriculture, Food, Cooperatives and
Sibesonke Limited has launched ‘Z-kilimo’;
a special mobile service application for
farmers, enabling them to access timely
and relevant information regarding
modern farming methods from their
mobile phones. The service will offer
farmers information on soil preparation,
fertilizers, weather forecasts, crop varieties
and cultivation practices, while providing
them with a platform for discussion with
other farmers.
In 2013, Zantel adapted several new green
technologies, simultaneously reducing
operational costs. The implementation
of the Power Cube System (PCS) across
five mainland sites saved the company 78
per cent in monthly generator running
hours per site. Additionally, Zantel’s in-
house Green Power Solution that utilises
solar power instead of fuel resulted in
operational cost savings of up to 75 per
cent per month.
Zantel finished the year by setting trends with its Epic
Nation Youth Offer, and adopted green technologies to
drastically reduce operational costs in 2013.
43Etisalat42 Annual Report 2013
Inspiring future
generations
45Etisalat44 Annual Report 2013
Asia
PTCL Pakistan
PTCL’s exponential growth in the
oadband
sector has enabled Pakistan to be ranked
among the top countries with the highest
growth rate in
oadband Internet. This is
attributed to the significant investment
PTCL made in infrastructure and technology
development across the country.
With a keen eye for innovative
communication solutions, PTCL facilitated
a number of firsts in the fields of customer
service experience, wireless data services,
oadband Internet, value-driven bulk
offerings and green initiatives.
The company’s ‘EVO 3G Wingle’ launch in
2013 was the country’s first Wi-Fi enabled
USB, powered by PTCL Nitro. This facilitated
speeds of up to 9.3Mbps on the go, with
instant Internet sharing for up to five users
simultaneously. The impeding 3G threat was
transformed into an opportunity in June
2013 by initiating innovative improvements
in the overall performance of the business,
while creating even greater value for its
customers. The subsequent introduction of
12 and 16Mbps ultra high-speed
oadband
data rates benefited users with unlimited
downloads at an affordable price.
The year also bode well for PTCL’s ongoing
efforts to conduct CNIC online verification
of customers using NADRA, having
successfully been implemented in all the
targeted regions across the country in 2013.
The company’s customer service experience
was further recognised by subscribers for
its Web Chat Offerings, which facilitated
instant feedback from Customer Care
epresentatives to user queries.
Widening its scope of operations, while
providing affordable communications
solutions to its customers, PCTL negotiated
more than 100 bulk deals with other players
in the market in 2013 including competitors,
eal estate developers and builders.
In an effort to garner increased revenues
y way of volume sales, PTCL’s EVO Sales
Promo and EVO Tab Discounted Promos
gave subscribers the opportunity to avail
freebies and discounts on new purchases.
The company also launched its first Self
Service Portal in October 2013 to enhance
customer service experiences. The wholly
in-house developed website with real time
integration and BSS systems reduced churn
and the cost of operations, while increasing
sales. Its integration with IPTV and cash
machines is due to be completed in 2014.
In continuing to strive for customer
satisfaction, PTCL conducted a consumer
segmentation project classifying
subscribers into revenue classes as per
their billing history whereby the highest-
anking clients are given preferential
treatment for complaint resolution and
new service acquisition. Additionally,
the company has enhanced customer
experiences across the board by swiftly
dealing with user queries, both, at stores
and at call centres.
The company also launched a number
of cutting edge telecommunications
solutions to the business market
to ensure ongoing expansion of its
product portfolio and consistent service
satisfaction. Its Managed WAN service
eceived a great response from its business
clients, providing an ideal end-to-end
solution in managing an organisation’s
communication network infrastructure
and security. Additionally, the service
included options for premium SLA
guarantees, while taking into account
support resources such as onsite
installation, ground staff support and
service, network operation centres and
customer portals that deliver alerts,
eports and other vital user information.
In addition, the company launched Corp
Watch; a state of the art online complaints
management tool for its corporate
customers, which allows them to lodge
and monitor complaints with greater ease
and faster response times. Subsequently,
management has benefited from greater
insight into complaints and issues raised by
customers, thus increasing service delivery.
PTCL has continuously and proactively
sought to
ing new and innovative
power back-up solutions to counter the
effects of the power crises in Pakistan. In
2013, PTCL developed ‘Smart Switch’ – a
low cost solution that simultaneously
monitors battery voltages and the main
power grid to alternate energy sources,
ensuring a round the clock functioning
power system for its operations. About
1,000 remote sites had been targeted for
its implementation and more than 80 per
cent have been successfully completed
this year.
Additionally, PTCL introduced solar power
solutions to numerous sites in 2013.
Broadening the scope of its ongoing green
initiatives, the company launched its Wind
Mill Project, the Fast Charge Battery Solution
for BTS and MSAG sites, deployed battery
ackup solutions, installed free cooling units
to optimise OPEX and replaced battery banks
at MSAG/ONU locations.
As Pakistan’s only integrated telecommunications company,
PTCL continued to expand its operations across the telecom
sector with a host of new product and service launches in 2013.
Management Review
Asia
Ufone Pakistan
The achievement has created a distinct
advantage for the product that is now
viewed as a mobile wallet rather than a
simple tool for money transfers, while
eflecting the industry’s recognition of
the company’s efforts in developing
innovative products that empower the
local community.
Ufone also signed a strategic deal with
the National Bank of Pakistan to provide
its customers with Ubank’s mobile
anking services. This has given Ufone
access to a new potential market, with
the Government of Pakistan’s pensioners
and the more than one million account
holders of the National Bank itself.
Ufone also launched ‘Uthpack’; the
country’s first youth centric product
that redefines traditional cellular service
offerings. It is designed to target the
u
an youth who are looking for more
than just voice, SMS and data services.
Ufone partnered with a host of almost
300
and outlets to provide Uthpack
users with discounts and free movie
tickets, making the product a success
across the country. It also won the ‘best
social media campaign award’ at the
PASHA Awards.
In an effort to improve customer
experience, Ufone launched the country’s
first Self Service Smartphone Application
in August 2013 for Apple and Android
operating systems. Customers can now
view their weekly call, SMS and Internet
usage summaries, while managing
their Ufone subscriptions through the
application’s new and improved user-
friendly interface.
Through its Customer Management
Platform, the company rolled out
Inbound Campaign Automation to
oost its prior successful launch of
Outbound Campaign Operations. The
inbound marketing platform has been
successfully running across Ufone’s call
centres since May 2013. The platform has
empowered call centre...