MTN Syria

		Launch date June 2002 MTN shareholding (%) 75 Market share (%) 45 Mobile penetration (%) 58,5 Population (million) 23,1 Forecast market size in 2014 (million) 16
Ismail Jaroudi MTN Syria CEO

2012 performance

Amid the crisis in the country, MTN Syria delivered satisfactory results in 2012. The MTN proposition, which includes promotions and reliable systems, has underpinned our performance. This has also supported an increased uptake of data used. Importantly, we are focused on the safety of our people and on providing communication service to our six million customers as best we can.

Customer numbers increased by 5,5% to 6,03 million. Network outages resulting from power irregularities and fuel shortages rendered a number of our sites non-operational. Net additions slowed to 312 400 compared to 817 800 in 2011.

Total revenue in Syrian pounds grew by 2,9% driven mainly by data, which increased by 47,3% in local currency and SMS revenue, which grew by 14,3%. Most of this growth occurred in the first seven months of the year, but as the crisis deepened and economic activity in a number of towns and commercial centres was disrupted, our coverage and subsequently revenue was affected. The migration of large numbers of people from Syria to neighbouring countries, as well as the displacement of many more within the country, also impacted usage.

The average Syrian pound exchange rate to the rand weakened by 24% during the year. Revenue in rand terms declined by 16,6% to R5 391 million compared to R6 463 million in the previous year.

While the core network is still operating soundly, the crisis has hampered our ability to reach some of our sites to maintain them. We are continuing to rollout our capital programme despite challenges in sourcing capital equipment from some vendors. This has entailed increasing 3G availability in the country by swapping 600 sites (mostly in Damascus) in workable areas from 2G to 3G-enabled.

MTN Syria continues to operate the network under the basis of the build, operate and transfer (BOT) arrangement. The timing on the conversion of this into a freehold licence is uncertain until there is more clarity from the regulator regarding the conversion process.

Outlook

Conditions in Syria will remain extremely challenging as long as the crisis continues. We plan to continue to rollout our capital programme despite these challenges and we will stay committed to operating and serving our customers.

A snapshot of our performance

Delivery against strategic objectives

Creating and managing stakeholder value

• Ensuring the safety of our people is critical. We are taking all measures necessary to mitigate this risk.
• MTN Syria's equality and diversity policy led to women making up 45% of employees by year end.
• Added childcare subsidies to employee benefits.
• Supported enterprise development by using local businesses in our supply chain.
• Invested in various CSR initiatives primarily supporting healthcare and education.

Creating a distinct customer experience

• Made MTN Syria's broadband offering even more appealing to customers through various bundled packages.
• Swapped 600 sites, mostly in Damascus, from 2G to 3G-enabled.
• Engaged with customers through new channels created on social media.

Driving sustainable growth

• Remained focused on reducing energy consumption. This includes converting most indoor BTS and terminal and sub-hub sites to outdoor sites. We are implementing hybrid solutions to benefit from solar and wind energy.

Transforming our operating model

• Effective implementation of cost optimisation strategy to minimise pressure on revenues.

Innovation and best practice

• Implementation of innovative data charging schemes.
• Introduction of bundled devices in major customer service centres.
• Focus on regional offerings and segmented "Below The Line" campaigns.
• Holistic approach to dealing with business clients through providing different connectivity solutions.