280 likes | 377 Views
Amman, Jordan, 4 – 7 December 2006 Strategic Management – Part II Forecasting Lecture 14 Country Paper: Qatar. Qatar Telecom (Qtel) Current situation, Challenges for the incumbent operator ahead of competition, Regulatory Environment. Country Profile Qtel-Current Status Challenges
E N D
Amman, Jordan, 4 – 7 December 2006 Strategic Management – Part II Forecasting Lecture 14 Country Paper: Qatar ITU/BDT/ HRD Strategic Management / Forecasting
Qatar Telecom (Qtel) Current situation, Challenges for the incumbent operator ahead of competition, Regulatory Environment ITU/BDT/ HRD Strategic Management / Forecasting
Country Profile Qtel-Current Status Challenges Approaching Competition Regulatory Framework CONTENT ITU/BDT/ HRD Strategic Management / Forecasting
State of Qatar Population : 840,000 (2006 Census) Pop. Growth : 5% GDP/capita : US$ 54,500 (2006) GDP Growth : 7% (2005 est., EIU) Member of WTO since 1996 Booming Economy Country Profile ITU/BDT/ HRD Strategic Management / Forecasting
Qatar ITU/BDT/ HRD Strategic Management / Forecasting
Sole provider of public telecom services till 2013 (Law 13, 1998) New Telecom Law ended Qtel’s exclusivity right (Law 31, 2006) Privatized Jan 1999: Government- 55% IPO-residents & GCC-45% Services: Fixed telephony-national & international GSM Mobile- prepaid and postpaid Data services Internet- dialup, ADSL Cable TV Paging, PMR Qatar Telecom- Qtel (1) ITU/BDT/ HRD Strategic Management / Forecasting
Employees : 1800 Penetration: Fixed : 26% Mobile : 102% ADSL : 2.6% (2005) ARPL : US$ 76 (2003) ARPU (blended): US$ 79 (2003) Qatar Telecom- Qtel (2) ITU/BDT/ HRD Strategic Management / Forecasting
Qatar Telecom- Qtel (2) ITU/BDT/ HRD Strategic Management / Forecasting
Qatar Telecom- Qtel (2) ITU/BDT/ HRD Strategic Management / Forecasting
3,000 2,500 2,000 Revenue mQR 1,500 EBIDTA 1,000 500 0 2003 2004 2005 Qatar Telecom- Qtel (3)Revenue Growth ITU/BDT/ HRD Strategic Management / Forecasting
Qatar Telecom- Qtel (4)Qtel’s Share Performance ITU/BDT/ HRD Strategic Management / Forecasting
Country committed to liberalization Regulator established in 2004, exclusivity right ended 2006 Tarrifs going down Rapid population growth- influx of expats Customers expectations / requirements New technologies External expansion Booming economy Asian Games 2006 Geo-political situation Challenges (1) ITU/BDT/ HRD Strategic Management / Forecasting
Customer Expectations Challenges (2) ITU/BDT/ HRD Strategic Management / Forecasting
New Technologies 3G Mobile Triple Play WiMax Next Generation Networks (e.g.NGDLC) IP-based networks/Services Challenges (3) ITU/BDT/ HRD Strategic Management / Forecasting
Booming Economy Large Gas & Petrochemical Industries Huge constructions (Pearl, Lausil City, Sport facilities, Towers, Complexes) Large Corporate Customers: dozens of new universities, new medical city, .. Qatar Foundation E-Government Challenges (3) ITU/BDT/ HRD Strategic Management / Forecasting
Restructuring Program Rebalance Strategic Priorities Explore Competition Scenarios Work with the Regulator/Government Preparing for Competition ITU/BDT/ HRD Strategic Management / Forecasting
Main Themes: Create a Professional Business Organizational redesign & internal /external recruiting Fundamentals for high performing team Qatar’s employer of choice Strong performance culture Earn Customer Loyalty Better segmentation and pricing Superior quality of products and services Customers enjoy interacting with Qtel Regional recognition as a customer-oriented telco or utility Preparing for Competition (1)Restructuring Program-Q-Turn (2) ITU/BDT/ HRD Strategic Management / Forecasting
Strengthen Financial Structure Optimize equity structure and balance sheet Full utilization of assets Strong Qtel share Capture Growth: Push boundaries in Qatar & new markets Leader in reshaping regional telecom sector Achieve first class Operational Efficiency: Boost performance Re-engineer key processes Outperform in benchmarking effort Prepare for competitive pressure Preparing for Competition (1)Restructuring Program-Q-Turn (3) ITU/BDT/ HRD Strategic Management / Forecasting
Board CEO Group Finance Group Strategy Group Communications Group HR General services Wireline Services Wireless Services Special businesses Finance HR Finance HR Finance HR Finance HR IT QCV Network Network Building & eng. services Pay-phones Marketing Product mgmt. Support services Yellow pages Sales Corporate wireline Customer service support Directory assistance Residential wireline Accounting services Maritime radio comms Personnel services Preparing for Competition (1)New Structure (2003) ITU/BDT/ HRD Strategic Management / Forecasting
Preparing for Competition (2)Rebalance Strategic Priorities BEFORE Degree of focus Strategic Priorities Approach in the base case • Push financial performance as hard as possible • Financial performance • Make the investments necessary in people to maintain performance in a saturating market • Human Resources • Do enough to get by – make enough improvements to minimise noise • Customers Maximum ITU/BDT/ HRD Strategic Management / Forecasting
Preparing for Competition (2)Rebalance Strategic Priorities (Cont.) AFTER Degree of focus Strategic Priorities Approach in the base case • Push financial performance as hard as possible • Financial performance • Make the investments necessary in people to maintain performance in a saturating market • Human Resources • Do enough to get by – make enough improvements to minimise noise • Customers Maximum ITU/BDT/ HRD Strategic Management / Forecasting
The Regulator: The Supreme Council for Information and Communication Technology (ictQATAR), chaired by the Heir Apparent of Qatar Established by Decree 36 of 2004, officially launched may 26, 2005 Mission: Regulate ICT sector in Qatar Develop a national strategy for ICT Formulate ICT policies Coordinate all initiatives to achieve ICT strategic vision Create legal and regulatory environment Contribute to programs and studies related to ICT Follow-up, evaluate, measure & develop ICT sector Represent Qatar internationally Over 150 initiatives identified Regulatory Framework ITU/BDT/ HRD Strategic Management / Forecasting
ICT Initiatives: State of the art infrastructure: Broad band for all, “Mobile Neighborhood QoS monitoring National Data Center Innovation & capability building: ICT ventures ICT R&D Job market stimulation Regulatory & Legal Framework: Telecom sector deregulation USO Cyberspace regulations Sectoral programs: E-education E-health E-finance E-tourism and sport Regulatory Framework (2) ITU/BDT/ HRD Strategic Management / Forecasting
3 models for ICT initiatives: Owned Project – ictQATAR owns the initiative end-to-end and takes a project management approach Sponsored Project – ictQATAR sponsors the initiative, but management is the responsibility of an independent steering committee with joint participation by the Council and the concerned ministry or government agency Supported Project – ictQATAR supports the initiative with technical inputs and assistance as needed, but a ministry or government agency manages it Regulatory Framework (3) ITU/BDT/ HRD Strategic Management / Forecasting
In a way close to Singapore model A regulator AND enabler Initiatives: Broad band for all, Connect Qatar, State of the art infrastructure Qtel-ictQatar partnership: Free trade Infrastructure QoS monitoring Frequency management Numbering Plan Sector modeling Liberalization approach Regulatory Framework (4) ITU/BDT/ HRD Strategic Management / Forecasting