Ucell: The Way to Success

Release Date:2011-09-19 Liu Yang
W020110930597910699381
Ucell is part of the Swedish-Finnish operator, TeliaSonera. In 2008, Ucell was rebranded and adopted a new slogan: “closer to the people.” Since then, it has rapidly increased its market share to become the second largest mobile operator in Uzbekistan. We interviewed Oguz Memiguven, CEO of Ucell, on September 4th, 2011. He shared with us the secrets of Ucell’s rapid growth. He also shared his thoughts on what makes for successful cooperation. Journalist: First, could you introduce your company, including its business and main focus area? Oguz Memiguven: Ucell is part of TeliaSonera Eurasia. TeliaSonera is one of the biggest operators in Europe. It has operations in 7 countries in Eurasia and also has operations in Russia and Turkey. In Azerbaijan, we have Azercell, in Kazakhstan, we have Kcell, in Tajikistan, we have Tcell, in Georgia, we have Geocell, in Moldova, we have Moldcell, in Nepal, we have Ncell, and in Uzbekistan, we have Ucell. So these are the Eurasian operations of TeliaSonera. Ucell was established in 2007 and was rebranded with its current name in June, 2008. In June of this year, we refreshed the brand so that all TeliaSonera Eurasia companies now have the same visual identity. We also finished our new headquarters in the city center of Tashkent, the capital of Uzbekistan. At the opening of this prestigious and modern building, we introduced our new brand identity. Ucell started operations in 2008. When we took over the company, it had just over half a million subscribers and a 9 percent market share. Now it has 8.5 million subscribers and a 34 percent market share. We are far ahead in data and 3G in the country and are perceived as a technology leader. In Uzbekistan, we are the second largest operator in terms of revenue and market share. But we are the first operator in the hearts and minds of the people. Our priority is to further expand our 3G and 4G network, focus on new 3G technologies, such as dual carriers, and establish long-term sustainable leadership, especially in data communications, 3G, and 4G. We also have a 4G trial network that has achieved quite good results, and we will extend our 2G as well. We have almost 900 workers in the company. We also have thirty offices and 2000 dealers all around the country. So we have an extensive distribution network. Uzbekistan has a population of 29 million population, it has rich resources, and it has great potential. We are a very happy to operate there, and I think we will continue to invest in the future of Uzbekistan.

Journalist: Ucell has a fast-growing subscriber base, around 34 percent market share. At present, Ucell is the second largest mobile operator in Uzbekistan. Could you tell us the secret of your success?

Oguz Memiguven: We are a very interesting company. In the beginning, our slogan was "ожидать большего," which in Russian means "expect more." We have always tried hard to provide very attractive and economical tariffs for people. So we are a kind of a market maker, and everyone follows us. We have a very rich value-added services portfolio. We always present good, enjoyable and useful services to the people, including the youth. When we establish reasonable coverage, we also attract a lot of premium and corporate customers as well. Our success is due to the fact that we are affordable, we have a lot of variety in our services, and we have a very strong presence in data communications, the Internet market. That’s the reason why we are successful.

Apart from this, we have a very young, ambitious, energetic, and agile management team. We are very quick, and our competitors have difficulty keeping up with us. There is no need to be humble on this issue. We are a very fast and agile company.

 

Journalist: How are Ucell’s mobile users distributed? What is the proportion of 2G to 3G users? And what are their mobile phone usage habits?

Oguz Memiguven: Uzbekistan is no different from the rest of the world. People want to reach the Internet. You have to simplify life for people so they can easily access the Internet. We provide a local phone to the market with the most visited Internet sites already presented as an icon. People want to go to social networks, for example, Facebook, Vkontakte, and other social networking sites in Russian. So when we sell a phone, these sites are there already. Then people touch the phone, and they are part of it. We make our strategy based on the most visited social networking sites. We provide them so easily, so quickly, and with uncomplicated pricing—simple flat pricing to reach those pages. This was warmly welcomed by the people, and caused a tremendous increase in data traffic, almost tenfold. 

 

Journalist:  In December 2007, Ucell and ZTE signed a phase-I contract to construct a wireless network in Uzbekistan. In the following years, Ucell again selected ZTE several times to expand its network to the sixth phase. Why did you select ZTE as your partner? How do you evaluate ZTE’s equipment and project team?

Oguz Memiguven: ZTE is a world-class company. The products, services, and product roadmaps are quite impressive. Honestly, this is common to world-class suppliers. But what makes ZTE favorable to us is mainly the team. They are very attentive, they are very friendly, and they listen, which is very valuable to us. When we have problems, they take it so seriously. They want to help, and I value it very much. Also, ZTE always has a competitive price strategy. That’s also something I very much appreciate. But believe me, the most important thing is ZTE’s attitude. If ZTE does not lose such ambition and attitude towards its customers, it will bring them much fortune. The way they listen and try to help us I appreciate very much. I told them when they were building the first phase, “If you do it successfully, I’ll recommend you to other good companies.” And I did. They are now working with some other good companies right now.

 

Journalist: What has impressed you during the cooperation between Ucell and ZTE?

Oguz Memiguven: There are many things. In the beginning, I followed the progress very closely. Building a network from scratch is not easy, I know. But I really pushed them and gave them a heart attack. Every week I asked about the targets and I followed the other weeks. There were times when the results were not exceptional, but the week after, they closed the gap. Many times they did it. I was told they couldn’t make it, but they did, and I was surprised. I was surprised with their commitment, dedication, and energy. 

It’s not only me who feels this way about ZTE. Actually, within our organization, the marketing and technical people always talk about ZTE with respect. I have my own views about your company, but I listened to my people as well. When I listen to them, they always talk about ZTE with respect, and I am influenced by that as well. I am not the only one in the company that thinks like this.

 

Journalist: In August 2010, ZTE helped Ucell deploy the LTE network. What is the significance for deploying LTE in Uzbekistan? What do you expect it to be in the future?

Oguz Memiguven: We are at the very beginning with LTE, but LTE will change everything. You can watch the live TV with LTE. But we still have a long way to go with 3G. We want to start and see. With LTE, we become a kind of ADSL operator. We can give people high speed. When we consider wireless technologies, we can easily satisfy the needs of individual users for data connection. When it comes to big corporations, our current technology is not fast enough to give full-scale service. But with LTE, a big market is opening for us, and it can replace all this fixed infrastructure as well. I think there is a great future for operators and vendors. Ucell’s target is very clear—we want to be the leader in all aspects of mobile technologies in the country.