Strategy and KPIs
In 2016 we entered the second stage of our ‘Way Forward’ strategy, having successfully implemented the ‘Turnaround’ phase in 2015. In this next part of our long-term program, we are focused on ‘Selective Growth’ to 2019.During the year we restored our ‘challenger’ position by boosting data profitability and improving customer experience. We also took steps towards further monetizing our fiber-optic network and maintained our focus on market- and profit-driven capital expenditure allocation.
Operational efficiency
During 2016 we continued to improve the efficiency of our operations, making OPEX savings and delivering operational excellence. We are now making more effective use of our existing resources and working in a leaner, more agile way. We successfully resized and reorganized the Company, closing gaps in skills and capabilities and streamlining or replacing inefficient processes. By improving our efficiency, we have put ourselves in a strong position to meet future economic challenges and grasp new opportunities in the market.
Selective growth
Our strategy in 2016 focused on achieving leadership in the Saudi mobile data market and unlocking value from our broadband services. Our main objectives for mobile (voice and data) are to deliver a more compelling data experience to customers, while at the same time attracting a greater number of customers in the mid- to high-value segment, particularly in the Kingdom’s major cities. We also focused on better monetizing unutilized capacity on our voice network. To accomplish these objectives, we continued to invest in enhancing 4G speed, growing our competitive position and usage opportunities and delivering a high quality customer experience to help us to reach a service leadership position.
Another strategic focus was the acceleration of the adoption of Fixed Data (FTTx) as a challenger in the market – and we worked hard to monetize our on-the-ground network. This was made possible through operational excellence to enhance our systems and reengineer critical processes, while leveraging and further developing our existing infrastructure to provide leading edge business solutions.
Key Performance Indicators (KPIs)
To fulfill our objectives we have developed a clear execution agenda, with five main KPIs for the implementation of our strategic initiatives.
| Winning propositions |
Monetize FTTH |
Rationalize CAPEX |
Improve efficiency |
Engage and retain |
|---|---|---|---|---|
| Revamping products and prices in Consumer and Business Units Boosting data profitability Leveraging customer experience |
Stimulating FTTH uptake in coverage areas Enhancing sales, system and execution capabilities |
Implementing effective CAPEX governance Ensuring market and profit driven CAPEX allocation |
Optimizing structure; eliminating duplication in systems and processes Improving OPEX management Digitizing customer-facing and internal operations |
Building the capabilities of our people Engaging staff and retaining talent |
Supporting Vision 2030 and the National Transformation Plan
In 2016 the government of Saudi Arabia unveiled details of its National Transformation Plan (NTP), the foundation for implementing Vision 2030. The NTP has set targets for all sectors of the economy, with 24 participating ministries working on 178 strategic initiatives for meeting 346 targets. From the telecoms sector, Vision 2030’s aim to build ‘A Developed Digital Infrastructure’ is of particular importance.
Mobily is working on to supporting the aims of the NTP by growing job opportunities for Saudi men and women, partnering with and supporting the work of relevant public sector bodies, and driving the growth of the Kingdom’s digital landscape. The NTP aims to increase the contribution of the IT sector to non-oil GDP from 1.12% to 2.24%, and Mobily looks forward to playing a key role in the development of the industry.
Our growing spectrum will be important for improving network quality for the Kingdom’s subscribers, while at the same time reducing our own CAPEX. Meanwhile, to support the expansion of broadband across the country – a key focus for Mobily – the government has created a budget of SAR 2.8 billion for its Broadband Stimulation and Universal Service funds.
A critical part of both our own and the NTP’s strategy is to increase FTTH coverage across the Kingdom – a journey on which we are closely aligned. The CITC has an objective to increase FTTH coverage in densely populated areas from 44% to 80%, and the ongoing expansion of our own fiber network will be instrumental in supporting that aim. As the growth of our broadband network gathers momentum, we will also play an important part in supporting the government’s aim of growing broadband coverage in remote areas from 12% to 70%.
“A sophisticated digital infrastructure is integral to today’s advanced industrial activities. It attracts investors and enhances the fundamental competitiveness of the Saudi economy. ” Vision 2030