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The Transformation Story of Yemen Telecom Document download (PDF:255KB)

• The success migration from CDMA WLL to Mobile network
• By September 2006, CDMA subscribers exceeded 600,000 from zero and market share from 1% to 20% in Yemen 
• Provided high speed data service of 1xEV-DO from 2005

The inevitability of transformation

Since the year 2000, the trend for replacing traditional services with mobile and IP voice is increasingly prevalent, which is forcing traditional fixed operators to face some unprecedented challenges. Market requirements necessitate that fixed network operators transform themselves into integrated information service providers.

Yemen Telecom, the only fixed network operator in Yemen, Up until 2004, has been responsible for operating fixed, data transmission and international toll services. The country's geography has rendered traditional fixed access technology a very expensive commodity, exacerbated by lengthy construction periods. Costs were naturally transferred to consumers, which explained the particularly low percentage of subscribers. How can Yemen Telecom reduce integrated operation and network deployment costs and rapidly popularize services and increase network subscribers? What are the best ways to construct and improve integrated competitiveness during development? With these questions in mind, Yemen Telecom began the journey of transformation.

Starting from CDMA WLL

In the same year, there were very few CDMA WLL networks worldwide, the popular WLL technologies being PHS, GSM and WLL. Why select CDMA WLL? Firstly CDMA WLL supports CDMA 1X data service. Additionally, Yemen Telecom became convinced that CDMA WLL has the capacity to increase the number of fixed users and prevent the mobile service from further impinging on the fixed market.

In June 2002, Huawei and Yemen Telecom established a joint project team and began planning the CDMA WLL service and service operation model. In order to meet the development needs of Yemen telecom, Huawei provided two types of CDMA WLL terminals in the early stages of network inception. The purpose of one was mainly for voice communication and the other was designed for data services, i.e. Internet surfing. Since the charge of CDMA WLL was the same as a fixed phone, and because the activation and number allocation was in fact easier, the number of Yemen Telecom subscribers increased very quickly. By the end of June 2004, Yemen Telecom boasted over 50,000 CDMA WLL subscribers.

Rapid Growth of Yemen Telecom

The equipments' stability and the rapid service development increased Yemen Telecom's confidence in CDMA WLL. Yemen Telecom set up a subsidiary company -Yemen Mobile in 2004.

In line with the rapid development requirements of Yemen Telecom, Huawei finished upgrading the CDMA WLL network to a CDMA mobile network in July 2004.

Yemen Mobile received their CDMA mobile license in August 2004 and initiated extended the CDMA network nationwide. As a reliable strategic partner, Huawei had provided Yemen Mobile with a holistic mobile solution covering a CDMA network. In addition, Huawei actively participated in Yemen Mobile's network operation work and offered a range of recommendations, such as applying different number segments and charges to WLL and mobile subscribers and providing short number services for group users. Huawei met weekly with Yemen Telecom to discuss and resolve number allocation and network deployment problems.

As of September 2006, the number of Yemen Telecom's CDMA subscribers exceeded 600,000 and the ARPU value each month exceeded 20 dollars per month. Now Yemen Mobile has become Yemen Telecom's main revenue source. Yemen Telecom has in turn become the largest mobile operator in Yemen. The CDMA network has increased both economic efficiency and social development.