chaos · As a bonus, Zain offered the people of ... influential people in the world by Time magazine in 2005, and as one of the 100 ... Clinique, as well as strutting her stuff on

chaos BY DESIGNA Zain Magazine | Summer 2008 Issue 04

Zain salutesNelson Mandela at 90

THE CELTEL STORY •ONE NETWORK MIDDLE EAST •

CREATING A WONDERFUL WORLD •BRINGING MOBILE TELEPHONY

TO RURAL AFRICA

3 CHAOS SUMMER 2008

When, just under a year ago, we decidedto rebrand from MTC to Zain, we hadno idea just how much our first advertis-

ing campaigns would capture the hearts, and firethe imagination of the communities we serve,joyfully exceeding all our expectations. It bodeswell for the next step in our historic journey: therebranding of all Celtel Africa to Zain.

I am confident that the rebranding efforts of all our10,000 dedicated and talented personnel in Africawill be reflected in making Zain a household nameacross the continent, just as it is in the Middle East.The rebranding of our African operations to Zainwill support and propel our aspirations of being atop-ten global mobile company by 2011.

We are also thrilled by the expansion in April of ourgroundbreaking One Network service to theMiddle East. Hot on the heels of One Network’ssuccess across 12 African countries, the service isnow available to customers in Bahrain, Iraq, Jordanand Sudan. With the imminent launch of our com-mercial services in the Kingdom of Saudi Arabiaand Ghana, we plan to eventually interconnect allcountries with the One Network, linking many diver-sified communities from the Middle East to thewest coast of Africa. In doing this, not only are weoffering Zain customers a financially economical,seamless communication network when travelling,we are also making history by changing the face ofmobile telecommunications.

Elsewhere, our CSR initiatives are taking shape inAfrica and the Middle East, from the MillenniumVillage Projects in Kenya, Tanzania and Uganda,where mobile communications can play a key rolein helping improve the quality of life for peopleeven in the remotest parts of Africa, to the manyongoing activities we have in the Middle East.

But arguably, our most high-profile outing for theZain brand was the June 27 international charityconcert we sponsored in London’s Hyde Park, hon-ouring and celebrating the 90th birthday of one ofthe world’s most beloved leaders, Nobel PeacePrize Laureate and former South African President,Nelson Mandela. Over 50,000 concertgoers andover 1 billion viewers around the world watchedthe event. As a bonus, Zain offered the people ofAfrica the chance to participate in the event byusing our mobile phone networks in Africa to sendtext messages wishing Mr. Mandela a happy birth-day, with all funds going to his 46664 campaign.

John Lennon said “Life is what happens to youwhile you’re busy making other plans.” At Zain,we try to combine both. We want to live life toits fullest while continuously preparing for afuture filled with excitement and promise,where our dreams can be realised.

Zain is about creating ‘A wonderful world’ after all.

Happy reading!Dr Saad Al BarrakCEO-Zain

Uniting the family under one brand

LETTER FROM THE CEO

4 CHAOS SUMMER 2008

Letter from the CEO

REACHING THE TOPWangari MaathaiCourageous NobelistAlek WekModel with a conscienceSameer Al-AnsariFinancial wizardMohammed Al-GhareebBattling tennis pro

MY CITYSights, sounds and smellsA whistle-stop tour of Accra

TALKING TELECOMChaos by designPart 1 of a dialogue withDr. Saad Al-Barrak on his styleof management

CORPORATE SPIRITA source of national andregional prideMohammed Zainalabedin, GM ofZain in Bahrain, talks about thechallenges ahead as the companyrelocates its headquarters to theGulf state

Going from local to GlobalYesse Oenga, Zain in Uganda’s

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GM, talks of the pioneering spiritand future ambitions of thecompany’s first African operation

A nation of diversityUganda is one of the most fascinat-ing and colorful countries in Africa

Breaking down barriersZain’s revolutionary One Networkreaches the Middle East

And I say to myself…After Future Brand’s developmentof the Zain logo and identity, it wasup to Saatchi & Saatchi Levant tocreate A wonderful world!

“Happy deep in my heart”How Zain’s ads have moved theregion

Genuine air timeAnother first as Zain takes mobileroaming services onto aircrafts

Excellence shines throughCeltel wins best telecom operatorin Africa award

Celebrating Mandela at 90Zain sponsors an event that salutesSoyth African leader, NelsonMandela, on his landmark birthday

Zain at the main eventZain’s decision to sponsor theMandela birthday concert was aroaring success. Just look at thehappy faces

Pre-concert fun in LondonThe Zain family enjoy partying andexperiencing one of the world’s greatcapitals

Three days of rhythmKenya’s Sawa Sawa music concert

Mobile telephony to reachrural AfricaZain, Ericsson and the Earthinstitute help 400,000 people inremote villages

CONTENTS

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Contributors:Lana Captan, Carl Gibeilly,Mathias Klein, AnneRenahan, Thomas Schellen,Stephanie TournearPhotography:Norbert Schiller privatecollection, HussamGhandour private collec-tion, Focus Mideast, ZainGroup, Reuters

Editing:EditMax

Color Separation andPrinting:Raidy Printing Group,Beirut, Lebanon

Produced by:Zain Group Communicationand Investor RelationsDepartment in collabora-tion with Vinehouse Media

P.O. Box 22244 Safat,13083 KuwaitTel.: +965 464 [email protected]

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Making dreams come trueZain in Bahrain’s ambition to be abuilding block for the island state’sfuture pioneers

And the first winners are…We announce the first success sto-ries of the ‘Dream’s can come truewith Zain’ initiative

Making a differenceHow Zain is changing lives in Sudan

Laying down CSR MarkersZain in Saudi Arabia supports cul-ture, sport and education

Game, set and matchZain celebrates its 3rd ACEconference in Kampala, Uganda

SPECIAL SECTIONPassing on the torchThe remarkable story of Celtel andhow it changed Africa

A life less ordinaryThe Mo Ibrahim story

MOBILE LIFELook how far we have comeLife without a mobile phone hasbecome unimaginable, and yet itwasn’t that long ago that we didn’thave them

2G still going strongIn a world of constant change,reliability is still valued

Trivia to inspire

Maathai was elected as a member ofParliament in 2002, and served asAssistant Minister for Environment andNatural Resources in the government ofPresident Mwai Kibaki between January2003 and November 2005.

And while she may be best known forher environmental battles, she is alsosomething of an icon in the struggle forwomen’s rights. She served in theNational Council of Women of Kenya,and was its chairperson from 1981-87,and continues to be active on women’sissues – perhaps as a result of her ownexperiences.

In the 1980s her husband MwangiMaathai, a politician whom she hadmarried in 1969, divorced her,complaining that she was too strong-minded and that he couldn’t control her.She was jailed for speaking out againstthe judge presiding over the case.

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REACHING THE TOP

Ground-breaking and radical,Kenyan environmental andpolitical activist Dr Wangari Muta

Maathai became the first African womanto win the Nobel Peace prize in 2004 forher contribution to sustainabledevelopment, democracy and peace; shehas often addressed the UN on theseissues and also serves on the board ofvarious international organizations.

Named as one of the top 100 mostinfluential people in the world by Timemagazine in 2005, and as one of the 100most powerful women in the world byForbes, Maathai is the daughter of farmersin the highlands of Mount Kenya, and wasalso the first woman in East and CentralAfrica to earn a doctoral degree.

According to the Nobel Committee,“Maathai stood up courageously againstthe former oppressive regime in Kenya ...Her unique forms of action havecontributed to drawing attention topolitical oppression – nationally andinternationally. She has served asinspiration for many in the fight fordemocratic rights and has especiallyencouraged women to better theirsituation.”

She has also won a slew of other awardsover the years, including the RightLivelihood Award – also known as theAlternative Nobel Prize, 1984; the Global500 Roll of Honour, 1987; GoldmanEnvironmental Prize, 1991; the Africa Prize,1991; Edinburgh Medal – for outstandingcontribution to Humanity through Science,1993; Légion d’honneur, 2006; WorldCitizenship Award, 2007; and the IndiraGandhi Prize, 2007.

Much admired across Kenya – and indeedacross Africa – Maathai, who was born in1940 of Kikuyu ethnicity, and is also knownas the ‘tree woman’ or ‘the tree mother ofAfrica’, and founded the Green BeltMovement – a grass-roots environmentalnon-governmental organization – in 1977.Mainly focused on helping women’sgroups to conserve the environment, it

has been responsible for planting morethan 40 million trees across Kenya toprevent soil erosion, thereby helping toimprove overall quality of life. A similarPan-African movement was establishedin 1986, with many other Africancountries adopting its goals andmethods.

Renowned for her strong-mindednessand determination, Maathai has neverbeen afraid of suffering for herconvictions. During the regime ofPresident Daniel Arap Moi, she wasimprisoned several times and alsoattacked for demanding multi-partyelections and an end to politicalcorruption and tribal politics. In 1989, shehelped to save Nairobi’s Uhuru Park bystopping the construction of a 60-storeybusiness complex. She is also dedicatedto canceling the backlog ofinsurmountable debt built up by thepoorer African countries.

Dr Wangari Muta Maathai

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Miyake, Moschino, Victoria’s Secret andClinique, as well as strutting her stuff onthe catwalk for designers like JohnGalliano, Donna Karan, Calvin Klein andErmanno Scervino.

Named as one of People’s 50 mostbeautiful people in 1999, Wek’sgorgeous looks have challenged thetraditional definition of a catwalk model,winning her much magazine space andpaving the way for a generation ofstunning models who don’t fit the oldstandards of traditional beauty. Sowidespread has been her impact thatOprah Winfrey said in an interview withthe model: “If you had been there whenI was growing up, I would have thoughtof myself as beautiful”.

Not just gorgeous but pioneeringtoo, Sudanese supermodel AlekWek has been credited with

redefining traditional notions of beauty.

Spotted in an outdoor London marketas a teenager and immediately signedonto a modeling agency, Wek – whosename means black spotted cow – is oneof the world’s top supermodels. Namedas model of the decade by style bible i-D magazine, model of the year by MTVin 1997 and nominated as Britain’smodel of the year in 2006, she has alsoappeared in music videos with TinaTurner and Janet Jackson, been cast asa princess in a Hollywood blockbuster,appeared on the covers of top fashionmagazines, and has done ads for Issey

There are so many layers to the notionof beauty these days that it’s hard toimagine Wek’s seismic impact on thefashion industry when she appearedon the cover of Elle magazine inNovember 1997. According to Wek’shomepage on a supermodel website:“When Elle chose Alek Wek for thecover of their November 1997 issue,they were taking what manymagazines considered a risk: a dark-skinned African girl on your cover didnot, theoretically, sell issues. Theresult, however, was monumentalreader response with letters-to-the-editor from women and men ecstaticabout seeing the standards of beautyin fashion redefined.”

While Wek’s name has indeed become abyword for groundbreaking beauty, sheis also a keen campaigner for the rightsof refugees and is adamant that fashionisn’t the only thing that is important toher. Born in 1977, into the southernSudanese Dinka ethnic group, Wek cameto live in the UK in 1991 – at the age of14 – after fleeing the country’s long-running civil war between the Muslimnorth and Christian south. Her fatherdied around this time, leaving hermother with nine children.

Driven by the hardships she facedgrowing up – her family was separatedas they fought for refugee status –Wek became a member of the UnitesStates Committee for Refugees’Advisory Council, and she tries to raiseawareness of the situation in Sudan aswell as the plight of refugees aroundthe world.

She has also spoken at the InternationalBlack Caucus Foreign Affairs as amember of a panel, which includedHillary Clinton among others, and visitsschools in the New York area to bringattention to the famine in southernSudan and to educate children on theimportance of nourishment. In addition,she helped to launch the Bracelet ofLife campaign in conjunction withDoctors without Borders. She has alsoworked closely with AIDS awarenessbenefits, children’s charities and breastcancer research.

Alex Wek

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Sameer Al-Ansari

Dubai is swiftly taking the lead asthe Middle East’s financialcentre, and one man helping

drive that trend is Jordanian financialwizard and Liverpool fan (more of thatlater) Sameer Al-Ansari. Dashing whileat the same time rather conservative –not unlike many of his investments –Al-Ansari is executive chairman andCEO of Dubai International Capital(DIC), a $7 billion fund created onlyfour years ago. If his own boldpredictions are correct, this tidy sumwill triple: “We aim to more thantreble the value of assets undermanagement from $7 billion to justunder $25 billion,” he said in aninterview to the British dailyIndependent in November 2007.

The Jordanian Al-Ansari was born inKuwait in 1963 and went to England at13 to complete his studies. With adegree in financial management fromLoughborough University, he endedup being posted in Dubai whileworking for Ernst & Young in 1987.Now, 44, Al-Ansari’s summarises thelogic of his investments: “DIC’sinvestment rationale is to invest acrossinternational borders in businesseswith solid incumbent managementteams and to grow the businesses itacquires through follow-oninvestment”. In 2007, DIC oversaw thehigh-profile merger of the TussaudsGroup, acquired by the group in 2005,with Blackstone’s MerlinEntertainments Group, bringing

together some of the strongest namesin tourism industry and creating theworld’s second biggest visitorattractions operator after Disney. DIC’sportfolio includes the $1.23 billionacquisition of Travelodge (UK), Britain’sfastest growing hotel company, andthe $1.2 billion acquisition ofDoncasters Group (UK), an industrialmanufacturing firm that makesprecision engineering components.

“In this business you are only asgood as your last deal,” said, Al-Ansari, and so in June 2007, DICacquired Mauser, the Germanindustrial packaging company, for€850 million and bought a stake inHSBC Holdings. For Al-Ansari,“private equity is a positive form ofownership and governance. We needto show how we reinvigoratecompanies, strengthen their long-term prospects and create value forall stakeholders. This includeschanging and aligning managementincentives, improving productivityand making more efficient long-terminvestment decisions.”

A member of the Institute ofChartered Accountants in England andWales, Al-Ansari is ready to take risks,though one of his first moves at DICwas conservative – and certain. Hechose to join the private equity club inthe “quickest way” possible, andinvested in big funds like the CarlyleGroup and Kohlberg Kravis Roberts,the titans of private equity funds.

Notwithstanding the success, al Ansarihas had his knocks, which he has takengallantly. A fanatical fan of Liverpoolfootball club, he made an unsuccessfulbid for the Merseyside institution in2006 – “ It took me two weeks to getover that, but it didn’t dent my passion,I still went to every match when I washere,” he said in the Independent – andhad another bid of $793 rejected inearly 2008. The club still remains atarget for Al-Ansari and DIC and wouldrepresent a huge coup for Middle Eastsporting interests. The man with thehuge heart for football is still, like agood player, using his head too.

9 CHAOS SUMMER 2008

6, 6-4. The figures do not reflect the heartand courage shown by Al-Ghareeb, whoforced Federer into a first set tie-breakand led 3-2 in the second set.

According to the Associated Press, “Al-Ghareeb surprised Federer with his strongserve, with six aces in the first set”.Federer himself was magnanimous: Al-Ghareeb he said, “was definitely thebetter player and I think only myexperience helped me get through.”

Al-Ghareeb took it all in his stride: “I reallyshould have won the first set, but I hopeto learn from my mistakes,” he said. “Itwas a great lesson playing againstsomeone like him.”

In Dubai, Al-Ghareeb was a wild card - atournament entry awarded to a player atthe discretion of the organizers – and sono one really expected him to offer muchresistance to the Swiss legend. In anarticle published by ATP, author PaulZimmer describes what he saw as a“spectacular battle”, which was madeeven more relevant due to the “completeobscurity of [Federer’s] opponent”. “A

The Middle East has yet to see itsshare of world-renownedsportspeople, let alone world

beating tennis champions, but Kuwaititennis star Mohammed Al-Ghareeb hasshown that he has the heart to take histalents and use them to fight to the verylimits of this often gruelling sport. Al-Ghareeb is 28 – not young for a tennispro – and has had to play the majority ofhis professional tennis in the lower limitsof the world rankings.

However, his greatest moment came inthe second round of the DubaiChampionships in 2006, when hethreatened to rewrite the script in whatwas meant to be a dead-certain victoryfor world champion Roger Federer, thetournament’s top seed and the worldnumber one. Al-Ghareeb at the timeranked 488 in the world (his careerbest was 336); on paper, it should havebeen a walkover.

But not so. It what turned out to be atitanic struggle, the unknown Kuwaititook arguably the greatest tennis playerof all time to the wire, losing narrowly 7-

wild card entry from Kuwait”, saysZimmer, “the 25-year-old Al-Ghareebentered with a career 11-4 mark on tour.By contrast, Roger has more wins thanthat this year alone. In fact, Roger ownsnearly three times as many tournamenttitles (35) as Al Ghareeb has career winson his resume. But none of thosediscrepancies mattered, as Al-Ghareebjumped out to a stunning 4-2 lead in thefirst set.”

Although his career on the ATP tourcircuit has probably seen its best days,Al-Ghareeb is by far Kuwait’s greatesttennis player. He has represented hiscountry 41 times at Davis Cup level,and in 2007, he led the Kuwaiti team inits most successful Davis Cup seasonto date, reaching the Asia/OceaniaGroup II final with victories over Iranand Indonesia, before losing thedivision championship match to thePhilippines. He can hold his head high,reflect on a proud career and maybe,just maybe, once in a while replay thatfamous day in Dubai when he verynearly upset the greatest player inthe world.

Mohammed Al-Ghareeb

10 CHAOS SUMMER 2008

MY CITY

If you want to become one withAccra’s multi-ethnic population, learnthe local handshake, which is a firmgrip of the hand followed by a click, asure snap of the fingers, and a warmsmile. A few words of basic Twi, one

of the most widely spoken dialects inGhana, Et-e-sen (how are you),mu’huyeh (I’m fine), and of coursemedase (thank you) will go a long wayto really winning the hearts of thiscity’s people.

Sights, sounds and smellsIn October, 2007, Zain acquired a majoritystake in Westel Ghana. Long-time Accraresident Lana Captan Ghandour takes us ona whistle-stop tour of the capital

Unlike other capital cities in Africa,or the world for that matter, theresidents of Accra have

maintained their authentic Ghanaiancharm and hospitality, even though thecity has become more cosmopolitan.


Accra, Ghana’s capital since 1877, is amelting pot, home to Ghanaians fromdifferent tribes, foreigners on shortbusiness contracts and long-termexpatriates from which there are drawnsizeable Lebanese and Asiancommunities.

The city, which was once like any otherone in West Africa, characterized bydusty roads lined with lush greenery, isnow a business hub, with highways,overpasses, well stocked shoppingmalls, modern public buildings andskyscrapers. All these symbols ofmodernity lie lovingly alongsideelegant 19th Century colonial buildingsand ancient forts, apartment blocksmade of concrete, glass and steel fromthe 1970s, trendy shops in Osu, and

bougainvillea framed villas for affluentGhanaians and expats in theprestigious ‘Airport’ neighborhood.

What makes Accra so different fromother cities that have undergoneurbanization is that the traditions ofthe people have been carefullypreserved - several centuries-oldmonuments are central to the city’sresidents - who continue to celebratethe country’s rich history as they didmost recently during the African Cupwhich Ghana hosted.

Accra is the birthplace of Africannationalism. In 1957 former PresidentKwame Nkrumah made Ghana the firstAfrican country south of the Sahara togain independence from Europeancolonization. This memory is etched inthe hearts and minds of the Ghanaiansand is arguably the cornerstone of thenation’s pride.

As a reminder of this legacy, the mostprominent historical spaces and sites

such as Independence Square and theState House remain central landmarksin the city, as icons to inspire pride andnationalism among Ghanaians andAfricans alike.

Burgeoning with a rich history andvibrant cultural and artistic life, thecity of Accra which lies along thesparkling Atlantic ocean is very muchinfluenced by the sea. Shanty townsand fisherman’s villages dot thecoastline, the long hand-carved,painted fishing boats can be seenalong the highways, each with theirsymbolic adage or name for the boatto protect them from theunpredictable wrath of the ocean.

The slave forts, such as the one inJames Town, has a marketsurrounding it today but the fort itselfremains untouched as a sentiment tothe thousands of Ghanaians who losttheir lives or were transported toslavery in the Americas more than acentury before.

Accra, Ghana’s capital since 1877, is amelting pot, home to Ghanaians fromdifferent tribes, foreigners on shortbusiness contracts and long-termexpatriates from which there are drawnsizeable Lebanese and Asian communities


A coffin maker’s workshop also liesalong the coast. Coffins for thedeceased, each according to his or herprofession in life, lie side by side ondisplay for bereaved families. A life-sized cucumber for the farmer ispropped up next to a sewing machinefor the seamstress and a giantpolished shoe for a young man whowas once a shoe maker in his village.As is traditional in Ghana, death iscelebrated with much pomp andceremony, over a period of severaldays, and this burial trend has becomepopular among Accra’s more affluentresidents.

Visiting the markets around the city isan equally eye opening culturalexperience, filled with a kaleidoscopeof colours and smells. Even if it isn’tthe first visit to the market, theexperience can be quiteoverwhelming. Everything spills outonto the street all at once, from themarket stalls, to the hawkers, to thehum of pedestrians circling the stalls,moving rhythmically around the marketin unison, as in an orchestra oforganized chaos. To add to this arethe truck-like local buses, or tro tros,each painted lovingly with inspirationallocal sayings or symbols on them, inaddition to the red, yellow and blacktaxi cabs, all honking in unison intraffic-congested Accra.

At the cities’ main market places -Makola, 31st December, James Town

Accra is the birthplace of Africannationalism. In 1957 former PresidentKwame Nkrumah made Ghana thefirst African country south of theSahara to gain independence fromEuropean colonization. This memoryis etched in the hearts and minds ofthe Ghanaians and is arguably thecornerstone of the nation’s pride

and Kaneshie - young women sit infront of carefully arranged fruit andvegetables, handpicked to pleasethe eye: from plump cherry redtomatoes, thick tubers of yam, shinygreen peppers and giant banana-likeplantains, all staple foods of Ghana.

Smoked and fresh fish of all sizes areneatly placed in pyramids atopwooden tables by the Mammies, asthe market sellers are fondly called.Most often, their babies are strappedbehind their backs, patientlyobserving the sights and soundsaround them. Ghana is very much amatriarchal society, so many of thesestrong-willed women with excellent

business acumen are often the familybreadwinners.

One of the most fascinating thingsabout the bustling markets are thebroni wawoo, or “dead white man’sclothes” as they are called, whichare second hand garments shippedfrom abroad piled in stacks on theground, hung up on coat hangersor sold in bundles. These clothes,shoes, and bags, sometimes withdesigner labels on them, arecarefully washed, ironed anddisplayed at stalls in the market,a local version of a Europeanflea market.

For a look at local arts and craft,batik fabrics, brass and wood carvedpieces, and the famous kente clothworn by Ghana’s highest rankingChiefs, the hustle and bustle of theArt Centre (for shopping and culturalevents) is another Accra hot spot.

Having a snack on the go in Accrais never a problem because thereare street sellers who sell just abouteverything, from bagged water, a hotlunch, to toothpaste, nail polish orstationery for the office. You don’teven have to go to a “chop bar”which is the equivalent of a localrestaurant to get a taste oftraditionally prepared dishes.


The slave forts, such as the one in JamesTown, has a market surrounding it today,but the fort itself remains untouched asa sentiment to the thousands ofGhanaians who lost their lives or weretransported to slavery in the Americasmore than a century before

Have a skewer of chichanga, oilbrushed barbequed beef seasonedwith spicy peanut powder, or taste acrunchy corn on the cob and charcoalcooked plantain grilled to perfectionon small homemade barbeques on thesides of the street: all prepared bytraditionally dressed women in bigstraw hats and even bigger fans.

Early in the morning, young girls withbig trays balanced carefully on theirheads, walk the areas of Accra callingout, kalayleh to sell their breakfast orafternoon snacks. A sweetloaf smearedwith margarine, a breakfast of noodlesand beans with a fishy pepper saucecalled watcheh, gari (cassava paste)and stew or a chubby round bofrot,the Ghanaian version of the doughnut,are just some of the delicacies that canbe tasted on the run.

The nightlife in Accra is vibrant, with awide variety of choices for visitors tothe city, whether it’s a local bar with

locally brewed beer, Akpeteshie orMandingo, or a visit to a more upscalepub or disco in Labone.

Unlike other African cities Accra is safeby day or night and that’s why there areso many visitors from other Africancountries. Elsewhere, the beaches areunspoiled stretches of white sand andcoconut trees, and are a popular hangout for local bands, arts sellers and thelike. You can even buy hand painted

billboards of local and internationalpersonalities for a bargain price whilesunbathing.

The beaches serve as night spots as well,and are dotted along the coastline. By daythe beaches are brimming with Ghanaiansand visitors. Fancy a coconut and you willhave one brought to you fresh off thetrees, with an added modern twist, aplastic straw, to make your genuine Accraexperience even more pleasurable.


TALKING TELECOM

Al-Barrak’s chaos by designIn part one of a two-part interview that willappear in the next issue of Chaos by Design,Zain Group CEO, Dr Saad Al-Barrak talksabout how he joined the company and what ittakes to take telecom into the global market

There has been great interest in learning more aboutZain Group’s management culture. Zain Group CEODr Saad Al-Barrak recently addressed the global

management consulting firm, McKinsey & Co, on the

challenges and methods in management for a globalcommunications company. Chaos by Design quizzed Dr Al-Barrak on the essentials of the managerial style used inleading Zain Group on its path of global success.


What is your personal management style?I am famous for a style they don’t teach you in any books. It isknown in Zain as “management by chaos.” I made my careerby being on the edge of being fired all the time. That is howyou make history. If you try to preserve your seat and yourplace, you will become a dinosaur and disappear in no time.All I need to do is be as chaotic as I can be and confuse you,and out of this confusion will grow some substance. The otherpoint is that intellectuality is positively correlated withhappiness. The happier you are, the more intellectual you are.

This summer marks the sixth anniversary of your joiningthe group and the start of its amazing journey of growingbeyond Kuwait. If we look back at the days when MTC, asit was known then, decided to go for its 3x3x3 strategy tobecome a regional and international company from amanagement culture point of view, is it true that thecompany was not initially primed for a change inmanagement?Since its founding in 1983 as MTC, the company was amongthe first pure mobile operators. By that I mean that it didnot have the involvement with what I call the “beast” oflandline communications. However, it was a public sectormonopoly because it was a 50-50 partnership between thegovernment and the private sector, and the governmentappointed the CEO. MTC was definitely government

controlled, and it was also an ultra-conservative company inthe way that it managed its business. It did well financiallyover the first twenty years because it was the only companyin its market and it had accumulated reserves of $500million in cash and near-cash reserves. It also had zero debtin 2002. If you looked at the state of the company then, youwould have said that change was suicidal.

Why then did you not just continue along the proven lineof being the big fish in the Kuwaiti mobile market?From 1999, competition entered the market as the Kuwaitigovernment licensed a new operator. Shortly thereafter, in 2001,the Kuwait Investment Authority reduced its stake in MTC fromjust under 50% to about 24.5%, because it had an equal stakein the new operator and it needed to introduce parity in themarket. By 2002, the market share of the second operatorapproached 50%, and this was really a big change for MTC.Fortunately at that time, control of the company had shifted tothe private sector as the government cut its stake andrelinquished control of the board of directors.

What did this new situation mean for MTC, and how did youapproach the task of managing and developing the company?I arrived at MTC by sort of an accident or, if you wish,because of the political culture of Kuwait. I knew thecompany because it was a client of mine, and I had been its


supplier with computer systems but I knew nothing abouttelecommunications. I came from the IT world. In July orAugust of 2002, about a month after I accepted the positionof Director General, we called upon the consultingcompany McKinsey. I told them that I just had joined MTCand that we needed them to perform a strategic diagnosisof the business to not only impress our shareholders butshock them at the same time.

So was your appointment the result of a costlyheadhunting process with vetting of candidates from largeWestern telecommunications firms or were you chosenbased on a presentation of some strategy paper andcomplicated growth proposal?Not at all! The majority shareholders liked me and hadheard good things about me; I don’t know from whom.They convinced me to accept the challenge, and they werecommitted to support the company.

What were the McKinsey findings on MTC?They did a strategic diagnosis on MTC key performanceindicators at the time, and the verdict was horrible. Itstarted by saying “MTC is at the risk of losing 70% of itsmarket value in three to four years’ time.” What are your

choices in such a situation? You can either commitsuicide or you can fight and risk your whole life, yourcareer, future and personal reputation. Many of thepeople in the company, including big shareholders, didnot want to hear these things from a person whocomes from the IT world. It was tough, but toughthings are for tough people. So we asked: how can wego about changing Zain or, at that time, MTC? Do wechange the content of the company or do we changethe context of the company?

What does that mean?You know, these are buzz words that are used byconsulting firms, and you can impress people by usingthem. We had a company that was in shambles, to putit in very nice terms. Our choice was to focus on thecompany and try solving its operational problems andthe problems of its being embedded into an Arabianpolitical environment or go about changing thecontext under which we operate and create hugepressures from the aspirations of the new context thatwill change the content naturally.

Where did you see the possibility for changing thecontext?At the time, the world was chasing telecommunicationsand the industry was booming. In the Middle East andAfrica, we had very large markets that were stilluntapped back in 2002. Privatization, deregulation,and competition were the key themes at that time, andour region was poised for transformation.

What made you think that you could unlock thesepotentials where bigger and more establishedcommunications firms were hesitant entering thesemarkets in the Middle East and Africa?The telecommunications industry that has been around forover a century had always had monopolistic structures withcentralized decision making and where the customers hadno choice. This was everywhere in the Middle East butthese structures left visible legacies even today in Europe,where monopolies are considered a crime in private sectorindustry. When the new thing called mobile telephonystarted, the ones who were running it were the children ofthe old telecommunications monopolies. These are thechildren of this culture, and they carry so many germs fromthe old structures in their minds and hearts that they stillhave these handicaps in themselves.

So your assessment of the telecommunications industrywas, one could say, ambiguous at the time? How is thestrategic view today?As a person coming from the IT world, I thoughttelecommunications was a dinosaur industry. In the yearssince introduction of the cellular phone, companies werebound to be successful in these mobile communicationsmarkets because the business was so new and attracted so


many customers. But from now on, with the competitivenessof the market, the operators are being exposed. Nowbranding and marketing will come into play on much higherlevels than before.

What made it possible for Zain to develop so quickly from2003?For us it was the time to become strategic. We said we havethree years to make our future, otherwise we will all onlywatch Gone with the Wind.

What is the essence of strategy?It means to create a target image of the future. That is why Ilove to focus on strategy, because you never have to plan. Youjust do action, and then you theorize from your successes andfailures and define your strategy more and more. It is a verysimple pragmatic approach for strategy evolution.

Strategy is really the art of zooming. You have to zoom andlearn real time every second and put what you have learnedback into your business and zoom further and further ontoyour strategy direction and target image of the future, andthat is what you should do to succeed.

Are you saying that strategy is more than the art of planning?It was obvious that we would have to multiply our size andexistence in order to survive in a global market that doesnot know any barriers. Therefore, we said we want tobuild scale and leverage this high growth market that weare in, especially in the years 2003 to 2005, and create aglobal brand. How dare we do this? But luckily, it worked.So the emphasis in our strategy is in growth throughaction, on getting results fast and learning by doing andmaking strategy and change simultaneous activities.

There is no time to make strategic diagnostics andreviews all the time. You must learn and do and change inreal time and that is tough.

You have coined the term “passionate performance”.What is that all about?This term is central to how we went about transformingZain, which was by driving into an interaction ofacceleration growth, leveraging performance, and creatinga new culture which we call passionate performance. Weare performance driven but before and above that, we arepeople driven, and that is why we call it passionateperformance. It is like an orchestra that performs asymphony. You must fall in love with what you do and beobsessed with what you do and with your dream andaspiration in order to realize this dream.

How will this passion express itself in corporate targets?To realize this, we developed our famous vision of 3x3x3, at theend of which we want to be a global company, and by globalcompany, we mean among the top ten telecommunicationscompanies by any criteria you care to name.

What would you describe as the most importantchallenges in implementing the 3x3x3 strategy?At the beginning of 2003 we were only in Kuwait. Today weare in 22 countries and we cover a huge area. So inmanaging strategic challenge we wanted to leverage oursize as well as our diversity. Diversity is at a climax in theZain Group, diversity of cultures, languages, religions, andgeographies and we want to build strategic capabilities aswe go along because one cannot aspire to be a globalcompany without having better practices than the bestcompanies in the world.


CORPORATE SPIRIT

A source ofnational andregional prideChaos by Design talks toMohammed ZainalabedinGeneral Manager of ZainBahrain about thechallenges ahead

Mohammed Zainalabedin was recently appointedGeneral Manager of Zain Bahrain. A Bahraini, hebrings to the job a deep knowledge of the telecoms

market in Bahrain, having directed Zain Bahrain’s sales andlogistics for more than four years. In his new role, Mr.Zainalabedin will help advance the Zain Group’s vision tobecome a top-ten global player by 2011. Mr. Zainalabedin,who holds a BSc Hons in Computer Engineering from KingFahad University of Petroleum and Minerals, Saudi Arabia,talked to Chaos by Design about the Bahraini market, theimminent arrival of Zain Group in the Kingdom and ZainBahrain’s innovative, dynamic and inspiring role in the worldof Middle East telecommunications.

Zain in Bahrain was one of the first OpCos – along withKuwait, Jordan, Sudan and a little later Iraq – to go withthe new Zain identity. How has the new brand beenreceived by your customers?It’s been very well-received by both customers andemployees alike. It has also been helped by the fact that wequickly introduced many new technological innovationsunder the Zain brand, such as WiMAX service for residentialand business customers, 3G cameras and of course therecently launched One Network. Customers feel the Zain


brand has energized and inspired us to greater heights andassociate the brand with these new services.

Bahrain is the Zain Group’s new corporate headquarters.What will be the most significant changes and challengesin absorbing this new role?Retaining the Zain Bahrain identity separately from theGroup identity; this is very important because only then canwe push our products and services effectively. On a day-to-day basis there will be little change as Zain Bahrain and ZainGroup have their specific roles and schedules to follow soany impact will mainly be at an administartive level.Another challenge will be to manage media and corporateexposure of top management in Bahrain once the Groupmoves here. It will be important for us to ensure that themedia understand the difference between our distinctfunctions and their points of contact with the two units.

Bahrain has always been a pioneer. Its close ties to othernations through trade and its role as the HQ for Gulf Air hasunderscored its regional importance. What will move meanto the profile of the Kingdom and its positioning within theglobal telecom industry?Zain has operations in 22 countries, covering a huge

geographical footprint in sub-Saharan Africaand the Middle East. This makes the selectionof an HQ location a complex task. Thedynamic nature of the mobile telecomsbusiness means that many of our corefunctional units – Group Finance, GroupProcurement, Group HR – all of which workacross the dispersed operations – arecontinually traveling to distant operations overthe breadth of Africa and the Middle East.

Bahrain is a good central location for theMiddle East and probably as good as anyother for Africa. Air travel to and from

Bahrain is good, and with the current boom in the country’seconomy and infrastructure, we had good and reasonablypriced office rents. In addition, the Bahraini Governmenthas demonstrated a willingness to work closely with us tofacilitate the move and help make the transition as smoothas possible.

The move has already been promoted by bodies like theEconomic Development Board (EDB) as a significant asset toBahrain, since Bahrain has a reputation as a liberal andpioneering telecoms market, this will combine with ZainBahrain’s reputation as a leading innovator and will give theKingdom a boost in terms of telecom industry positioning andmarketing on an international level. The Zain Group’spresence will also have an impact on the Bahraini economy –from the number of Zain employees moving here with familiesto the vendors and suppliers who will be coming here to dobusiness. There will also be regular management seminars.

Zain in Bahrain has been in operation since the last quarterof 2003. What were the main challenges and core targets?The main challenge was to change the way the telecomsmarket was being managed by the incumbent operator. Itwas a well entrenched monopoly, but in just over four years,

In the meantime, it is businessas usual for us. Zain Bahrainhas but one focus and that ison our country – the ZainGroup is responsible forsustaining international growthout into the region andbeyond whilst we continue tofocus on our customers here inour home market


we have become a very strong player in the Kingdom andindeed the local regulator (the TRA) cites Bahrain as a goodMiddle East role-model for a strong and healthycompetitive market. We brought new technology tocustomers and drove market acceptance rather thancustomers waiting for new products and services. By takingthe calculated risk that Bahrainis were ready fortechnological innovation, we successfully launched manyfirsts - 3G, 3.5G, TV streaming on mobile, WiMax, etc. andexpanded the market appetite for new telecomstechnology.

Today, Zain in Bahrain has over nearly 530,000 customerswith a 44% market share. How would you describe Zain inBahrain’s marketing efforts, and what would you say is theoperation’s unique selling point?Zain Bahrain has consistently performed excellently incapturing market share thanks to inspired marketing andcommunications teams, a robust and effective business planand strategy and a fine portfolio of products. Our USP is ourability to transform technology into meaningful productsand services and convince customers to use them as theyrepresent real value-add – not just in terms of pricing butalso in terms of customer benefits.

Zain in Bahrain employ’s over 300 staff, nearly90% of whom are Bahraini. As well as being amajor employer how has the company beenable to position itself as major player in thelocal job market and attract the best in localtalent?We are proud of our “Bahrainisation”achievements. We have consistently exceed the70% local employment target that theGovernment has set by continually investing in HRtraining and development; creating anenvironment that encourages the employee todeliver his/her best and rewarding such efforts.We have built a reputation as the employer thatcares for the employee’s future. Furthermore, ourtraining programs cover all areas of operationalunits including technology, IT, Marketing, Sales,HR and so forth. However, we also cover the‘soft’ areas such as Communications Skills,Language and Leadership development. Socialwelfare and Health Care programs are alsoprovided as well as a friendly and supportive workenvironment with an ‘open-door’ attitude fromour senior management teams.

Zain in Bahrain was the first operation to launcha Women’s Corner and special women’spackages and an e-learning Centre. It also hashelped children with special needs. Can you tellus a bit more about the impact of theseinitiatives and what other CSR projects you havein the pipeline?We have a name as a caring corporate

neighbour, and thanks to a consistent focus on certainwell-thought out priorities in our CSR, we have managed

But perhaps our greatestsource of pride right now isour participation in the OneNetwork service launched inMarch this year. Along withIraq, Jordan and Sudan, OneNetwork provides greatbenefits and savings to ourcustomers when travelling tothese countries and lets thembe treated as ‘local’ customers


to stack up the results and show clearly how we arebringing about change. Whether it is building a specialgym for children with special-needs at the Al RahmaCentre or partnering the Sneha Centre for mentallychallenged children of all nationalities or distributingschoolbags to needy children, building and underwritingan e-learning centre at the University of Bahrain or evensponsoring the Muharraq Club’s football team, our workhas made the difference and our customers have felt this.Importantly, in February this year Zain Bahrain launched‘Dreams come true with Zain’, an initiative that is set tochange the lives of 12 citizens and at the same timemake a huge impact across the Kingdom.

We all have dreams, and for most of us, it is in our ownhands to try and make them come true. But for manypeople, turning dreams into realities is made more difficulteither through lack of having the right contacts, no funding,physical disadvantages or even the lack of confidence intheir own abilities. Zain Bahrain decided to give suchpeople a unique chance to make their dreams come true.The initiative focuses around three key areas that havealways been at the heart of our Corporate SocialResponsibility (CSR) initiatives – youth empowermentthrough education, sports and a healthy lifestyle and caringfor those with special needs.

In September 2007, Zain in Bahrain introduced the firstnationwide WIMAX. How has this, and your otherinnovations – the first 3.5G nationwide network, first live TVto Mobile in the Middle East, first Virtual Private Network –boosted Zain Bahrain’s brand equity and competitive edge?Any plans for other innovations?Bahrain represents an ideal telecommunications marketplace.Although geographically fairly small and compact, the Kingdomis an ideal learning ground as it reflects the future profile of manyother markets: large numbers of pre-paid customers, burgeoningeconomy with a sophisticated corporate customer base, acompetitive market with a robust regulatory regime andimportantly, a desire for great mobile products and services.

Our networks and services in Bahrain are amongst the mostadvanced in the world. We launched the world’s first nationwideHSPA alongside a similarly world-first WiMAX deployment –which provides our customers with high-speed access to theInternet and other data services – without relying on the existingfixed network. The benefits of such services are such that we canoffer both residential and business customers packages thatprovide free local on-net calls, discounted international calling,discounts on a selected number of frequently dialled numbersand high-speed Internet access Importantly for many customers,they have the ability to retain their phone numbers should theymove home or business locations.

BAHRAIN: A NATURAL MARKET PLACEBahrain continues to enjoy steady growth, both in terms ofthe economy and the number of people moving to theKingdom to support an island that is re-enforcing itsposition as the financial and educational hub of the region.

Bahrain’s economic performance has been strong for thefifth consecutive year, with a double-digit growth rateabove 17%. The economy remains somewhat dependenton oil production and a steady decrease in oil output hasbeen recorded in recent years. This is the reason why the

government is looking for broader investments tostrengthen its economic diversification plans.

More than half of the population is below 14 years of age.The non-oil sector still has the biggest contribution to GDPat an average of 74% and has to play a bigger role in theabsorption of the new national work force. Meanwhile,financial corporations have contributed the biggest share inGDP from the non-oil sector, confirming the risingimportance of financial services in driving growth in Bahrain.

The consolidated balance sheet of the banking systemincreased more than 50% in two years - rising from $140.4billion in 2005 to $222.4 billion in 2007, making Bahrainarguably the main regional banking and commercialcentre, as well as a centre for insurance and financing.

Bahrain is also known as a centre for excellent educationservices and a highly skilled national work force. Thegovernment is strongly implementing dynamic policies topromote the private sector, attract investors and create abusiness environment to facilitate not only small andmedium enterprises but also big corporate concerns.

Understandably, telecommunications – and increasinglywireless-based service – is an essential driver for ongoingsuccess for the Kingdom, and Zain Bahrain is a keyenabler of sustained growth and prosperity.


The Woman’s Corner has by all accounts been a success.What other distinctive and innovative initiatives have beenlaunched?Zain Bahrain’s recent innovation, the WiMAX-poweredzain@work packages of broadband access and fixed line serviceof unlimited free calls and discounted international calls, hasgotten off to a roaring start The response has beenoverwhelming, and the service is clearly something thatBahrain’s growing corporate world has been waiting for - asuperior product, powered by the latest technology, offeringtop quality in voice and data transfer, reliable round-the-clockservice at extremely affordable prices. Zain was the firstoperator in the country to offer 4Mbps speed for this kind ofservice, and we saw an excellent response to the introductionfrom SMEs and are now looking at additional features to makethe product attractive to large corporate clients too.

zain@work service offers customers the benefits of a powerfulnew wireless technology (WiMAX) that offers high speedbroadband internet connectivity, fixed line voice services andtheir internet and fixed voice services bundled with mobileservices. This offers customers cost savings as well as atechnological advantage without the need for a landline!

One of the key features that our corporate customers seem tohave found most attractive is that our BLife customers canenjoy calling all their BLife numbers from zain@work atattractive cost-saving discounted rates. The per-second billingcycle and big discounts on international call rates also meansaccumulated savings of up to 40% on phone bills.

Similarly, zain@home service offers residential customers high-speed Internet (2Mbs), discounted calls to other fixed andmobile Zain Bahrain customers (selected local and internationalnumbers) providing great savings, convenience and customersatisfaction. What we have done is deliver to customers thereal and tangible benefits of state-of-the-art technologies.

But perhaps our greatest source of pride right now is ourparticipation in the One Network service launched in Marchthis year. Along with Iraq, Jordan and Sudan, One Network

provides great benefits and savings to our customers whentravelling to these countries and lets them be treated as ‘local’customers giving them full access to all of their services andapplications, the ability to top up at any Zain outlet ordistributor and have no charges when receiving calls ormessages. Importantly, our customers pay only local rateswhen calling other One Network countries. Once again, wehave demonstrated that we are prepared to go that one stepfurther to use our technologies to benefit our customers.

Bahrain is about to have a third MNO introduced into themarket later this year. How do you feel about this?Zain Bahrain welcomes competition – it is good forcustomers, good for us and good for the country. Theregulator has decreed that there is room for a third player inthe market – despite the relatively small size of customerbase and a market penetration that - whilst fairly high - stillhas room for growth.

We remain confident in our plan and strategy to provideadvanced and innovative solutions for voice as well as high-speed data services. We have set high standards forcustomer service that will be difficult to match, and ourcommitment to play a leading role in Bahrain’s societythrough our CSR initiatives has forged a strong and loyalcustomer base that we intend to continue to build on.In the meantime, it is business as usual for us. Zain Bahrainhas but one focus and that is on our country – the ZainGroup is responsible for sustaining international growth outinto the region and beyond whilst we continue to focus onour customers here in our home market.

By continually investing in HRtraining and development,creating an environment thatencourages the employee todeliver his/her best and rewardsuch efforts, we have built areputation as the employer thatcares for the employee’s future


CORPORATE SPIRIT

Going from local to globalYesse Oenga, Zain in Uganda’s GM and hostof the 3rd ACE conference in Kampalaearlier this year, talks to Chaos by Designabout the pioneering spirit and futureambitions of the company’s first operation

The most recent ACE meeting was held in Kampala. Whatdid it mean to Uganda to host it? What were the strategicaims of the conference, and how has Zain in Uganda beenable to absorb the ACE goals?In March this year, we hosted the ACE conference here inUganda. This conference brought over 400 fellow delegatesfrom other operations to Uganda and was highlyappreciated by all local staff. This was after successfullyhosting the Commonwealth Heads of GovernmentsMeeting (CHOGM) last year during which Celtel Ugandasponsored the Commonwealth Business Forum (CBF).These activities endorsed Uganda as a favorable destinationto host conferences of such a magnitude as the ACE event.

AKenyan national, he has been with the companysince 2003 (initially through its subsidiary, CeltelUganda). Oenga came to the job with solid

marketing and commercial management experience,having held senior management at Sterling Health, SmithKline Beecham and Kibo Breweries (East AfricanBreweries). Prior to joining Celtel, he was CountryManager of Land O Lakes (Kenya) and before joiningZain in Uganda, he was Marketing Director for the thenCeltel Tanzania.

All Celtel operations were re-branded as Zain in August2008. What was being done to prepare your customersand partners in the Ugandan market for this shift and whatbenefits will the new brand bring to the operation?Celtel Uganda staff are very excited with the new brandbecause they believe it is of huge benefit to them andthe customers we serve. By being part of a globaloperation that currently encompasses 22 countries witharound 50 million customers, our customers haveopportunities that would otherwise not be available: OneNetwork, the low cost handset and the Nelson Mandelaconcert are examples that quickly come to mind. To us,the re-brand to Zain takes the Uganda operation fromlocal to global.

In regard to preparations, marketing and advertising teamsheld regular meetings with other African operations andconsultants, planning all the necessary items that needed to beput in place by August 1. Given their recent experience inlaunching Zain in the Middle East and thus their in-depthknowledge of the new brand, Group personnel worked closelywith the team advising and directing.

There are many logistical issues that required a lot offocused thought and human resources that was both verytime intensive and costly vis-à-vis investment from all angles– whether it be our business card, the sim cards, the manyZain shops, the many advertisements currently placedacross the country and so on.


Notably many distinguished VIPs and diplomats attendedthe meeting such as Uganda’s ICT Minister the HonorableHam Mulira – representing the Ugandan president H.E.Yoweri Museveni – as well as former PM Salim Salim, formerchairman and founder of Celtel, Dr Mo Ibrahim and currentCeltel Chairman Lord Cairns as well as all the seniormanagement of Zain including our CEO Dr Saad Al-Barrak.Meanwhile, the ACE goals have been absorbed well intothe company and are monitored on a regular basis toensure that we are achieving our ACE targets on a monthlybasis, contributing to the overall Zain Group 2011aspirations of being a top-ten global mobile operator.

Celtel Uganda (as it was known) was the first operationestablished by the Celtel Group in 1995. What were itsinitial objectives then compared to its current medium andlong term goals?Celtel Uganda was launched in May 1995 and was the firstcellular company in Uganda. The Celtel “Making Life Better”campaign embodies a continuation of the operation’scommitment to be an honest, caring, supportive, attentive andunderstanding partner. We have established ourselves as abrand that lives and understands the unique needs of Africansnot only through providing communication solutions but alsobringing unique experiences that empower, enthral andconnect Africans where ever they are.

At the time of the launch, we only targeted the capital,Kampala, and other main cities with a mainly well-to-do

customer base. The telecommunications sector has sincechanged drastically. We have also adjusted to address theconsumer market and have expanded throughout thecountry. Today, Zain in Uganda is the telecommunicationscompany with the widest population coverage of over 90%of Uganda’s addressable population, and, as part of theZain Group, we see ourselves as not only an African brand,but as an international brand.

In the next 12 months, we will continue to invest in networkexpansion and improvement of the quality of service. Wewant to connect more people and improve on the lives ofmany through provision of affordable qualitycommunication services. Mobile penetration in Uganda isstill low so there is great potential to increase thispenetration, and Zain in Uganda will continue to do marketresearch to provide solutions to Uganda’s fast growingtelecommunications sector.

Uganda has the highest percentage of customer growth(205%) among African operations for the year 2007 and180% for Q12007/ 2008. How were you able to achievethis and what if any part did One Network play?Currently, mobile penetration in Uganda is still very low,below 10%. With Uganda’s population quickly approaching30 million, there is greater potential to increase thispenetration. The cost of owning a phone is still relativelyhigh for an average Ugandan. Zain in Uganda will continueto offer solutions to enhance this penetration.

Delegates gather at the ACE meeting in Kampala in March, 2008


Last year, we completed a successful network rollout,significantly improving our network coverage and quality.We now have the widest network coverage in Uganda withover 90% population coverage. This has enabled us toreach people that were previously inaccessible.

We also managed to significantly lower the cost of owning amobile handset by working together with OEMs like Nokiaand ZTE. This, coupled with the development of productsrelevant to our customers, has endeared us to them.

The operation only had a 9% market share in 2005. This hasgrown to 36% today. We attribute this to having a strongbrand and our investment in the community through our“Build Our Nation” program. We are committed to givingback to the community, and this year we are preparing todonate $100,000 to TASO orphans. This is part of our PanAfrica “Making Life Better” policy through support ofeducation and other community initiatives.

One Network has also contributed tremendously to this growthin both revenues and customer retention/acquisition as Ugandawas one of the three countries where the One Network was firstlaunched. Given that Uganda borders three One Networkcountries, namely Kenya, Tanzania and the DemocraticRepublic of Congo, and that travel between these countries isplentiful for both business and personal purposes, the uptakeof services in Uganda as well as in all these countries has beenextremely wonderful. We won international acclaim for our OneNetwork, the world’s first borderless mobile network that givesall travelling post paid and prepaid customers in the 12countries an opportunity to economically communicate acrossgeographical borders without having to change their sim cards,incur roaming charges or pay for incoming calls.

Customer growth aside, can you give us a brief round-upof the operation’s performance in 2007 and the firstquarter of 2008 in terms of revenues, market share andother indicators?Celtel Uganda, as we were at that time, had over 1.6 millionactive customers by Q1-2008, representing a 180% increasecompared to Q1-2007. The operation’s customersaccounted for 4% of Zain’s total customer base.

Our Q1-2008 revenues reached $33.7 million, an increase of112% compared to Q1-2007 ($91.4 m for 2007 year, 130%increase). The operation’s revenues accounted for 2% ofZain’s total revenues. EBITDA increased by 293% to reach$5.9 million compared to Q1-2007. NETI was $2.8 million, anincrease of 7% compared to Q1-2007.

We also had an ARPU of $7 in Q1-2008 and remain thesecond biggest player in the market with a market share of36%. Because competition has been aggressive in networkroll-out, new sites will be added enabling the operation inUganda to increase coverage to 91% of the population,though boosting our coverage and influencing net adds.

The remarkable increase in market share was the result ofaggressive brand building initiatives, improved distribution, aswell as improved network coverage and tariff re-alignment.

Throughout 2007, new services were launched includingGPRS/EDGE enabled services and BlackBerry. In addition, 52based stations were added to the operation’s existing network,making the Uganda the leader in terms of network coverage.

The Lake Victoria initiative to increase the range of signalreception for those who work on the lake was one of the

In the next 12 months, wewill continue to invest innetwork expansion andimprovement of the qualityof service. We want toconnect more people andimprove on the lives ofmany through provision ofaffordable qualitycommunication services

ACE Uganda, March, 2008


most far-sighted and constructive in recenttelecom history. What do you expect to bethe immediate impact of the initiative?The immediate impact will be that there willbe a tremendous increase of economic andsocial development of the lakesidecommunities and dramatic reduction in thenumber of fishing-related deaths each year.

There will also be a reduction of wastage andtherefore improved fishing produce becausethe fishermen will be able to accessinformation on current market demand andtherefore control the problems related withover-fishing. This will be achieved through thevalue-added services that will have asignificant impact on local people’slivelihoods. The availability of mobile servicesis also expected to benefit the tourism,transportation and fish export industries andshould be key to attracting further businessdevelopment in the region.

It is obvious that giving back to the communities whereyou operate is an important initiative for the Zain Groupthroughout Africa. What have been some of the othermajor CSR initiatives undertaken by Zain in Uganda?We have been engaged in a number of philanthropicactivities. We have in the past supported various activitiesincluding: TASO (paying school fees for HIV/AIDS orphans),SOS Children’s Village, Lira Hospital (utilities) and buildingclassroom blocks in an IDP Camp in Gulu.

“Build Our Nation” is Celtel Uganda’s Corporate SocialResponsibility Campaign in partnership with the Ministry ofEducation, aimed at equipping selected primary schoolsacross Uganda with teaching aids, especially text books. It waslaunched on March 7, 2006, at Katwe Primary School by H.E.the Prime Minister of Uganda Apollo Nsibambi. The programis part of our global initiative that was first launched in Tanzaniain 2004 and is progressively being embraced by all thecountries in Africa in which the Zain Group operates.

In addition to this, we have, for the second year, partneredwith one of the leading newspapers, The MonitorPublications – part of the Nation Media Group – in one ofits CSR initiatives called ‘Newspapers in Education’ (NiE).This encourages reading among primary school children byuse of newspapers as a reading and teaching tool.Our Africa Challenge was launched this year in March. Itwas an academic quiz program that featured up to 16universities in East Africa. It began on the March 7, 2007and run for a period of 15 weeks. The show was aired liveon local television stations throughout East Africa.

Africa Challenge is part of our commitment to developingthe youth because they are the future of Africa and will give

them an opportunity to showcase and develop their talent.The Challenge was also a forum to highlight the excellenteducational opportunities at African universities. The Inter-University council for East Africa (IUCEA) was a keyeducational partner in the program. All participatinguniversities and students received scholarship monies basedon their ranking in the tournament.

By being part of a globaloperation that currentlyencompasses 22 countrieswith over 50 millioncustomers, our customers willbenefit from opportunities thatwould otherwise not beavailable. One Network, thelow cost handset and theNelson Mandela concert areexamples that quickly come tomind. To us, the re-brand toZain takes the Ugandaoperation from local to global

Yesse Oenga with (from left) Marketing Manager, Zain in Uganda, Cesear Mloka, Zain Group CEO,Dr Saad Al-Barrak and Celtel founder, Mo Ibrahim


Zain CEO Dr Saad Al-Barrak has forged close ties withUgandan President Yoweri Museveni. How would has thistranslated into the fostering of public/private sectorrelations in Uganda?Dr Al-Barrak and other senior Zain executives met withPresident Museveni and other regional African leaders at theACE conference here in Uganda in March this year. The ACEconference saw an influx of foreign currency into the country.

This is a direct benefit to the nation as it opens up Uganda as afavourable global destination, a way of encouraging tourismand as a result further economic development.

How has the Ugandan government been supporting theTelecom Industry?Very supportive; the government through the Ministry of ICTand the Uganda Communications Commission (UCC), theregulator of the communications industry in Uganda, have beenresponsible for regulating and promoting the developments inthe communications industry in Uganda. The Uganda telecomminister, his Excellency, the Honourable Ham Mulira attendedthe ACE meeting and made the inaugural speech on behalf ofthe president H.E. Museveni.

Telecom regulation goes back to December 2004, when theUCC held a public consultative workshop to review theTelecommunications Sector Policy, and thereafter currentpolicy and regulatory environment in Uganda wasestablished through the telecommunications sector policyof 1996 and highlighted by the Uganda CommunicationsAct, 1997. Additionally, one on the main strategic pillars ofthe past six years, the duopoly that limited competition inidentified primary markets, ended on July 24 2005, resultingin the liberalised telecommunications environment inUganda in which we now operate.

Thank you for your time.

Celtel has established itselfas an African brand that livesand understands the uniqueneeds of Africans not onlythrough providingcommunication solutions butalso bringing uniqueexperiences that empower,enthrall and connect Africanswherever they are

Festivities during ACE Uganda, March, 2008


A nation of diversityUganda is one of the most fascinating andcolorful countries in Africa

The Republic of Uganda, which takes its name from theBuganda kingdom in the south of the country, is alandlocked East Africa nation, bordered on the east

by Kenya, on the north by Sudan, on the west by theDemocratic Republic of the Congo, on the southwest byRwanda, and on the south by Tanzania. The southern part ofthe country includes the biggest part of one of the world’sbiggest lakes, Lake Victoria, which also lies within Kenyaand Tanzania.

Although generally equatorial, the climate is not uniform asaltitudes change. Southern Uganda is wet with rainthroughout the year. The most important cities are locatedin the south, near Lake Victoria, including the capitalKampala and the nearby city of Entebbe.

Uganda has abundant wildlife, and safaris to the manystunning national parks to witness gorillas, elephants,chimpanzees and other wildlife, are a mainstay of thetourism sector. It is also rich in natural resources. It has goodsoil and regular rainfall. Not surprisingly, agriculture is the

most important sector of the economy, employing over 80%of the work force, with coffee accounting for the bulk ofexport revenues. There are also large mineral deposits ofcopper and cobalt as well as largely untapped reserves ofboth crude oil and natural gas.

Uganda is home to many different ethnic groups, none ofwhom form a majority of the population. Around fortydifferent languages are regularly and currently in use in thecountry. English became the official language of Ugandaafter independence.

The most widely spoken local language in Uganda isLuganda, spoken predominantly in Kampala and itssurroundings in the Buganda region. The Lusoga andRunyankore languages are also spoken, mostly in the south-eastern and south-western parts of the country. In 2005,Swahili was approved as the country’s second officialnational language. Christians made up about 84% ofUganda’s population. Islam is the second most popularreligion accounting for around 12% of the population.


CORPORATE SPIRIT

Breaking down barriersThe Zain Group’s revolutionary OneNetwork arrives in the Middle East

An epoch-defining change is happening in MiddleEast telecom. In April 2008, the Zain Group rolledout the Middle East version of its hugely successful

African One Network service, opening borderless doors totraveling Zain customers in Bahrain, Iraq, Jordan, Sudan,and, in the coming months, the huge Saudi Arabiancommunity of mobile phone users. All will belong to anetwork that will allow cross-border travelers tocommunicate in five countries without feeling the pinch inthe pocket.

Over 14 million Middle East Zain customers can currentlybenefit from this service, and with the imminent commerciallaunch in Saudi Arabia, this number will substantiallyincrease.

In Saudi Arabia, the One Network service was live fromthe moment the entire mobile service went into testoperation with the public participation of 10,000 friendlyusers at the end of June 2008. According to GeorgeHeld, One Network Program Director, setting up andimplementing One Network in Saudi Arabia gave thecompany a chance to advance internally the “culturalplatform combining the Middle East and Africa,”through the collaboration of teams and mutual transferof skills and experience.

Zain is also eager to open the One Network in Kuwait,where it is waiting for the Ministry of Communications toprovide a pre-requisite international gateway or directaccess to international networks. In Lebanon, the group is


unable to decide its own policy because, operating solely asmanager under a government contract, it does not own themtc touch network.

For all who thought that the Zain One Network is nothingmore than a high-profile roaming solution, it’s not, and that’swhat makes the Zain Group’s achievement so unique.Roaming, in dry, technical terms, is a mobile phone user’sability to make or receive calls, messages and other mobileservices in a network other than the one she or he issubscribed to. This other network can be located anywhereon earth, provided the two networks have roamingagreements that allow them to execute the call and – anexistential feature – bill the customer. Roaming eventuallymorphed from an international service expansion into a cashcow for operators of developed markets networks, even interritories where the corporate parent of two roamingpartners in Europe might be the same telecom group.

That’s not what One Network is; the One Network is muchmore evocative of the seamless international networks thatmobile communications pioneers dreamt of around 20 yearsago, one in which satellite-based phones would facilitateworldwide communication from anywhere outside yourcountry to anywhere else in the same network. It wouldherald a revolution in which people would transcendbarriers, share cultures, experiences, values, and interests inways that, in the previous 60 or 70 years, had been a limiteddomain of communications professionals and dedicatedamateurs with their ham radios.

In short, the One Network concept, whose developmentwas initiated first in Africa in September 2006 by Zainsubsidiary Celtel, lets the customer use his home“platform” in other countries in which Zain operates oncethe customer crosses into another One Network country.“Simply put, there is no difference at all,” says Held, whohas been with the One Network project from day one.

Now that the One Network has taken the leap into theMiddle East, Zain’s traveling customers can rely on theirmobiles regardless of whether they are relaxing in a resort onthe Gulf of Aqaba or visiting the historic Arad Fort in Bahrain.They can call Iraqi partners at local rates while visitingBaghdad and Khartoum, and, because the networkseamlessly spans Africa and the Middle East, the group’smobile community can be in touch with friends in cities as faraway as Abuja, Libreville, Darussalam, and Bamako. Oncethey travel, they can make local calls at local rates, send andreceive text messages and refill their pre-paid lines just asthey would from the vendor in their country of residence.

With nearly two years of successful operations in Africa,more than 4 million users – or about 10% of the Zainsubscriber base – have taken advantage of its capabilities atleast once since September 2006. Held told Chaos byDesign that, according to data from June 2008, Zaincustomers in the Middle East have embraced the offer withgreat enthusiasm and are using the service more and moreas time goes on.

The short-term revenue potentials of providing the serviceare not Zain’s main priority. Board and management focushas been far less on the revenues generated through OneNetwork than on its long-term implication as Zain’s mostimportant strategic task. Zain Group CEO Dr Saad Al-Barrakdescribed the Middle East launch as “a defining moment inthe history of the Middle East and global telecoms as wellas a major step forward in Zain’s ambition to become a top-ten global mobile operator by 2011.”

Zain’s traveling customers canuse their mobiles whether theyare relaxing in the Gulf ofAqaba or visiting the Arad Fortin Bahrain. They can call Iraqisat local rates while visitingBaghdad and Khartoumbecause the network spansAfrica and the Middle East


There is no question that the network has brought realbenefits to small businesses in border regions of countriesunder coverage and opened new economic opportunitiesfor people in those regions. On an individual level, afrequent user of the One Network can realize substantialcost savings on communications each time she or he visitsanother country in the group’s coverage range.

While there is no average number for such savings becauseof the large variety of usage possibilities, the individualexamples for customer savings are many. As Held pointsout, for receiving a call under traditional roamingregulations in Jordan, a fee of $1.50 per minute appliesversus a zero fee using One Network.

Most customers, however, will use the service infrequently.To them, the network’s core benefit will not be the financialsavings of an occasional call abroad but rather thereassuring knowledge that they are always in easy reach oftheir families while traveling.

Like its role in reflecting the future of Africa, the OneNetwork in the Middle East has aspects that are alignedwith the cultural aims of Arab unity. People of the region willuse the network as a natural tool that enhances their

business and social interactions. For some, it may evoke asense of stepping beyond artificial lines of separation thatwere drawn as borders on maps in the last century.

In years to come, and especially through the addition offurther services on the platform, the One Network isexpected to facilitate increasing cultural affinities acrosscontinents. Zain’s team, who already see themselves asglobal citizens, wants to take this also beyond the bordersof their own corporate empire.

Held predicts that in five years, the One Network will bepresent on every continent with other operators wanting to buyinto it. To him, “roaming is dead. The reduction of roamingrates in Europe came from us. We showed a best practice tothe rest of the world, from Africa and the Middle East.”

The enthusiasm behind One Network literally knows noborders. For a man like Held, “building One Network is inthe same category as sending someone to Mars.” Eversince he realized the universal human longing to reach theunreachable stars within his own heart, he had been waitingto do something of this importance, something that wouldmake a difference to mankind and “something that we canshow our kids.”

George Held, One Network program director at the recent ACE conference in Kampala with Zain Group CEO Dr. Saad Al-Barrak (left) and Celtel founderMo Ibrahim (center)


CORPORATE SPIRIT

And I say to myself...Future Brand created the Zain design andlogo. Now it was up to Saatchi & SaatchiLevant to create ‘A wonderful world’

There are those rare moments in an advertisingexecutive’s career when the moment just clicks. Forthe team from Saatchi & Saatchi Levant it came when

working the agency’s campaign for MTC (as the client wasknown then) to create ‘A wonderful world’, Zain’sgroundbreaking inaugural slogan, one that would capturethe energy, inspiration and diversity of the Group’scustomers, employees and other stakeholders: they just hadhit the nail on the head first time.

The brief was part of a wider initiative to create the overallZain concept, one that would unify the Kuwaiti company’s22 operations in the Middle East and Africa, and which waslaunched with great fanfare in Kuwait, Bahrain, Jordan, andSudan in September 2007.

“We started off with something fresh and new because wedidn’t want to leave any residual connection to otherexisting MTC brands such as Fastlink in Jordan or MTC


Touch in Lebanon,” says Olfa Mourad, account manager ofZain at Saatchi & Saatchi Levant’s offices in Beirut.

Indeed, Zain wanted something different from what othertelecom companies were doing. “Most of the telecomoperators in the world, especially in the Arab World, talkabout communication,” says Samer Younes, creativedirector of Saatchi & Saatchi Levant, “but we wanted to gobeyond that, so we looked for inspiration to the biggerpicture and even to other iconic global campaigns.”

As part of their preparations, Saatchi looked topioneering campaigns by Apple and Nike, campaignsthat focused on the lifestyle to which their productscontributed. “What we wanted was a certain philosophyof life,” adds Younes.

Younes remembers the MTC’s original brief that describedthe company’s core values, its future and an initial“working” slogan, ‘Live the Zain life’. “They wantedsomething that captured the values of Zain and took it to atarget audience of achievers, those that live every day withthe hope of making a better future.”

But Saatchi recognized that the slogan might be trumpetinga premature concept. “When you are launching a newproduct, people are going to say, ‘what Zain life; theproduct is one day old.’ It was maybe a bit early for such aclaim,” explains Younes.

So the Saatchi team set out to create an alternative andfell upon one inspired by Louis Armstrong’s iconic balladWhat a Wonderful World, a song the team felt best

A SWIRLWIND!The Zain brand came with a new logo –an intriguing, sensual and mysticalswirl, reflecting the Group’s freshness,boldness and vitality communicatingthe idea of an aura, somethingimportant to human life and echoinggrowth, progression and diversity – aset of core values: Radiance, Heart andBelonging (see Value Added).

The new identity was developed inpartnership with world leading consultingfirms and advertising agencies. Thename Zain was selected from a list ofover 400 after extensive research across

many countries and cultures validated itsbroad global appeal.

Zain is simple, easy to identify andeasy to pronunce across a globalmarketplace, Zain was also found to berich in positive energy. In Arabic, Zainmeans ‘beautiful, good and wonderful,”in Latin ‘dark horse,’ while across Africa,Asia, Europe and beyond, Zain hasmany positive meanings. Zain testedextremely well among cross sections ofthe potential international audience. Inshort it ticked all the boxes needed tobecome a formidable global brandwithin a short period.

The campaign, one basedon hope and grand ideas,has elicited a hugeemotional response since itsrelease. Women in Sudaninspired by the campaignstarted wearing hennatattoos with the Zain logo


expressed the sentiment that anyone could make theirs awonderful world, especially in the Middle East. “Whatis wrong with the Arab World, we asked?” remembersYounes. “People are down; they are not happy. But wewanted to say, ‘Hang on! It is a wonderful world andyes, you can be a part of the international community,and if you look at the world differently, it can be awonderful world.”

The other plus was the idea also appeared to hit the markwithout using the word Zain. The ‘A Wonderful World’ ideawas bigger; it was living the Zain life without saying so. Oncethe team had it, the rest was easy. And this is when the conceptswung seamlessly to from communication to philosophy: givingZain customers the chance to dream and be entertained, to befed ideas of hope wrapped in a life philosophy.

This philosophy dictated that the sky, for example, could bemuch more than just sky, in the same way a field of flowerscould be more than its sum. And so the night sky became‘My Rooftop,’ the fields of flowers ‘My Perfume’ and theocean ‘My Pool’. The TV spot ends with a picture of anembryo and the message, ‘It is not what you look at; it’swhat you look for.’

“In advertising you have to push things,” say Mourad.“Here we pushed it to the max by making the embryo talkand show that from the earliest stage this is how we should

view the world. Even though we normally give the client twoor three options, this time we only gave them only one.That was how convinced we were.”

Film legend, Omar Sharif, was chosen to do thevoiceover for the TV commercial in Arabic, English and

“In advertising you have topush things. Here wepushed it to the max bymaking the embryo talk andshow that from the earlieststage this is how we shouldview the world. Even thoughwe normally give the clienttwo or three options, thistime we only gave themonly one. That was howconvinced we were”


French at a studio in Paris. Saatchi wanted a voice to bean example of what an Arab can become, and Sharif is anArab who certainly has made things happen on aninternational level reflecting Zain’s ambitions on theglobal market. The company is geographically the fourthlargest telecom company in the in the world with biggerand broader ambitions to break into the top ten overalloperators by 2011.

The creation process took less than three months andincluded about 30 people from Saatchi & Saatchi as well asabout 15-20 people from Zain working in tandem. Aftergetting approval on the storyboard, the director chosen for

the campaign was internationally acclaimed German,Matthias Zentner, with the equally respected TorstenLippstock as director of photography. The commercial wasproduced in less than a month with scenes shot in Dubai,South Africa and Italy with a photo shoot in the UK for theprint campaign. Post-production was done in Munich.

“It’s the whole energy that made it happen. We were sofortunate to have a client like Zain because they knowtheir plan and live their plan. They were as passionate asus. They were involved in brainstorming; they pushed us,”said Younes.

The campaign, one based on hope and grand ideas, haselicited a huge emotional response since its release.Women in Sudan inspired by the campaign started wearinghenna tattoos with the Zain logo. “We empowered people.We have received e-mails from people as far away as Taiwanwho saw the commercial and loved it,” says Younes, “InJordan, it made the local press and created a debate and awave of interest unheard of in the region.”

The campaign was also spoofed on the internet with websitessuch as YouTube.com carrying parodies of the commercial. Aproud Younes explained, “This was the first time a majorcampaign in the region was spoofed. This means that theyunderstood the concept and loved it.”

It is indeed ‘A wonderful world’.

“It’s the whole energy thatmade it happen. We wereso fortunate to have a clientlike Zain because they knowtheir plan and live theirplan. They were aspassionate as us. They wereinvolved in brainstorming;they pushed us”

VALUE-ADDEDAs MTC morphed into Zain, it not only into aninternational brand, but a family entity adopting thecore values Zain believes that we all should respect andpractice and that remain constant, irrespective of thedifferent national cultures and identities the group mighteventually absorb.

Such values are not new to Zain and indeed they havebeen integral to the company’s success to date; thedifference is that today Zain has formally adopted themas business drivers, qualities that it shares with itscolleagues and customers, people who are progressive,achievers and dedicated to realizing their goals.

They are:Radiance leads the way with imagination and vision,bringing joy, color, and richness to Zain’s businessenvironment.Heart represents living our lives with courage andresolve, engaging our spirit and touching our emotions.Belonging means exactly what it says: being part of thefellowship and community spirit that knows noterritorial boundaries.


CORPORATE SPIRIT

“Happy deep in myheart”Below are just a few of the emails sent toZain, congratulating the company on it’s TVads, telling how they have touched lives

Dear Zain,

I'm Lamia from Cairo. My 19-month-old son, Hussein,absolutely loves your TV commercial, the one with the mybed, my crayons, my bicycle. He just stops everything he'sdoing and rhythmically sways to the music. Can you emailme a copy of the ad? I'd really appreciate it.

Thanks and keep up the brilliant advertisements!

Sincerely,Lamia FarahatCairo Egypt

Dear Zain,

The purpose of this email is to request an unusual favor. Iwant the background music of your TV ad currently beingaired on the Showtime channels. I am really hooked on itand hope you can help me.

I work for Al Futtaim Electronics in Dubai and am reallyimpressed by the creativity of your adverts.

Sincerely,Faisal Khalid ButtDubai, UAE

The flavor of Zain’s ads have captured the imaginations of millions across the region


Dear Zain,

I am blessed with 8-month-old twin boys, Adam and Hashim. Idon’t know what is the secret behind the Zain logo and themusic associated with it, but whatever my twins are doing,when they hear it on the TV, they flip over and rotate their necksto see the screen. This is because the Zain commercial attractstheir attention and makes them laugh loudly.Whenever I see them doing this, I feel really happy deep inmy heart and start to laugh too.

I just wanted to express my feelings. Zain truly is ‘Awonderful world’.

Sincerely,Dr. Hussien Al-Wedyan,Irbid, Jordan

Dear Zain,

I would like to inquire about the tune used in Zaincommercial ads showing on the commercial break of theOprah show on MBC 4. In fact my one-year-old daughtergoes a bit crazy when ever she hears that song hence Iwould really appreciate if you could direct me to the rightperson who could help me buy the CD or find the song oninternet so that I can download it.

As you may know these are priceless moments, and so yourhelp would be highly appreciated.

Sincerely,Driss BelemlihDubai, UAE

Dear Zain

I would like to express my appreciation of Zain’s latest adcampaign to support one of the hottest environmentalissues: "Saving Water." When I saw your latest ad about"water scarcity" I was intrigued and encouraged to contactyou and congratulate you on your sincere efforts to protectthe environment.

Nessrine N. HalabyBeirut, Lebanon

Dear Zain,

I am writing from Celtel Kenya to request the amazing Zainjingle that plays when one opens the Zain Website.

Sincerely,Njoroge HenryNairobi, Kenya

The campaign, with its many cultural faces, has broken new ground in telecomadvertising


CORPORATE SPIRIT

Genuine Air TimeAnother first as Zain takes mobile roamingservices onto aircrafts

Following Zain in Jordan’s March 2008 announcementthat it had successfully rolled out its mobile roamingservices on aircrafts, five more operators within the

Zain Group –Bahrain, Lebanon, Tanzania, Kenya, andNigeria – have started commercial operations. They willsoon be joined by Kuwait, Iraq, Sudan and Uganda.

With the new service, Zain hopes to become a marketleader and be among the first mobile operators in the worldto introduce such services to its customers.

The new technology, installed by AeroMobile, wassuccessfully tried by Zain customers during the world’s firstcommercial flight on Emirates Airlines between Dubai andCasablanca that took place with the new innovativetechnology in March.

“We are proud to be the first mobile service provider inJordan to offer our customers such a differentiated service,”said the Zain Group’s CEO Dr Saad Al-Barrak, adding thatZain had always been a pioneer in introducing top-of-the-line services in Jordan and across the Middle East. “Withmobile phones becoming an important part of people’severyday lives, we are delighted to offer our customers thechoice of using their own mobile phones to contact friends,family or colleagues during flights and therefore makingtheir lives easier,” he said.

Al-Barrak also said that Zain had signed an agreement withAeroMobile early in 2006, having seen the potential thistechnology has to offer to its customers. “During the initialphase, Zain’s customers in Jordan can now stay connectedon board of a number of Emirates flights. The service will belater expanded to include all flights on Emirates as well asother airlines that have partnered with AeroMobile,” addedAl-Barrak.

“Through our partnership with AeroMobile, the company willfurther enhance its international mobile roaming services,”said Mervette Al-Shihabi, Zain in Jordan’s InternationalRoaming Manager. “This follows the successful launch of Zainin Jordan’s Marine Roaming Services in 2006.”

THE EUROPEAN CONNECTIONOn June 5, 2008, the Zain Group began operating itsinflight roaming service on Air France (on A318s) and, asof July, Portugal’s TAP (on A319s). These carriers both flyto various European destinations, with Air France alsoflying to North Africa, and TAP serving the PortugueseIslands of the Azores, Madeira and Cape Verde.

Onboard, voice, SMS and GPRS is available (for Zainoperators subject to commercial launch with OnAir ofcourse). The service is available above 3,000 meters, butnot during landing and takeoff. Passengers will be madeaware of the service onboard through crewannouncements, in seat pocket information andoverhead signs in the form of a mobile phone sign nextto the non-smoking sign.

Further airline launches will be announced as soon aslaunch dates are confirmed.


Zain’s agreement with AeroMobile includes InternationalRoaming Services for all Zain in Jordan’s customers throughwhich they can now enjoy using voice calls as well as SMSservices on board. GPRS, Black Berry Services and Push Mailwill be also available to customers in the near future.

AeroMobile completed several months of operational trials in anextensive testing procedure in Australia in 2007. The AeroMobiletechnology ensures that passengers’ mobile phones operate attheir minimum power settings in order to allow secure use andavoid interference with ground telecoms networks.

For appropriate use of mobile phones on board, all airlineswill be providing a list of guidelines, which will include arequest for passengers to switch their mobile phones to“silent” mode during the flight. Furthermore, the cabin crewwill be able to monitor as well as handle full control of howthe system will be used throughout the trip.

Passengers wanting to use the service during the trip willreceive a text message welcoming them to the AeroMobilesystem as soon as they switch their mobile phones on.

“We are delighted to deliver a genuine world firsttechnology through Zain’s network, a mobile operator thatis amongst the first in the world to provide such a uniqueinnovative service to its customers,” declared AeroMobile’sChief Executive Bjorn-Taale Sandberg. “We believe that theability to communicate efficiently, easily and safely when onboard flights will become an every-day feature for businessand leisure travellers soon.”

ORDINARY AND EXTRAORDINARY GENERALASSEMBLY MEETINGSOn Monday, March 10, 2008, MobileTelecommunications Company K.S.C. (Zain) held itsannual Ordinary and Extraordinary General Assembliesat the Company’s headquarters in Kuwait with a quorumof 83.93%.

The meetings approved the distribution of cashdividends of 90 fils per share and a stock dividend of50% to all registered shareholders of record on the dateof the General Assembly Meeting.

The meeting also ratified the Board of Directors’proposal to increase capital by Bader & Co,PricewaterhouseCoopers and Al-Ahli Bureau werereappointed as auditors for the year ending December31, 2008.

The meeting was an opportunity to welcome two newmembers: Al-Sheikha Aida Salim Al-Ali Al-Sabah and Mr.Saleh Yousef Al-Sagoubi. The board also thankedoutgoing member Mr Meshal Al Hammad for hiscontribution in recent years.

The new eight-member boardMr. Asaad Al-Banwan ChairmanDr. Saad Hamad Al-Barrak Managing

Director/Deputy Chairman

Representative of KIA MemberMr. Abdulmohsen Ibrahim Al-Faris MemberMr. Abdulaziz Yacoub Al-Nafisi MemberMr. Jamal Ahmed Al-Kandari MemberSheikh Khalifa Ali Khalifa Al-Sabah MemberSheika Aida Salem Al Ali Al Sabah Member

Zain is delighted to deliver agenuine world firsttechnology through itsnetwork. The company isproud to be among the firstin the world to provide sucha unique innovative serviceto its customers


CORPORATE SPIRIT

Excellence shines throughCeltel Wins Best Telecom Operator inAfrica Award

In London on July 3, 2008, Celtel, part ofthe Zain Group, won the award for theBest Telecoms Operator in Africa

category, at the prestigious 2008 Businessin Africa Awards. The company beat ahost of other operators to win the title,which is aimed at highlighting the growthand potential of the business landscapeacross Africa, while rewarding excellenceand world-class best practices across thecontinent.

This prestigious event was attended by 500government, business, and media leadersfrom across Africa, Europe, Asia and theUSA. The evening represented an ideal andunique opportunity to give global visibility toworld-class African brands.

Collecting the award for Zain wasTito Alai,Chief Commercial Officer for Zain Group.“Zain places a huge emphasis on Africa inachieving its 2011 targets of being a top-ten global mobile operator with 110million customers,” he said. “This award isan achievement that represents our beliefin the African continent and the potentialthat exists. Together with our partners andcustomers, we are committed to buildingthe African economic dream anddeveloping telecommunications acrossthe continent as no other telecomcompany has been able to do.”

The awards were co-hosted by theCommonwealth Business Council (CBC)and African Business magazine. NotableVIPs such as Ephraim Inoni, Prime Ministerof Cameroon; Bethuel Mosisili, PrimeMinister of Lesotho; Senator Daggash,Nigeria’s Minister of National Planning;Neville Isdell, Chairman of Coca Cola; andother prominent diplomats andbusinessmen presented the Awards to thewinners on what was a festive andmemorable African night.

Celebrating Mandela at 90Emeka Oparah, Head of CorporateCommunications at Celtel Nigeria, was inLondon to witness the world salute anAfrican icon


CORPORATE SPIRIT


Hyde Park, London, was a beehive on Friday, June 27,2008, as a host of world-renowned musicians led by WillSmith, gathered at a concert in honour of a legend,

Nobel Peace Prize Laureate and former President of SouthAfrica, Dr. Nelson Mandela, who turned 90, nine days earlier onJuly 18. The concert was dually sponsored by Zain, the parentof Celtel Nigeria, in partnership with Mercedes Benz. It was athree-hour session of musical passion by the high and mighty –and the not-so-mighty artists who were nonetheless just as

passionate – who turned out to give the African icon a befittingbirthday bash. The show lived up to its rating as a world classcrowd-puller.

Among the specially chosen artists were many whomNelson Mandela recognised for having voiced their supportfor him over the past 20 years, dating back to London’shistoric Free Mandela concert of June 1988, which called forhis release from incarceration on Robben Island, and which,Mandela said, gave him and his fellow prisoners greatinspiration.

Rounding out the 20 years since the Free Mandela event in1988, the concert also featured top artistes of todayincluding worldwide No.1 artist Leona Lewis, Britain’s mostsuccessful female group, the Sugababes, Amy Winehouse,Queen, Will Smith, Josh Groban, Annie Lennox, Razorlight,Sharon Corr, Simple Minds, and Eddy Grant, all of whom gaveof their time to raise money to fight AIDS, poverty and othersocial causes across the continent and throughout the world.There was also a significant contribution from some ofAfrica’s best known artists, many of whom were individuallysponsored by Zain, through its African subsidiary Celtel,which is committed to promoting African arts and culture.They included legendary Nigerian hip hop star 9ice,Madagascar’s D’Gary, Bebe Cool from Uganda and Kenya’sSuzanna Owiyo.

Other African artists included Johnny Clegg, Sipho Mabuze,multi-South African Music Awards winner Loyiso, Kurt


Darren, the Grammy award winning Soweto Gospel Choir,AIDS orphan choir The Children of Agape - the subject ofthe award winning film feature We Are Together – andSudanese rapper Emmanuel Jal.

Several fundraising events were organised as part of thecelebrations and would benefit the charitable organisationsestablished by Mandela: the Nelson Mandela Foundation,the Nelson Mandela Children’s Fund and the MandelaRhodes Foundation, which through their work have soughtto bring about change and make a difference in lives inAfrica and elsewhere over the past 14 years. The concertproceeds will go to the 46664 (Mandela’s Robben Islandprisoner number) campaign which raises awareness aboutthe impact of AIDS, especially in Africa, and promoteseffective HIV prevention measures throughout the world.And as his final public engagement on his visit to the UK,Mandela’s appearance at the concert was surely emotional. Instepping down from his campaign work, he used the concertto deliver his message presented in the current 46664campaign, “It’s in our hands”, that he is handing over the46664 mantle to each of us to carry forward on his behalf.

Mandela’s 90th birthday is coming on the heels of efforts bysome US lawmakers to pass legislation to remove theformer South African President from the US list of terroristsahead of his 90th birthday. South African Ambassador to the

United States Welile Nhlapo did confirm that he was in talkswith the State Department and lawmakers to resolve theissue by Mandela’s birthday, and as it tuned out, by earlyJuly, Mandela’s name had been removed from the list. Thismay have come too late in the day, decades after thedemise of apartheid rule in South Africa, but will be adecent birthday present to a man many rank just after thePope and the Dalai Lama in terms of moral fiber.At the pre-event photo session for Mandela and theparticipating artists at the Intercontinental Hotel, London, aday before the concert, my mind went flashing back to mychildhood days, when one was regaled with stories of thegallant exploits of Mandela, then a prisoner in Robben Island,as well as those of his very charming and irrepressible wifeWinnie. But for that very unfortunate separation from Winnie,based on his very high principles, Mandela has lived aparticularly charming and exemplary life.

So you can imagine my excitement as I joined the crowd ofartists, sponsors and event organisers at the photo session.As I sat next to him with 9ice for a photograph, I could feelmy heart racing in excitement and wonderment. A chance ina lifetime, you will say! But for the obvious signs of old age,Mandela still looks glorious and awesome. He still wore thatincredible, enchanting smile that made him instantly lovableand recognisable. Of course, he turned up in his favouriteMadiba shirt, which he made famous around the world after


he was freed from Robben Island. Some people, who are soinclined, shed a tear or two as he made his way with theassistance of his aides out of the hall. What a life!

As I thought about Mandela’s many gifts to the world,especially those of freedom and commitment, my emotionsnearly got the better of me as I remembered the ongoingchallenges faced by many African nations, a subjecttouched on by Mandela in his speech at one of the dinnersorganised during the week-long celebration, delivered infront of former US President Bill Clinton, UK Prime MinisterGordon Brown, Will Smith, Oprah Winfrey, Robert de Niroand Forest Whitaker.

In sponsoring the Nelson Mandela 90thBirthday Concert, Zain had kept up with itsdrive to promote African arts and culture.Zain, through its African subsidiary Celtel,which funded several of Africa’s famousartists to perform at the internationalconcert. Zain Group CEO Dr Saad Al-Barrak said: “We are proud to be part ofthis event honouring Mr. Mandela, a globalicon whose sacrifices for the African peopleare well known to all. It is in line with Zain’sglobal ambitions and corporate social

“We are proud to bepart of this eventhonouring Mr. Mandela,a global icon whosesacrifices for the Africanpeople are well knownto all. It is in line withZain’s global ambitionsand corporate socialresponsibilityphilosophy that weparticipate in the raisingof funds for theMandela Foundation”Zain Group CEODr Saad Al-Barrak

responsibility philosophy that we participate in the raisingof funds for the Mandela Foundation.”

Indeed, by sponsoring this monumental and momentousevent, Zain has not only offered people in Africa the chance toparticipate by using its mobile phone networks in Africa tosend text messages wishing Nelson Mandela a happybirthday, it has also brought African artists to even brighterlimelight. What a way to announce its arrival in Africa as itprepares to rebrand its African operations from Celtel to Zain!

To Dr. Mandela, for whom the world is literally standing still,here’s to a happy birthday and many more years of serviceto Africa and the world as a whole.


CORPORATE SPIRIT

Zain at the main eventThe Group’s participation in the concert, thebrainchild of Africa’s Communicationdirector, Mwambu Wanendeya, had becomereality. As you can tell by the happy facesand big smiles, it didn’t disappoint!

Even a chilly London night – Zain guests were wrappedin Zain fleeces and carrying Zain blankets – could notoffer any resistance to the sheer energy of what will

always be remembered at this historic evening, one thatwas a tribute to one of the 20th Century’s greatest heroes,Nelson Mandela. Zain was there in body and spirit, and thevalues to which the company aspires and which drive itswork ethic were evident in Hyde park that night for all theworld to see!







CORPORATE SPIRIT

Pre-concert fun in LondonMembers of the Zain family enjoy partying andexperiencing one of the world’s great capitals

The night before the historic birthday concert in HydePark, a sumptuous dinner was held at the renownedMomo’s Moroccan restaurant, off Regent Street in

West London. The next day offered the treat of a guidedtour of the capital in a traditional red London bus, speciallyrented by Zain. Both were the perfect hors d’oeuvres to thespectacular main event in the park later that night. Truly atrip to remember.





CORPORATE SPIRIT

Three days of rhythmin the sunMusic galore as big names jet in for theCeltel Kenya Sawa Sawa festival

The three days that straddled May and June saw tens ofthousands of music fans attend the Celtel Sawa Sawamusic festival in Nairobi. The event showcased such high-

profile international artists as the legendary Black Uhuru fromJamaica, Baaba Maal from Senegal, and the Mahotella Queensfrom South Africa. Also performing were body percussionistsPercus Normades from Benin, the Cuban Habana Sax, Beef fromHolland and Ustad Rafat Khan from India. They were joined byrenowned Kenyan artists like Atemi, Kanji, Makadem, the JulaKali Drummers, General Onyx, the Warriors, Heart and Soul,Abbaz, Didge Wenyenje and the Sarakasi Acrobats and Dancers.

This is the second year that Celtel Kenya sponsored the musicfestival, working closely with the Royal Netherlands Embassy andthe Sarakasi Trust. The festival also received support from localand international partners and donors including Double 2, KBC/Metro, Capitol FM, Mundial Productions, Ghetto Radio, the USEmbassy, the Indian High Commission, Stadia Management,KLM and the Kenyan Ministry of Culture.

“Once again, Celtel Kenya is happy to be associated with theSawa Sawa Musical concert, which is a great event in Kenya’smusical calendar,” said Michael Okwiri, the Celtel Kenya Directorfor Communication and Corporate Affairs. “We shall continue toprovide sponsorship to such concertsin the future because they provide agood opportunity for Kenyans toenjoy a menu of global music andcelebrate our diverse culture.”

H.E. Kees van Baren, deputyambassador from the RoyalNetherlands Embassy, was equallyenthused by the initiative: “TheNetherlands Embassy is committedto sponsor culture for developmentand will continue to do so bypartnering with Sarakasi Trust to makemusic available to a wide audience.”

Last year’s Sawa Sawa Festivalbrought together famous artistsfrom all over the world like BurningSpear, Hugh Masekela, Dutch

Reggae band Luie Hond alongside pianist Mike Del Ferroand attracted the biggest gathering a musical event hasever attracted in Kenya.

This year’s festival was divided into three concerts. The first wasthe VIP dinner concert at the Sarakasi Dome on Friday May 30,while the inaugural public show was staged at the Arboretumon Saturday May 31. It was a family day of Afro modernentertainment with Percus Nomades along with some ofKenya’s renowned artists like Kanji, Makadem and the SarakasiArtistes.

Sunday saw the Afro roots event for all the roots lovers atKasarani Stadium for a thrilling performance by reggaebands Black Uhuru and Beef among other local andregional artists namely Hart & Soul, General Oryx and TheWarriors. The highlight was the performance by BlackUhuru, attended by over 40,000 delirious Kenyan reggaefans. Black Uhuru is one of the biggest names in reggaemusic globally, and they didn’t disappoint. Formed inJamaica in 1974 by Euvin “Don Carlos” Spencer, Rudolph“Garth” Dennis, and Derrick “Duckie” Simpson, it was thefirst group to win a Grammy award when the Reggaecategory was introduced in 1985.


CORPORATE SPIRIT

Mobile telephony toreach 400,000 people inremote African villagesZain, Ericsson and Earth Institute deliverMillennium Villages Project initiatives inKenya, Tanzania and Uganda

A boy walks near his home at the Millennium Village project in Dertu


In Nairobi, Kenya on May 7, 2008, Zain, Ericsson and theEarth Institute announced that they would be providingtelecommunications deliverables to the Millennium Villages

of Dertu (Kenya), Ruhiira (Uganda) and Molla (Tanzania).

The initiatives were first outlined in September 2007 atColumbia University in New York, where Zain, Ericsson and theEarth Institute announced a partnership to provide mobilecommunications and Internet connectivity to the MillenniumVillages Projects covering up to 400,000 people in 10 sub-Saharan African countries where the project is working.

Ericsson and Zain (through its wholly-owned African subsidiaryCeltel) teamed up to develop a comprehensive end-to-endtelecommunication strategy in the villages and to drive mobilephone connectivity and coverage build-out to selected areas.

“It is wonderful that the people in this remote part of Africawill have access to basic but effective mobile internetaccess over an EDGE network,” said Chris Gabriel, CEO ofCeltel. “Here we can see how mobile communications canplay a key role in helping improve the quality of life forpeople even in the remotest parts of the world.”

Carl-Henric Svanberg, CEO and President, Ericsson, echoedthese sentiments: “The Millennium Village Project providesus with a unique ecosystem to demonstrate the benefits ofvoice and Internet. We believe the uptake of mobileservices could go even quicker than anticipated in thisenvironment, as the need for even basic services is so muchgreater. The project is one concrete example where we areactualizing our commitment to the MDGs, while at the sametime stimulating positive business impacts and opening newmarkets in remote parts of rural Africa.”

Jeffrey Sachs, Special Advisor to the United Nations Secretary-General and Director of Columbia University’s Earth Institute,said: “Mobile communication is perhaps the single mosttransformative technology for rural African villages to improveaccess to health care and education, create new businessopportunities and access to markets, and ultimately to helperadicate extreme poverty. We are excited by the tremendousopportunities which mobile phones make possible in every kindof community and economic activity – ranging from pastoralistsand farmers, to traders, health workers and teachers.”

In Kenya, Zain and Ericsson have deployed a temporarymobile network providing service to 5,000 people in Dertu for

Ericsson and Zain(through its wholly-owned Africansubsidiary Celtel)teamed up to develop acomprehensive end-to-end telecommunicationstrategy in the villagesand to drive mobilephone connectivityand coverage build-out to selected areas

IMPROVING LIVESBut just how does telephony improves lives?A 2005 report by Leonard Waverman of the LondonBusiness School, estimates that the average developingnation sees its economic growth rise by .06% for every 10%growth in the number of mobile phone subscribers.

In 2007, the GSM Association applied Waverman’smethodology to a group of 57 developing nations andfound that the impact was doubled, boosting economicgrowth by 1.2% for every 10% rise in mobile users.

Ericsson and Zain believe that the introduction of mobilecommunications will help to prove the business case forearly adoption of EDGE/3G/mobile broadband services inAfrica, while at the same time significantly contributing tothe improvement of social and economic conditions of thenearly half million people living in the villages.

Chris Gabriel, CEO of Zain Africa, offers technical assistance to a school teacher, working ona computer for the first time


WHERE IT’S HAPPENINGDertu, Kenya, is situated in the northern part of thecountry, situated 100 km north of Garissa, close to theSomali border. It spreads an area of 750 squarekilometers with a total population of just over 5,200,mainly pastoral and nomadic society.

Uganda’s Ruhiira Millennium Village cluster is situatedsouth from Mbarbara on 338 square kilometers with apopulation of over 43,000. The hilly terrain and poorroads and communication systems make transport inRuhiira exceptionally difficult.

Tanzania’s Mbola cluster is about 20 communitiesspread out over 700 square kilometers with a totalpopulation of 30,000. Located in the Uyui district inmidwestern Tanzania. The nearest city center is Taborawhich is located 36 km away.

the first time. By October 2008, the temporary network will bereplaced by a permanent one that will continue to beoperated by Zain using Ericsson’s sustainable energy solutionsincluding wind, solar energy and others to drive equipment atminimum power requirements. It is estimated that thepermanent solution will run at 80% increased efficiency overtraditional diesel-powered mobile sites.

Elsewhere, Sony Ericsson has supplied mobile handsets tothe Millennium Village health clinics and community healthworkers. Together with Ericsson, they have developed a newSolar Village Charger that is capable of re-charging 30mobile phone batteries each day and eight phonessimultaneously for each village cluster.

In Tanzania and Uganda, Ericsson has upgraded Zain’sGSM network to EDGE and at the same time improvedcoverage and network reach. Using a combination of‘fixed-wireless terminals’ mobile Internet connectivity willbe provided to schools and health centres. Plans arealso in place to extend coverage to all 73,000 people inboth village clusters. Sony Ericsson and Ericsson alsohave provided handsets to community and healthworkers and piloted new healthcare applications formobile learning purposes as well as basic household datacollection. Zain has provided SIM cards and establishedemergency numbers to improve access to healthcare andemergency services.

Zain will also provide a toll-free number that can be used inmedical emergencies to connect patients with on-dutymedical personnel. Other initiatives include a mobilelearning tool to train community health workers and mobileapplications to collect and share basic household data andhealth information.

The Millennium Villages Project, based at The EarthInstitute at Columbia University, is a science-based bottom-up approach to lifting rural villages out of the poverty trapthat afflicts more than a billion people worldwide. Thecommunity-drive initiative currently operates in 10 sub-Saharan African countries where it tackles challengesrelated to health, education, nutrition, livelihoods, genderequality and other vital issues.

Mobile chargers have changed lives in remotest africa

In Kenya, Zain and Ericssonhave deployed a temporarymobile network providingservice to 5,000 people inDertu for the first time. ByOctober 2008, thetemporary network will bereplaced by a permanentone, operated by Zain usingEricsson’s sustainableenergy solutions


CORPORATE SPIRIT

Making dreams come trueZain in Bahrain’s ambition to be a buildingblock for the island state’s future pioneers

Zain Bahrain has always pushed for better technologychoices, better access to electronic educational tools,better facilities for people with special-needs and

youth empowerment through supporting sporting andeducational events.

Now the company has added a new chapter to its richportfolio of community initiatives with a campaign called‘Dreams Can Come True’ with Zain. Cutting through themaze of paperwork that usually marks ‘official’ requestsfor help and assistance, Zain has unveiled an innovativenew approach through which individuals can directly seekhelp from the company that will literally make theirdreams come true.

“We all have dreams, and for most of us, it is in our ownhands to try and make them come true,” said Mr.Mohammed Zainalabedin GM of Zain in Bahrain,announcing the Zain Dream campaign. “But for manypeople, making dreams into realities are made moredifficult either through lack of having the right contacts, nofunding, physical disadvantages or even the lack ofconfidence in their own abilities. We want to give suchpeople a unique chance to have their dreams come true.The campaign focuses around three key areas that havealways been at the heart of our Corporate SocialResponsibility initiatives – youth empowerment througheducation, sports and a healthy lifestyle and caring forindividuals with special needs.”

The one-year initiative started on April 1, 2008. Over the12-month period, Zain Bahrain will invite people living inBahrain to submit a short summary of their dream, whyand where they need help in making it a reality and how itrelates to the company’s three CSR areas. The companywill provide submission forms at all of their ExperienceShops around the Kingdom or through the Zain Bahrainwebsite. Zain teams will also visit Bahrain charitableorganisations to also make entry forms available from manyother locations.

Zain has set aside sufficient funds to help 12 people achievetheir dreams and at the end of each month, a panel madeup of independent judges will review each and everyapplication based on the applicant’s suitability to the ZainCSR criteria and then select one winner. The panel ofdistinguished judges will include:

• Dr Fouad Shehab – Professor at the University ofBahrain and President of Prince Sultan Abdulaziz Centrefor Hearing and Speech• Professor Abdulla Al Hawaj – President of Ahlia University• Mr Waheed Al Qasim – Under Secretary for CommunityDevelopment at the Ministry of Social Development• Mrs Amal Al Dosari – Director of Youth Developmentand General Organisation for Youth and Sports• Sheikha Aisha Bint Salman Al Khalifa – President ofWomen and Children Society


• Mr Ibrahim Bashmi – Member of the Shura Counciland Editor-in-Chief of Al Waqt• Mr Waleed Al Thawadi – Radio Officer at BTV• Mr Nijad Al Atassi – President of the Adliya Rotary Club.

(No Zain Bahrain employees will be involved in the decisionmaking or adjudication.)

“Since our company launched service here in 2003, we havealways looked to contribute to Bahraini society,” explainedSamya Hussain, Corporate Communications Manager atZain Bahrain. “The ‘Dreams Come True’ campaign is takingour focus to another level where people who may havealways held a desire to do something here but neverthought they could – for whatever reason.”

The company stressed that the winner would not be chosensimply by “lucky dip” and that each entry be carefullypresented and thoughtout and demonstrate how making aparticular dream come true would benefit society or theindividual. The selected ‘dreamer’ will be advised by

telephone and details of the ‘dream’ will bepublished on www.zain.com.Unsuccessful applicants are welcome tore-submit entries each month.

Organizations and programs that have benefitedfrom or were established by Zain Bahrain’s proudtradition of CSR activities include:• GOYS Sport Talent Identification Programme• Muharraq Football Club• Al Taaref Summer Tournament• The Back to School Project – in which over20,000 schoolbags and supplies are distributedto needy Bahraini students at the start of everyacademic year• The Indian Ladies’ Association free recreationcentre• Sneha – for special-needs children of allnationalities• Equipment for the visually-challenged

“As a company, we are happy to allocate fundsand resources to good and worthy causes. Butwe want to let the people of Bahrain also have asay in such initiatives and at the same time fulfilsomeone’s dream of helping them to make adifference,” concluded Mr. Zainalabedin. “Ouremphasis has always been to focus on initiativesthat will harness the best in our youth throughsports and education, provide special-needspeople with the opportunity to maximize theirpotential and above all, empower thecommunity to forward the philosophy ofengaging in good work that will give-back tosociety. We wish everyone with a dream goodluck – we want to help you make that dreamcome true.”

Zain has set-aside sufficientfunds to help 12 peopleachieve their dreams and atthe end of each month, apanel made up ofindependent judges willreview each and everyapplication based on theapplicant’s suitability to theZain CSR criteria and thenselect one winner


And the first twowinners are…!Zain Dreamers Mohammed Al-Orayed andHamed Al-Mahari win the judges’ hearts

It was an exciting photo-finish similar to the F1 races thathe loves when Zain Bahrain contacted Bahraini Hamed AlMahari and announced that they would back his dream

project – an e-magazine that will tap into young people’sfascination with motor cars and harness the ease with whichthey navigate New Media.

He is the second winner in Zain’s groundbreaking ‘Dreamscome true with Zain’ campaign. In April, 20-year-oldUniversity student Mohammed Al-Orayed, became the firstZain Dream winner, realizing his ambition to establish arecording studio dedicated to Bahrain’s rich musicalheritage, when he won over the panel of judges.

The initiative selects one winner each month for the wholeof 2008 through a distinguished Board of Trustees to helprealize a dream or project that complies with Zain inBahrain’s CSR objectives of education, youth empowermentand helping people with special needs.

“The Board of Trustees had no hesitation in picking out Mr.Al Mahari’s e-magazine project as the winner for the MayZain Dream Campaign award,” said Board President Dr.Fouad Shehab. “We were impressed with the amount ofdetailed preparation that he had put into the plan as well asthe potential it holds. We were also impressed with theproject because it taps into some of the core objectives thatZain in Bahrain espouses such as spreading technologyawareness among young people and increasing the use ofnew technology and media to spread knowledge.”

Al Mahari expressed his delight at winning the award,saying it was the culmination of meticulous planning andpreparation. “It is the first step towards realizing a long-cherished dream, and I am very grateful to Zain in Bahrainfor implementing such an innovative project that cuts acrossall red tape to give ordinary people like me an opportunityto grab serious corporate attention,” he said. “More thanthe cash award, I value the recognition this prize gives meand the tremendous encouragement it signifies.”

Striking gold: Hamad Al-Mahari, the initiative’s 2nd happy winner


The award ceremony which attracted media attention andpublic curiosity was marked by an atmosphere of friendlinessand warmth which characterized the Zain Life values that thecompany promotes. “The campaign focuses around three keyareas that have always been at the heart of our CorporateSocial Responsibility (CSR) initiatives – youth empowermentthrough education, sports and a healthy lifestyle and caringfor individuals with special needs,” said Zain Bahrain GeneralManager Mohammed Zainalabedin, who, speaking at the firstawards ceremony, thanked the judges for the time and effortthey gave to the initiative. “Without them, this campaignwould not have been possible.”

“People have begun to understand how to connect with theZain Dream project,” said Zain Bahrain’s CorporateCommunications Manager Samya Hussein, as she handed

Al Mahari his prize. “We are seeing a growing proportion ofthe Dream Projects touching the core values of ZainBahrain’s corporate social responsibility values.”

The response to Zain’s visionary campaign has beenenormous. Zain has provided submission forms at all oftheir Experience Shops around the Kingdom andapplications were received through the Zain Bahrainwebsite. “We received plenty of applications for theinitiative,” said Hussein. “The company congratulates thefirst two winners.”

Contestants can drop a brief summary of their dream intoboxes provided for the purpose at Zain Experience Shopsthroughout the Kingdom of Bahrain or log on towww.bh.zain.com to submit applications.

The first winner, Mohammed Al-Orayed with Zain in Bahrain’s GM Mohammed Zainalabedin

“More than thecash award, Ivalue therecognition thisprize gives meand thetremendousencouragementit signifies.”Hamed AlMahari, ZainDream winner


CORPORATE SPIRIT

Making dreams come trueZain in Bahrain’s ambition to be a buildingblock for the island state’s future pioneers

Zain Bahrain has always pushed for better technologychoices, better access to electronic educational tools,better facilities for people with special-needs and

youth empowerment through supporting sporting andeducational events.

Now the company has added a new chapter to its richportfolio of community initiatives with a campaign called‘Dreams Can Come True’ with Zain. Cutting through themaze of paperwork that usually marks ‘official’ requestsfor help and assistance, Zain has unveiled an innovativenew approach through which individuals can directly seekhelp from the company that will literally make theirdreams come true.

“We all have dreams, and for most of us, it is in our ownhands to try and make them come true,” said Mr.Mohammed Zainalabedin GM of Zain in Bahrain,announcing the Zain Dream campaign. “But for manypeople, making dreams into realities are made moredifficult either through lack of having the right contacts, nofunding, physical disadvantages or even the lack ofconfidence in their own abilities. We want to give suchpeople a unique chance to have their dreams come true.The campaign focuses around three key areas that havealways been at the heart of our Corporate SocialResponsibility initiatives – youth empowerment througheducation, sports and a healthy lifestyle and caring forindividuals with special needs.”

The one-year initiative started on April 1, 2008. Over the12-month period, Zain Bahrain will invite people living inBahrain to submit a short summary of their dream, whyand where they need help in making it a reality and how itrelates to the company’s three CSR areas. The companywill provide submission forms at all of their ExperienceShops around the Kingdom or through the Zain Bahrainwebsite. Zain teams will also visit Bahrain charitableorganisations to also make entry forms available from manyother locations.

Zain has set aside sufficient funds to help 12 people achievetheir dreams and at the end of each month, a panel madeup of independent judges will review each and everyapplication based on the applicant’s suitability to the ZainCSR criteria and then select one winner. The panel ofdistinguished judges will include:

• Dr Fouad Shehab – Professor at the University ofBahrain and President of Prince Sultan Abdulaziz Centrefor Hearing and Speech• Professor Abdulla Al Hawaj – President of Ahlia University• Mr Waheed Al Qasim – Under Secretary for CommunityDevelopment at the Ministry of Social Development• Mrs Amal Al Dosari – Director of Youth Developmentand General Organisation for Youth and Sports• Sheikha Aisha Bint Salman Al Khalifa – President ofWomen and Children Society


• Mr Ibrahim Bashmi – Member of the Shura Counciland Editor-in-Chief of Al Waqt• Mr Waleed Al Thawadi – Radio Officer at BTV• Mr Nijad Al Atassi – President of the Adliya Rotary Club.

(No Zain Bahrain employees will be involved in the decisionmaking or adjudication.)

“Since our company launched service here in 2003, we havealways looked to contribute to Bahraini society,” explainedSamya Hussain, Corporate Communications Manager atZain Bahrain. “The ‘Dreams Come True’ campaign is takingour focus to another level where people who may havealways held a desire to do something here but neverthought they could – for whatever reason.”

The company stressed that the winner would not be chosensimply by “lucky dip” and that each entry be carefullypresented and thoughtout and demonstrate how making aparticular dream come true would benefit society or theindividual. The selected ‘dreamer’ will be advised by

telephone and details of the ‘dream’ will bepublished on www.zain.com.Unsuccessful applicants are welcome tore-submit entries each month.

Organizations and programs that have benefitedfrom or were established by Zain Bahrain’s proudtradition of CSR activities include:• GOYS Sport Talent Identification Programme• Muharraq Football Club• Al Taaref Summer Tournament• The Back to School Project – in which over20,000 schoolbags and supplies are distributedto needy Bahraini students at the start of everyacademic year• The Indian Ladies’ Association free recreationcentre• Sneha – for special-needs children of allnationalities• Equipment for the visually-challenged

“As a company, we are happy to allocate fundsand resources to good and worthy causes. Butwe want to let the people of Bahrain also have asay in such initiatives and at the same time fulfilsomeone’s dream of helping them to make adifference,” concluded Mr. Zainalabedin. “Ouremphasis has always been to focus on initiativesthat will harness the best in our youth throughsports and education, provide special-needspeople with the opportunity to maximize theirpotential and above all, empower thecommunity to forward the philosophy ofengaging in good work that will give-back tosociety. We wish everyone with a dream goodluck – we want to help you make that dreamcome true.”

Zain has set-aside sufficientfunds to help 12 peopleachieve their dreams and atthe end of each month, apanel made up ofindependent judges willreview each and everyapplication based on theapplicant’s suitability to theZain CSR criteria and thenselect one winner


And the first twowinners are…!Zain Dreamers Mohammed Al-Orayed andHamed Al-Mahari win the judges’ hearts

It was an exciting photo-finish similar to the F1 races thathe loves when Zain Bahrain contacted Bahraini Hamed AlMahari and announced that they would back his dream

project – an e-magazine that will tap into young people’sfascination with motor cars and harness the ease with whichthey navigate New Media.

He is the second winner in Zain’s groundbreaking ‘Dreamscome true with Zain’ campaign. In April, 20-year-oldUniversity student Mohammed Al-Orayed, became the firstZain Dream winner, realizing his ambition to establish arecording studio dedicated to Bahrain’s rich musicalheritage, when he won over the panel of judges.

The initiative selects one winner each month for the wholeof 2008 through a distinguished Board of Trustees to helprealize a dream or project that complies with Zain inBahrain’s CSR objectives of education, youth empowermentand helping people with special needs.

“The Board of Trustees had no hesitation in picking out Mr.Al Mahari’s e-magazine project as the winner for the MayZain Dream Campaign award,” said Board President Dr.Fouad Shehab. “We were impressed with the amount ofdetailed preparation that he had put into the plan as well asthe potential it holds. We were also impressed with theproject because it taps into some of the core objectives thatZain in Bahrain espouses such as spreading technologyawareness among young people and increasing the use ofnew technology and media to spread knowledge.”

Al Mahari expressed his delight at winning the award,saying it was the culmination of meticulous planning andpreparation. “It is the first step towards realizing a long-cherished dream, and I am very grateful to Zain in Bahrainfor implementing such an innovative project that cuts acrossall red tape to give ordinary people like me an opportunityto grab serious corporate attention,” he said. “More thanthe cash award, I value the recognition this prize gives meand the tremendous encouragement it signifies.”

Striking gold: Hamad Al-Mahari, the initiative’s 2nd happy winner


The award ceremony which attracted media attention andpublic curiosity was marked by an atmosphere of friendlinessand warmth which characterized the Zain Life values that thecompany promotes. “The campaign focuses around three keyareas that have always been at the heart of our CorporateSocial Responsibility (CSR) initiatives – youth empowermentthrough education, sports and a healthy lifestyle and caringfor individuals with special needs,” said Zain Bahrain GeneralManager Mohammed Zainalabedin, who, speaking at the firstawards ceremony, thanked the judges for the time and effortthey gave to the initiative. “Without them, this campaignwould not have been possible.”

“People have begun to understand how to connect with theZain Dream project,” said Zain Bahrain’s CorporateCommunications Manager Samya Hussein, as she handed

Al Mahari his prize. “We are seeing a growing proportion ofthe Dream Projects touching the core values of ZainBahrain’s corporate social responsibility values.”

The response to Zain’s visionary campaign has beenenormous. Zain has provided submission forms at all oftheir Experience Shops around the Kingdom andapplications were received through the Zain Bahrainwebsite. “We received plenty of applications for theinitiative,” said Hussein. “The company congratulates thefirst two winners.”

Contestants can drop a brief summary of their dream intoboxes provided for the purpose at Zain Experience Shopsthroughout the Kingdom of Bahrain or log on towww.bh.zain.com to submit applications.

The first winner, Mohammed Al-Orayed with Zain in Bahrain’s GM Mohammed Zainalabedin

“More than thecash award, Ivalue therecognition thisprize gives meand thetremendousencouragementit signifies.”Hamed AlMahari, ZainDream winner


CORPORATE SPIRIT

Sudan is a unique country both in terms of diversity andvastness, an African nation that stretches over a onemillion square miles and home to over 500 tribes and

ethnic groups with over 100 languages and dialects. Thechallenge for Zain, the leading mobile telecom provider inthe region, was and still is, basically to provide a reliable andcheap means of communication and introduce awareness ofthis essential development tool into far and remote areas.

Zain-Sudan is involved in community development throughits corporate social responsibility program, through fourmajor sectors: health, education, skills development and theenvironment. Zain-Sudan’s policy is to build a solidcommunication infra-structure that is capable oftransporting the country into the third millennium andadvance the Sudanese towards making full use of thecurrent global communication revolution.

Making a differenceIbrahim A. Al Hassan, acting Zain in SudanGeneral Manager, tells how the company ischanging lives


Perhaps the main obstacle is Sudan’s vastness and lack ofroads. The journey from the nation’s capital Khartoum to alGenaina, the capital of Western Darfur State, takes threehours by plane, an indication of the general low-level ofservices and the fact that development is concentratedmainly in the centre of the country.

However, Zain-Sudan has managed successfully to introducemobile telephony to the region of Darfur – an area the size ofFrance – and inspired the average Darfurian to use mobiletelephones in other ways than just making phonecalls. On oneof my visits to Darfur, I met the Governor of Northern DarfurState, Mr. Kibir, who confessed that he often wonders how hisCabinet had functioned a decade earlier when there were nomobile phones in Sudan. That has to be an achievement in anyof Sudan’s 100 languages!

It has also been noticed that wherever communication isintroduced to any province in Sudan, the economic levelnoticeably improves and job opportunities are created evenbefore establishing a proper sales point by Zain-Sudan.

In Southern Sudan, where economic development in general isvery much lacking, communication plays a huge role ineveryday life. The presence of a reliable network is now takenfor granted in many provinces, and we have discovered thatcharging handset batteries has become a profitable businesson its own as there is no electrical power in rural areas. In fact,Zain in Sudan’s network covers 68% of the country’s population,and the company’s strategy is to extend the coverage to morethan 80% by the second quarter of 2008.

What makes Zain-Sudan’s network practical is Zain Group’slatest step of linking Sudan to 12 African countries throughthe groundbreaking One Network initiative. It has hugelycontributed to the economy of Southern and Western Sudanby increasing the level of cross-border trade with neighboringcountries and exceeding levels of similar trade in otherprovinces, demonstrating how Sudanese have come to rely onthe Zain-Sudan network for their everyday livelihood.

“Zain-Sudan has made conventional letter writingsomething of the distant past,” said an official in Darfur. Icannot think of a better testament to the good work we aredoing and the successes we have achieved.

The challenge for Zain was,and still is, to provide reliableand cheap means ofcommunication and introduceawareness of this essentialdevelopment tool into far andremote areas. In doing this,the company is changing livesin a positive way

Ibrahim A. Al-Hassan, acting Zain in Sudan General Manager and Al-Zahawai I. Malik, the Sudanese Minister of Communication & Information

Laying down CSR markersZain in Saudi Arabia supports culture, sportand education


CORPORATE SPIRIT

Although commercial operations have not yetcommenced, Zain in Saudi Arabia has been busylaying down its corporate social responsibility

credentials, sponsoring a host of events in the country andabroad, reinforcing the brand’s message that Zain is morethan just a telecom provider. Zain is demonstrating that it is

a brand whose parts are infinitely greater, more human,more passionate, than its bottom line sum.

In London in June 2008, Zain was a Diamond Sponsor at atwo-day event of music, art and sport organized by theinternationally renowned charitable group, the BMG


Foundation. The program included the inaugural AlFarabi Concerto, a performance of Arabian music byartists from the Arab World; ArtAlive, an exhibition ofmodern Saudi Arabian art and last but not least, theannual GCC Polo Match at the Guards Polo Club inWindsor.

As well as the charitable aims, all three events aimed tobuild bridges between East and West, promote networksbetween business leaders and enhance artistic, musical andsporting endeavors. Over the last decade, the BMGFoundation has raised funds for needy children in SaudiArabia, Pakistan, Lebanon and the UK.

Commenting on Zain’s support, HRH Prince Hussam BinSaud, Chairman of the board of Zain in Saudi Arabia said,“The idea of combining culture, music and a classic sportsuch as Polo to raise funds for deserving causes is acompelling one. This is a marvelous opportunity to bringreal Arabian culture to the world.”

June 19 saw the first performance of the Al Farabi Concertoseries, performed by the Nieuw Ensemble, the acclaimedcontemporary music group from Holland, in London’shistoric Cadogan Hall. The concerto featured the classicalcontemporary compositions of Nouri Iskandar from Syria,Saed Haddad from Jordan and Rachida Ibrahim andRasheed Al Bougaily, both from Kuwait.

The ensemble was conducted by Garry Walker andenhanced by the participation of the Lebanese Soprano,Hiba Al Kawas with Syrian musicians Hiba Safar on the Naiand Basem Alkhouri on the Qanun.

This was the first outing for the Al Farabi Concerto initiative, aseries of concerts by exceptionally talented but little-knowncomposers from the Arab nations that include Kuwait, Lebanon,Egypt, Jordan, Palestine, Syria, Morocco and Algeria.

The goal of the Al Farabi Concerto series is to bring the work ofArab contemporary classical composers to internationalaudiences, demonstrating the cultural achievements of present-day Arab societies. It also aims to create networks betweenartists of the East and West and heighten recognition of thesetalented composers within their own communities. Followingthe London series, the same programs will be taken to Paris,Berlin, Copenhagen, Amsterdam as well as the homelands ofthe composers in the Middle East.

NEW IDEAS FOR A WONDERFUL WORLDZain in Saudi Arabia recently signed a sponsorshipagreement with King Abdul-Aziz University (KAU).The initiative aims to support and encourage “newideas for a wonderful world.” The memorandum ofunderstanding includes six points: the provision ofsupport to remote education using mobiletelecommunications, the support for studentcreativity and innovation, the support for scientificexcellence centers at KAU, the provision of trainingfor students at Zain facilities and the establishmentof a telecom academy, a scientific foundation thatwould highlight the company’s contribution toscience and research development.


Next up was a truly royal exhibition of the brotherhoodbetween cultures as spectators gathered at the Guards PoloClub in Windsor for the BMG Foundation’s 12th annualcharitable GCC Polo Cup, attended by Her Majesty QueenElizabeth II, HRH Prince Sultan Bin Salman, and HRHHussam Bin Saud, as well as prominent internationalbusiness and social figures. The match is the highlight ofthe BMG Foundation’s summer, and the riders did notdisappoint, keeping the spectators on the edge of theirseats as the GCC Team clinched a well-deserved victoryscoring four and a half points – with goals from SalmanAlHamrani Amr Zedan of Saudi Arabia and Saeed Bin Draiand Mohammad AlBawardi from the UAE – to the GuardsPolo Club’s four points.

HRH Prince Sultan Bin Salman expressed his appreciationfor the event commenting that: “Human relations are thebasis for global relationships between cultures andcountries. Charitable causes, when combined with an

exciting sport like polo, emphasizes an important factor ofcultural dialogue and cooperation.”

On the same day, the Art Alive series of competitions,which aims to enhance the art of Arab communities andshed light on their creativity within international circles,auctioned paintings by Saudi artists to raise additionalfunds for charity.

Marwan Alahmadi, CEO of Zain in KSA added that “Zain isno stranger to Corporate Social Responsibility, and oursponsorship of this worthy cause complements Zain’sstrategy of supporting the communities it serves in line withour aspirations of being a top-ten global mobile operatorby 2011”

The BMG Foundation, through which the BMG FinancialGroup executes its corporate social responsibility, is theinitiative of Basil Al-Ghalayini and raises funds forsustainable cultural programs to assist the needy andenhance communities. It also strives to further cementbridges globally amongst members of European andMiddle Eastern Royal families, international dignitaries,captains of industry, political leaders, entrepreneurs andinspirational celebrities to continuously pioneer the noblecause of charity.

“Our mission,” said Al-Ghalayini, “is to continuouslyinnovate ways in which we can enrich communitiesworldwide though a combination of activities. We aremotivated by the language of culture.”

SPONSORING EXCELLENCE IN NATIONAL SPORTIt was also recently confirmed that Zain in Saud Arabiawould be the official sponsor of all four Saudi NationalFootball Teams (SNFT) for a four-year period when thePresident of the Saudi Football Federation, HRH PrinceSultan bin Fahd, approved the signed contract betweenZain and Sela Sport companies.

The contract guarantees Zain’s official partnership rightsto sponsor SNFT – the First National team, the Olympic

The goal of the Al FarabiConcerto series is to bring thework of Arab contemporaryclassical composers tointernational audiences,demonstrating the culturalachievements of present-dayArab societies. It also aims tocreate networks betweenartists of the East and Westand heighten recognition ofthese talented composers

Her Majesty Queen Elizabeth II chats with HRH Prince Hussam Bin Saud, chairman of Zain Saudi Arabia, in a group photo with the two teams


team, the Youth team and the Beginners team – for theduration of the contract with the help of Sela, SNFT’sexclusive owner of marketing trade rights. Thesponsorship guarantees Zain’s official sponsorship andadvertising rights; its use of the SNFT logo, emblem andmerchandise for friendly and official games; branding onall SNFT sportswear for all events; and the opportunityto stage friendly championships in cooperation andconsultation with the Saudi Football Federation.

“This cooperation between the private sector and youthactivities in the Kingdom gives these companies a sense ofnational pride. Zain’s sponsorship of SNFT confirms its senseof responsibility and its keenness to play afundamental role in the elevation of Saudifootball universality,” said HRH Prince Sultan ibnFahd during the press conference.

His Royal Highness stressed the hugeaspirations and confidence in Saudi youth byCustodian of the Two Holy Mosques, KingAbdullah, Crown Prince Sultan bin Abdul Azizand other officials, who have made it theirobjective to clear away any impedimentsfacing the development of SNFT with thebest resources available.

Being SNFT’s chief partner means that Zain iscommitted to the development of Saudi footballand Saudi youth. “We are very proud of thisagreement,” said Dr. Marwan Al-Ahmadi, CEO

of Zain Saudi Arabia. “We at Zain look at this contribution as anational duty. Our general strategic target is for Zain tobecome the most vital contributor in the Kingdom’sleadership in various fields.”

He added: “The outcome of this partnership will becomeevident in the near future. We will not spare any effort tohelp SNFT occupy its rightful position in this country. Thisagreement forms a transitional step for Arab nationalteams, and the SNFT will be the leading example for othercountries. “Football is no longer considered a hobby butrather a new industry based on limitless efforts to achievehuge gains for nations and countries alike.”

The Saudi Arabian national football team of which Zain is a sponsor

Game, set and match!Zain celebrates its 3rd ACE conference inKampala, Uganda


CORPORATE SPIRIT

It was all about three days of hard work – with a bit of hardplay thrown in – at the Munyonyo Commonwealth Resortin Kampala, where the Zain Group’s held its 3rd ACE

conference in March 2008.

Launched in January 2007, the ACE strategy – to Accelerate thegrowth of our operations, Consolidate the existing assets andExpand into adjacent markets – was designed to propel Zaininto the history books by positioning the company as a globaltop 10 telecom company by 2011, targeting $6 billion inEBITDA with 110 million customers, making it a truly

multinational organization with a first class management teamand a brand that attracts the finest global talent.

Today, the ACE program is helmed by Zain’s Chief StrategyOfficer (which incorporates ACE), Haytham Al-Khaled. Thechallenges ahead are plentiful with ACE’s main goals in linewith the 3x3x3 profitable expansion vision, being to build aglobal telecom leader.

Over 400 Zain and Celtel senior staff were treated to abroadside of insightful key note speeches by such corporate


luminaries as Zain CEO Dr Saad Al-Barrak, Celtel founder, MoIbrahim, current Celtel Chairman Lord Cairns, Zain’s ChiefStrategy Officer Haytham Al-Khaled and Ugandan primeminister, Apollo Nsibambi.

There were also presentations by Robert Ocholo on the successof Ultra Low Cost Handsets (ULCHs) and the ACE globalaccount management by Michael Dalaly as well as talks on thechallenges of integrating in Iraq, the successful KSA IPO.

The conference also allowed the African and Middle Eastoperations to show what they were made of, not just in thecaliber of their conference delegates, but in the way in whicheach operation presented itself with a corporate stand. Theprize for the best stand went to the hosts, Uganda.

The recent ACE achievements of note that were highlightedwere the introduction of the ultra low cost handset (ULCH),which were successfully rolled-out in seven opcos in 2007,and which will be available in all Zain’s African opcos bymid-2008. At the conference it was announced that nearly400,000 handsets were sold during the 1st quarter of 2008 inseven African opcos. Celtel’s share of net adds inMadagascar jumped from 22% to 53% after introducingthe ULCH.

In terms of the One Network, it was announced that morethan 3.5 million customers have used One Network since itslaunch, while globally, Zain was proud to announce that ithas been appointed the telecom supplier to the US StateDepartment in Middle East and Africa.

Zain CEO Dr. Saad Al-Barrak, Celtel founder Mo Ibrahim and Zain in Uganda GM Yesse Oenga

Ugandan prime minister Apollo Nsibambi with Celtel Chairman Lord Cairns Zain Group’s Chief Strategy Officer Haytham Al-Khaled


Meanwhile…

Zain CTO Mr Khaled Al-Hajeri(left) secured an agreementwith Ericsson, relating to theinfrastructure roll-out in Ghana,where commercial services areexpected to be ready by thefinal quarter of 2008


With its own stand,each Zain operationshowed off a nationalidentity, adding colorand verve to the event


Iwelcome you all to Uganda as you meet forthe ACE conference; I also wish to extend aspecial welcome to Zain Group CEO Dr. Saad

Al-Barrak. I salute him again for the Group’sactive participation in the recently concludedCommonwealth Heads of Government Meetingin 2007. Celtel a subsidiary of Zain Group, was akey sponsor of the Commonwealth BusinessForum, which was a very successful meeting.

Since it started operating over 10 years ago,Celtel Uganda has contributed a lot to thesocial economic development of the countrythrough providing jobs, mobiletelecommunication services as well as taxrevenue. Celtel Uganda also supports thegovernment through several initiatives inbusiness, culture, education and other areasthat harness government development.

Today Uganda is honored to host 400delegates from Zain group, the leadingmobile telecommunications provider in theMiddle East and Africa with more than 36 million customersin 21 countries.

ACE is an acronym for Accelerate, Consolidate and Expand,a strategy Zain Group is using for its growth. Uganda isprivileged to be one of the beneficiaries of this vision as wehave recently seen with the “One Network”. As you meet toreview the strategic direction in ACE, we hope that thedeliberations will further benefit this country and its people.The conference should further steer a historical direction inUganda’s telecom industry as well as be significant in thegrowth and development of the ICT sector in the countryand region.

Though the industry is fast growing, only about 5 millionUgandans, of the 30 million, subscribe to a mobile network.

What happens to the rest of the population? How do wemake mobile telephony further relevant to sustainabledevelopment of the economies in which they operate?Global challenges like environmental change - how can theACE conference positively impact this?

All these are points to ponder as you meet to steer yourdirection in the telecom industry. Above all the biggestchallenge remains in converting words in the conferenceinto action.

The Government of Uganda has always been supportive of ICTgrowth, and for this reason, the ICT ministry with a line Ministerwas set up. The government of Uganda, and particularlythrough the Ministry of ICT, further pledges support to ZainGroup as it continues to operate in Uganda.

Cementing partnershipThe conference was officially opened byUgandan Minister of ICT, the HonorableHam Mulira – representing the Ugandanpresident H.E. Yoweri Kaguta Museveni –who gave the inaugural address.


SPECIAL SECTION

Passing on the torchOn August 1, 2008 Celtel rebranded toZain. This special section is taken from asoon-to-be published book that tells theremarkable story of how one brand, led byone man, changed the face of Africa


There was a time, not so long ago, when, if a youngman wanted to talk to his mother in his village, itmeant a two-day roundtrip on foot.

There was a time, not so long ago, when, if Sani, abusinessman, wanted to set up a meeting with hiscolleague on the other side of Lagos, he would have tosend his driver with a note suggesting a time. The driverwould have to hack his way across the city’s dense trafficbefore returning with another note suggesting analternative time. In the event, it would take two trips toconfirm the meeting.

There was a time, not so long ago, when, if Abdillah, aplumber in Dakar, would spend all day making house calls,he would return to the shop where his messages piled-up.He would then ring all those who had called wanting hisservices, but to his annoyance, over half of them havealready gone out for the evening, and it could take him asmuch as three days to get back to somebody. Abdillah wasalways short of money but never short of work.

There was a time, not so long ago, when, if Jackie wantedto meet her friends for a drink after work in Nairobi, shewould phone round to see where everyone was going, onlyto turn up and find herself alone with the nice but dullSammy. Her friends had decided to go to another bar buthad no way of contacting her.

There was a time, not so long ago, when, if a Ghanaianfarmer wanted to know the latest crop prices, he had towaste a day visiting one of the two markets where he mightsell his goods only to find out that prices were too low.

It sounds unbelievable now but this was Africa before thearrival of the mobile phone, the device that revolutionizedhow the people of this vast continent lived, worked andconducted business.

In the past, fixed line phones were historically provided by amonopoly provider, one not always well-resourced orenergetic about connecting subscribers. What wasparticularly discouraging was that often the wait for a newline could be as long as ten years. But as always, itdepended on who you were. In some countries civil servantsgot free phones and free calls. Shortages ruled and thespeed of communication painfully slow. In short, theabsence of instant communication provided many excusesfor things left undone and little incentive for action.

In the blink of an eye, Africa went from having almost nophones to a position where over 100 million people nowhave access to a mobile phone. With hindsight, thisphenomenal growth was just waiting to happen. With theearly mobile phone roll-out in Africa, the pioneers targetedthe affluent few, paying hundreds of dollars a month towander round with the latest status symbol, a phone thesize of a brick.

In the early days, Celtel had toattract the kind of person whometaphorically was prepared towrestle snakes and in reality mightstay for several months in a hotelwithout running water or windows


These pioneers initially sought post-paid subscribers butfound that getting them to pay their bills was nearimpossible. Mobile companies from the developed worldsimply thought that if this was the case, they would stick tothe few thousand reliable customers – their cash cow – orsimply pull out. It needed only one operator to offer a pre-paid service to light the touch-paper and set off themeteoric growth that was to follow.

LIGHTING THE TOUCH-PAPERAfrica was always considered a difficult place to do businessand an even harder place to make money. Asa result, almost all of Africa’s first mobile operators wereborn from within the continent. As one of Africa’s largestmobile operators, the story of Celtel and its stunningrise forms a significant part of this phenomenal growth.It is a chapter of the continent’s now fast-moving history.

Celtel was founded in Europe byan African expatriate, the SudaneseMo Ibrahim, who went from beingthe son of a humble clerk torunning one of the Africa’s mostsuccessful mobile operators. Thiswas a new development on acontinent where success inbusiness was usually defined byconnections rather than merit.

For Celtel is not simply anothermultinational trading overseas. MoIbrahim had been a senior executiveat UK mobile operator BT Cellnetbefore going it alone. Against allodds, he convinced scepticalinternational bankers to invest in thecompany. His position as a man whooperated “between cultures”allowed him to translate what washappening for those outside thecontinent. Celtel demonstrated thatthe African continent was a placewhere serious money could be made.

Mo Ibrahim put together a truly multinational team withpeople drawn from all over the globe. At one point hissenior management included British, Dutch, Danish,Kenyan, Tanzanian, Ethiopian and Sudanese with 50 othernations represented across the company. A Celtelspokesperson in the Democratic Republic of Congo (DRC)in 2002 noted the diversity just within one part of itsoperation: “We find a Congolese as Operations Director inCeltel Gabon, a Zimbabwean as Projects Director inKinshasa, a Mauritian as well as someone from Madagascaras Regional Directors in Mbuji Mayi and Lubumbashi in theDemocratic Republic of Congo.”

Mo Ibrahim managed to fire their enthusiasm to worktogether for a common goal. More than that, he madethem believe that they could get difficult and seeminglyimpossible things done (one former employee confessed

It was a prime place to work,and it paid well. As onemanager noted: “When Iarrived, everyone came towork on a bicycle or amotorbike. When I left, thecar park was full of cars”


with regret that he wished he could get the same kind ofcommitment out of the staff of his new start-up).

The company also appointed African managers who weresent to run things in countries other than their own. It wouldbe the beginning of a process of managementdevelopment that sent managers off to the LondonBusiness School to sharpen their skills. At a more humblelevel, the company became one of the major job providersover the last decade. It was a prime place to work, and itpaid well. As one manager noted: “When I arrived,everyone came to work on a bicycle or a motorbike. When Ileft, the car park was full of cars.”

Those who work in mobile businesses often think of it as abusiness that is about getting the technical essentials right.The process of rolling out networks means that you need tohave enough base stations to be able to offer the same orbetter coverage than your competitors. Likewise, themarketing people spend hours devising promotions andgiveaways to attract new customers and encourage morecalls. But in truth, selling the ability to communicate inAfrica is also about the intangibles. Africa’s pre-paidcustomers wanted the fancy phone. It became the “sportscar” of its age, something to impress your friends. Butunlike a sports car, it was a status symbol that almostanyone could acquire as long as they could afford therelatively low sum for their SIM card and the first purchaseof air-time. Even for those not able to afford a phone oftheir own, Africa’s culture of sharing meant that for those onlow incomes as many as four people shared a single device.

THE UNTOLD STORYCeltel went from being a start-up that could barely afford tobid for new licences to acquiring one of the continent’slargest mobile operators in Nigeria for over a $1 billion fiveyears later. The untold story of Celtel is how it raised largesums of money to fund its growth in markets that believedAfrica was a high-risk continent. In truth, Africa is as diverse

at least as Europe with over 50 countries that vary fromthose with little or no corruption and almost no political riskto places where it is impossible to guess what mighthappen by lunch-time, let alone tomorrow. Against thisbackdrop Celtel was growing at a frantic pace, and therewas a constant race between the costs of running theoperations and the potential opportunities for growth.

In order to acquire new licences, Celtel had to operate incountries that appeared marginal and gamble that anyconflicts internal – or cross border – would be resolved.Thus Celtel grew its business with both the successes andfailures along the way: from launching a mobile network inthe middle of war to steering clear of corruption. It was noordinary story about the corporate battle for market share inEurope and North America.

Growth in emerging markets like China and India may beimpressive, but it was much less surprising as it took offfrom a higher base of development in the respectiveeconomies. Africa was really the sleeping giant, anddespite the nightly diet of civil war and famine on TVscreens across the world, the fact was that Celtel couldestablish and operate networks in countries where therewere almost no roads showed that things could get donein Africa. And this was reflected in demand. Africanconsumers would in some cases literally batter the doorsdown to get their hands on a new mobile phone. Onoccasions the local police had to be called to controlcrowds of over-enthusiastic customers. Sales targets in thethousands were recast in the tens or hundreds ofthousands before being upgraded to the millions.

If Sani, a businessman,wanted to set up a meetingwith his colleague on theother side of Lagos, he wouldhave to send his driver with anote suggesting a time. Thedriver would have to hack hisway across the city’s densetraffic before returning withanother note suggesting analternative time. In the event,it would take two trips toconfirm the meeting


CHARTING THE ACHIEVEMENTS

• 1989: Mohamed Ibrahim founds his own consulting firm,Mobile Systems International (MSI)• December, 1995: Mobile network in Uganda• March, 1998: Celtel is founded by Mohamed Ibrahim inAmsterdam under the name MSI Cellular Investments• December, 1998: MSI launches mobile network in Zambia• October, 1999: MSI launches mobile network in Malawi• December, 1999: MSI launches mobile network in Congo(Brazzaville)• July, 2000: MSI launches its mobile network in Gabon• September, 2000: MSI launches its mobile network inSierra Leone• October, 2000: MSl launches its mobile network in Chad• December, 2000: MSI launches its mobile network inCongo DRC• January, 2001: MSI launches its network in Burkina Faso• February, 2001: MSI acquires 35% of TTCL in Tanzania• March, 2001: MSI acquires 39% of Mobitel in Sudan• June, 2001: Sir Alan Rudge is appointed as Interim CEO• November, 2001: MSI launches its mobile networks inNiger and Tanzania• February, 2002: MSI acquires LinkAfrica, an internationalsatellite link supplier• December, 2002: Celtel launches Celpay in Zambia, apilot system for m-commerce

• December, 2002: Sir Alan Rudge resigns as Interim CEObut remains a Non-Executive Director• July, 2003: Marten Pieters is appointed CEO of Celtel.• November, 2003: Celtel is awarded the SMO prize by theFoundation for Business and Society for its Dutchinvestments abroad• January, 2004: Celtel brand is relaunched and theholding company renamed Celtel International• January, 2004: Celtel secures a $62 million funding viaCapital International, a subsidiary of Capital Group• April, 2004: Celtel acquires 60% of Kencell in Kenya for$250 million• October, 2004: Celtel wins the first IFC Client LeadershipAward for the contribution made to sustainabledevelopment• December, 2004: Celtel signs up 5 millionth customer• January, 2005: Celtel announces intention to float onLondon Stock Exchange, advised by Rothschilds, Citicorpand Goldman Sachs and Linklaters• April, 2005: MTC Kuwait acquires Celtel for $3.4 billion;85% now and 15% in two years time• February, 2006: MTC announces that it has successfullyacquired 61% of Mobitel from Sudatel in a deal valued at$1.332 billion to add to the 39% already owned by Celtel• 31 May, 2006: Celtel announces that it has agreed toacquire a controlling stake of 65% in V-Mobile, a Nigerianmobile telecom operators, for $1.005 billion

• 27 September, 2006: Celtel launches One Network,the first ever borderless mobile network in the world,allowing East African customers to move freely acrossgeographic borders without roaming call surchargesand without having to pay to receive incoming calls• 30 September, 2006: Celtel operates in 14 countriesserving more than 15 million customers• 15 December, 2006: Celtel CEO Marten Pieters stepsdown. Moez Daya takes on role as MTC Group’sinterim CEO for Africa• May, 2007: MTC acquires the remaining 15% sharesin Celtel for $467 million• June, 2007: Celtel customer base in Africa exceeds20 million • September, 2007: Mohamed Ibrahim steps down asChairman and succeeded by Lord Cairns • 22 October, 2007: Celtel acquires a 75% stake inWestel in Ghana for $120 million• 22 November, 2007: Africa abolishes roaming asZain’s One Network expands to 12 countries• 1 December, 2007: Chris Gabriel is appointed CEOof Celtel • March, 2008: Celtel, Ericsson and the GSMA savelives on Lake Victoria by extending mobile coverage• 7 May, 2008: Celtel, Ercisson and the Earth Institutelaunch the Millennium Villages Project that bringsmobile telephony to 400,000 rural African• 30 June, 2008: Celtel customer base reaches 29.4m• August, 2008: Celtel is rebranded as Zain


From the supplier end, Celtel rewrote the rulesin how it dealt with governments. In some waysthe mobile phone business is like the oilbusiness, in which politics and commerce areintimately intertwined. Celtel was different inthat it decided from an early point that itwould steer clear of getting enmeshed in thedevious ways of the “old Africa”. How itnegotiated its way through this minefieldshowed that it was no longer enough to shrugand say: “Well, this is Africa,” and this was acompany that, if it had to, would see if asovereign government would blink.

Celtel set out to “change the shape of the problem” in Africa.Instead of allowing phone calls between neighbouringcountries to continue to travel 16,000 km via Europe, itnegotiated a deal that allowed a direct connection for a callbetween Kinshasa and Brazzaville, the two closest capitals inthe world some three kilometres apart across the Congo River.Previously the only direct connection was a ferry.

Taking the same principle, it launched the One Network, ano-cost roaming scheme between three of its operations inEast Africa. Shortly after the first announcement of the OneNetwork, European Community officials rang the companywanting to know how it could be done.

In some cases, Celtel was too ahead of its time. In Zambia itlaunched a payments company called Celpay that allowedits users to transfer money using mobile phones and alsotransferred money to demobbed fighters at the end of thecivil war in DRC. Although the company began to develop aniche for itself, it was sold off when it was preparing for itsIPO. Now there are a number of new cash transfer launchesfrom operators and this kind of service looks set to have awider take-up. It also developed Internet businessesalongside its mobile operations as it recognized this was anatural development of its voice business. Again, thesewere sold off in preparation for the IPO, but now, all the

larger mobile operators are scrambling to get into offeringInternet services across their networks.

Celtel’s coming of age moment was when it snatched acontrolling stake in the Kenyan mobile operation Kencell afterrivals MTN thought they had won. The winning deal wasconstructed on the basis of verbal agreements and trust, twoqualities the continent does not always have in plentiful supply.The Kenyan deal was sufficiently large, and the operation bigenough to make other operators sit up and acknowledge thatCeltel had really arrived.

Recognising the value that it had built, Celtel decided it wouldraise further funds through an IPO. Inevitably other companiesbegan to approach it about the possibility of a “trade” sale.After a last minute bidding war, the board agreed that thecompany would be sold to Kuwaiti-based MTC (now Zain). Thisenabled Celtel to reach a new level in its development withZain now establishing itself as a global company.

With the backing of MTC, in 2006 Celtel was able toenlarge its position as one of the main African players bybuying a controlling stake in Nigeria’s V-Mobile, a market ithad failed to enter in 2001. The negotiations began in 2005and were mired in legal wrangling over shareholdings, butCeltel was at last able to negotiate a way through claim andcounter-claim and make an acceptable offer to the majorityof V-Mobile’s shareholders. On May 31 2006, Celtel

In truth, Africa is as diverse atleast as Europe with over fiftycountries: these vary fromplaces that have little or nocorruption and almost nopolitical risk to places where itis impossible to guess whatmight happen by lunch-time,let alone tomorrow


announced that it had reached an agreement to acquire acontrolling stake of 65% in V-Mobile for $1.005 billion

To put the achievement in context, MSI bid for the originallicences in Nigeria in January 2001 when it had 170,000customers in nine countries. By September, 2006, Celtel wasoperating in 14 countries serving more than 15 millioncustomers. In late 2007, Nigeria overtook South Africa asthe largest market on the continent, and Celtel celebratedits 10 millionth customer in Nigeria alone.

Soon after the Nigeria acquisition, in September, 2006, Celtellaunched One Network, the first ever borderless mobilenetwork in the world. This allowed East African customers tomove freely across geographic borders without roaming callsurcharges and without having to pay to receive incomingcalls. In November, 2007, the success of One Network sawAfrica abolish roaming as Zain’s One Network expanded to anadditional six countries to include Burkina Faso, Chad,

Malawi, Niger, Nigeria and Sudan. These countries joined theRepublic of Congo, the Democratic Republic of Congo,Gabon, Kenya, Tanzania and Uganda. The extension of thistechnological break-through now meant that nearly half ofAfrica’s population could make calls at local rates across 12countries throughout the continent across an area more thantwice the size of the European Union. By June 2007, onemonth after MTC acquired the remaining 15% shares in Celtelfor $467 million, this number had risen to over 20 million.

September 2007, saw a significant milestone in the story ofCeltel, when Mohamed Ibrahim stepped down as ChairmanHe was succeeded by deputy Chairman of the Board, LordSimon Cairns. Ibrahim announced that he would focus onthe Mo Ibrahim Foundation and the newly establishedAfrica Enterprise Fund, which invests in African businessesoutside the field of telecommunications.

“I am confident that the integration of Celtel Internationalinto the Zain Group has been successful. It has contributedto the extraordinary growth of Celtel and has underscoredthis by investing more than $10 billion into mobilecommunications on the continent to date,” said Ibrahim. “Iwish the Zain Group continued success in bringingtelecommunications services to the people in Africa.”

One month later, Celtel acquired a majority stake in Westelin Ghana Celtel International by signing an agreement toacquire 75% of Western Telesystems Ltd (Westel) from theGovernment of Ghana for $120 million.

LEARNING THE LESSONS OF FAILURECeltel’s success was the result of careful analysis andlearning the lessons of failure. Others were the result ofgood luck: either being in the right place at the right timeor not being in the wrong place at the wrong time.

In particular Celtel was lucky in the order in which it met itsmajor competitors – it came up against MTN early, andlearnt the lessons of pre-pay and only came up againstVodacom at a time when it was ready to learn the lessons ofhaving a strong brand. Otherwise the timing of externalevents was, in some ways, fortuitous – the end of the“dot.com boom” came at a time when the company was

How it negotiated its waythrough this minefieldshowed that it was no longerenough to shrug and say:“Well, this is Africa”

Shortly after the firstannouncement of the OneNetwork, EuropeanCommunity officials rang thecompany wanting to knowhow it could be done


able to get itself cash positive and wasn’t so financiallyoverstretched that it had to sell the family silver. If it hadcome earlier it would have been more problematic; later, itscompetitors may not have been so hard hit.

Like Napoleon’s best generals, Celtel was lucky. But it wouldbe wrong to imply that luck alone built the company for ittriumphed over considerable odds and did so because itwas prepared to do things differently.

With its origins in MSI, it was both well connected toinstitutional investors and to some of the key “movers andshakers” in the telecoms industry at a global level.Companies like General Atlantic Partners added credibilityto what MSI Cellular was doing even if at this stage, it wasnot the activity for which they invested in the company.

Through selling consultancy and software to the first andsecond generation of new mobile companies, Ibrahim sat atthe same tables as the senior managers of thesecompanies. This enabled Ibrahim to build a high profileboard that included Sir Gerry Whent, the first CEO atVodafone, and Jay Metcalfe, who had been the CEO atMillicom. In addition Ibrahim had recruited a senior USventure capitalist, Felda Hardymon of Bessemer Venturesand Harvard Business School.

Through these connections, the company had access to the“best and the brightest” in the industry. But by themselves,all these connections would have counted for nothingwithout founder Ibrahim’s legendary powers of persuasion.Throughout the life of the company, he was able topersuade companies like Vodafone that it had something tocontribute in Uganda and Egypt.

With MSI and later with MSI Cellular, the focus of interestwas initially at a global level. There were deals to be foundeverywhere and indeed, two of the first three MSICellular’s shareholdings were in Asia not Africa. Butthrough a mix of factors, Africa emerged as the chosenopportunity. Ibrahim enjoyed working in developingcountries, and as an African, it is hardly surprising that hethought hard about his home continent.

But with hindsight, Africa also came into view for anotherimportant but less well acknowledged reason. It was one of thefew places left on the planet where licences were stillobtainable at a price that could be afforded by a smallcompany. If you were prepared to operate in places that wereseen as risky, like countries emerging from civil wars, you couldscoop the prizes for your daring. But the strategy of collectingwhat might be described as the “low cards in the pack” wouldnot by itself have allowed Celtel to emerge as one of thelargest regional players. Later attempted – Nigeria – andsuccessful – Kenya – acquisitions were of such a scale financiallythat without its determination and support from its investors,Celtel could easily have languished in the second division.

Thus the Celtel story is not one of seamless progresstowards its current structure and size. The speed of growthmeant that although often things got done, they were not

In November, 2007, thesuccess of One Network sawAfrica abolish roaming asZain’s One Network expandedto an additional six countriesto include Burkina Faso, Chad,Malawi, Niger, Nigeria andSudan. These countries joinedthe Republic of Congo, theDemocratic Republic ofCongo, Gabon, Kenya,Tanzania and Uganda


always well done. As one of the team inthe early days remembered it, “Weweren’t very good at gauging the level ofdemand. It generally took us by surprise. Ittook everyone by surprise. We thoughtwe’d be dreaming if we achieved 2.5%penetration, and certainly the banks wouldnever believe such figures wereachievable. In the end, the figures weremuch higher. Initially, we didn’t have thepeople, neither at an international nor at alocal level. It took us a while to gear up atboth these levels.”

As it scrabbled to keep up with therocket-like growth of the organisation, itdid not always find the right people. Tobe fair, it was looking for large numbersof people prepared to work in Africa,preferably with some telecomsexperience, and this was not always alarge pool of people. Particularly in theearly days, it had to attract the kind ofperson who metaphorically wasprepared to wrestle snakes and in realitymight stay for several months in a hotelwithout running water or windows.

Nevertheless as it grew to be asubstantial company, it empoweredAfricans in a way few things before ithad: over 98% of its staff were Africans,and the company learnt the lessons theywere able to pass on about whatneeded to be done in local markets. Ittook Africans from one country and putthem in charge of things in anothercountry, consciously wanting to breakdown the old bonds of obligation andfavouritism that plague Africanproductivity.

AVOIDING THE “ME-TOO”PHILOSOPHYMo Ibrahim believed that diversity was essential to avoid a“me-too philosophy,” and that you did this by widening the“gene pool” with an extremely mixed group of people whowould challenge received wisdom.

All potential employees had to apply for their jobs, irrespectiveof connections, and were appointed for their skills rather thantheir family connections. It created 6,000 high-quality well-paidjobs with some 40,000 people dependent on it for indirectemployment. This was capacity building on a scale and of akind that donors could only dream about. In June, 2005, whenthe company was sold, every employee got a bonus that wasequivalent to about six months pay.

Mo Ibrahim knew that he had to take the company frombeing a highly flexible “guerrilla army” start-up tobecoming a “standing army” that would take and holdground as Africa became increasingly competitive. Again itis a tribute to Ibrahim’s abilities at handling people that thistransition was made with very little fall-out.

Celtel grew out of very particular circumstances but these maycome again as Africa liberalises more sectors of its economy. Inbeing a company that combined being absolutely African withbeing headquartered in Holland, it was an example of bringingtogether cultures, technology and finance to drivedevelopment in Africa. If only there were more stories like it.


SPECIAL SECTION

A life less ordinaryThe Mo Ibrahim story

Celtel founder, Mo Ibrahim, was born in the Sudan in1946, before the family moved to Egypt, where hisfather, a clerk from a village in Nubian north of the

country, worked for a small Italian cotton export company inAlexandria. As Ibrahim remembers, his father’s role waspretty lowly: “When the cotton was bought, he used to takethe money to the bank. It was a blue collar job, and it wasnot much.”

It was perhaps his Nubian roots that marked out Mo Ibrahim asdifferent. Nubians can be found in both Egypt and Sudan; theyspeak their own language and have their own culture andheritage. They have a reputation for honesty and speaking theirown mind. As Ibrahim says, “all this gives you an element ofsomething special. These are deep roots, and it gives youstability and a sense of place.”

Ibrahim got his BSc in electrical engineering at theUniversity of Alexandria, before returning to his nativeSudan to work for Sudan Telecom, the Government-owned telephone company. However, before long hewas off again in search of more education and this timewent to the UK to take an MSc in Electronics andElectrical Engineering at Bradford University. A PhD inMobile Communications from Birmingham Universityfollowed.

He was far-sighted in his choice of subject. There were nomobile phones at the time, and even in academia, discussion ofmobile phones was kept within limits. “My thesis was on thefeasibility of mobile communications, and I was almost failed,”he remembers. “One of the external examiners was unhappythat I had suggested using high frequencies (900 Mhz) as these


were not available. It was seen as heresy.” These frequenciesnow support over two billion mobile phones worldwide.

His curiosity about mobile technologies had been first arousedin 1969, when he worked as a young intern at the InternationalTelecommunications Union in Geneva and had seen a mobilewireless system used in taxis: “I saw some guy in a taxi using aPrivate Mobile Radio system, and I was fascinated by it. Howdoes it work? How does it go through valleys and buildings? Itwas a line of sight communications technology.”

His next move was to a British Telecom company calledCellnet, but a year earlier, he attended a trade fair in theUnited States. It was to be a seminal moment. “Motorola’sengineers presented me with a prototype of the mobilephone. They lent it to me for a day, and I immediatelyunderstood the interest: the telephone was no longer linkedto the house, the office or the car. It belonged to anindividual, to me. Sure, the handset was rather heavy andcumbersome, a bit like those walkie-talkies that you see incertain American films on the Second World War, but itoffered so much more!”

By 1985, Ibrahim was leading design and deployment ofCellnet’s first mobile phone networks. Starting a mobilenetwork was not like anything BT had done up until thispoint: “We had to do a complete review of the network thatwe were in the process of installing. It needed aerials, not

only for roads, as planned for car telephones, but also onroofs, in order to allow telephone calls to be made from thebuilding opposite, for example. We also needed to makesure that the handsets were available. We ordered 5,000handsets, the first mass production of such a device…Andthis was how, in London, in 1985, the first mobile network inthe world began operating.”

In 1987 the European Commission succeeded in getting all thestates to agree on the same standards for a digital and cellularmobile telephone that was to be the European base market.GSM then went out across the world.

Having just turned 40, Mo Ibrahim decided that it was time fora new challenge. He was fed up with working for a bigcompany that was “too complex and too frustrating” for histaste. “I wanted to be my own boss and decide my own fate.”The new company was called Mobile Systems International(known as MSI), the forerunner of Celtel International.

The rest is history and by the time Mo Ibrahim had sold hisshares in Celtel in 2005, the UK Sunday Times ranking ofindividual fortunes ranked Ibrahim in 183rd place with anestimated net worth of £343 million.

Today, he devotes his time and energy to the work of the MoIbrahim Foundation, the Ibrahim Index and the Mo IbrahimPrize, which chart and reward good governance in Africa.


MOBILE LIFE

Only a few years ago, livingwithout a cell phone in themodern world was akin to being

stranded on a desert island. Now it’smore like falling back to the Stone Agein some twisted anthropologicalexperiment.

With the rift between those with mobilesand those without growing exponentially,there is a very real sense that cell phoneshave changed the world irreversibly inways that the pioneers of the technologywould never have dreamed. More thanmere gadgets, our phones define ourlives: they are an elusive admixture ofstyle, performance and status whoseinnovative features offer us a fresh-facedand remarkable way of viewing theworld. Like trains, telegraphs and cars inpast centuries, our phones represent theability of technology to transformcivilization and with it human nature.

Life without our chunks of wirelessly-connected electronics is a form ofdeath – you need only ask someonewho’s lost his or her phone to describethe resulting deep sense of loss andthe angst at being cut off, eventemporarily, from their social networks.From simple voice communication totext messaging, mobile email, videoemail and new GPS technologies thatallow phones to show their positionon the globe, every facet of howpeople interact has been changed bythe device that was first showcased tothe world some 30 years ago. Withmany of us storing SMS trails, cellphones are even replacing diaries asthe repositories of our lives, keepingtrack of all our friends, lovers andgossip (in the omnipresent txt-spk thateven young children master as amother tongue).

Today, there are more cell phone linesthan landlines, with over three billionsubscriptions to cellular services globally.Wireless has caught fire like no othertechnology and living without ourphones can only get harder as theirimportance grows into full-blown minicomputers, personal organizers andgaming devices. Currently, 3G downloadspeeds are comparable to the speed ofa DSL Internet connection, but should asmuch as triple as providers roll out fasternetworks over the next few years. Hardlya week goes by without a new killerapplication popping up somewhere inthe world, such as, among more recentofferings, having the ability to use yourphone instead of a paper concert ticketor watching the latest TV shows while onthe go. Cell phones already reignsupreme as the one technology mostpeople can least go without: we are, to aman, woman and child, utterly andhopelessly enslaved to our phones.

It is becoming exceedingly hard toremember the world before the bigbang of wireless, when you couldn’ttake a picture or film with your mobile,or use a phone’s inbuilt GPS to knowwithin a few centimetres where youstood on the planet. Being alwaysconnected has changed the very waywe think, and instead of having aphone tethered to the wall, the phoneis now tethered to you. In the past,you had to get someone live on thephone who was sitting at his or herdesk in a certain location. They wereliterally tied to their location. Today,that limitation is gone; and askingwhere the person happens to betalking from has become de rigueurwhen the background noise is ofdrowning chatter in a bar, say, or thelow-pitch drone of a speeding train.

In ever dwindling numbers, thesedetractors are bucking the cell-phonetrend by turning a blind eye on theglitzy appeal of multipurpose gadgets.They are often the first to raise issuesof cell-phone etiquette in cinemas andrestaurants, and of health hazards(even if the harmful effects fromwireless signals on the brain have nowbeen largely disproved).

But beyond frying our wits, ourdependency on the cell phone is

Life without a mobile phone has becomeunimaginable and yet it wasn’t that longago we didn’t have them

Look how far we have come!


Today, there are more cellphone linesthan landlines, with over three billionsubscriptions to cellular services globally.Wireless has caught fire like no othertechnology and life without a mobilephone will only get harder

perhaps not all that healthy. To be sure,some cell phone users are a tadobsessed with being connected, andnot everything on state-of-the-art cellphones is worth calling home about. Weare permanently bound to these devicesto a degree that would baffle not tomention disturb our grandparents. Notunlike Pavlov’s dog, there is an uncannybuzz of anticipation when the phonerings in our preset tones. Of course,that’s not to suggest that phones canraise the body’s dopamine or endorphin

levels in the way drugs can, say, but it isarguably a form of addiction. In thatsense, at least, the mobile in our pockethas replaced the ubiquitous cigarettecase of previous generations.

More to the point, there are somegenuine fears that cell phones areactually disconnecting people fromthe real world – an argument that ismade more immediate, for example,when personal phone calls interferewith driving.

However, the upsides to beingconstantly connected far outweigh thedisadvantages. Previous generationscould never understand our deepestneed for instant information and ourtwitching desire to share instantly withour contacts our thoughts and ideas assoon as they’ve been formulated.

But then again, our modern world isreplete with features that havebecome too outlandish for past tastes.Even our parents would have troublecomprehending let alone getting theirtongues around the acronym soup ofnames of the innovative technologiesthat are supporting the wirelessstandards, such as Wi-Fi, LTE (Long-Term Evolution), WiMax (WorldwideInteroperability for Microwave Access,which is a faster Wi-Fi standard), UMB(Ultra Mobile Broadband) and anynumber of other wireless standards;and it’s hard to say what exotic imageBluetooth would have conjured up inthe minds of our forebears.

There are no dark continents in today’sglobalized world. In order to compete,both professionally and socially, ourlives must move at or quicker than thespeed of electronic transmissions.We’ve become so accustomed tousing the Internet, satellite TV and ofcourse our phones that a single daywithout them can feel like a relapse toa Luddite age.

There is no escape, even if you doactually want a break from the dailystruggle to keep up with all forms ofelectronic communications. Thesedays, the most remote desert islandin the Pacific will have wirelessbroadband. Same goes for MountKilimanjaro in Tanzania and MountEverest Base Camp, from where adaily blog is being kept via satellitephone. Electronic communicationshave become so prevalent that you’dhave to sink several leagues underthe sea to escape from it. And that isthe reason why – ultimately forpractical purposes – the majority ofus opt instead to swim, or in somecases just float awkwardly, in the seaof electro-communication.


MOBILE LIFE

Ever since a cell phone became ascommonplace as a wallet, thetelecommunications industry has

promoted the potential of wirelessInternet access, driven by an insatiableconsumer demand to remain connectedat all times. The idea is simple enough:beef up the wireless networks and userswill flock to them to browse the Web,send e-mails with mile-long attachmentsand even download video clips, all ontheir phones.

While cellular carriers have investedheavily in an effort to keep up with theexplosive growth of conventional voicecalling, they have also spent millions toupgrade their systems to handle data athigher speeds. It is part of a continuinglurch towards ever more developedcellular wonders – bristling withcameras, games and Internet access –that are not just for talking anymore.To be sure, as wireless phonecompanies accelerate their rollout of

3G phones and services, consumersare confronted with a dizzying array ofpromotional effluvium. Choosing a cellphone used to be easy. You simply hadto calculate which was the bettervalue. But these days, you’re notshopping for a phone; you’reshopping for a company thatadvertises the spiffiest phones, withample screens to fill with high-resolution movie clips and othersnazzy graphics.

In a world of constant change, reliabilityis still valued

2G still going strong


Now that the quest to replace abusiness traveller’s laptop with a cellphone or hand-held device is quicklybecoming a reality, wireless carriers areknocking themselves out to lurecustomers with ever more exclusivefeatures. Indeed, for a businesstraveller, the most exciting aspect of3G phones is already available,namely, networks that are fast enoughfor them to do demos or accesscorporate applications and databases.

And it is that lagthat will ultimatelykeep 2G tickingfor some years tocome, even as themarket preparesto welcome intothe world 4G. 2Gtechnologies arestill expected todominate the totalcellular subscriberbase until 2012

To some analysts, the marketing cart isfinally in step with the technologicalhorse to spell the end of 2G. Buy into3G now, they say, or get left behind. Butothers are less sanguine, pointing to thefact that, despite the hundreds ofbillions of dollars invested in 3G sincethe turn of the century, it is only nowbeginning to attract widespread use.

Essentially, it has taken a long time for3G handsets to get to the point of

competing with 2G-type phones,which can be attributed to issues ofscale and volume. It takes time todeploy new consumer technologies,and someone ultimately has to pay thehigher price for devices. The reality is,even after a standard has beenaccepted for a wireless network, it’s atleast five or six years before anyonestarts using it on a commercial basis.

And it is that lag that will ultimatelykeep 2G ticking for some years tocome, even as the market prepares towelcome into the world 4G. Accordingto the market research firm In-Stat, the3G wireless subscriber base madeimpressive gains in 2007, with a growthof 91%. However, despite these gains,2G technologies are still expected todominate the total cellular subscriberbase until 2012. By the end of 2012, In-Stat expects that 2G technologies willstill account for more than 70% of theglobal cellular subscriber base, bywhich time there will be approximately970 million mobile broadband


subscribers worldwide. According toanother survey by ABI Research, themarket for smart phones, such as theiPhone and BlackBerry, which offer e-mail and Web access, will grow fromaround 10% of the cell market in 2007to 31% by 2013.

Indeed, the iPhone, the cellphone/media player from Apple, hasbeen largely credited with makingconsumers more eager for third-generation cell phone networks.With enough bells and whistles tooutfit a marching band, the iPhonehas encouraged people to think ofusing their devices for data and has,almost single-handedly, won overmainstream consciousness toperceive 3G as the ultimateexperience. It’s a bright spot in anotherwise tepid cell phone market,where the growth rate could start toslow in the wake of a global creditcrunch and amid fears of a full-blown recession.

The 3G technology, which allows cellphone Internet browsing that iscomparable in speed to low-endbroadband on a desktop computer,is not just for business travellers andteenagers with busy online lives.Today, cell phones help farmers inAfrica to sell their crops; and peoplein India use their phones to checkbus and train schedules. In Japan,the phone offers a method of payingfor goods; and in China, the cellphone is connecting people all over

the country, a feat that was onceimpossible.

But it’s 4G, the next generation, that’salready in the sights of many in theindustry. 4G holds the promise ofroutinely delivering the higher end of3G transmission rates, and muchfaster in some cases, up to 100 Mbpsfor downloading and 50 Mbps foruploading. At this nascent stage, themain 4G issues relate to the wirelessstandards that should be used and

New technology will allow you tosnap a picture of someone wearingan outfit you want and willautomatically search the Web to findthe designer and the nearest shops inyour city that carry that outfit


the cost to network operators and,ultimately, to customers.

In addition to these teethingproblems, the downturn in globaleconomy could equally prove adeterrent in the push to create 4Gphones. However, once the nextgeneration lifts off – and analyststend to disagree only on the timing– the main application that willpropel 4G in terms of consumerusage is expected to be socialnetworking. With faster uploadspeeds, shooting a video with yourcamcorder phone and uploading toa social networking site will becomea breeze.

More to the point, your cell phonewill be your wallet, and your ticketbroker, your bank, your shoppingbuddy and much more besides. Forexample, new technology will allowyou to snap a picture of someonewearing an outfit you want and willautomatically search the Web to findthe designer and the nearest shopsin your city that carry that outfit. Youcan then see what that outfit lookslike on your personal avatar – a 3-D

representation of you – right on yourphone, and ask your friends indifferent locations to check it outonline and give their opinion. Your4G phone will also guide you whenvisiting a city, automatically providingyou with local entertainment options,activities and dining options thatmatch your preferences, and thenmake reservations and purchasetickets for you – like a privatesecretary.

Hardly surprisingly, engineering gurus arealready hard at work on the newborn’seventual offspring: 5G, 6G and beyond,when technology is set to become evenmore space age. The next generation –human generation, that is – could wellwitness micro-sized, voice-activated cellphones that can even be implanted intopeople’s bodies. By then, even cellphone batteries could become a thing ofthe past as power will be drawn insteadfrom the human body itself.

Cell phones help farmers in Africa tosell their crops; and people in India usetheir phones to check bus and trainschedules. In Japan, the phone offers amethod of paying for goods; and inChina, the cell phone is connectingpeople all over the country, a feat thatwas once impossible


MOBILE LIFE

• The world population on January15th 2008 was 6,644,496,618 (6.6billion), with 2,605,783,800 (2.6 billion)mobile phone users. That meansapproximately 40% of the people onthis planet now have a mobile phone.

• One third of the world population hasnever made a telephone call.

• According to The Use Less StuffReport, each cellphone producedconsumes materials and energyequivalent to 2.839 litres of petrol. Ifall 18 million handsets replaced eachyear in the UK were reused, it wouldrepresent a savings of 51,102,000litres of petrol. That’s enough to fuelover 17,500 cars per year, eachaveraging 10 liters per mile for12,000 miles.

• Comoros, an island nation in theIndian Ocean, shows the fastest year-on-year growth rate in mobile phone usage,reporting a 249% increase between 2006and 2007.

• In a poll of Norwegian executives,over half believed it is rude to take amobile phone call in a supermarket.

• 2% of UK mobile owners had theirphones stolen last year - a theft everythree minutes. The Metropolitan Policeclaim that mobile thefts account for 30%of all street robberies in London.

• It is now possible to locate a personusing a mobile phone down to a rangeof a few metres, anywhere on theglobe.

• At one point, Brazil has the samenumber of cellular phone subscribersas the whole of Africa combined. NowAfrica has caught up with more than200 million subscribers.

• While the United States has 199million cell phone subscribers, it is notpart of the top ten countries with the

highest percentage of mobilesubscribers. 55% of the US populationare mobile subscribers.

• Nicaragua has more than 3 timesmore mobile phone subscribers thanfixed land lines (739 thousandcompared with 214 thousand).

• The number of mobile subscriptionsper 100 people in a given countryrange from 120 in Luxembourg,to 44 in Malaysia, 24 in Jordan, 20 inNigeria, 13 in Palestine and 0.7 inTajikistan.

• The Internet is the fastest-growingtool of communication ever. It tookradio broadcasters 38 years to reachan audience of 50 million, television 13years, and the Internet just 4 years.

• The Worldwide Internet Populationis estimated at 1.08 billion. In 2000there were 400 million users, and in1995 20 million users.

Trivia to inspire• The cost of transmitting informationhas fallen dramatically. Sending atrillion bits of information from Bostonto Los Angeles fell from from $150,000in 1970 to $0.12 today. E-mailing a 40-page document from Chile to Kenyacosts less than 10 cents, faxing itabout $10, sending it by courier $50.

• The most expensive mobile phone inthe world costs £500,000 ($975,000). It isdesigned by luxury accessories makerPeter Aloisson and has sections of puregold as well as 2,950 blue diamondsembedded into the cover.

• Native English speakers represent 35%of the online population, although theyare less than 10% of the worldpopulation. Native Chinese speakersrepresent the second largest group: 16%of the online population.

• In Chile 89% of internet users havehad tertiary education, in Sri Lanka 65%,and in China 70%.

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