Dr. Saad Al Barrak

Q. MTC has made great progress in recent years, can this pace be sustained? Where would you most like to build up your business presence? What are your business targets? Who do you fear most amongst your competitors?

A. We believe this progress can definitely be sustained as we are basing this on strong backbone of the long history of MTC in the mobile telecommunications industry, our strong financial backing and our talented and rich culture based human resources.

Our major aim is to succeed in solidifying MTC as a global mobile operator that provides lifestyle services to all our customers across the globe.

We want to ensure that MTC is the sweetheart of the global community of mobile users under the MTC Family. With our 3X3X3 strategy we hope to achieve in nine months what it took others 27 years to achieve.

Already we have come a long way. In less than two years we have grown from a one country operator to a five country operation with more than 3.2 million customers.

By the end of 2005 we hope to achieve the first three year strategy of 5 million customers in the region. By 2008 we hope to have 10 million customers and by 2011, 20 million customers. I believe that we will make it as long as we continue to create the customer focused, innovative team building culture in MTC.

We at MTC do not fear competition but rather embrace it. In Kuwait for example when the second mobile operator entered many thought we would lose market share, today we have more than 60% market share in the prepaid sector and are gaining ground in the postpaid.

I would like to emphasize that management is exploring attractive expansion opportunities in order to meet our stated ultimate ambitions of becoming a leading global wireless service provider. We expect 2005 to be a pivotal year as it represents the last year prior to the transition from a regional player to an international wireless service provider.

The competition in the industry is more aggressive while global valuations have increased and consolidation is imposing scale and scope on the firms that will excel in the future.

Consolidation in the form of alliances, mergers and acquisitions will be the near term driver of this industry especially in emerging markets that represent growth. MTC is well positioned to maintain its regional leadership position in the industry.

We will ensure the successful transition to an international leadership position by relying on delighting our customers and exceeding their expectations, rewarding our employees, and providing the best returns to our shareholders.

Q. How important is technology to your business plan? How do you intend to lever new technologies to grow the business?

A.Technology is important as long as it assists MTC in meeting customer demands and requirements. We have used technology extensively in our offerings.

We were the first to deploy a 3G/EDGE network in the region through Bahrain and we will continue to provide our customers in other countries with the latest technologically advanced services as we move on.

In Kuwait we will be introducing 3G at the end of 2005 because we believe it will add great value to the range of data services provided and for businesses as well as entertainment purposes. Already in Bahrain MTC is providing TV streaming services and internet connectivity as well as Mobile Office Suite.

In Jordan, through MTC Fastlink, we are the largest mobile operator and have been provided the best services to our customers there. Even in Iraq, through MTC Atheer, we are using the best means to provide SMS and hopefully GPRS services in the future.

However it is not the technologies that are in the end in mind but rather the services that we can provide using these technologies.

Q. How does your relationship with Vodafone work in practice in the region, and how will this assist in your development?

A. Our relationship with Vodafone is a purely branding relationship that only extends to two countries, Kuwait and Bahrain. Elsewhere we are competing with Vodafone for new markets.

Our relationship with Vodafone stems from the fact that to succeed globally you must quickly learn and gain the qualities needed to be a global player.

When I first entered MTC, I knew that we had to attach ourselves to a giant in the mobile industry in order to gain best of breed practices in the most efficient and cost effective manner and this is what led to the signing of the co-branding agreement with Vodafone three months later.

Q. Who are the key owners of MTC? How much of the company is in free float?

A. MTC is a Kuwait Shareholding Company incorporated in 1983 with shares traded on the Kuwait stock exchange with a market valuation of 6.0005 billion dollars, with consolidated per earning shares in 2004 worth 237 fils per share.

The Kuwait Investment Authority, a public government holding company, owns 24.6% of these shares. The rest of the MTC's shares are free float, with National Investment Company holding around 14%.

Q. Regional stock markets such as Kuwait seem overvalued. Does this cause you a problem is funding acquisitions? Or do you have other financial resources available?

A. As I stated earlier one of the key strength's of MTC is its financial situation. With regards to your statement of overvaluation, in MTC's case if you apply international global benchmarks relevant to our peer group we are undervalued.

As such this is not an issue for us when it comes to funding our expansion plans, as any investor would note that MTC has an extremely strong balance sheet with low debt, so we have multiple sources of funding to allow us to move forth with our strategy.