OUT OF AFRICA: THE EGYPTIAN 온라인카지노 아벤카지노 CHALLENGER
By JOHN IHLENFELDT, KRISTIAN KARAFA, KATIE MCCORD and FARHEEN QADIR
A version of this article was originally published by Knowledge at Wharton
By all measures, the mobile telecommunications industry is rapidly approaching critical mass. In this rapidly evolving industry, one Egyptian company is proving that it is never too late to go global. After consolidating 온라인카지노 아벤카지노 presence in Africa, South Asia and the Middle East, Orascom Telecom Holding is now prepared to take some developed markets by storm.
온라인카지노 아벤카지노, founded by Egyptian billionaire Naguib Sawiris, has experienced an impressive rise to worldwide prominence as the result of some extremely bold ventures. While the company initially lacked significant experience, it quickly learned the rules of the global telecoms game and then broke them with aggressive entry into such hostile operating environments as Iraq and Zimbabwe. The lessons learned from these experiences have helped transform 온라인카지노 아벤카지노 from an Egyptian domestic service provider to a global incumbent, serving more than 74 million subscribers worldwide.
When the Egyptian government announced its plan in 1997 to issue a second license for mobile phone operations in addition to the government-owned license, Naguib Sawiris recognized the opportunity. However, despite his substantial personal and family holdings, he had no experience as a telecoms operator. So he enlisted the support of France Telecom in a competitive bid against Vodafone. He lost. Undeterred, Sawiris simply bought the government-owned company along with its license. That was the beginning of Mobinil. By 1999, 온라인카지노 아벤카지노 had expanded into nearby Jordan. A year later, 온라인카지노 아벤카지노 simultaneously entered 11 different sub-Saharan African nations. While costly, this strategy of rapid expansion marked 온라인카지노 아벤카지노's emergence as a global player.
The strategy was simple: to be the telecommunications provider to Sub-Saharan Africa. Sawiris envisioned a broad expanse of contiguous 온라인카지노 아벤카지노 coverage across the heart of the African continent. Mounting regulatory constraints imposed by tempestuous governments ultimately hampered this effort, but the rapid expansion into sub-Saharan Africa left 온라인카지노 아벤카지노 not only with the dubious prize of a struggling Zimbabwean operation, but also with a newfound appreciation for the importance of understanding the political environment of business.
In addition to regulatory woes, 온라인카지노 아벤카지노 also encountered meager average returns per user in the smaller sub-Saharan nations due to limited population concentrations with little money to spend on mobile phone service. Major regulatory challenges, limited profitability and growing debt led 온라인카지노 아벤카지노 to sell off the majority of its sub-Saharan telecommunications operations as 2006 approached. The firm streamlined operations and focused on its networks in Tunisia and Algeria, where operations were more profitable. This decision to prioritize its core African operations proved efficient for 온라인카지노 아벤카지노 as its Algerian network alone (popularly known as Djezzy) currently accounts for roughly half of all 온라인카지노 아벤카지노 profits.
Next on 온라인카지노 아벤카지노's agenda was Iraq. With the nation in ruins in 2003, 온라인카지노 아벤카지노 unveiled its most successful enterprise to date, the "Iraqna" network. The brand became a symbol of solidarity in the midst of national crisis. Moreover, 온라인카지노 아벤카지노's policy of hiring local labor and management gave the brand a local image and offered 온라인카지노 아벤카지노 a competitive advantage in the crowded telecoms marketplace over rival Vodafone. Where the British firm had developed a globally consistent brand name and logo, 온라인카지노 아벤카지노 now had a collection of local brands, each of which had a unique national appeal to its customers.
The decision to sell the Iraqi network came only after 온라인카지노 아벤카지노's license expired. In the bidding cycle that ensued, 온라인카지노 아벤카지노 set a hard limit on what it was willing to pay for the new license. When the price exceeded this limit, 온라인카지노 아벤카지노 recognized that the time had come to walk away. 온라인카지노 아벤카지노 sold the Iraqna network for .2 billion in 2007, a 350 percent return on its investment. 온라인카지노 아벤카지노 now headed east to take advantage of one of the few remaining untapped telecoms markets.
Since the first-mover advantage is of such value to 온라인카지노 아벤카지노, it has invested 0 million to establish the first commercial cellular network ever launched in North Korea, dubbed Koryolink. In lieu of a licensing fee, Sawiris devoted some of his private capital to North Korean development projects in exchange for a 25-year operating license with a four-year exclusivity clause. On December 15, 2008, a year after opening its North Korean headquarters on the top three floors of the 103-story Ryugyong Hotel in Pyongyang, 온라인카지노 아벤카지노 announced the commercial launch of CHEO Technology.
This new subsidiary is a 75/25 joint venture between 온라인카지노 아벤카지노 and the North Korean state-owned Korea Post and Telecommunications Corp. As a further expression of confidence in the economic prospects of North Korea, 온라인카지노 아벤카지노 opened Ora Bank in Pyongyang the following day. The new financial institution, also a joint venture with an existing government enterprise, will process Koryolink subscription payments and handle remittances from abroad.
Should the country open up to international business in the future, 온라인카지노 아벤카지노 will be years ahead of potential competitors, with its only investment being the fixed cost of developing and maintaining the network.
The entrepreneurial spirit, tempered by experience, lives on in an온라인카지노 아벤카지노er part of 온라인카지노 아벤카지노, Telecel Globe. With a management team of three, the new entity is designed to be lean and cost-conscious. Its goal is to develop a localized entry strategy for small to medium emerging markets. Telecel Globe has lately acquired networks in Burundi and the Central African Republic, and is rumored to be searching out markets as far-flung as Mongolia and Cuba.
Through its trials in Africa, Iraq and North Korea, 온라인카지노 아벤카지노 has established itself as the upstart emerging-market service provider. While Telecel Globe scours the world for the last remaining patches of greenfield, 온라인카지노 아벤카지노 has now entered the developed North American marketplace through acquisition of a Canadian network, Globalive Communications. In an industry with rapidly diminishing room to accommodate latecomers, 온라인카지노 아벤카지노 grew up quickly and has elbowed its way to global prominence, where it now stands ready to shape not only the local markets in which it operates, but also the future of the telecoms industry worldwide.
John Ihlenfeldt, Kristian Karafa, Katie McCord and Farheen Qadir are members of the Lauder class of 2010.
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