Interview with Tom Heeremans, General Manager - MACH MEA |
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What are the current industry trends in the Middle East & Africa?
“Existing trends from Europe have now started to infiltrate MEA. In the Middle East, there is a consolidation of the market and opportunities for groups to form and expand are prevalent (e.g. MTN Group formed 1 ½ years ago). This trend isn’t just restricted to the larger operators/big players, as we are also seeing the formation of smaller groups.
WiMAX has made an entrance in the Middle East, particularly with home operators in Jordan, Bahrain and Egypt. The Middle East used to consist of monopolies, however these have almost all gone and have been replaced by a high level of competition, with many opportunities up for grabs once again in the region.
In Africa, re-pricing is being used more and more as part of operators’ strategies. In the last year the concept of borderless roaming has come into effect, spearheaded by Celltel. Borderless roaming involves 12 operators in Africa, essentially 1 network with no roaming charges amongst the members. This has been counteracted by a couple of operators (Vodacom, Safaricom and MTN Group) who have joined forces, equalling a dramatic increase in roaming traffic. This borderless roaming has also been introduced in the Middle East recently.
EU regulations such as lower wholesale prices and increases in IOTs have also had an impact on MEA, making roaming three times as expensive as before for certain destinations. The transparent, flexible pricing that re-pricing brings is therefore a key benefit to offer subscribers.
MEA is looking very attractive for European groups ready for further expansion and investment (Vodafone, Orange), who are now looking to focus more on this (previously forgotten) region. Africa has the growth potential for operators as an emerging market. There is a rising interest in the Middle East as new technologies can be introduced to expand standard offerings.”
How are these trends impacting the industry?
“Consolidation brings a reliance upon and necessity for high-level branding. The re-branding of the global name is vital to build reputation, encourage loyalty and therefore increase the number of subscribers. Subscriber numbers are rising and there is room for significant growth; as within the region, some countries have mature markets whereas some are still emerging.
Emerging markets such as Iran, Afghanistan, Iraq, Yemen and Oman are ripe for opportunities and tend to require network related services such as SMS and MMS. In comparison, the UAE, Bahrain and Egypt are mature markets with a strong need to compete so are ready for strategic VAS such as re-pricing, to enhance their competitive edge.”
What products are popular in the region?
“Re-pricing is being adopted within the global roaming strategies of influential operator groups (MTN, Orascom Group). By setting special tariffs within the groups, this works as a reaction against the borderless roaming concept initiated by Celltel Africa. Transparent pricing is essential for differentiation.
MEA is truly diversified in terms of mature vs. emerging markets. This is an advantage as even large, established operators can increase their coverage and revenues further through new Value Added Services (VAS), innovations and technologies. Smaller start-up operators can forge new footprints and relationships through standard products but can also take direct advantage of innovations – have access to new solutions that weren’t available when the larger operators were starting out. Both are advantageous situations; the best of both worlds.
The Link2One roaming hub, SMS, NRTRDE and Fraud Protection are also popular as, irrespective of the size or coverage of an operator, the need to diversify through innovation, compliance with industry regulations and current fraud dangers are region-wide and must be addressed. Operators are actively aware of this.”
What are the specific strengths of the MEA team?
“The team knows and understands the different cultures and customs within MEA, both African and Middle Eastern, thereby our support both respects and reflects these needs and traditions.
Our clients appreciate MACH’s dedicated local support. Our client support located in Dubai is the ideal centre from which to support the region, and amongst client support and the Sales Account Managers, we have a multilingual team. We have a personal approach and speedy response times – we enjoy interacting with our clients at every opportunity. Relationships are extremely important to the team – as is client satisfaction.
Our extensive knowledge of these markets is unmatched. The local know-how that we have helps operators integrate and launch their MACH services in the most effective and efficient way possible. As we understand their specific needs and requirements, we can always advise on key strategic opportunities. Our clients appreciate these values.”
