|
Getting your Trinity Audio player ready...
|
What do you consider your most significant accomplishments during your tenure as CEO of Airtel Uganda?
Listing Airtel Uganda on the Uganda Securities Exchange was a historic moment for me, the business, and the country. I am particularly humbled that we presented the Airtel Story to institutional investors and retail investors, and they believed in us. The Airtel Uganda success story is now shared among employees, shareholders, business partners and suppliers.
We have redefined the competitive market structure in Uganda. We have progressively closed the gap in customer and revenue market share. It is essential to recognise that Airtel Uganda is now a co-leader on key market indices. The benefits of this accrue to the industry and country. We have been able to do all this because we have put our best human, financial and technical resources to their best use, delivering superior customer experience
Uganda is a growing, dynamic market with great potential to increase access to digital and financial inclusion. I arrived during the COVID-19 lockdown, when morale was understandably low because of what was happening worldwide. Our Legacy as a team, under my leadership, was that we kept the country connected and the economy working. We were able to deliver this for the country because Airtel invested ahead of time in 2019 by connecting the country on 100% 4G.
We organised the teams and leveraged all resources to repurpose this network to work for the people locked at home. We created cross-functional teams across geographies that made products like Learn from Home and Work from Home bundles. We zero-rated educational websites to support the country’s efforts to keep the country’s children learning in the most challenging circumstances.
We saw many Ugandans use the opportunity of the internet to solve contemporary challenges in their communities. In the UG NEEDS MORE OF YOU campaign, we shed light on those Ugandans transforming their communities using the power of technology platforms. We received over 12,000 stories and rewarded the top 6, which clearly demonstrates Ugandans harnessing technology to make life better.
Uganda is an agricultural country that now depends on our network to connect farmers to markets, service providers to farmers, and farmers to a pool of helpful information to improve their practices and incomes. Our partnerships with EasyAgric and others in that space is breaking barriers to information and improving the fortunes of farming families across this beautiful country. I am particularly happy to have contributed to this revolution.
Taking the national team to the Africa Cup of Nations after 39 years was born from our investment in grassroots football. Airtel invests heavily in the development of talent, such as the Airtel Rising Stars, the Masaza Cup and the Bikka football tournaments.
Our partnership with Buganda, among other partnerships, made it possible for us to impact the lives of many Ugandans affected by Sickle Cell Disease, Fistula and HIV/AIDS. It remains the biggest run on the African continent as a platform to celebrate the Buganda Kingdom and the causes we have been able to support to reduce the burden of disease in this country. The Airtel Kabaka Birthday run has grown from under 500 runners to over 100,000 runners.
Other partnerships include the Airtel Uganda – Unicef partnership that connects learners, teachers, and schools to digital learning opportunities. Over 13,000 learners in 70 schools are already benefiting from this partnership.
As part of our environmental stewardship, we are progressively reducing carbon emissions from our operations and network footprint. We have transitioned over 400 sites to solar energy and decommissioned diesel generators from over 100 sites.
These include green Smart Poles commissioned in Kampala’s CBD to improve coverage in built-up areas. We put in place partnerships for responsibly collecting and processing e-waste.
Lastly, we have built a strong, emotionally connected brand which resonates with the passion and beliefs of Ugandans, especially the youth. We achieved this by investing in youth talent and other social causes.
What were the biggest challenges you faced leading a company of this size, and how did you overcome them? What lessons did you learn therefrom?
Uganda is blessed with good soil, and the population settlements are spread across all of Uganda’s 241,559 square kilometres. Delivering the same great experience to all our customers is capital-intensive and slows our efforts to reduce the average cost of communications and ICT solutions. This remains a challenge due to the high cost of terminal devices. Smartphone penetration, at 35% is low.
With the entry-level smartphone and device financing partnerships, we demonstrated that it was possible to reach more customers with affirmative action on Smartphones and other internet-enabled terminal devices.
Getting our messages across to all the country’s diverse demographics has been a challenge. There are many different languages, geographies, and dispersed populations across the country and fragmented media presence.
How has the Ugandan telecom landscape evolved since you first assumed leadership?
We have seen tremendous changes in ICT innovation, regulation, and consumer behaviour.
First, the regulatory environment changed with the adoption the National Broadband policy and the issuance of the National Telecom Operator Licenses. These come with excellent but strict obligations on operators like Airtel Uganda on coverage, access, and inclusion. Obligations on quality of service to our customers, to the country on geographic coverage and data speeds.
We have deployed financial, technical, and human resources to meet these obligations. Airtel Africa enjoys access to world-class technology partnerships that we harness for this country. With Airtel Africa’s own sea cable on the East African coast, we are assured of redundancy in the extreme case of failure on one of the cables.
In August 2023, Airtel Uganda became the country’s first 5G network, launching 50 5G sites across Kampala in 7 days- probably the fastest 5G launch in Africa. With speeds of up to 1gbps, we are transforming how commercial internet-based services are delivered to Ugandans. It is now possible to support high-speed dependent telemedicine, manufacturing, remote and conditioning monitoring in oil and gas, mining, education, commercial agriculture and many other life-changing applications.
With the launch of Fiber To The Home (FTTH) and Fixed Wireless Access (FWA) devices, we are now delivering high-speed broadband to homes and Offices/Businesses. This segment is slated to grow exponentially as urbanisation kicks in and the emergence of SMBs across Uganda riding on rapid industrialisation in petroleum, mining and agrotech.
I am also confident that the innovative spirit of Ugandans will continue to deliver nascent solutions to local problems but with a global reach. We saw that during the UG NEEDS MORE OF YOU CAMPAIGN. The census results show that the majority of Ugandans are under the age of 17. The industry will undergo reform to ensure that we are serving these Ugandans, creating the necessary ICT jobs that will protect the ecosystem.
Online services will continue to grow, with Video on the Go becoming central to how consumers consume news, entertainment, and sports
What trends do you believe will shape the future of the telecom industry in Uganda?
The Emergence of the Home segment is growing fast. The role of fast internet in modern-day living is taking root, and Uganda is latching on well. Home entertainment, security, working and learning from home will continue to grow.
Uganda has a vibrant SME segment that is getting digital, connecting to opportunities, and focusing on its core business. The country’s entrepreneurial spirit will continue to spur growth in this critical driver of economic growth.
Additionally, formal larger businesses are going digital, requiring enterprise services for Security, Networks, cloud, payments, etc. as services. Smartphone penetration is currently suppressed by weak affirmative action. Uganda will see an explosion in smartphone usage once the policy direction is supported. We must develop the required knowledge to utilise this opportunity while cautiously protecting the vulnerable.
When the smartphone explosion happens, voice will collapse into data. In 2023, Airtel Uganda launched Voice over LTE (VoLTE) in preparation for this.
Additionally, the telecom industry generates huge volumes of data by offering customers products, services, and solutions. This trove of data will support the growth of data science and analytics in decision-making. Tech innovators for Education, Health, Agriculture, Media, and social enterprises have a vast canvas to generate new ideas. The telecom industry has the agility to support such innovations.
Mobile money, digital transformation, and data are critical sector drivers. How is Airtel leveraging these elements to increase its share of wallet/
Airtel Uganda invested ahead of time. Airtel occupies a central role in the mobile money ecosystem, supported by the strong distribution network of franchise partners, service centres and over 250,000 agents. We have expanded the formal merchant ecosystem that supports retailers by reducing the cash-holding costs in their operations.
The Airtel open APIs is a platform we put out for developers to create and test their ideas and integrate with us. We have seen very good developments from these efforts that change how businesses connect.
We pioneered with Micro Merchant service that allows informal businesses to separate their daily receivables and track the performance of their small and micro enterprises.
Our Micro Loans portfolio extends affordable credit to micro businesses, households and individuals supporting the government’s agenda of extending credit to the majority of unbanked communities.
The data story is hinged on 3Ps + 1C. That is the Pod, Pipe, Platform, and Content. The pod refers to the Smartphone that connects to the pipe (network). The platforms are the apps, and C, the content that runs on those apps. All these elements impact the experience of the customer. Since 2019, Airtel has provided the best pipe, 100% 4G and is now rolling out 5G. Partnerships with device financiers and content providers have helped us to deliver on enhanced ecosystem.
The data demand is driven by access to smartphones. While access to the smartphone has grown to 33%, it is not growing as fast as it should. The industry needs affirmative action on the penetration of smartphones and other terminal devices.
The MyAirtelApp Data Usage Manager is a self-help tool for our customers to track their data usage and maximise their online experience. We are empowering our customers to understand how platforms use data and for them to make informed decisions. From their feedback, we have continuously improved our network to deliver superior experiences.
How have government regulations, such as the introduction of OTT tax and SIM card registration laws, impacted the telecom business?
Govt regulations give us a clear direction as to How we should conduct our business. Governments bring in regulations after a thorough consultation process involving regulators, industry and public representatives. The environment is very dynamic, and we ensure that we are well-prepared to align and implement the policy guidelines.
A SIM card is a vital resource for the delivery of ICT services. However, if abused, a SIM card in the wrong hands is not good for the ecosystem. So, the KYC regulations are essential to ensure the nation’s security. We continuously enhance our current systems in consultation with Government agencies to ensure all possible gaps are plugged.
ALLEN C. KAGINA: Person of the Year 2024What is your view on competition within the telecom sector in Uganda? How did it drive innovation? Is there room for more players?
To deliver on our promise, we focused on the network, the distribution infrastructure, Brand saliency and our people. We are known as The Smartphone Network because whoever gets a smartphone across Uganda can latch onto our 100% 4G and 5 G-ready network. Delivering excellent voice n data experience and high availability/Always ON network has been our key focus.
On this network, we built our unique multichannel distribution network to increase our ability to reach and serve customer. We have a strong distribution network of over 250,000 agents, Over 2500 small and 00 large format service centres across the length and breadth of the country to win more customers by increasing our distribution depth and breadth, with a particular focus on rural areas, helping us to focus more responsively on needs of customers in smaller regions, and increasing our customer reach.This has ensured the easy availability of recharges and brought the delivery of all critical services like SIM swap, PIN reset and complaint resolutions nearer to the customer.
We simplified our product offerings to give our customers more choices through simple and transparent pricing plans based on our ‘more for more’ principle. Increased availability of digital recharges through the Airtel money platform provides convenience and value to the customers & enhances customer experience through a simplified digital customer onboarding process.
We’re able to do this through our professional and hardworking team of staff and partners who live the Airtel value of being Alive, Innovative and Respectful. Airtel Uganda aims to be the employer of choice with a diverse and inclusive work environment that continues to foster a high-performance culture, employee well-being, skills enhancement and coaching.
The 4 critical pillars of our People strategy are
- Developing Future-ready Talent
- Enhancing Employee Engagement and Culture + Wellbeing
- Develop an Agile Operating Model and;
- Winning with Diversity
I thank all my teammates for their individual and collective contributions to this country’s digital transformation.
The benefits of competition cannot be overemphasised. It unlocks the potential of teams to actualise their ideas and create solutions for the people. Ugandans remain entrepreneurial and innovative. Telecom companies facilitate this innovation, which spurs economic growth. There is room for more players as long as the players invest well and adapt to the market’s requirements
And how have you enabled Airtel to embrace emerging technologies such as 5G, AI and the Internet of Things?
Airtel has been at the forefront of embracing emerging technologies such as 5G, AI, and IoT. Some of the exciting developments include.
Airtel launched the first 5G network, and we are rapidly expanding the 5G network across Kampala with a focus on providing seamless connectivity. We have partnered with world-class network solutions providers to deploy the network, reducing energy costs and enhancing performance. Recently, we scaled up the deployment of our 5G router, which comes with a backup battery that connects thousands of homes and small businesses in Uganda.
Airtel has been exploring AI-powered innovations, including AI-driven business intelligence and AI-powered network optimisation.
We offer a range of IoT solutions for businesses under our enterprise segment, including IoT-enabled connectivity, device management, and data analytics. These solutions cater to industries such as electricity grid meters, healthcare, manufacturing, and logistics.
We aim to enhance customer experience, improve network efficiency, and drive business growth by embracing these emerging technologies.
Under your leadership, how did the company maintain or grow its profitability in a highly competitive and regulated market? What strategies did you employ to manage operational costs, particularly regarding infrastructure investment, especially given the fast-and-furious nature of technology evolution?
In a Capex and Opex-intensive industry like telecom, it is essential to consistently grow revenues to ensure good profitability and returns to our shareholders. On the cost side, we continuously innovate to eliminate waste from the system by reworking the operating model and contracts to increase capacity at reduced incremental network cost per site. We constantly review and build zero-based budgets for all costs to bring down fixed expenses during the year.
We grew profitability by revenues and profits at 16% CAGR levels over the period, ensured excellent returns for the shareholders and government, and contributed to the economic development of this country.
The Capital outlay required to deliver superior customer experience for all our customers, no matter their location, is a lot. We source for competitive capital sources to be able to finance our capital expenditure, and we invest for the long term so that we do not bear pressure on our working capital because of debt commitments. Additionally, we concentrate where our strength is, delivery of affordable, innovative products, services and solutions and have a good outsourcing model wherein we partner with industry pioneers to co-create solutions to enhance customer experience. Airtel Uganda is also able to leverage the economies of large-scale operations from Airtel Africa and Bharti Airtel.
What advice would you give or have given to your successor?
There is still a lot of opportunity for growth in Uganda. Access to digital and financial service rates are still low. Public services are being digitised and spread to numerous public service touchpoints. Uganda’s population growth is strong and presents an opportunity for densification of access rates as the urbanisation gap closes. This Growth is expected to Outstrip East African and African Regions. There is a stable, floating currency in an underpenetrated Market with a vast growth potential.
My suggestion to my successor is to leverage the potential that Uganda offers by continuously enhancing customer experience through high network availability and quality enhancement, expanding the distribution infrastructure to bring products and services closer to customers, focusing on bridging the digital and financial divide primarily through enhancing the smartphone ecosystem, scale up homes and enterprise business, comprehensive regulatory and legal compliance through efficient processes and controls and be the most preferred and loved brand in the country. All this should result in higher returns for our shareholders, a great customer experience and an enriching work environment for our team members and partners.
Where do you see the most significant growth opportunities for telecom operators in Uganda in the next five years?
Smartphone penetration remains a big opportunity, and as such, data revenues can grow multifold.
Fulfil high data needs of the high-end homes market through a mix of wireless, fixed terminal and selective fibre connectivity to provide high speed and large volume data needs.
There are more growth opportunities in the B2B enterprise segment with a large fibre footprint with east-to-west contiguity providing redundancy. Rollout of enterprise services currently offered across Uganda with scope for growth in expanding SMB / large corporates.
Access rates to digital and financial services are still low. The young people will need jobs and livelihoods off those jobs; there is an opportunity to support innovations that meet local needs that can be scaled.
What are the most significant risks telecom companies in Uganda need to be prepared for moving forward?
Telecom companies in Uganda, like other telecoms across the world, face some risks that are common to them. Cybersecurity threats are a major concern, as the increasing adoption of cashless payment services and mobile broadband expansion create vulnerabilities. These vulnerabilities are compounded by low levels of security consciousness amongst some populations of the ecosystem. Airtel is ISO certified in this regard because of our actions to secure our environment, but more needs to be done.
Uganda’s telecom sector is heavily regulated, and changes in government policies or laws can impact operations. We must stay current with regulatory requirements and engage with policymakers to mitigate these potential risks as we connect the country to opportunities.
Infrastructure challenges, such as power outages and fibre cuts, disrupt services and impact customer satisfaction. While we have invested in reliable infrastructure, including renewable energy sources, there is a need to stabilise the grid to create much-needed reliability.
Lastly, Technological obsolescence is a risk, as the rapid pace of technological advancements can render existing infrastructure and services obsolete. Airtel Uganda benefits the strong and deep-rooted research and development suite of the Airtel Africa and Bharti Airtel group, to stay ahead of the curve in adopting emerging technologies.
What will you miss most about leading the company and Uganda in particular?
Four years ago, I arrived in Uganda during one of the most challenging times in our global history—The lockdown. The world had changed overnight, and our mission was clear: to keep Uganda connected, to ensure that families, businesses, and schools could continue their lives, even from a distance. It was not easy, but together, we did it.
I’ve lived, worked, and loved every bit of this incredible journey. Uganda has become more than a second home to me. The people’s resilience, spirit, and warmth have been heartwarming and memorable.
Together, we have achieved the unimaginable—launching 5G, rolling out e-SIM, building a solid distribution network, and, in the process, closing the gap with competition by delivering excellent experiences to our customers and winning their hearts. A significant milestone has been listing Airtel Uganda in the USE and ensuring local ownership of the business. These milestones belong to all of us, to all Airtees who worked tirelessly behind the scenes.
As I move on to my next chapter, I carry with me a deep gratitude for this beautiful country and all of you—my team, my friends, my family here. Thank you for making these four years truly unforgettable.
What are your plans after Airtel Uganda? Are you considering staying within the telecom industry or branching into new sectors?
I will be returning to India and will take a short break to take care of my family commitments. In due course, I will decide on the next steps.
How would you like to be remembered by your colleagues and industry peers?
As someone who always chose speed (of action) over perfection⏤ as a leader who gives people the opportunity to express themselves and their potential for the service of a customer.
Stay humble, stay curious, stay frugal, and stay hungry.