Ghossien: We have achieved the integrated operator strategy and are providing services using the latest technologies …
• What is the added value for the Group and its subscribers after integrating its four companies and providing convergent offers and service?
Although 13 months have passed since the Group has become an integrated operator, both the Group and the customers have sensed the positive outcome of this move, which is the first in the Arab world. On the Group level, we benefited from the diversity of services and technologies provided by the Group's four companies, which are fixed-line service (Jordan Telecom) mobile services (MobileCom), internet and data services (Wanadoo) and content (e-dimension).
Work culture has also been amended, and work hours were expanded. We have also established centers that provide the Group's comprehensive services as well as launching first-of-its-kind convergent offers that combine mobile and fixed services, internet and fixed services, and internet and content services. Our "unified card" offer is not even available at our strategic partner's yet (France Telecom) who will use Jordan Telecom's experience to implement this offer in the countries France Telecom currently operates in. Competition in the fixed and internet market pushed the Group to provide such integrated offers to distinguish itself from others in the market, and due the dynamic nature of the Jordanian market, the Group will always provide services that can keep up with the vitality of the market, and prepare customers for future services. We expect integration to contribute in providing services designed to meet the needs of customers as well as to help them obtain the service.
• Local and international calls are still considered to be high in comparison with what is applied internationally, what do you think is the reason for that ?
When discussing local calls, we must point out that the Group has unified local and national calls to almost 1.5 piaster per minute in harmony with the demand of customers, as a study we conducted revealed that 90% of customers support this move. There is also another offer that provides very low tariffs, as low as one fils per minute, through using Jordan Telecom network at a certain time during the day. Fixed-line services is still the lowest in comparison with mobile services, and providing it with a yet lower cost will cause losses, as the Group has invested millions of JDs to continuously develop and modernize this network. As for the prices for international calls, they are considered to be very suitable, for which we are using high-tech international voice gateways that guarantee optimum quality. We calculate the equation of price vs. quality in all of our services, and we leave the judgment of quality to customers, which we are positive is the best in the market.
• Despite the liberation of the communications market, prices for calls to Europe and America are less than those to Arabic countries. Some see that this harms the customers and increases income for the company, especially that prices for outgoing calls to Arabic countries are considered high. What's your comment on this ?
This is directly connected to the volume of the liberated market, as the Jordanian market is completely liberated, but other markets in the Arab world are not. Therefore we cannot control the prices to Arab countries. On the other hand, liberated markets in Europe and America allow us to provide competitive prices with high quality. As for increasing income for the company; high prices are due to high cost, so profit from these calls is currently low.
• MoICT is always encouraging the private sector to contribute in developing the IT sector. How do you view the relationship between the private and public sectors and what is the private sector's role in this development process ? and what is the Group's role in the e-government program ?
Partnership between the private and public sector plays an important role in achieving development in the Kingdom. This includes the development of the IT sector, which is considered as one of the most important national economic engines. It is important to concentrate on the e-government programs as they interact with both the private and public sectors. Therefore, both sectors bear their responsibility. We at Jordan Telecom Group achieve this through Jordan Telecom Group Fund which provides many opprtunities to develop the IT sectors, such as its Internet Bus, internet tents and training courses which roam the Kingdom and aim to bridge the digital gap between Jordan and the world on one hand, and between those who have access to technology in the Kingdom and those who don’t, on the other hand. In addition to funding the education of a group of students in computer technology and science, it contributed to connecting schools with internet.
• What is Jordan Telecom Group Fund's strategy for this year ?
The Fund's strategy for 2007 has concentrated on supporting and sponsoring different projects which contribute to decreasing poverty and increasing creativity. The Fund also makes sure when choosing a project that it harmonizes with the Group's values which are innovative, honest, refreshing, responsible, creative and others. As for the sponsorships for 2007, projects will be received twice a year and two projects will be chosen every 6 months. The projects have to include a clear work plan and relate to the corporate social responsibility of the Group as well as its values, and not cost more than 50,000 JDs, in addition to other regulations.
• How do you evaluate the operational results for the Group for the year 2006 and how do you expect the results for this year to be according to the results of the first 2 months of 2007 ?
Last year's results were excellent in all measures, and as a Group operating in the communications market, the number of its subscribers is an important factor when rationalizing the results whether good or bad. The Group was able to cross over the 2 million subscriber border with a 47% growth rate, as subscribers increased from 1.4 million in 2005 to 2.1 million in 2006. This growth is due to the increase in subscriber base of MobileCom by 87% as well as Wanadoo's increase in subscriber base by 40% due to the encouraging offers and reduction in prices, in addition to the increase in Jordan Telecom's subscriber base by 2%. And in spite of the increase of operational expenses, and decrease in income for some of the Group's companies (due to competition and price reductions), the Group was still able to achieve a total of 3% growth in income.
As for the expectations for 2007, we expect to sense some decline in income for fixed-line services due to the increasing competition and having many companies licensed to provide international calling services, which would definitely affect the income of this kind of service and the Group. But as a Group, we will continue to provide the best and continue to bring in more subscribers, especially to the internet service, in addition to the natural growth in the mobile services. That leads us to believe that the results for 2007 will be very good.
• There are accusations that say that the high cost for internet usage is impeding its spread and reach. Do you think that the imposed taxes and high cost are the main reasons for this ?
The extent of internet usage is not only related to the prices of the providers or the taxes, but there are other factors such as the weak content of Arabic internet (and this affects the whole Arab world) in addition to the high cost of computers. A study we conducted revealed that 700 thousand families in Jordan do not own a computer, which means that about 3.5 million citizens do not have the opportunity to reach it. In addition to 200 thousand families that own a computer without an internet connection, which increases the number of citizens who do not use the internet at home to 4.5 million. Such a big number creates a challenge for internet providers and also creates an opportunity for them to provide internet services in houses. The Group is currently working on the sector of society that owns a computer without a connection, by launching the "Youth Gateway" offer with competitive prices, and we expect this offer to increase internet usage from houses.
• How do you evaluate the competition between fixed, mobile, and internet services in the market ?
Competition is one of the operator's biggest challenges, including Jordan Telecom Group, especially in voice services, whether local or international (fixed and mobile), whereas in internet and content, opportunities are still open. The Jordanian market is highly competitive, and time will tell in who's benefit this will come. In my opinion, it will not benefit neither the customer nor the operators as competition will affect the efficiency of networks and level of services. Yet, we have fully prepared ourselves for this situation. In the fixed services, 10 companies have obtained the license to provide international calling services, but the quality provided is different with each provider, and if we are really keen on creating an affective sector in economy, we must pay attention to the quality, which may decrease. As for mobile communication, we have sensed a decrease in the average revenue per user, due to competition, but the opportunity is still available through providing content services and increasing its contribution to the income to 15% in the initial phase. As for internet, currently there are 500 thousand users out of 5.3 million citizens in the Kingdom, so the opportunity to expand in the market is available.
• What is the added value of adopting the Orange trademark in the local market?
Orange is an international trademark, founded by a Canadian called "Snook", who launched it in London in 2001, and owned by strategic partner, France Telecom. FT has made the decision of implementing this trademark for its entire mobile and internet operators in different countries, including Jordan Telecom Group. We haven’t reached a decision about when to implement it in Jordan and are currently studying it very closely. In my opinion, implementing Orange trademark will help develop the services provided by France Telecom operators, as a study they made revealed that Orange owns 45.6% of market share by having 153 million subscribers and a 98% awareness worldwide. We believe that implementing Orange trademark will benefit customers through providing them with services with international standards.
• What about direct marketing and call centers and regional call centers ?
Call centers in JTG, which are allocated in 3 different areas (Amman, Irbid, Karak), include many services such as 1212 phone directory which receives any phone number inquiries or complaints, even from mobile users, and 1214 which records all complaints related to phone and internet damages or corruptions, and activates different services. The Group also assigned 1216 for prepaid cards and numbers, and the international code at 1333. Around 250 employees work in this center including university students who are trained to qualify in the local market and meet the needs of the Company. As for the regional call center which was launched by Jordan Telecom three years ago, comes as a reflection to the company's commitment to providing highly developed services for the local and regional market with its efficiency and competitive prices as well as its highly effective and trained staff. The center manages all customer-related demands as well as managing all incoming and outgoing communications, faxes, e-mail, and internet sites 24 hours a day, 7 days a week.
And by using the most developed equipment, the center provides 4 main services, which are reception office, convergent services office, research office, and marketing. The center targets both private and public corporations, such as governmental corporations and tourism companies and educational and real-estate companies and others. The center works with all sectors in Jordan Telecom, to serve customers in the best way possible.