The ICT industry is the cornerstone of modern economy

Eng. Saud Al Daweesh, STC Group CEO

shares his insights on 4G and future business growth with Teletimes

Interview: Khalid Athar

Teletimes – Please tell us about the achievements of the STC group during 2011 on national and international basis?

Saud Al Daweesh – STC group has grown from a local leading company to one of the biggest telecommunications companies in the region. This transformation took place in a record time, through a series of significant investments that led to the success of purchasing operations, agreements and partnerships. Some of the most significant operations and investments are the following:

Winning the Kuwait and Bahrain licenses, launching them commercially and their success to obtain large market shares in short times.

Acquiring a market share in (Maxis) that operates in both Malaysia and India

Acquiring a market share in (OTL) group that operates in Turkey and South Africa.

Locally, the company pursued its strategy that aims to develop the telecommunication industry in the kingdom. The company headed towards transformation into digital era of Saudi economy and society, through radical development, in form and content of the telecommunication and information sector, by strategic investment in the wire and wireless infrastructure of the next generation of telecommunications’ network, including Fiber Optics network for plants and homes and 4G LTE for mobiles.

This strategic investment in technology led to a significant growth in local revenues from broadband services (fixed and mobile), fixed broadband customer base increased by 27{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} and interactive TV (inVision) and converged services customer bases grew by 946{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}, 112{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} respectively.

Aljawal customers have increased by 3{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}, during 3rd quarter, as a result of the company’s excellence in introducing new innovative offers on postpaid and prepaid jawal, quick net and smart device services.

In order to present the latest technologies to its customers, the company continued its uniqueness in the field of smart and tablet devices which sales have increased by 300{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}.

TT – Our readers would be interested in reading about your thinking behind the re-structuring of STC. What type of improvements are you expecting from this development in the near future?

SD – STC, as the biggest integrated telecommunication group in the Middle East, is heading towards further development and advancement, to expand in its local and global markets. A new organizational structure has been adopted to go in line with this new direction.

Organizational structure consists of five key components:

Strategic Operations which is responsible of strategic plans, human capital and regulatory affairs of the group.

Saudi Telecommunication Company (STC) which provide fixed and mobile telecommunication services, broadband and enterprise sector services, in addition to financial activities in KSA.

Technical Operations which is in charge of the network, IT and wholesales services.

International Operations.

Financial Operations.

The implementation of the new organizational structure comes as an output of the LEAD strategy which focuses on maintaining the leading position of the company in fixed, mobile and broadband services as well as the enterprise sector services, taking into consideration external opportunities, where one of the important components of the new organizational structure is the International Operations sector, that deals with planning and managing group’s activities internationally what reflected in an increase of 34{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} in revenues from external operations, while maintaining its position in Saudi market.

The LEAD Strategy is based on 6 elements:

Load in Next-Gen Broadband

Differentiated Customer Experience.

Consolidate International Leadership.

Invest in People Capital

Drive financial performance and agility.

Promote leading brand and reputation.

TT – STC has been the first to introduce 4G in the Middle East, how do you see this achievement as one of the many milestones STC has reached over time?

SD – The launch of 4G LTE services by STC as the first operator in MENA, is an important step from the company’s keenness to adopt and launch the latest technologies in digital telecommunication world. The company adopted this technology in the beginning of 2010 after successful rehearsals indicating that it is the next choice of a new era of mobile telecommunications.

Furthermore, the company has the largest and the strongest infrastructure in the region, as well as it is one of the leading companies in the field of Fiber Optics and submarine cables and a key partner in all submarine cables that link South East Asia to Western Europe and North America through the Middle East. In addition to an infrastructure of wireless networks such as the 3G and WiMax and 4G LTE networks. The GSMA – ranked STC as the first company to launch the 4G LTE service on the region where it stated in its website that STC was the first company to launch in the region at the 12th of September 2011.

TT – Could you please give us a current overview of the international operations of STC?

SD – As I have said, in the answer of the first question, STC managed to develop itself from a leading local company to one of the largest companies in the region. In Bahrain, STC group continued its growth, achieving an excellent performance that exceeded its entire targets, where customers’ number increased by 28{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} during the 9 months, exceeding target by 15{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} which led to revenues growth of 167{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} compared to the same period last year.

In Kuwait, despite fierce competition in the market, VIVA continues exceeding its target in Q3 revenues.

In its East Asian markets, Maxis in Malaysia continues its leadership to Malaysian telecommunication market, with a customers’ base of 13 Millions. In Indonesia Axis acquired new customers in the 1st three quarters that reached 15 Million customer, and Axis revenues grew up to 268{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} for the last 9 months.

TT – How do you see the competition STC is facing on international level? Do you foresee any tough competition for STC inside Saudi Arabia?

SD – STC group, with its internal experience in a market deemed one of the largest telecommunication markets in the region, and through its expansion with partners in external markets, is highly qualified to lead the industry in the region, and introduce the best services to its customers who exceeded 150 million.

TT – Would you like to tell us about some of the new innovative services, STC has launched recently?

SD – STC has signed several strategic partnerships with the best global companies, to deliver the best smart technological solutions, such as Blackberry and Samsung devices. The partnership with Facebook resulted in enabling STC customers to exclusively stay connected to the new Facebook java system mobile application in a new style, while the Twitter messages service kept customers in constant contact with the renowned Twitter website. The company also allowed customers to send SMSs through Gmail™ to any STC mobile for free. STC customers also enjoy the service of Nokia Store which is linked to the STC client billing system, i.e. the purchase value goes into customer’s Jawal bill or deduct from the prepaid credit (SAWA or LANA)

The invision service, being the first in its kind in the kingdom, provides customers with viewing TV, calling and browsing the internet, in addition to the launch of the Cloud Computing technology which will make radical difference in performance improvement for enterprise sector customers.

TT – Please share with our readers, your thoughts about the latest and upcoming trends for telecommunications worldwide.

SD – The ICT industry is the cornerstone of modern economy, that is why STC has established one of the up to date telecommunication infrastructures in the world, through which we are proud of delivering integrated telecommunication services, high speed broadband services for government, commercial, individuals and home customers, as well as we are proud of being the first in region to launch the 4G LTE and the Fiber Optics services and the only operator who presents comprehensive packages of voice, internet and digital TV.

TT – You have been declared the winner of ‘Teletimes Man of the Year’ Award for 2011 by the Awards Committee which has long been considering three very well-known personalities for this award. Please share with us your feelings on receiving this award.

SD – “I am pleased to be nominated and declared ‘Teletimes Man of the Year 2011’, and I would like to thank the Teletimes team and the committee. In return I would like to congratulate Teletimes on their remarkable work over the past six years, indeed they have proven worthy to the IT & Telecom industry readers.”

Teletimes – Please tell us about the achievements of the STC group during 2011 on national and international basis?
Saud Al Daweesh – STC group has grown from a local leading company to one of the biggest telecommunications companies in the region. This transformation took place in a record time, through a series of significant investments that led to the success of purchasing operations, agreements and partnerships. Some of the most significant operations and investments are the following: Winning the Kuwait and Bahrain licenses, launching them commercially and their success to obtain large market shares in short times. Acquiring a market share in (Maxis) that operates in both Malaysia and IndiaAcquiring a market share in (OTL) group that operates in Turkey and South Africa.Locally, the company pursued its strategy that aims to develop the telecommunication industry in the kingdom. The company headed towards transformation into digital era of Saudi economy and society, through radical development, in form and content of the telecommunication and information sector, by strategic investment in the wire and wireless infrastructure of the next generation of telecommunications’ network, including Fiber Optics network for plants and homes and 4G LTE for mobiles.This strategic investment in technology led to a significant growth in local revenues from broadband services (fixed and mobile), fixed broadband customer base increased by 27{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} and interactive TV (inVision) and converged services customer bases grew by 946{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}, 112{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} respectively. Aljawal customers have increased by 3{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}, during 3rd quarter, as a result of the company’s excellence in introducing new innovative offers on postpaid and prepaid jawal, quick net and smart device services.In order to present the latest technologies to its customers, the company continued its uniqueness in the field of smart and tablet devices which sales have increased by 300{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10}.
TT – Our readers would be interested in reading about your thinking behind the re-structuring of STC. What type of improvements are you expecting from this development in the near future?
SD – STC, as the biggest integrated telecommunication group in the Middle East, is heading towards further development and advancement, to expand in its local and global markets. A new organizational structure has been adopted to go in line with this new direction. Organizational structure consists of five key components:Strategic Operations which is responsible of strategic plans, human capital and regulatory affairs of the group.Saudi Telecommunication Company (STC) which provide fixed and mobile telecommunication services, broadband and enterprise sector services, in addition to financial activities in KSA.Technical Operations which is in charge of the network, IT and wholesales services.International Operations.Financial Operations.The implementation of the new organizational structure comes as an output of the LEAD strategy which focuses on maintaining the leading position of the company in fixed, mobile and broadband services as well as the enterprise sector services, taking into consideration external opportunities, where one of the important components of the new organizational structure is the International Operations sector, that deals with planning and managing group’s activities internationally what reflected in an increase of 34{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} in revenues from external operations, while maintaining its position in Saudi market.The LEAD Strategy is based on 6 elements:Load in Next-Gen BroadbandDifferentiated Customer Experience.Consolidate International Leadership.Invest in People CapitalDrive financial performance and agility.Promote leading brand and reputation.
TT – STC has been the first to introduce 4G in the Middle East, how do you see this achievement as one of the many milestones STC has reached over time?
SD – The launch of 4G LTE services by STC as the first operator in MENA, is an important step from the company’s keenness to adopt and launch the latest technologies in digital telecommunication world. The company adopted this technology in the beginning of 2010 after successful rehearsals indicating that it is the next choice of a new era of mobile telecommunications.Furthermore, the company has the largest and the strongest infrastructure in the region, as well as it is one of the leading companies in the field of Fiber Optics and submarine cables and a key partner in all submarine cables that link South East Asia to Western Europe and North America through the Middle East. In addition to an infrastructure of wireless networks such as the 3G and WiMax and 4G LTE networks. The GSMA – ranked STC as the first company to launch the 4G LTE service on the region where it stated in its website that STC was the first company to launch in the region at the 12th of September 2011.
TT – Could you please give us a current overview of the international operations of STC?
SD – As I have said, in the answer of the first question, STC managed to develop itself from a leading local company to one of the largest companies in the region. In Bahrain, STC group continued its growth, achieving an excellent performance that exceeded its entire targets, where customers’ number increased by 28{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} during the 9 months, exceeding target by 15{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} which led to revenues growth of 167{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} compared to the same period last year. In Kuwait, despite fierce competition in the market, VIVA continues exceeding its target in Q3 revenues.In its East Asian markets, Maxis in Malaysia continues its leadership to Malaysian telecommunication market, with a customers’ base of 13 Millions. In Indonesia Axis acquired new customers in the 1st three quarters that reached 15 Million customer, and Axis revenues grew up to 268{e1f18614b95d3cd6e4b3128e1cd15d99b042a60a5a19c19b7a8e07e7495efa10} for the last 9 months.
TT – How do you see the competition STC is facing on international level? Do you foresee any tough competition for STC inside Saudi Arabia?
SD – STC group, with its internal experience in a market deemed one of the largest telecommunication markets in the region, and through its expansion with partners in external markets, is highly qualified to lead the industry in the region, and introduce the best services to its customers who exceeded 150 million.TT – Would you like to tell us about some of the new innovative services, STC has launched recently?SD – STC has signed several strategic partnerships with the best global companies, to deliver the best smart technological solutions, such as Blackberry and Samsung devices. The partnership with Facebook resulted in enabling STC customers to exclusively stay connected to the new Facebook java system mobile application in a new style, while the Twitter messages service kept customers in constant contact with the renowned Twitter website. The company also allowed customers to send SMSs through Gmail™ to any STC mobile for free. STC customers also enjoy the service of Nokia Store which is linked to the STC client billing system, i.e. the purchase value goes into customer’s Jawal bill or deduct from the prepaid credit (SAWA or LANA)The invision service, being the first in its kind in the kingdom, provides customers with viewing TV, calling and browsing the internet, in addition to the launch of the Cloud Computing technology which will make radical difference in performance improvement for enterprise sector customers.
TT – Please share with our readers, your thoughts about the latest and upcoming trends for telecommunications worldwide.
SD – The ICT industry is the cornerstone of modern economy, that is why STC has established one of the up to date telecommunication infrastructures in the world, through which we are proud of delivering integrated telecommunication services, high speed broadband services for government, commercial, individuals and home customers, as well as we are proud of being the first in region to launch the 4G LTE and the Fiber Optics services and the only operator who presents comprehensive packages of voice, internet and digital TV.
TT – You have been declared the winner of ‘Teletimes Man of the Year’ Award for 2011 by the Awards Committee which has long been considering three very well-known personalities for this award. Please share with us your feelings on receiving this award.
SD – “I am pleased to be nominated and declared ‘Teletimes Man of the Year 2011’, and I would like to thank the Teletimes team and the committee. In return I would like to congratulate Teletimes on their remarkable work over the past six years, indeed they have proven worthy to the IT & Telecom industry readers.”