Driving Growth Through Dialogue Amer Al Rawas, PhD ARABCOM 2005 TUNISIA, 29 JUNE, 2005.

Driving Growth Through Dialogue

Amer Al Rawas, PhD

ARABCOM 2005

TUNISIA, 29 JUNE, 2005

THE OMANI MARKET

• Growth Potential

• COMPETITION

THE BASIS FOR TRANSFORMATION

• Vision and Values

• Restructuring – Market Oriented

• HR - Transforming the Mindset

KEY GROWTH INDICATORS

KEY DRIVERS FOR GROWTH

• Customers - New Dialogue

• Services – Innovative & Simple, Value & Relevance

• Network - Quality & Coverage

• Regulator & Competitor – Respect & engage in a positive dialogue

THE OUTLOOK

AGENDA

OMAN IS OUTPERFORMING MARKET EXPECTATIONS, MOBILE OPERATORS HAVE THE OPPORTUNITY TO CREATE THE MARKET

OMAN IS PREDICTED TO HAVE A STRONGER SUBSCRIBER GROWTH THAN OTHER COUNTRIES IN THE REGION WITH POTENTIAL 1,000 k ADDITIONAL SUBSCRIBERS (Pyramid

Research 2004 Analysis)

30 % (806k) penetration 70 % (1,900k) potential penetration

Our staff – Services driven

Our Customers – Choice

Our Shareholders – Grow Value

FEBRUARY 8 - 2004; BY ROYAL DECREE THE FIRST OPERATOR LICENSE IS GRANTED

NEW EXPECTATIONS:

• 2nd Operator license is granted, change is inevitable.

• Liberalization of telecom market brings direct benefits to Omani Market customers, with choices and new services

THE BASIS: OUR VISION AND VALUES ROOTED IN OMAN

To be the favorite mobile company in

Oman; extending our success regionally

100% Omani owned, 91% Omanization

Our ValuesOur Vision

EMPOWERING GROWTH THROUGH RESTRUCTURING & HUMAN RESOURCE DEVELOPMENT FROM PAST TOWARDS THE FUTURE

technically oriented business oriented

business as usual business as required

internally focused customer focused

activity focused performance focused

passive & reactive proactive engagement

management focused leadership focused

individual efforts team efforts

Over a 1000 applications per month on online job-site!

No one is to be blamed for the past!

HRD COMPETENCE DEVELOPMENT, UNLEASHING OUR POTENTIAL

Knowledge

Soft skills

Leadership

Communication Skills

Analytical Skills

Technical Skills

ATTITUDE

Professional / Trusted

OMAN MOBILE HAS TRANSFORMED FROM A TYPICAL INCUMBENT TO A CUSTOMER FOCUSED AND MODERN MOBILE SERVICE PROVIDER

BEFORE AFTER

REALIZING GROWTH FOR SHAREHOLDERS: ACHIEVEMENTS - new Oman Mobile started already in 2004

Q1 2005 we reached:Subscriber growth trend

Professional / Trusted

900000 SUBSCRIBERS!!

The run to

1 million has started…

• Revenue: up 29%

• ARPU Post Paid: up 1 %

• ARPU Pre Paid: up 6 %

New services, improved network coverage and availability contribute to ARPU stability

Penetration exceeding expectations

Professional / Trusted

2004, more figures:

REALIZING GROWTH FOR SHAREHOLDERS: ACHIEVEMENTS - new Oman Mobile started already in 2004

Al-Araimi full service center

ENABLING GROWTH: NEW WAYS OF DIALOGUE WITH OUR CUSTOMERS

• New Customer Services outlook:

• “Mini SMS Bill” – check your bill via SMS (90099)

• Credit alert by SMS

• 20 bill payment machines

• 196 – Helpdesk opens 24 hours a day 7 days a week

• Dedicated Key Accounts Executives

Transparent / Fair

Mada Postpaid subscriptions,

Hayyak kits, number changes, bill payment etc.

OUR SERVICES ARE AVAILABLE ALL OVER OMAN THROUGHTHE MOST COMPREHENSIVE MOBILE DISTRIBUTION NETWORK IN THE COUNTRY

• More than 11,000 point-of-sales for Prepaid top-up vouchers

• Over 400 outlets for Prepaid Starter kits

• Partners: Souq (al-Maha), Al Fair, Carrefour, Lulu, NTS, Loay, selected phone outlets and many others

Transparent / Fair

INNOVATIVE DIALOGUE WITH OUR CUSTOMERS: BUILDING THE BRAND THROUGH INTERACTIVE PROMOTIONS (I)

GAMER 2005 STUDENT COMPETITION:

Creating brand awareness amongst important target groups

Triggering local creativity

Fuelling interest among youth for knowledge intensive industries

Nationwide launch of first OMANI MOBILE GAME

Innovative / Simple

INNOVATIVE DIALOGUE WITH OUR CUSTOMERS: BUILDING THE BRAND THROUGH INTERACTIVE PROMOTIONS (II)

INNOVATIVE DIALOGUE WITH OUR CUSTOMERS: BUILDING THE BRAND THROUGH INTERACTIVE PROMOTIONS (III)

Send your Mobile Wish by SMS

Oman Mobile will work on making it come true

Innovative method to seek interaction with customer

Overwhelming response

Valuable feedback

Innovative / Simple

A NUMBER OF NEW SERVICES HAVE BEEN LAUNCHED WITH EASY TO UNDERSTAND PACKAGES AND BUNDLES

VALUE ADDED SERVICES AND CONTENT FOR PRE- AND POSTPAID THROUGH OUR PORTAL “TAIF”

Picture messaging (MMS)

WAP Internet surfing (GPRS)

Download latest branded & Arabic content!

No activation fee; no monthly fee; pay as you go

Innovative / Simple

OMAN MOBILE HAS REFINED ITS NETWORK SINCE 1996 – SUPERIOR COVERAGE; FOR THE MARKET, FOR SERVING THE COMMUNITY, FOR DRIVING THE ECONOMY

Oman Mobile, Covering OVER 90% of the populated area of the Sultanate

Active dialogue with international partners has resulted in improving our exciting roaming agreements and adding new ones

193 Roaming Partners in 81 countries, for both Postpaid & Prepaid Roaming

A record

86 new agreements in

7 months

OMAN MOBILE’S NETWORK QUALITY HAS SUBSTANTIALLY IMPROVED – NOT ON OBSTACLE ANYMORE FOR PROVIDING GOOD SERVICES

Dropped Calls TCH Congestion SDCCH Congestion Call Setup Success Rate Handover Success Rate

NETWORK QUALITY INDICATORS WELL WITHIN INDUSTRY STANDARD

REGULATORY DEVELOPMENTS IN MOBILE MARKET IN OMAN

Regulatory focus Oman Mobile

Work with the regulator to reduce regulatory burden for Oman Mobile & Regulator

Play positive role in licensing of new technologies (e.g. UMTS) and services

Together work on regulatory and government policies that will spur innovation and benefit sector

Number portability Working together towards sustainable and cost effective solutions

Moved away from distance based pricing with innovative discount packages

Tariff rebalancing in mobile market approved by the Regulator

Commercial Agreement without regulatory intervention

Commercial Interconnection agreements

Agreement on prices without regulatory interventionNational Roaming now provided to the

new Operator

Customer does not know technology

Customer will know services & quality

Expectations Customer Awareness

AN OUTLOOK : GROWTH DRIVERS!

Voice -

Increasing capacity

Innovative pricing schemes on post paid an prepaid

Data -

Increasing bandwidth availability

Cross platform rich content delivery

27

16

57

89

47

44

21

35

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GPRS EDGE 3G

Well

Little

NO Idea

Oman, April 2005

Innovative / Simple

Definitely NOT the technology!

Determining success Pitfalls in other countries

SUCCESS FACTORS AND PITFALLS FOR 3G

Reduce customer switching costs

• Communicate services; not 3G

• Boost services with local appeal

• Ensure wide range of quality handsets

• Clear & easy to understand pricing schemes

Human Resource Development

• Develop IP engineering/network skills

• Create marketing orientation towards DATA

A technology driven launch

o No services to drive customer interest

o No availability and limited performance of Handsets

o Limited coverage

o Pricing structure that does not attract data usage

o Investment burden of acquiring 3G license

Innovative / Simple

Focus Assess next steps

MORE CAPACITY AND BANDWIDTH, FOCUS TO BE ON THE LEADING EDGE, NOT THE BLEEDING EDGE...

Introducing EDGE

• Increasing speed(approx. 3 x GPRS)

• Complementary services

• Capitalizing on existing infrastructure

3G and beyond

• Bandwidth & capacity

• Services driven

• Migration strategy to be shaped

Gradual introduction from Sept 05 Initial investigation stage

Innovative / Simple

KEY MESSAGES

Competition is a blessing

Professional / Trusted

• Stimulates the market • Accelerates the pace of transformation • Provides choices &

Benchmark

Dialogue is the magic tool!

Key growth drivers

• Services – innovative , simple, value, relevance • Customer care – friendless, responsiveness & proximity• Network quality – leading edge!

use proven technologies & watch all indicators

THE KEY DRIVER: PEOPLE

Move from people who do things correctly to people who do the correct things

Innovative / Simple - Transparent / Fair - Professional / Trusted

From guarding the rules to making the rules!

THANK YOU!