A GREAT AUSTRALIAN SUCCESS STORY - INSPIRATION FOR TROUBLED TIMES

1. A GREAT AUSTRALIAN
SUCCESS STORY
AN INSPIRATION FOR TROUBLED TIMES
FEATURING:
Chris Gabriel Zain Telecom’s
Gabriel, Telecom s
regional CEO for Africa

2. Comm
www.comm.ae
Decisive coverage of telecommunications strategy
Applauding
Africa Zain’s regional CEO,
Chris Gabriel leads the
effort to connect the
continent to the world
SupplEmEnt

3. supplement: ZAIn
COntEntS
2 Heart, radiance and belonging
On August 1, 2008 the Zain brand was simultaneously
introduced across 14 countries in Africa, signally the
arrival of a new global brand at the centre of Africa’s
telecommunications revolution
4 A wonderful world
Having assumed the role as chief executive of Zain’s
operations in Africa in December 2007, Chris Gabriel
has overseen the introduction of the Zain brand into the
continent. As he describes it, the starting point is with
instilling the brand philosophy and values in staff members,
who then understand what it is the company represents,
and communicate that to the market at large
6 sowing the seed
Zain has always been cognisant of the need to invest in the
communities in which it operates, believing this not only
builds better lives for the people it services, but also creates
a conducive environment in which to operate
10 Inspirational associations
Part of the Zain proposition is to inspire people to strive for
a better existence, and at this current point in time no one
person symbolises this aspiration better than the former
South African president, Nelson Mandela
11 Cross-continental appeal
Zain’s One Network is the world’s first borderless mobile
telecoms network service and was launched by the operator
in Africa in September 2006. The network was extended
to the Middle East in April 2008, and in August the two
continents were linked, offering seamless connectivity on a
single network between Africa and the Middle East
12 taking off
As Zain’s third quarter performance for 2008 highlights,
the business is progressing well, though there still remains
much to do on the African continent
nOvEmbEr 2008 1

4. supplement: ZAIn Overview
Heart, radiance
and belonging
On August 1, 2008 the Zain brand was simultaneously introduced across 14 countries in Africa,
signally the arrival of a new global brand at the centre of the continent’s telecommunications
revolution. Guided by the philosophy of heart, radiance and belonging, the aim of the
introduction of the Zain brand in Africa is to uplift the peoples of the continent to benefit and
participate in a global vision, which will touch their lives and improve their quality of living the Zain brand was introduced in Africa on August 1, 2008, simultaneously in 14 countries all linked by satellite and witnessed by 50,000 people
Originally extending to absolutely fabulous and all the the Celtel brand, is that of the company has targeted
Kenya, Tanzania and Uganda, products and services that we corporate social responsibility. education as the major
F
ollowing the initial synchronised for a 40-minute East and Africa was being taking an African success story, One Network for the first time have in the Middle East will Gabriel is a firm believer area where it channels
re-branding programme satellite broadcast that made unveiled, and promises were which was Celtel, and taking offered Zain customers in Africa transpose to our markets in in responsible commercial most of its support, and
that gave birth to Zain use of three satellites. being made with respect to the it global. So we are building on the opportunity to communicate Africa, so from the customers’ activities being interwoven into the rest is shared towards
in September 2007, it was What made the introduction level of service that could be all of the success of Celtel and freely across geographical perspective it is one global the fabric of the society into promoting and supporting
decided to extend the trade of the Zain brand such an expected from all operations bringing Zain to the table.” borders without roaming call network,” comments Gabriel. which the organisation operates music, art and culture.
name to the African continent auspicious occasion was brandishing the name. At the end of September surcharges and without having In a significant declaration of and as such enthusiastically As competition continues
within a year, culminating that for the first time in the “Our customers love Zain,” 2008, Zain counted 36.928 to pay to receive incoming intent, on August 1, 2008, Zain embraces Zain CSR activities to intensify in the telecoms
in the coordination of three continent’s history, a brand declares Chris Gabriel, CEO million customers across 14 calls. Thus the customers also announced the linking across the continent. sector across Africa,
distinct events across 14 from within the wider emerging of Zain’s activities in Africa. countries, which taken together enjoyed the benefits of being of the two continents of the “Celtel was very big in investment in a brand that
countries in Africa, targeted market region of the Middle “What we are basically doing is experienced a combined growth treated as ‘local’ customers Middle East and Africa with corporate social responsibility carries certain key values is
specifically at employees, press rate of 49 per cent for the year. It in any of these countries. One Network as Bahrain, Iraq programmes to build a nation, in likely to stand organisations
and VIPs on July 31 and August What we are basically doing is taking was this mammoth geographic By November 2007, a further and Jordan connected to the 12 education, and health; and Zain that adopt such a position in
1, 2008. Each of the country region, which on August 1 nine African countries - African One Network countries. continues that today,” explains good stead. Differentiation
events ran simultaneously but
an African success story, which was was included within the Zain Democratic Republic of the The service became available Gabriel. “Zain basically builds from competitors through
was also linked live via satellite. Celtel, and taking it global. So we are group of operating entities, Congo, Republic of the Congo, to over 100 million people on what we had in Celtel, brings the construction of lasting
The 14 launch locations
encompassed Burkina Faso,
building on all of the success of Celtel and exposing customers to a service
proposition with boundaries
Gabon, Burkina Faso, Chad,
Malawi, Niger, Nigeria and
in the Middle East following
Zain’s launch in Saudi Arabia
the value and skill set of an
organisation that has been in the
relations with customers
by anticipating their
Chad, Democratic Republic of bringing Zain to the table beyond those of the continent. Sudan - became connected, on August 26, 2008, a country Middle East, with the products needs is the surest way
Congo, Republic of the Congo, Prior to the rebranding offering over 400 million that immediately became and services that have been to continued success.
Gabon, Kenya, Madagascar, process in Africa, Zain had people in twelve countries part of the Middle East One developed there, and combines “We need to make sure our
Malawi, Niger, Nigeria, already established a strong across east, west and central Network. Thus the service is them with what we had in Africa, model is optimised internally
Sierra Leone, Tanzania, name with respect to the Africa the ability to be a presently available to around with the aim of really creating so that we can profitably
Uganda, and Zambia with company’s dedication to the local customer within any 50 million Zain customers in a wonderful world,” he adds. service all sectors, and we see
the satellite broadcast hub African cause, and its desire of those twelve countries. 16 countries spread across the Thus Zain’s CSR activities great opportunity in rural
sitting in Johannesburg. to uplift all the communities On April 14, 2008, One two continents. Potentially over continue the provision of and remote penetration as
More than 50,000 people in which it operates. In Network was extended and 500 million people who live in support for noble causes well as in the youth segment,”
participated in the unveiling September 2006 Zain introduced to Zain’s operations these 16 countries can join and within the communities concludes Gabriel. “We’ll
of the brand in Africa revolutionised not just the in Bahrain, Iraq, Jordan and benefit from One Network. where the company operates. bring experience and service
and though each of the way mobile communications Sudan where, at the time, over Another area in which Zain It is a balance of the quality to the market place;
participating countries created were consumed in Africa, 14 million Zain customers has been strong on in its own organisation’s social and and it is competitive and
their own local programme but introduced a world-first also could enjoy the same right, but which was also a business commitments. we welcome competition,
of messaging, hospitality through the launch of the One Network benefits. “The priority for the operations in All communities have because what it is doing is
and entertainment, they One Network initiative. One Network concept is Africa formerly operating under various needs but as Zain, growing the market place.”
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5. supplement: ZAIn Interview
Creating a
wonderful world
Having assumed the role as chief executive of Zain’s operations
in Africa in December 2007, Chris Gabriel has overseen the
introduction of the Zain brand into the continent. As he describes it,
the starting point is with instilling the brand philosophy and values
in staff members, who then understand what it is the company
represents, and are able to communicate that to the market at large Chris Gabriel became CEO of Zain’s
operations in Africa in December
2007, and says he is passionate
about spreading telecoms and helping
communities improve standards
he timing of the such as Kenya report a recall bottom-up, from all levels of operations. Staff has the benefit in which Zain operates. brand is fantastic and from (NCC) as the best customer Kenya for the year to end-
introduction of the Zain rate of 92 per cent – teaching the organisation, bringing the of training and has access to HeadStart gives graduates the the customers’ perspective the service operator, during its June 2008, the introduction
brand into Africa coincides staff to understand what the brand values and understanding the Zain Academy, which is an opportunity to further develop development is also fantastic, fifth- year anniversary consumer of the Zain brand has had a
perfectly with the company’s brand represented both as and acknowledgement of internal, university-standard, their leadership skills and and people can recognise parliament held in Abuja. profound effect in extremely
aspirations to become a top-10 a rallying call as well as in the Zain brand and what it accredited type training facility. management and business Zain as a global company, a “It has not taken a very long competitive markets such as
mobile communications terms of norms of behaviour stands for internally. Then “So we are building leaders knowledge in any of Zain’s global brand, with the same time at all for people to embrace Kenya and Uganda. In Kenya
operator by 2011, reporting an began long before the brand people passionately take that from within the organisation, core business areas including high standard of service and Zain, embrace what it stands over the last two months 50
EBITDA of US$6 billion, and was ever shared publicly. out to the market place.” and particularly we are focussing sales, marketing, engineering, the same quality product. for and the word-of-mouth per cent of all new subscribers
servicing 150 million subscribers Before Zain commenced This approach has on a graduate programme. human resources and finance. He describes it as a win- that has spread; it has been in the market are on the Zain
across all its markets. As far as the market branding the fostered consistency of the We are bringing in a lot of “We can bring graduates in, win situation all around. a very successful rebranding network, despite three mobile
the operator is concerned, if it organisation conducted training, communication of the benefits new graduates, a lot of young indoctrinate the Zain brand, In terms of assessing the exercise,” Gabriel says. operators in the market place.
wants to be a global operator, it development and indoctrination of utilising Zain products and Africans into the organisation. and make them truly global success of the rebranding Zain believed that the loyalty With the new brand, Zain
needs to operate under a global of staff. Thus Zain undertook services, as well as detailing the And we are considering in executives and it will be so programme just a few months to the former Celtel brand in Kenya has grown market
brand, and go about building the internal branding process technological benefits as well. the medium-term to look powerful,” Gabriel believes. “I after its conclusion, Zain was actually tied to provision share by six per cent in just two
formidable brand value. first, and continues to Given the diversity of markets at most of recruitment have found so much talent that management believes the of quantifiable service, and months. Over the next three
“In terms of the timing of the communicate brand vision and in which Zain operates across coming from graduate is not being tapped in African company’s business strategy products, rather than just months Zain intends spending
rebranding of Zain in Africa, values. At the end of October borders, the communication of programmes,” Gabriel reveals. organisations. Zain’s philosophy is on course; though more the name. Under Zain the US$ 50 million on network
it is about our strategy, ACE 2008, for example, more than consistent values is essential in Zain is constantly on the of heart, radiance and belonging importantly, independent company has thus been able expansion in Kenya, while in
(Accelerate, Consolidate and 600 members of Zain staff building a single, global brand. look out for specialised staff through our values is all about reviews from the different to take this a notch further, Uganda the operator is spending
Expansion), to be a top-10 assembled at the Dead Sea resort According to Gabriel, from and has various programmes being passionate, it’s about markets have confirmed these to enhance the capacity of all US$ 70 million. Zain’s market
global mobile operator by in Jordan in order to discuss the the staff’s perspective, the to cope with this. The operator ownership in the organisation beliefs. Research commissioned its deliverables, across its 22 share in Uganda has risen to
2011,” explains Chris Gabriel. progress of the ACE strategy, programme of rebranding has initiated a programme through share schemes, it’s by Zain since the August operations seamlessly, and as 38 per cent, up from nine per
“So the timing was fine and in particular about Zain’s is even better because the known as HeadStart in order about performance-based introduction of the brand into such transferring this loyalty. cent three yeas ago. In Nigeria,
that is all part of our strategy brand, values and culture. organisation has taken the to give the best young people remuneration, it’s about market- Africa has been positive, with In Kenya, Zain reports 92 per planned investment in network
for 2011, and all that I can say “I live and talk and breathe Zain brand to the staff and had in Africa a unique chance to based pay, it’s about providing a clear example being positive cent brand recognition, achieved upgrades and expansion
is that people have just fallen the brand in my organisation, them embody it. What that develop into the leaders of an the proper health insurance, it’s affirmation across various in a two-month period, the exceeds US$ 1 billion, and the
in love with the brand – it’s I spend 95 per cent of my time means is that the staff is part exciting company. Graduates about all these different things.” markets. In Nigeria, Zain was highest ever for any new brand operation now serves 16 million
different, it’s bold, it’s daring.” on the road,” says Gabriel. of a global organisation and are sought to work in an initial Thus from the employees’ endorsed by the country’s introduced in the region. customers, some way from the
Successful as the rebranding “We have viewed things has the ability to move around 15-month programme, which perspective, Gabriel believes industry regulator, Nigerian Having reported a decline five million it served when Zain
programme has been – markets from the top-down, from the and be seconded to different covers all the African countries Africa’s inclusion in a global Communications Commission in subscriber growth in acquired it in May 2006.
4 www.COmm.AE nOvEmbEr 2008 5

6. supplement: ZAIn Corporate social responsibility
development, rural Africa batteries each day and eight schools; and to the infirmary base stations and Ericsson’s
can achieve the Millennium phones simultaneously and it is just amazing how Mobile Position System, a
Development Goals — global for each village cluster. great the impact is.” location-based service that
targets for reducing extreme A 2005 report by Leonard enables emergency authorities
poverty and hunger by half n In Tanzania and Uganda, Waverman of the London to triangulate the mobile
and improving education, Ericsson has upgraded Zain’s Business School, estimates signal of fishermen in distress.
health, gender equality and GSM network to EDGE and at that the average developing Ericsson’s green site solutions,
environmental sustainability the same time improved coverage nations sees its economic including solar and hybrid
— by 2015, and escape the and network reach. Using a growth rise by .06 per power solutions, were also
extreme poverty that traps combination of fixed-wireless cent for every 10 per cent be utilised to provide electric
hundreds of millions of people terminals, mobile Internet growth in the number of power to the base stations in
throughout the continent. connectivity will be provided mobile phone subscribers. the more remote island areas.
The project was officially to schools and health centres. In 2007, the GSM The GSMA and Zain
launched by Zain in May Plans are also in-place to extend Association applied are working with the
2008 when the operator coverage to all 73,000 people Waverman’s methodology governments in the region
announced that along with in both village clusters. Sony to a group of 57 developing and non-profit groups
Ericsson it would provide Ericsson and Ericsson have also nations and found that the to establish a rescue
telecommunications provided handsets to community impact was doubled, boosting coordination service to
deliverables to the and health workers and piloted economic growth by 1.2 provide assistance to lake
Millennium Villages of Dertu new healthcare applications for per cent for every 10 per users, which in the longer
in Kenya, Ruhira in Uganda, mobile learning purposes as well cent rise in mobile users. term will be run by the
and Molla in Tanzania. The as basic household data collection. “Our challenge is to make East African Community’s
two companies have come Zain has provided SIM cards and sure we can relevantly service planned Regional Maritime
together in order to develop established emergency numbers all sectors. Africa is under- Communications
a comprehensive end-to- to improve access to healthcare penetrated and there are a Centre (RMCC).
end telecommunications and emergency services. lot of opportunities in the Ericsson, Zain and the
strategy in the villages GSMA’s Development
and to drive mobile phone Fund spent six months
connectivity and coverage
The value we are driving and the investigating how to provide
build-out to selected response we are receiving from our CSR better communications for
areas. Key deliverables programmes is phenomenal and that’s the 30 million people in
of the project include: Tanzania, Kenya and Uganda
Sowing the seed
why in the rural and remote areas where who live in the immediate
n In Kenya, Zain and Ericsson we are donating books and desks, and vicinity of Lake Victoria.
have deployed a mobile Zain also intends to provide
network providing service to
building schools; the word-of-mouth out value-added services, such as
5,000 people in Dertu for the there is just so powerful up-to-the-minute market prices,
first time. This permanent which will have a significant
solution will also use Zain will also provide rural and remote areas and so impact on local people’s
Zain has always been cognisant of the need to invest in the communities in which it operates, n
Ericsson’s sustainable energy a toll-free number that we value those customers as livelihoods. Academic research
believing this not only builds better lives for the people it services, but also creates a conducive solutions including wind, solar can be used in medical much as we value the highest in India found that using mobile
energy and other solutions to emergencies to connect paying customers in the phones can significantly boost
environment in which to operate. This outlook is articulated perfectly in the African context,
drive equipment at minimum patients with on-duty medical urban areas,” Gabriel says. fishermen’s earnings by enabling
where Zain continues to give back to the continent and builds new relationships power requirements. It is personnel. Other initiatives Earlier this year Zain and them to find the best prices
estimated that the permanent include a mobile learning Ericsson again collaborated for their catch. The availability
solution will run at 80 per tool to train community in the upgrade of Zain’s of mobile services is also
ain’s corporate social “The value we are driving and Project was first outlined, a bold, innovative model cent increased efficiency health workers and mobile infrastructure and building expected to benefit the tourism,
responsibility (CSR) is the response we are receiving as Zain, Ericsson, and the for helping rural African over traditional diesel- applications to collect and an additional 21 radio sites transportation and fish export
focussed primarily on from our CSR programmes Earth Institute announced a communities to lift themselves powered mobile sites. share basic household data to provide mobile coverage industries and could be key
education, with a complimentary is phenomenal and that’s partnership to provide mobile out of extreme poverty. This and health information. up to 20 kilometres into to attracting further business
focus on health, music and the why in the rural and remote communications and Internet initiative is directly in line with n Sony Ericsson has supplied “We shouldn’t underestimate Lake Victoria. The initiative development in the region.
arts, and is based on giving back areas where we are donating connectivity to the Millennium Zain’s commitment to Africa mobile handsets to the how educated the market is ensures mobile coverage to “We will bring relevant
to the community in which the books and desks, and building Village’s projects covering and the belief that affordable and Millennium Village health and how much knowledge over 90 per cent of the fishing products and services
company operates. Following schools; the word-of-mouth up to 400,000 people in ten reliable communication services clinics and community rural people have of mobile zones in the lake, where up to the market in Africa.
on from Celtel’s CSR mantra out there is just so powerful,” sub-Saharan African countries can ultimately help Africa health workers. Together services,” Gabriel comments. to 5,000 people die each year Data is something we are
of, ‘making life better’, with the comments Chris Gabriel, CEO where the project is working. achieve its development goals. with Ericsson, Sony “If you look at Kenya and from accidents and piracy. looking at in the relevant
introduction of the Zain brand of Zain’s operations in Africa. Zain and Ericsson decided to The Millennium Villages Ericsson has developed a what has been done in rural The project uses Ericsson’s markets, but rural and
and ethos, the organisation Last September for example, team up with the Millennium are proof that by fighting new Solar Village Charger villages, it has transformed Extended Range software remote extension of network
believes its efforts are set to a development known as Villages Project because of the poverty at the village level that is capable of re- the entire village. We have package to more than double coverage is very much a key
‘make a wonderful world’. The Millennium Villages belief that the group displays through community-led charging 30 mobile phone provided connectivity to the the effective range of radio priority,” Gabriel says.
6 www.COmm.AE nOvEmbEr 2008 7

7. supplement: ZAIn Zain map
* Ghana: launch of commercial services in Q4-2008
8 www.COmm.AE nOvEmbEr 2008 9

8. supplement: ZAIn One network
Inspirational Continental appeal
associations n May 2008, Zain “Nelson Mandela has
Zain’s ‘One Network’ is the world’s first borderless mobile telecoms network service and launched
by the operator in Africa in September 2006 across Kenya, Tanzania and Uganda. By November
2007, a further nine African countries Democratic Republic of the Congo, Republic of the Congo,
announced its sponsorship shaped modern Africa. His
of the international concert contribution is well known and Gabon, Burkina Faso, Chad, Malawi, Niger, Nigeria and Sudan became connected. The network
honouring Nelson Mandela’s stands as an example to those
was extended to the Middle East in April 2008, and in August the two continents were connected,
90th birthday and which who are embroiled in fighting
was aimed at raising funds oppression and injustice,” çovering over 50 million Zain customers in 16 countries.
for his charitable work. said Al-Barrak. “Likewise, the
At the concert, which was Zain Group has changed the
held in London in June, many way Africans communicate
of the world’s most powerful on a social and economic ne Network is a huge
and instantly recognisable level. In doing so, we too have African success story,
figures and an audience of helped change the face of this and as a service it
46,664 paid their tributes to great continent forever.” covers nearly 400 million
one of the world’s most loved The memorable concert people, living in an area twice
leaders, Nobel Peace Prize also featured significant as large as the European
Laureate and icon of freedom. contributions from some Union. Commenting on One
The event was not short on of Africa’s best known Network in September 2006,
emotion. It was the statesman’s artists, many of whom were The Economist magazine said,
final public appearance but of individually sponsored by “Zain (formerly Celtel) has, in
equal importance was the fact Zain, which is committed effect, created a unified market
that it raised much-needed funds to promoting African arts of the kind that regulators can
for charity, primarily through and culture. They included only dream about in Europe.”
Mandela’s 46664 campaign and legendary Nigerian hip hop Zain’s One Network has
the motto, “It’s in our hands”. star 9ice, Madagascar’s D’Gary, promoted cross-border trade
Some 50,000 people – including Bebe Cool from Uganda and and driven economic growth
former US president Bill Clinton, Kenya’s Suzanna Owiyo. across the region and beyond,
British prime minister Gordon Other African artists as customers no longer have
Brown, celebrities Oprah performing at the show to make changes on their
Winfrey, Robert de Niro and included Johnny Clegg, Sipho SIM cards and there are no
Forest Whitaker – packed into Mabuze, multi-South African roaming charges involved.
Hyde Park, to pay tribute to a Music Awards winner Loyiso, Recognition by independent
man who is considered one of Kurt Darren, Sudanese global authorities, including
the world’s most beloved leaders. rapper Emmanuel Jal, the the Commonwealth Business
The crowd also came to hear Grammy award winning Council (CBC), African
global pop superstars such Soweto Gospel Choir, and Business Magazine, Zenith
Part of the Zain proposition is to inspire people as Amy Winehouse, Queen, the Aids orphan choir, the Bank, Ecobank, IGI and the
Will Smith, Josh Groban, Children of Agape - the subject private sector arm of the
to strive for a better existence, and at this Annie Lennox, Razorlight, the of the award winning film African Development Bank, buy recharge cards. It is only 2008, the service was extended From the customer
current point in time no one person symbolises Sugarbabes, Leona Lewis, Sharon feature We Are Together. reinforces Zain’s belief that from the Zain network that and introduced to Zain’s perspective the One
Corr, Simple Minds, and Eddy Zain gave people across its drive to innovate while calls to customer care (via operations in Bahrain, Iraq, Network service means:
this aspiration better than the former South Grant, all of whom gave of their Africa and the Middle East the offering better services to home network short codes) are Jordan and Sudan where Zain
time to raise money to fight chance to participate in the people across the continent free of charge and are routed customers in those markets now There are no roaming
African president, Nelson Mandela. As such Zain n
AIDS, poverty and other social event by offering its mobile is being vindicated. to their home network call also enjoy the same benefits. surcharges when Zain
has been a staunch supporter of the African causes across the continent phone networks to well-wishers The operator’s product is still centre where they may speak In August 2008 Zain linked customers are outside their
and throughout the world. wanting to send text messages one of the simplest to use, and to a service representative Africa and the Middle East, home country. The customers
statesman’s causes and was a proud sponsor
Earlier, Zain Group CEO, Saad wishing Nelson Mandela a easiest to access, with a total in their own language. as One Network in Bahrain, can make calls and send SMS
of the 46664 concert in Hyde Park, marking Al-Barrak, presented Mandela happy birthday. All the money of 1.5 million selling points Having extended the One Iraq, Jordan and Saudi Arabia at local rates, receive incoming
with a symbolic gesture of raised from this will be given across its network countries Network programme to a dozen connecting to the 12 African calls free-of-charge, top up
Mandela’s 90th birthday a traditional Arab Dhow. to the 46664 campaign. in Africa where customers can markets across Africa, in April One Network countries. with scratch cards brought
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9. supplement: ZAIn Operations
from their home country, One Network coverage area extends to 16 countries travel and thus can benefit
and most importantly, with from One Network services.
Taking off
* Ghana: Commercial services
locally-purchased scratch to be launched in Q4-2008 One Network should
cards widely available in be considered for the
points of sales across One following reasons:
Network countries.
n User friendly, the One
n Zain makes it easy for Network service is a non-
customers - there is no burdening experience and is
registration, no extra fees, automatically activated when As Zain’s third quarter performance for 2008 highlights, the
no roaming or international Zain customers cross borders
business is progressing well, though there still remains much
access deposit, no complicated
dialling formats, and no Zain is in the n It provides very affordable to do on the African continent
need to remember to change business of making and effective cross-border
tariffs before travelling. life better for its communications keeping
customers and serving friends and families connected
n Customers continue to have the communities it
access to their entire home operates in. And n Is a key enabler to economic
network services (voicemail, despite the fact that growth - encouraging SME’s
customer care– the air time One Network comprises and individuals to more easily
transfer service, GPRS/EDGE very complex technical expand into new markets
high speed Internet access, and back-office processes,
corporate private networks, Zain sought to deliver a positive from individuals to n Is a demonstration of
Blackberry e-mail, and mobile consistent brand offering and business users alike, given how telco’s and regulators/
portals) no matter which One experience to wherever its over five million people governments can work
Network country they are customers were present. At have used and benefited together for the benefit of
travelling in. Should customers the same time, the operator is from One Network services societies and economies
require assistance, calls to confident that One Network on both continents.
customer care (via home network will be a key facilitator and From a business case point of n Tangible evidence of
short codes) can be made at no enabler to enhance and view, Zain has been successful how complex technological
additional charge and are routed nurture communications and in acquiring many (hundreds) solutions and processes can
to customers’ home network support sustained economic of major corporate accounts, make life simpler through s of September 30, 2008, acquisition, the group will have Kuwait and Jordan Burkina Faso
call centre where they may growth where deployed. commercial, non-governmental delivering very user-friendly Zain operated on two a presence in 22 countries, represented the Zain Burkina Faso began its
speak to a service representative The response to the One organisations, and government and cost-efficient mobile continents and served becoming the fourth largest remaining customers. operation in January 2001.
in their own language. Network has been extremely departments whose personnel communications. 56.3 million active customers mobile operator in the world in In percentage growth The company is the leading
(including Saudi Arabia). This terms of geographic footprint. terms, Zain’s operation operator in the country with
represents an increase of 54 The company’s customer in Madagascar – Zain a 53 per cent market share.
Further One Network details
per cent compared to Q3-2007. increase was driven primarily Madagascar – was the Zain in Burkina Faso had over
Service origination network, the handset will mind – customers can buy post-paid customers enjoy The Group offers its services by its high-growth African fastest growing operator 1.2 million active customers
One network is a cost- be automatically registered top up cards at more than the same tariffs as local in 22 countries with a total operations, Nigeria (61 per of the Group, registering by Q3-2008, representing
effective, convenient solution on the visiting network. one million locations. post-paid Zain customers population of over 546 million cent), Malawi (108 per cent) a 132 per cent increase a 54 per cent increase
designed to fit customers’ Customers will receive an under licence across Africa and and Madagascar (132 per cent) in customers. The second compared to Q3-2007.
regional and continent-wide sms welcome message, Top-up options Customer experience the Middle East. On August in particular as well as solid largest growth was registered The operation’s Q3-2008
communications needs by and at that time customers Customers may top up Home being away from home 25, 2008 Zain launched its growth in Iraq (125 per cent) in Malawi (108 per cent), revenues reached US$ 32.7
taking advantage of Zain may start making calls, with a local scratch card Customers continue to have commercial services in Saudi and Bahrain (89 per cent). Of Chad (73 per cent) and million, an increase of 28 per
Group’s unique pan-Middle receiving calls, sending and by dialling 138*top up card access to all of their home Arabia. At launch date, Zain’s the 20 countries in which Zain Nigeria (61 per cent). cent compared to Q3-2007.
east and pan-African presence. receiving text messages. number from their handsets network services no matter coverage extended to around operates, 13 subsidiaries are In total customer numbers, EBITDA decreased by 2 per
there is no need to carry at no additional charge. which One network country 95 per cent of the kingdom’s the leading operators whereas Celtel Nigeria represents 29 per cent compared to Q3-2007
multiple sIm cards when Functionality they happen to be in. population with its state- six other Zain operations cent of Zain Group’s customer and reached US$ 11.7 million.
travelling across borders. no Receive incoming calls free Charges of-the-art mobile network are the solid number two in base, followed by Iraq (15 per Net income reached US$ 3.4
special sIm or subscription Customers do not pay to Charges for outgoing calls Customer care initially covering 53 per their respective markets. cent), Sudan (8 per cent), million, a decrease of 39 per
or registration required; it is receive calls in their home and sms are made in home should a customer need cent of the population in 36 This reflects Zain’s strategy Tanzania (6 per cent) and DRC cent compared to Q3-2007.
part of all existing prepaid country; and now don’t pay to currency equivalent of the assistance, calls to customer major cities and 14 highways to be the leading mobile (5.5 per cent) as of Q3-2008. Zain in Burkina Faso had an
and post-paid tariff plans. receive calls or sms anywhere visited country tariff. care (via home network short spanning over 4,000 km. operator in the markets All in all, Zain’s African ARPU of US$ 8 in Q3-2008.
As soon as customers arrive within the Zain One network. prepaid per minute social codes) are free of charge and are In December, 2007 the group it serves. As of Q3-2008, operations registered a 49 per
in a visiting country and this offers transparency in home tariff (tariff used routed to a home network call also acquired 75 per cent of Zain’s African operations cent increase in customers in Chad
turn on their mobile phones, international calling rates by majority of prepaid centre where the customer may Westel Ghana, Ghana’s second represented 67 per cent of the Q3-2008, while the Middle Zain Chad launched services
or receive signal/coverage Make calls at local rates customers) is applicable speak to a service representative national operator. Zain intends group’s customer base while Eastern operations registered in October 2000 and is the
from the visiting country/ Convenience and peace-of- to visiting customers in his own language. to launch services in Ghana Middle East operations: Iraq, a 57 per cent increase leading mobile operator with
in Q4-2008. Following this Bahrain, Sudan, Lebanon, over the same period. a 66 per cent market share.
12 www.COmm.AE nOvEmbEr 2008 13

10. supplement: ZAIn Operations
the decrease in its market
share given the double SIM
usage particularly from
Moov, a price player and the
aggressive entry of Orange.
Nigeria
In May 2006, Zain acquired a
65 per cent majority stake in
the Nigerian mobile operator
V-mobile for US$ 1.005 billion.
Nigeria is Africa’s most populous
nation and has become
Zain’s main driver for growth
throughout its 20 operations.
Nigeria will soon overtake
South Africa as the continent’s
largest telecoms market. Zain
in Nigeria had over 15.9 million
active customers by Q3-2008,
representing a 61 per cent
increase compared to Q3-2007.
The operation’s customers
accounted for 29 per cent of
Zain in Chad had a total of cent compared to Q3-2007. cent share. Q3-2008 witnessed compared to Q3-2007. decreased by 35 per cent had over one million active Net income reached US$ 7 Zain’s total customer base.
880,000 active customers The operation’s revenues the introduction of new The operation’s Q3-2008 compared to the same period customers by Q3-2008, million, an increase of 75 per The operation’s Q3-2008
at the end of Q3-2008, accounted for 3 per cent of services such as the Youth revenues reached US$ 104.4 of 2007. Zain in Gabon had an representing a 132 per cent cent compared to Q3-2007. revenues reached US$ 416.2
representing a 73 per cent Zain’s total revenues. EBITDA Tariff, Blackberry and Pay million, an increase of 32 per ARPU of US$ 30 in Q3-2008. increase compared to Q3-2007. Zain in Malawi had an ARPU million, an increase of 40 per
increase compared to Q3-2007. decreased by 23 per cent For Me project. Population cent compared to Q3-2007. Zain in Gabon continues to The operation’s Q3-2008 of US$ 10 in Q3-2008. cent compared to Q3-2007. The
The operation’s Q3-2008 compared to Q3-2007 and coverage stood at 84 per cent. EBITDA decreased by 41 per be the market leader with a 59 revenues reached US$ 23.2 operation’s revenues accounted
revenues reached US$ 33.8 reached US$ 20.9 million. cent compared to Q3-2007. per cent market share despite million, an increase of 77 per Niger for 22 per cent of Zain’s total
million, an increase of 50 per Net income reached US$ 9.7 Democratic Republic of Congo Zain in DRC had an ARPU the ongoing price competition cent compared to Q3-2007. Zain Niger launched its services revenues. EBITDA increased by
cent compared to Q3-2007. million, a decrease of 49 per Zain DRC was launched of US$ 11 in Q3-2008. from its competitor. EBITDA increased by 61 per in October 2001, and is the 40 per cent to reach US$ 122.9
EBITDA increased by 59 per cent compared to Q3-2007. in December 2000 and its cent to reach US$ 6.3 million market leader with a 67 per million compared to Q3-2007.
cent compared to Q3-2007 Zain in Congo B. had an current market share is 44 Gabon Kenya compared to Q3-2007. Zain cent market share. Niger hosts Zain in Nigeria had an
to reach US$ 13.5 million. ARPU of US$ 14 in Q3-2008. per cent. There are four main Zain Gabon was launched Zain Kenya was acquired in in Madagascar had an ARPU four other mobile operators. ARPU of US$ 9 in Q3-2008.
Net income reached US$ 3.8 Despite MTN’s ongoing competitors operating in this in June 2000 and is the May 2004. Kenya is considered of US$ 7 in Q3-2008. Zain in Niger had a total of
million, an increase of 90 per competition and Warid’s highly competitive market. undisputed leader in this a highly competitive market 948,000 active customers by Sierra Leone
cent compared to Q3-2007. aggressive tariff plans, Zain Zain in DRC had over three prosperous African nation, with relatively low ARPUs. Malawi Q3-2008, representing a 60 Zain Sierra Leone launched
Zain in Chad had an ARPU in Congo B. was able to million active customers holding a 59 per cent market Zain in Kenya had over Zain Malawi launched services per cent increase compared services in September 2000,
of US$ 12 in Q3-2008. maintain its position as the by Q3-2008, representing share. There are currently 2.5 million active customers in October 1999 and is the to Q3-2007. The operation’s and is the leading provider
market leader with a 64 per a 42 per cent increase two competitors operating by Q3-2008, representing leading mobile operator with a customers accounted for of telecoms services in this
Congo Brazzaville in Gabon. Zain in Gabon a seven per cent decrease 74 per cent market share. Zain two per cent of Zain’s highly penetrated market. Zain
Zain Congo Brazzaville was Zain Group customers (end-September 2008) had a total of 761,000 active compared to Q3-2007. in Malawi had over 1.1 million total customer base. in Sierra Leone had a total
launched in December 1999 customers by Q3-2008, The operation’s Q3-2008 active customers by Q3-2008, The operation’s Q3-2008 of 444,000 active customers
and is the premier operator in Others representing an 18 per cent revenues reached US$ 41.8 representing a 108 per cent revenues reached US$ 34.1 by Q3-2008, representing
the country with a 64 per cent Zambia increase compared to Q3-2007. million, a decrease of 14 per increase compared to Q3-2007. million, an increaseof 43 per a 39 per cent increase
Tanzania
market share. To date, there The operation’s customers cent compared to Q3-2007. The operation’s customers cent compared to Q3-2007. The compared to Q3-2007.
Nigeria
are two competitors operating accounted for one per cent of EBITDA decreased by 273 per accounted for two per cent of operation’s revenues accounted The operation’s Q3-2008
Kenya
in the country. Zain in Congo Zain’s total customer base. cent compared to Q3-2007 Zain’s total customer base. for two per cent of Zain’s total revenues reached US$ 12.3
Gabon
B. had over 1.2 million active DRC
The operation’s Q3-2008 and reached US$ 9.7 million. The operation’s Q3-2008 revenues. EBITDA increased million, an increase of
customer s by Q3-2008, Congo Brazzaville revenues reached US$ 74.5 Net Income decreased by 53 revenues reached US$ 36.5 by 23 per cent compared to 19 per cent compared to
representing a 35 per cent Sudan million, an increase of 26 per per cent compared to Q3-2007. million, an increase of 85 per Q3-2007 and reached US$ 14.7 Q3-2007. EBITDA increased by
increase compared to Q3-2007. Lebanon cent compared to Q3-2007. The Zain in Kenya had an ARPU cent compared to Q3-2007. The million. Net income reached 237 per cent to reach US$ 5.4
The operation’s customers Kuwait operation’s revenues accounted of US$ 5 in Q3-2008. operation’s revenues accounted US$ 7.4 million, a decrease of 14 million compared to Q3-2007.
accounted for two per cent of Jordan for four per cent of Zain’s total for two per cent of Zain’s per cent compared to Q3-2007. Net income reached US$ 1
Zain’s total customer base. Iraq revenues. EBITDA increased Madagascar total consolidated revenues. Zain in Niger had an ARPU million, an increase of 191 per
The operation’s Q3-2008 Saudi Arabia by five per cent compared to Zain Madagascar joined the EBITDA increased by 80 per of US$ 11 in Q3-2008. cent compared to Q3-2007.
Bahrain
revenues reached US$ 57.4 Q3-2007 and reached US$ Zain’s Group African portfolio cent compared to Q3-2007 and The operator continues to Zain in Sierra Leone had an
Source: Zain earnings report
million, a decrease of 2 per 30.7 million. Net income in 2005. Zain in Madagascar reached US$ 15.3 million. dominate the market despite ARPU of US$ 8 in Q3-2008.
14 www.COmm.AE nOvEmbEr 2008 15

11. supplement: ZAIn
Zambia
Zain Zambia was launched
in 1998 and continues to be
one of the star performers
of the Group. With two
competitors in Zambia, Zain
is the market leader with a
74 per cent market share.
Zain in Zambia had over
2.5 million active customers
by Q3-2008, representing a
41 per cent increase compared
to Q3-2007. Zain in Zambia’s
Q3-2008 revenues reached US$
99.5 million, an increase of
49 per cent compared to
Q3-2007. The operation’s
revenues accounted for five per
cent of Zain’s total revenues.
EBITDA increased by 50 per
cent compared to Q3-2007
Tanzania cent compared to Q3-2007. The Uganda and reached US$ 50.9 million.
Zain Tanzania was launched operation’s revenues accounted Zain Uganda launched services Net Income reached US$ 25
in November 2001. Zain for four per cent of Zain’s total in 1995 and was Celtel’s million, an increase of 63 per
currently owns 60 per cent revenues. EBITDA increased by first operation in Africa. cent compared to Q3-2007.
of the company, while the 38 per cent to reach US$ 33.9 Zain in Uganda had over Zain in Zambia had an
remaining stake is held by the million in Q3-2008. Net income 1.8 million active customers ARPU of US$ 13 in Q3-2008.
Tanzanian government. With reached US$ 13.9 million, an by Q3-2008, representing Following the successful launch
a 36 per cent market share, increase of 29 per cent compared a 59 per cent increase of the Zain brand in August
the operation is the second to the same period of 2007. compared to Q3-2007. 2008, the operator was able to
largest in a country boasting Zain in Tanzania had an The operation’s Q3-2008 maintain the lead with a 74
four mobile companies. ARPU of US$ 9 in Q3-2008. revenues reached US$ 34.9 per cent market share. Zain in
Zain in Tanzania had over Q3-2008 saw the successful million, an increase of 38 per Zambia’s excellent performance
3.2 million active subscribers rebranding of Celtel to Zain cent compared to Q3-2007. was driven by strong customer
at the end of Q3-2008, Tanzania. This smooth brand EBITDA increased by 40 per growth and brand loyalty
representing a 46 per cent transition was reflected in a cent to reach US$ 5.6 million resulting in a higher EBITDA
increase compared to Q3-2007. strong customer growth and compared to Q3-2007. Net and net income of 50 per cent
The operation’s customers brand loyalty. Additionally, income increased by 45 per and 63 per cent respectively.
accounted for 6 per cent of new services were rolled- cent compared to Q3-2007. Additionally, increased
Zain’s total customer base. out including Jirushe Zain in Uganda had an ARPU network roll-out enabled
The operation’s Q3-2008 and Jiachie bundle tariffs of US$ 6 in Q3-2008. The the operation to increase
revenues reached US$ 86.5 enabling customers to make operator enjoys a market its population coverage
million, an increase of 21 per unlimited on-net calls. share of 38 per cent. to 77 per cent.
Zain timeline 2003 – 2008
Acquired Fastlink the Awarded management Acquired the remaining Rebranded to Rebranded 14
leading Jordanian agreement in lebanon 61% of mobitel (sudan) Zain along with Celtel operations
mobile operator four operations to Zain
Acquired 15
year nationwide
licence in Iraq launched
Awarded second Gsm Acquired Celtel Acquired 65% of saudi Arabia
licence in Bahrain (13 African nations) V-mobile in nigeria Acquired 75% of operation
Westel Ghana
Won bid for third
Awarded Gsm Acquired Madacom Gsm licence in Acquired
licence in Iraq in madagascar saudi Arabia Iraqna in Iraq
2003 2004 2005 2006 2007 2008
16 www.COmm.AE