King's Quote     Letter from the Chairman     Letter from the CEO     Board of Directors     An Overview of 2005     2005 HighLights     A Gaze into the Future -Closer to You
A Closer Sense of You A Feel of Home A Better Understanding of
   Work An Enhanced Insight of Your
   Needs
     Closer to our Community     A Step Closer to our Team
-A Closer Look at Our
    Finances
A Closer Look at Our    Finance Financial Highlights 2005 Disclosure Schedule Report    2005 Auditors Report Consolidate    Financial Statment 2005
 
 
     A Gaze into the Future
 
Jordan Telecom Group's
Future Aspirations		  

 

While the fixed-line market was liberalized at the beginning of 2005, the impact of such liberalization of the market, which ended the exclusivity period, meant that fierce competition will only be fully effective in 2006. The fixed-line sector will witness yet more newcomers with class and individual licenses for fixed-line service provision. It is also expected that the competition will grow fiercer in 2006 because some telecommunication companies will establish their own international portals for international calls, a service that used to go through Jordan Telecom's network before 2005. Consequently, Jordan Telecom Group will not be able to maintain the high and unprecedented profit levels achieved during 2005.
In 2005, Jordan Telecom Group celebrated the 5th anniversary of its partnership with France Telecom by launching its new services in the Vision 2005 conference. It is anticipated that these services will result in a quantum leap in the Jordanian telecommunication sector.

 
Those services are namely: The PC@ Every Home initiative; the "livebox" double play service; the "Talk Now" service through the "push to talk" technology via MobileCom's GSM network; the launch of the national and international roaming service Wi-Fi by Wanadoo for wireless Internet connections; and "WINS" integrated solutions for networks service.
It is expected that those services will create a dramatic change in the Jordanian telecommunication sector.
Being the major shareholder in Jordan Telecom, the Jordanian government has announced in 2005 its intention to sell its full shares in the company during 2006. This will not have any implications on the company's activities and business, but will mean that there will be changes with regard to the number of government representatives on the board of directors.

A huge development occurred in Jordan Telecom's systems over the past five years in terms of the increased interest in the different types of customers the Group's companies serve. The majority of the companies' activities now target catering to customer needs in an attempt to provide state-of-the-art, high quality and cost-effective services.

In line with their strategic approach, Jordan Telecom Group companies (Jordan Telecom, MobileCom, Wanadoo and e-dimension) will work with the assistance of the Group's strategic partner, France Telecom, to implement the concept of integration between their activities, whereby all necessary changes will be made to their organizational structures, activities, procedures and regulations in order to unify all joint activities in the Group, and ultimately provide integrated services comprised of fixed and mobile
telecommunication solutions, with the possibility of broadband and Internet content data delivery, which is characterized by an advanced technology on a par with international companies.

Current telecommunication services are very close to each other; so much that it will be difficult in the future to separate between fixed, mobile and broadband
telecommunications. Furthermore, telecommunication service providers will find that it is imperative to merge those services in unified operating and organizational structures that meet customers' increasingly complex needs. A case in point is Jordan Telecom's success as one of the first companies in the Middle East to provide the "Double Play" service (voice and Internet services), and will soon be able to provide the "Triple Play" service (voice, Internet and content telecommunication services).

It is evident that mobile and broadband telecommunication sectors will be major players in the growth of Jordan Telecom Group in 2006. However, there is a strong competition between telecommunication
companies in this field, in addition to the low tariffs of services rendered, which affects the ability of those companies to achieve the desired growth. Similarly, it is expected that offering advanced services, such as enabling customers to choose their international calls operator beforehand, will have adverse effects on revenues because revenues from international calls will have to be shared with several parties, add to it all the high cost of maintaining customer loyalty. Therefore, Jordan Telecom has made marketing offers to various telecommunication operators to make Jordan Telecom's network the first choice for international calls, which will help maintain the current customers and urge more to use Jordan Telecom.

Foreign investment is one of Jordan Telecom Group's major mid-term strategic objectives and another component for growth and development. The Group is on the lookout for investment and growth opportunities outside Jordan in the evolving regional market by creating new businesses or by going into partnership with existing regional operators. The Group will embark on this endeavor by acquiring new accredited licenses, based on its strong financial positions. In this regard, Jordan Telecom Group will call on the expertise and cooperation of its strategic partner, France Telecom.

In light of the ever-changing telecommunication sector and growing customer demand, 2006 will be a decisive year for Jordan Telecom Group, internally and externally. Jordan Telecom Group reaffirms its commitment to realizing HM King Abdullah II's vision by providing cutting-edge telecommunication services in order to contribute to our nation's advancement and development, and Jordan remains first and foremost a leading operator in the region’s market.