Voice From Operators--Telecel Globe Strides Across Sahara-25100-1-087869

8/18/2019 Voice From Operators--Telecel Globe Strides Across Sahara-25100-1-087869

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Huawei Technologies

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2/4JAN 2009

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ISSUE 46

VOICEOM OPERATORS

Telecel Globe strides across Sahara

rascom elecom is amongthe largest and mostdiversified network operatorsin the Middle East, Africa,

Bangladesh and Pakistan. Tey withdrewfrom the Sub-Saharan region from 2003 to2004, but with rising subscriber numbers,it is a whole new ball game in 2008.

Orascom set up a new companycalled elecel Globe to capitalize on thenew opportunities in the region. elecel

Globe is on the lookout for investmentsand market penetration in previouslyunprofitable or marginally profitable partsof Africa and Asia where the subscribergrowth rate has taken off over the lastcouple of years.

Mr. Yasser Abdel Naby, Networksand Projects Director at elecel Globe,met with Huawei COMMUNICATE to share his views on how elecel Globesees the Sub-Saharan market and itsstrategies to explore the market, capitalize

opportunities and meet challenges. Hebelieves it is a good time to invest in thisgrowing market.

Timing is everything

Mr. Naby began by saying, “elecelGlobe mainly focuses on acquiring networksin emerging markets where we considerthere is great potential growth for telecom.

We are focusing on countries mainly in

Africa and Asia at this moment. You willfind that the majority of the growth in themobile industry is mainly coming from

Africa. So it is considered very attractivefor telecom operators. Tere is more thanone operator now in each market. Havingseveral operators is increasing the room forcompetition, and putting more pressure onquality, tariff reduction and services, andtherefore, we believe that this is leveragingthe standards of the telecommunication andI industries.”

By Joyce Fan

Choosing markets

Investors seek markets that have growthpotential, economic and political stability,liberal regulators, and consistent policy.Mr. Naby stated the same criteria. Whentalking about economic stability, he addedthat the revenue being in local currency isan important factor to be considered.

In elecel Globe’s perspective, thedeveloping countries have considerable

growth potential. “Most countries havegreat potential, but not all countrieshave the great growth potential availablein Africa, especially Sub-Saharan. Onthe other hand, it would be a goodopportunity for us if the growth potentialis coupled with political stability.”

Optimizing, not cutting

Te Sub-Saharan region is known for

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VOICEFROM OPERATORS

The mobile business is as hot as the sun in Sub-Saharan Africa despite being underdeveloped with a lack of xednetwork infrastructure. According to an ITU report, there were more than 65 million new mobile subscribers

in Africa in 2007 and operators are looking to cash in. Mr. Yasser Abdel Naby from Telecel Globe, met with

COMMUNICATE to share his views on how Telecel Globe sees the Sub-Saharan market and its strategies to

explore the market, capitalize opportunities and meet challenges.


3/4JAN 2009

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ISSUE 46

—Mr. Yasser Abdel Naby, Networks and Projects

Director at Telecel Globe, Orascom

The majority of the growth in the

mobile industry is mainly coming

from Africa. So it is considered veryattractive for telecom operators.

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ISSUE 46

its poor infrastructure and connections, while customers desire affordablecommunication services. We asked Mr.Naby what he thought was the key tosuccess in the low-ARPU market.

“Our main challenge in regard tothe competition is to launch a highquality network with CAPEX and OPEX

optimization. echnology and equipmentcan reduce the CAPEX.”

For sustainable growth, operators haveto launch an affordable service that isreliable and not of lower network quality.Regarding CAPEX and OPEX, it is notsimply about cutting costs and using lessexpensive equipment, but the properoptimization that is crucial. elecel Globestrategy includes leveraging the power ofadvanced technologies in developing thetelecommunication & I standards whereit operates together with offering highquality services at affordable prices.

Using shared platforms to implementdifferent technologies is one method tooptimize CAPEX.

Mr. Naby said, “Looking at Africa wefound that operators have started to focuson data services, however, to efficientlyuse shared platforms, there should be welldefined and comprehensive guidelinesfrom the regulatory bodies in Africa whichis not yet the case.”

Using effective technology suited to the

market is another aspect to consider. elecelGlobe is quite interested in WiMAX.

“We see WiMAX as a very effectivetechnology for fixed networks. Because itactually offers VoIP, as well as IP Internet,

which is very relevant in Africa becausethere is no widely used DSL in remote

areas. WiMAX is being considered a veryviable technology.”

Alternative energy is also a way tooptimize OPEX. According to Mr. Naby,solar, wind and other alternative energysources will alleviate cost problems. Africais a hot continent with plenty of sunlightand solar energy may be the best solution.

“We are currently using generators asthe source of power, however we are closelymonitoring the development of the solarenergy. As soon as the solar energy reachesthe mass deployment phase the prices willgo down and it will achieve the desiredOPEX reduction.”

When talking about popular practicesin optimizing CAPEX and OPEX, Mr.Naby feels that no business model isdefinitely the best one, and situationsshould be judged individually.

“Like managed services, it is probablydifferent in the African market comparedto the European market, as the incomeand competence levels as well as growthpotential in Africa are different than inother areas of the world. Managed servicesmight not always be the most viablemodel, it is situational and varies from oneopportunity to the other.

And looking at RAN sharing, as atechnology, it needs to be very creative andvery powerful in its regulation. Terefore,I don’t think this kind of regulating will be

available for the markets we are exploring. Itis too early because the regulators need to bedeveloped to have the capability to do this.”

Different 3G for adifferent life

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o bridge the digital divide is mostrelevant in Africa. What is elecel Globe’splan to connect the unconnected and servethe lower-end of the market?

“Actually, we are already working onthis by exploiting the market potential inthe African market. We are leveraging onthe telecommunication capabilities. We

also have very good development in Iinfrastructure. We have different serviceportfolios depending on the users. Forexample, we have WiMAX data servicesfor the fixed users, we have a full portfolioof mobile services including 2G, 2.5Gand we will go 3G depending on themarket requirements. We are offering a bigspectrum of services,” Mr. Naby said.

Some observers argue that it is tooearly to implement 3G service in the Sub-Saharan region considering the incomelevel is relatively low and there is not astrong demand for data services.

o Yasser, the 3G is becoming different.“I agree with the statement about theaverage income which directly drives the

ARPU in Africa, and the penetrationrate for the data services, are all factorsindicating that this is not the right timingto go for 3G. But on the other hand, the3G implementation is different now from

what it was before. Now, many vendorshave equipment which supports both 2Gand 3G. So, you will find the CAPEX

for 3G is highly optimized. Now it ispossible to offer 3G services with 2G and2.5G capacity. Tis makes a new positivedimension in the business case of 3G.”

Editor: Gao Xianrui [email protected]

“The 3G implementation now is different from

what it was before. You will nd the CAPEX for 3G is

highly optimized. Now it is possible to offer 3G services

with 2G and 2.5G capacity. This makes a new positive

dimension in the business case of 3G.

Voice From Operators--Telecel Globe Strides Across Sahara-25100-1-087869

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