Zain’s One Network a step closer to global coverage

Kuwait-based Zain Group recently consolidated its global expansion by rebranding all its Celtel Africa operations to Zain.

The group’s expansion programme started in 2006 with the introduction of its One Network concept covering 22 countries in Africa and the Middle East.

In 2005, Mobile Telephone Company (MTC) of Kuwait, the holding company of Zain, acquired Celtel, a mobile telephony brand operating in Africa, and re-branded all new in-line business and existing operations including Celtel to Zain for purposes of uniformity on the global market.

Observers however argue that it will take more than just mere rebranding to achieve success, given that Zain’s innovation faces competition from other mobile operators in the region who keep coming up with new pocket-friendly tariffs and services to attract and retain consumers.

Zain built on the success of the One Network concept launched in Africa in 2006, and successfully replicated it in the Middle East. The company cites the concept as the cornerstone of its global expansion.

The Zain Group has already linked its Africa and Middle East zones, making it the world’s first single network across continents.

The makeover, which coincided with the “continental link.” features the marketing line “A wonderful world,” to reflect the diversity in the customer base.

According to the group’s chief executive officer, Dr Saad al-Barrak, Zain plans to invest over Ksh25 billion ($374 million) in the next five years to develop its network and infrastructure in Kenya.

The move is aimed at taking on current market leader, Safaricom, which has 11 million subscribers compared with Zain Kenya’s 2.4 million.

“By rebranding to Zain, we are bringing together our African and Middle East operations under a single and strong identity.

We believe the Zain brand provides an optimal platform upon which we can build a top-100 global brand.

We believe the success of our African operations will propel the Zain Group towards becoming one of the top 10 global mobile telecommunications companies by 2011.”

Dr al-Barrak was speaking in Nairobi, during the official launch of the rebranding on August 1.

The group has so far invested $10 billion in Africa and is listed on the Kuwait Stock Exchange with a market capitalisation of $25 billion as of June 30, this year.

According to Yeses Oenga, the managing director of Zain Uganda, the advantage of the One Network “continental link” means that Zain’s subscribers, estimated at 50 million in 22 countries, can now call from any of the countries in the two zones (Africa and Middle East), and be charged at local rates.

Pre-paid customers can also load credit on their phones using recharge cards bought either at home or in any other country within the group’s One Network zone.

The One Network service is automatically activated upon crossing the geographic border within the zone, with no prior registration or sign-up fee required.

The chief operating officer of Zain Africa, Chris Gabriel said, “We are confident that our African customers will embrace the vibrant and colourful Zain identity.”

The rebranding comes less than a year after the Zain brand became the group’s master corporate brand and was successfully launched across its Middle East market.

Zain operates in 22 countries across the Middle East and Africa.

In Africa, the operations cover Burkina Faso, Chad, the Republic of Congo, the Democratic Republic of Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia.

Zain will launch its mobile operation in Ghana later in 2008. In the Middle East, it is in Bahrain, Iraq, Jordan, Kuwait and Lebanon.

Before the end of this year, the company will have commercial presence in Ghana and the Kingdom of Saudi Arabia.

It is worth noting that when Zain started operating in Uganda as Celtel International in 1994, it was selling mobile handsets at exorbitant prices and had unfriendly tariff regimes, with top-up vouchers being sold in dollars, and charged a monthly fee regardless of frequency of use.

Caesar Muloka, Zain Uganda marketing director said, “We are happy with the response to the rebranding campaign.”

However, the company still has to reckon with competitors who are equally desperate for new customers.

MTN Uganda recently unveiled a new tariff regime that allows dynamic discounting of up to 99 per cent on base rates depending on the location of the caller and the time of the call.

It also recently introduced per second billing. Warid Telecom, one of the new entrants in the market, is currently offering free calls to its customers.

In Kenya, two new competitors, Econet Kenya and Telkom Kenya, are expected to enter the market later this year.

Additional reporting by Philip Ngunjiri