ICT 2020: STC’s new focus
Saudi Arabia has one of the world’s highest penetration rates when it comes to smartphones, social media, and online platforms. As the nation’s largest carrier, STC is evolving from a traditional telco into a full-fledged digital enabler. The company is creating value for different verticals with innovative ICT solutions under the belief that an intelligent, flexible, and agile network infrastructure is the key to digital transformation. STC Group CEO Dr. Khaled Hussain Biyari told us what the carrier’s ICT 2020 transformation strategy is all about.
Forging ahead with Network 2020
Transformation is a must
One of STC’s aims is to become the leading ICT player in the region. At the start of its transformation journey in 2013, STC introduced major programs to improve its corporate culture and work environment. It also initiated one of its largest ever projects: transforming their IT and business support systems. In 2015, despite an industry-wide slowdown, STC’s consolidated revenue and EBITDA were up 11 percent and 3.8 percent respectively over 2014, confirming the success of their transformation programs. Over the next three or four years, operators will be delivering technologies that fundamentally change society. 5G coupled with a world connected by the Internet of Things will see operators become more important to enterprises and consumers. By 2020, networks will inevitably face a level of demand and strain that they’ve never seen before. Telcos also need to worry about how to stay relevant in 2020.
From infrastructure to apps
Moving towards Network 2020, operators are transitioning to an All-IP world where they will provide more relevant and enriched communications services for customers, create revenue opportunities, and secure long-term shareholder value by leveraging the interconnectivity of an All-IP network.
The transformation process exists in four layers. At the bottom sits the innovation layer, which can link you with your R&D centers. The second layer is infrastructure. Next you have what they call the enablement layer, which consists of all enablement platforms, including cloud, machine to machine, IoT, and cyber security. Finally, the fourth layer houses applications for different industries.
STC has invested heavily in the first three layers, with a clear focus on partnerships, especially on the application layer to ensure it finds the best partners for every vertical. So, the company is marching along well and the CEO believes it will become a major player in the digitization era.
Setting the pace of new tech
When 4.5G is ready
In STC’s largest market, Saudi Arabia, the take-up of the latest technologies is unmatched. It witnessed exponential growth in data consumption when it introduced 3G, and then 4G, largely due to social networking. Now, STC is deploying 4.5G.
With 4.5G networks and the major role they play in pushing video content to customers, video services will become even more popular in Saudi Arabia – the nation already ranks first in the world for YouTube views. So, it’s crucial to work with partners to deploy new technologies like video, which consumes huge amounts of network resources; for example, installing CDN is extremely important if you want to optimize where traffic is going through the network. STC is planning to aggressively promote M2M applications now that latency is no longer a bottleneck, and its looking at more advanced technologies to enable these applications for customers.
For digitally savvy young people
Around 65 percent of Saudis are under the age of 30, and the population is getting younger. This has led STC to adopt new approaches to better meet the evolving needs of young, digitally savvy customers. The millennials of today’s Saudi Arabia exemplify the ongoing shift in consumer behavior and expectations. They live in an always-on, real-time world, and expect companies to cater to them in the same way.
In May, STC launched Jawwy, a new digital mobile experience that places it as one of the first telcos in the world to design and develop a new mobile experience that uses online and social media. Jawwy features its own SIM, app, and freshly designed digital channels for sales and customer care. A key differentiator of the service, the Jawwy app will allow users to build, share, and manage their plans in real time, instead of buying fixed plans. The app also offers many unique features including real-time contextual offers and notifications, and a simple way for customers to activate services without calling customer support or visiting a store.
The app will be available for both iOS and Android. The service has been in private beta testing since December 2015. Jawwy is a significant part of STC’s current digital transformation. It believes this initiative will set the pace for the telecom sector in KSA and beyond, predicting that it’s the future of mobile.
Clouds above the new blue ocean
According to IDC, more than a third of Saudi organizations have invested in cloud services. The cloud market in Saudi Arabia is expected to grow 44.5 percent year on year in 2016 to total US$63 million. This will be the result of an increasing number of end-user organizations migrating non-core workloads, including productivity, collaborative projects, sales, marketing, and human capital management to the cloud.
STC developed and began executing its cloud strategy in late 2014. The telco’s cloud services enable customers to log on and choose the kind of services they want. STC has mainly promoted cloud services to SMEs because cloud is the logical choice for them to optimize IT operations, both from a cost standpoint and efficiency perspective. Moreover, STC signed an MOU with one of the region’s leading government departments to provide cloud services for the public. As a result, it sits at the forefront of cloud services in the region.
STC has launched cloud marketplace as a platform for other ICT players to host and sell their services, creating an ecosystem of cloud services provided by a network of local and international partners.
All-round support
A word on regulatory bodies
Competition in Saudi Arabia’s mobile market has increased significantly, and the nation is seeing a rise in data consumption of more than 250 percent in a year. It’s very important to reduce regulations that don’t add much value, particularly during network transformation. Although the huge expansion of network infrastructure requires the right level of spectrum allocation, the regulatory framework shouldn’t constrain telcos in terms of how they can package and sell their services.
With Huawei
STC has partnered with Huawei on a number of development fronts that aim to enhance customer experience and optimize OPEX by better understanding customer needs and wants. This will ultimately win customer loyalty by creating more value than ever before.
Over the years, Huawei has proven to be a valued strategic partner of STC. That’s why STC is teaming up with Huawei to implement its greatly ambitious ICT 2020 plan.
