The recent rebranding of Celtel Nigeria to Zain may be viewed by many as one too many having changed name about four times. The company began operation as operator of Global System of Mobile communication in 2002 as Econet thereafter changed its brand name to Vodacom when Vodacom bought into then Econet. This was short lived as Vodacom pulled out of the acquisition contractual agreement thereby living the company in the hands of Nigerian investors that are not financially strong to provide the required finance to compete with the likes of MTN and Glo. As an interim arrangement, the company hurriedly changed its name to Vmobile while sorting for core investor. Vee networks the company incorporated name entered into acquisition talk with Celtel Africa the African operation of then MTC the parent company of Celtel Africa. The outcome of the talk was acquisition of majority stake in Vee Networks resulting in the rebranding of Vmobile to Celtel.
Celtel International was not originally owned by MTC group, it acquired 85% of equity in the then leader is cellular operation in sub-Saharan Africa in 2005. Under the terms of the agreement, MTC acquired 85% of the issued equity with commitment to purchase the remaining 15% of the shares in two years, which happened last year making the whole deal worth $3.4 billion.
MTC’s acquisition of Celtel has helped it achieved a big part of its ambitious vision of becoming a global cellular operator, opened up many promising markets and secured leadership for MTC in sub-Sahara telecom market.
“MTC has built on Celtel’s expertise in sub-Sahara markets to continue its expansion plan in emerging Africa market,” said Dr. Sa’ad Al-Barrak, chief executive officer MTC group.
It is pertinent to note that, the underlining cause of these rebranding to Celtel was as a result of change of ownership, which distinguished the recent rebranding from Celtel to Zain. The recent rebranding is precipitated by the desire of the parent company then MTC of Kuwait to change its name to Zain in September 2007; this led to Middle East operations of the company changing its name to Zain while African operations still retained Celtel.
Owners of the telecommunication giant felt that there is need to unify its brand required for harmonious operation, and good quality of service that led to rebranding of all Zain operations in Africa to Zain which as well affected its Nigeria operation.
To some industry watches the rebranding of Celtel to Zain is a good opportunity for the company to change the battered image of GSM operators, if it will match it with actions by improving on its quality of service.
Presently, GSM operators are facing with quality of service issues where many are expecting that the new entrant Etisalat will do the magic by offering them better quality of service. The rebranding and trading with a new name will make most uninformed people to believe that it is a new GSM operator. For instance, this writer had an encounter with some people who were in a hot argument about the emergence of another GSM operator with the name Zain, they are five in number three are arguing that Zain is a new GSM operator that president Yar’adua brought from Arab country to change the face of GSM that is saddle with poor quality of service while the other two more informed, argued in the opposite that it is Celtel that has changed its name to Zain. It took this write a lot of explanation to convince these three gentle men that it is their own Celtel Nigeria that is now Zain Nigeria. This could give the company a good face in view of the public perception about GSM operators in the country.
To mark the launch of its new colourful identity across Africa, Zain also announced the creation of the world’s first cross-continental borderless network, extending and linking its ‘One Network’ service between Africa and the Middle East. The service will be available to 500 million people stretching from the west coast of Africa to the Middle East, covering an area larger than the United States of America. One Network allows Zain customers affordable cross-border communications, helping friends and families stay connected.
According to Al-Barrak, ‘this truly is a defining moment in the history of global telecommunications. The connecting of One Network across two continents demonstrates how under one brand, Zain is able to offer enhanced mobile telephony services. Going forward it will now be easier and more affordable for people to keep in touch and support cross-continent trade and enterprise. This is the essence of the Zain brand promise to create ‘A wonderful world’.
This allows all Zain customers (pre-paid and post-paid) in Africa and the Middle East using ‘One Network’ to enjoy the benefits of being treated as a ‘local’ customer wherever they are. Customers can make calls and send messages at local rates when communicating with a travelling Zain customer who will receive incoming calls free-of-charge and be able to make calls back home at local rates. Pre-paid customers can also top up their phones with recharge cards bought from either their home country or more than one million outlets available in one of the 15 One Network countries. The One Network service is automatically activated upon crossing the geographical border into one of the countries, with no prior registration required or sign-up fee.
Zain is a leading emerging markets player in the field of telecommunications aiming to become one of the top ten mobile groups in the world by 2011.
Zain was established in 1983 in Kuwait as the region’s first mobile operator and was known as MTC until September 2007. From modest beginnings in Kuwait, the company now has more than 16,000 employees serving over 50 million customers in 15 African and seven Middle Eastern countries including Ghana and the Kingdom of Saudi Arabia, where the company will launch its mobile telecommunications networks in the coming months.
Since 2003, it has grown significantly becoming the 4th largest telecommunications company in the world in terms of geographic presence with a footprint in 22 countries spread across the Middle East and Africa.
In Africa, Zain now operates in 15 sub-Saharan African countries namely: Ghana, Burkina Faso, Chad, Democratic Republic of the Congo, and the Republic of the Congo. Others are Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The company’s mobile telecommunications operations in Ghana will begin this year.
In the Middle East, Zain operates in: Bahrain, Iraq, Jordan, Kuwait, Lebanon, Sudan and soon the Kingdom of Saudi Arabia. In Lebanon the company manages the network on behalf of the Lebanese government and operates as MTC-touch.
Zain is renowned for its pioneering role in bringing technical innovations and modern telecommunication services to the markets it serves. For instance, the launch of its ‘One Network’ service in September 2006 offering Zain customers’ affordable and effective cross-border communications was a world first. Zain also launched the world’s first nationwide 3G and WiMAX network in Bahrain. The company plans to role out modern technologies to its African and Middle East operations where the need and demand arises.
It promised to continue to pioneer ‘One Network’, the world’s first borderless network, which has already broken new ground as it is now available for the first time across two continents – Africa and the Middle East.
Corporate Social Responsibility continues to be high on Zain’s agenda, given its historic role in supporting the communities it serves. Zain is committed to helping to open up an exciting world of new possibilities and opportunities, in culture, health and education, and acting responsibly in the communities where it operates. Zain has pioneered a range of education-based initiatives across Africa and is partnering with governments and communities to help them achieve the UN Millennium Development Goals. For example, in the last one year, Zain has donated millions of dollars worth of books and educational supplies to government-owned schools in Africa. The company recently partnered international establishments in bringing telephony to 400,000 people in remote areas of Africa and has many community projects across both continents.
The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). The company had a market capitalization of US$ 25 billion on 30 June 2008. Financial results for H1 2008 are available on www.zain.com.
