VIVA, Kuwait's fastest growing telecom operator and the most advanced mobile telecommunications service provider in Kuwait, managed in less than 5 years of operation to set new standards in the market and bag massive achievements while focusing on customers' needs while being an early adopter of new trends. In 2012, the company posted its first ever profit, and today, VIVA has become the second largest data service provider in Kuwait. Salman Bin Abdul Aziz Al-Badran, VIVA's Chief Executive Officer, shares with Telecom Review the company's milestones and future plans.

VIVA posted its first ever profit in 2012. How do you look at this milestone?

2012 has been a milestone year for VIVA on many levels, especially delivering profitability for the first time since we began our commercial operations in the fourth quarter of 2008, and expanding our customer base at record speed. Our performance this year reflects our consistent hard work and dedication in an exceptionally competitive market.

How do you evaluate the performance in terms of growth, revenues and numbers of subscribers of VIVA for Q1, 2013?

We are pleased with our results in the first quarter of the year as they are promising indicators for upcoming quarters in 2013.

In 2012, VIVA recorded a net profit of KD 3.9 million (earnings per share 7.74 Fils), compared to KD 14.4 million in losses (loss per share 28.85 Fils) in 2011. Also in 2012, we achieved an operating cash flow of KD 32.9 million in 2012, compared to KD 72,000 in 2011, reinforcing the company's financial solvency and credit position and creating greater trust and confidence in the company and its strategy by its creditors and financing institutions.

These excellent results represent a tipping point in the company's development and reflect the many other record breaking achievements VIVA routinely delivered over the course of the year.

What is your current focus?

The Middle East, particularly the GCC, is well known for its high dependency on mobile phone usage and the already high penetration of smartphones. This growth has been accompanied by a continual increase in demand for mobile traffic use of internet based services such as social networking, location based services, navigation/local search, instant messaging along with other applications.

VIVA acknowledged these findings from the very first day of its launch and since then has deployed a wide range of promotions and bundles in partnership with the global mobile companies, offering customers a variety of smartphones and tablet computers at competitive prices in the market.

We will continue to invest in our staff, and in the infrastructure and technologies that have distinguished VIVA from its competitors to assist us to continue to maintain the pace of our development.

To what extent does it help the operation by being part of a large group like STC in the region?

STC is a leading telecommunication services provider with more than 160 million global customers and has 26% stake in VIVA.

Recently, the company embarked on an ambitious path of strategic growth, expanding its footprints beyond the Kingdom of Saudi Arabia's borders to international markets, forming a network of businesses and investments in a number of GCC countries, Asia and Africa. STC is now present in Bahrain, India, Indonesia, Jordan, Lebanon, Kuwait, Malaysia, Turkey and South Africa with the aim of reaching out to 160 million customers around the world.

This has a direct and positive effect on VIVA as we gain their insight and global expertise and bring that expertise to the local market.

What is your current mobile market share?

In light of the fierce competition in the telecom sector in Kuwait, we are very pleased with the sustained and unprecedented growth in our customer base, from almost one million customers at the end of 2011 to 1.6 million customers by the end of 2012.

As a result, our overall market share has grown to 29% from 20% at the end of 2011, which represents an overall increase of 55% when compared to the same period last year.

VIVA has now become the second largest data service provider in Kuwait. How do you work at VIVA to meet the broadband demands of your customers?

VIVA has focused on providing the most up-to-date telecommunications technology, establishing about 1,500 network coverage spots so that its network now covers virtually the whole state of Kuwait, providing the best service possible. The company continues to invest in its infrastructure through the use of the latest and most advanced technology systems available.

I am also pleased to note that VIVA has now become the second largest data service provider in Kuwait through offering customers very competitive, reliable and flexible broadband services through a wide range of smartphone based packages.

VIVA has recently launched its 4G services. What is your current 4G coverage? How do you rate the penetration of 4G services in Kuwait in general and for VIVA?

VIVA has envisaged a phased implementation of 4G which is scheduled to be completed by end of June 2013, which is when VIVA 4G services will have national coverage. Based on the experience we have so far, 4G data-centric services and 4G smartphones will see a faster penetration than expected.

With the launch of the 4G LTE, VIVA's internet subscribers will have the freedom to browse the internet and enjoy faster data streaming at the same prices of the current internet packages, internet device packages along with the tablet plans. In addition, voice customers with smartphone plans and Surf On plans will also be enjoying the 4G LTE network experience for free. All new customers will enjoy 4G LTE speed by subscribing to one of these packages.

How do you evaluate the telecom sector in Kuwait today with the absence of an independent regulator? What are the challenges and opportunities?

The telecom sector in Kuwait is a highly competitive market and is currently supervised by the Ministry of Communication (MoC).

In the absence of an independent regulator, there are many challenges that range from the basic issue of structuring a regulatory agency to the complexities of licensing service providers.

The opportunities of having a regulatory body is that regulators can play a pivotal role in ensuring that the country maximizes its resources to build a strong and inclusive telecommunications and information infrastructure.

Kuwait will adopt Mobile Number Portability (MNP). How do you look at this move, and will this increase the competition in the Kuwaiti market?

Mobile Number Portability will be a key milestone in the history of the telecom sector in Kuwait. Starting June 2013, mobile phone users across Kuwait will be able to switch telecom operators, giving them the freedom to enjoy the best products and services from the network of their choice. Mobile Number Portability gives consumers the freedom to join the best network in Kuwait without the inconvenience of changing their number.

The main benefit of MNP is freedom of choice and the competition it generates from service providers. The freedom to choose a new mobile service provider user without changing your number will save you the inconvenience of notifying your relatives, friends and associates as your number will not change.

What differentiates VIVA from competition?

VIVA has been able to engage effectively in a highly competitive sector by listening carefully to its customers' demands, focusing on their needs, in addition to be being enthusiastic investors and early adopters of new trends and technologies. Its success and popularity has been largely based on gaining and maintaining the satisfaction and loyalty of its customers in what can be a very fickle marketplace.

How do you perceive the future of OTT and operator relationships?

VIVA has an open relationship with Over-the-Top Content (OTT) and is currently in talks with many OTT providers. We aim to announce partnerships with OTT providers towards the end of the year, with possible sharing of the revenue generated.

What is your input on VoIP services?

VoIP is becoming a reality through various applications such as Skype, FaceTime and Viber which are being used by many customers around the world. However, VIVA's license doesn't include an international traffic gateway, and accordingly all traffic is routed through the MoC.

VIVA is very active in sponsorships in the sports and education fields. What can you tell us about your constant interest in CSR activities?

VIVA has regularly displayed its commitment towards corporate social responsibility (CSR), playing an active role in supporting the Kuwaiti community on many levels. VIVA's approach lies in seeking sustainable investments which will benefit the community in the long-term. This strategy involves building upon the company's strong foundation of ethics and corporate governance, being consistent in its commitment to ongoing, impartial, transparent sharing of information and making sure that its core priority CSR commitments are achievable in relation to the company's financial performance.

Our commitment to offer the best also extends to a number of strategic initiatives that include our sponsorship of the Kuwait National Football Team, in addition to the ongoing successful sponsorship agreement with Manchester United, now in its second year. There is also the agreement we signed with Real Madrid to encourage the talents of young Kuwaiti footballers, as well as bringing some of the Club Ambassadors and legends to Kuwait.

The principal focus of VIVA's CSR strategy has always been based around education and development, caring for the environment, investing in healthcare, encouraging entrepreneurial thinking and strengthening our bond with the society. The progress achieved by VIVA in keeping to these aims has resulted in it being seen as more than just a telecoms leader. Today, the company takes pride in being viewed by the local community as one of Kuwait's leading socially responsible and environmentally aware commercial organizations.

What is coming next for VIVA?

For the future, VIVA's management knows that it must continually raise the bar on standards of customer service and value for money if it is to continue to sustain its reputation as Kuwait's most dynamic and most advanced mobile telecommunications service provider.

© Telecom Review 2013