Celtel coverage at 92%
Sep 05, 2007
Celtel recently celebrated having 1.1 million subscribers, most of whom were signed on in the last seven months. <b>Emmy Olaki</b> spoke to <b>Yesse Oenga</b>, the managing director...
Celtel recently celebrated having 1.1 million subscribers, most of whom were signed on in the last seven months. Emmy Olaki spoke to Yesse Oenga, the managing director...
QUESTION: It took you long to register 450,000 subscribers, but in six months, you have registered 750,000. What was the key to that?
ANSWER: We are now moving towards 1.2 million subscribers. That growth is a culmination of many strategies. One was the decision by the group to take majority stake in the Ugandan operation in 2004 and invest. The plan was to first do a complete network swap. We have a good quality signal because we have a good switch. Over the last one year, our investment is heading to $100m (sh177b) in network and capacity expansion. After the final migration we did on September 1, we can hold three million subscribers. We are investing ahead because we have a belief in the market.
We also invest in people. We have a good team, but the team alone without a purpose is not enough. The biggest driver of our growth has been the brand and investment in the brand is not something we shall relent on.
QUESTION: You talked about network expansion, what is your geographical coverage?
ANSWER: We are covering close to 92% of Uganda’s population. I haven’t checked the benchmarks but it probably is the largest coverage in the country. Erickson has put in place one of the latest technology that allows expansive coverage and deep penetration of our signal using technology called expanded solution. This multiplies the coverage you achieve with the base station. We also have a geo-marketing team that does surveys which we use in our network planning. We are still expanding and shall continue to invest because coverage is critical to success. We have even covered borders. At all critical border points in this country, you will find our coverage. We have sister companies all around. The idea is to have a seamless network to enable people move across borders.
QUESTION: What happened with product innovations and what is coming ahead?
ANSWER: We have been at the cutting edge with innovations. One key product is One Network. We have moved beyond three countries to six. We brought in one application, which allows you to receive and send e-mails, do picture messaging and data services across East Africa as if you are in the same country. We are about to launch Blackberry (a mobile phone that provides a variety of IT services). It is active in Kenya and Tanzania. Those innovations are taking us to the next generation technology. We shall move to whatever heights to provide the latest technology we can.
QUESTION: New telecom companies will be launching on this market soon. How prepared are you?
ANSWER: Uganda has been a competitive market. We have been three players, now there will be two more. It doesn’t change the fact that it’s a competitive market, it actually makes it more interesting. It is for the best to take the day. They are welcome to a competitive environment. We are ready for them. There is still a lot of opportunity. The issue will not be about the individual competitor but getting to the person fastest.
QUESTION: What role is the rural market playing in the telecom sector? Is it active?
ANSWER: Our brand promise is premised on the rural. Making life better is about connecting the unconnected. We get most of our traffic from the rural people. Most of our investment has been extending to rural areas because we believe there is an opportunity. The challenge is ensuring that you are appropriate to them. There is a big informal sector, a lot of enterprise and strong people who are making a living and they generate some money. We have ensured we deliver accessible products, aligned consistently and impacting on those people. These people want to get into the economy. As a result of connecting them and linking the country, there is an economic impetus. That is where the opportunity lies in Africa.
QUESTION: What are the challenges in this sector?
ANSWER: Resourcing and ensuring that you are ready for it. Ensuring that you persistently invest ahead of the flock. The biggest challenge is to believe in it because if you do, you invest ahead. Reaching areas that were inaccessible is also a challenge. The marketing challenge is how to ensure that availability and accessibility are relevant for that area of the market, and promoting it by getting vehicles that connect you to those areas in terms of distribution and relevance of products. Phone prices have also been a barrier, but we have been running promotions that are driving them down. We have also ensured that simpack prices come down.
QUESTION: It took you long to register 450,000 subscribers, but in six months, you have registered 750,000. What was the key to that?
ANSWER: We are now moving towards 1.2 million subscribers. That growth is a culmination of many strategies. One was the decision by the group to take majority stake in the Ugandan operation in 2004 and invest. The plan was to first do a complete network swap. We have a good quality signal because we have a good switch. Over the last one year, our investment is heading to $100m (sh177b) in network and capacity expansion. After the final migration we did on September 1, we can hold three million subscribers. We are investing ahead because we have a belief in the market.
We also invest in people. We have a good team, but the team alone without a purpose is not enough. The biggest driver of our growth has been the brand and investment in the brand is not something we shall relent on.
QUESTION: You talked about network expansion, what is your geographical coverage?
ANSWER: We are covering close to 92% of Uganda’s population. I haven’t checked the benchmarks but it probably is the largest coverage in the country. Erickson has put in place one of the latest technology that allows expansive coverage and deep penetration of our signal using technology called expanded solution. This multiplies the coverage you achieve with the base station. We also have a geo-marketing team that does surveys which we use in our network planning. We are still expanding and shall continue to invest because coverage is critical to success. We have even covered borders. At all critical border points in this country, you will find our coverage. We have sister companies all around. The idea is to have a seamless network to enable people move across borders.
QUESTION: What happened with product innovations and what is coming ahead?
ANSWER: We have been at the cutting edge with innovations. One key product is One Network. We have moved beyond three countries to six. We brought in one application, which allows you to receive and send e-mails, do picture messaging and data services across East Africa as if you are in the same country. We are about to launch Blackberry (a mobile phone that provides a variety of IT services). It is active in Kenya and Tanzania. Those innovations are taking us to the next generation technology. We shall move to whatever heights to provide the latest technology we can.
QUESTION: New telecom companies will be launching on this market soon. How prepared are you?
ANSWER: Uganda has been a competitive market. We have been three players, now there will be two more. It doesn’t change the fact that it’s a competitive market, it actually makes it more interesting. It is for the best to take the day. They are welcome to a competitive environment. We are ready for them. There is still a lot of opportunity. The issue will not be about the individual competitor but getting to the person fastest.
QUESTION: What role is the rural market playing in the telecom sector? Is it active?
ANSWER: Our brand promise is premised on the rural. Making life better is about connecting the unconnected. We get most of our traffic from the rural people. Most of our investment has been extending to rural areas because we believe there is an opportunity. The challenge is ensuring that you are appropriate to them. There is a big informal sector, a lot of enterprise and strong people who are making a living and they generate some money. We have ensured we deliver accessible products, aligned consistently and impacting on those people. These people want to get into the economy. As a result of connecting them and linking the country, there is an economic impetus. That is where the opportunity lies in Africa.
QUESTION: What are the challenges in this sector?
ANSWER: Resourcing and ensuring that you are ready for it. Ensuring that you persistently invest ahead of the flock. The biggest challenge is to believe in it because if you do, you invest ahead. Reaching areas that were inaccessible is also a challenge. The marketing challenge is how to ensure that availability and accessibility are relevant for that area of the market, and promoting it by getting vehicles that connect you to those areas in terms of distribution and relevance of products. Phone prices have also been a barrier, but we have been running promotions that are driving them down. We have also ensured that simpack prices come down.