E What is the potential of the Lebanese telecom sector? How does it compare to other small markets such as Bahrain and what are the impediments it faces?
The Lebanese mobile telecommunication sector is state-owned, thus limiting the capacity of the two GSM companies to mere operations. This fact keeps the market withheld from its real potential that will only be felt through liberalization and proper competition. The above is confirmed by the Lebanese GSM penetration rate which is around 33% as opposed to other markets with a similar GDP and purchasing power, where penetration has reached 80% or even 90%.
Furthermore, the Lebanese mobile market is continuously eager and enthusiastic for new services. The Lebanese consumers are considered to be ideal in the region due to their particular passion for mobile telecommunications and their permanent demand for new and diversified services.
In case of privatization, given the low penetration rate, the mobile market will definitely witness a boom and growth rates will skyrocket.
E What is mtc touch’s strategy in Lebanon? How does it fit in the overall Zain strategy?
Since its entry into the Lebanese market as a manager of one of the two GSM networks, it has always been Zain’s objective to own a mobile operations license in the country. This strategy persists until now and Zain is eager to see the telecom sector privatized so that it can participate in the process. Zain believes that the Lebanese telecom sector still has a long way to go to reach its true potential, especially in terms of penetration rate and diversified technologies and creative offerings. This is why, mtc touch has been striving in the past four years to upgrade the quality of service in the network and introduce as many state of the art products and services in the market as possible, trying to quench the Lebanese consumers’ thirst for an improved mobile experience despite the constraints imposed by the current economic and political situation.
E What have you accomplished during your four years in Lebanon?
Mtc touch accomplished a lot during the last four years despite all the constraints. It has proven to be the best mobile provider seen in the market and the leading GSM (in terms of market share with a 52% stake), further to a survey conducted at the end of 2007 by Ipsos-Stat, as well as the most recommended brand in telecom due to the services and the quality and diversity of its products.
In fact, mtc touch has lived up to its name as being the pioneer of mobile telecom in Lebanon by introducing new services in the Lebanese market, some of which are exclusive to mtc touch.
On another level, mtc touch received a prestigious certificate, nominating the company for the “Highly Recommended Employer” award during the “IIR Middle East Business Achievement Awards”. This certificate comes as recognition to the investment mtc touch made in its human capital, bearing in mind the crucial role that this capital plays in the company’s overall progress and well being.
Mtc touch was also among the first telecom operators in the region to be awarded the ISO 14001 Environmental Management System Certification. This achievement comes as a result of the company’s long-lasting commitment to environmental protection which is reflected in its continuous pursuit to reduce and recycle waste and to efficiently use energy.
And lately, mtc touch added another achievement by being among the first mobile operators in the world to launch the revolutionary roaming-on-aircraft service that allows mtc touch customers to make and receive calls as well as to send and receive SMS while traveling on aircraft. This launch comes in line with the direction of our parent company Zain that initiated the service in collaboration with AeroMobile in March of this year in Jordan.
On the technical side, mtc touch was able to cope with the increase in the market demand by adding 250,000 customers despite its under-dimensioned network, to satisfy customer need of new lines. It also extended its coverage to 98.5% of the Lebanese territory by adding 85 new sites nationwide and enhanced its prepaid customers’ experience by introducing the Intelligent Network Platform, allowing them to enjoy new and advanced services.
Moreover, mtc touch improved its data services by introducing data roaming services and increasing the data throughput capability in Beirut by adding EDGE. Hence, visitors to Lebanon can currently use wireless and mobile email solutions, web browsing or other data services they have subscribed to in their home country and thereby stay connected when roaming on mtc touch network.
E How does mtc touch distinguish itself from the competition?
Despite the almost-absence of competition, mtc touch succeeded in developing a substantial competitive edge in terms of customer experience by effectively introducing a broad range of convenient, innovative and flexible services that witnessed a tremendous and unprecedented take-up in the Lebanese market. As a matter of fact, new services like Credit Transfer Prepaid to Prepaid and Credit Transfer Postpaid to Prepaid are breaking regional records with regards to usage and penetration, while new convenient on-line payment & recharging channels through bill e-pay and e-recharge services and new roaming services (Prepaid SMS Roaming & GPRS Roaming) are witnessing a considerable boom.
E How do the networks in Lebanon compare to others in the region? What are you doing to remedy current network difficulties and short comings?
Mtc touch network performance is among the best in the region, despite the existing external factors and limitations.
In fact, mtc touch is optimizing on a daily basis its network resources to overcome as much as possible the high impact of external interference sources in Lebanon and is upgrading some network elements in collaboration with the Ministry of Telecommunications to be able to cope with the increase in the customer base and inbound roamers overloading the network.
Mtc touch was able during the July 2006 War to maintain its network full availability despite having more than 25% of the network down due to completely destroyed hub sites, through rerouting and restoration activities carried under difficult circumstances.
Mtc touch was also keen to upgrade its core and backbone network elements to up-to-date hardware and software releases to ensure the best network status and customer experience.
In addition, mtc touch is currently upgrading the billing system to the latest state-of-the-art technology providing substantial benefits and advantages to the end users.
E Now that mtc touch has signed a six-month contract with the government of Lebanon, what is the next move for mtc touch? Are you confident that you will stay in Lebanon?
As previously indicated, Zain entered the Lebanese market in the hope of acquiring a mobile operations license and not just to manage an existing network. Zain has proved in all the markets where it has established presence that it will put all the necessary efforts and right investments in order to improve the life style of people and contribute effectively to the well being and economic growth of the country. We surely hope that with privatization we will have another chance to prove this commitment and vision once more in a country which is dear to us.
E How does Lebanon’s special circumstance of relying on telecom tariffs affect your activities?
The mobile telecom tariffs in Lebanon are some of the highest in the world. We believe that the only way to reduce those tariffs is by opening the market for true competition through privatization and regulation.
In the meantime mtc touch is exerting all efforts, within the limits of the management agreement signed with the government, to provide the eager Lebanese consumer with state of the art convenience and advanced services in addition to improving the overall customer experience.
On the other hand, and due to the importance of the telecom sector as a major source of revenue to the country, mtc touch realizes the weight of the obligations and responsibilities it has to cope with.
This is why our technical teams are working day and night to insure continuous optimization of the resources of the network to maintain its availability and quality of service and allow it to carry all the traffic which translates directly into generated revenue.
