Saudia Telecom: Innovating the Telecommunication Industry in Saudi Arabia - Essay Sample

Introduction

Saudi telecommunication Company is a leading company in the telecommunication industry in Saudi Arabia and one of the Middle East's largest companies. The firm offers mobile services and internet services to businesses and individuals (Franklin & Aguenza, 2016). The telecommunication sector in Saudi Arabia is rapidly changing, and dynamic changes characterize it. As such, companies in the sector place much emphasis on growth in their quest to remain competitive. One recent development in the telecommunication industry that has presented both opportunities and challenges is the 5G network. As part of the company's preparation for the launch of the 5G network, one of the recent changes implemented by the Saudi Telecommunication Company is establishing TAWAL to manage the mobile towers spread out in the kingdom (Towerxchange.com, 2020). The launch of TAWAL was to ensure that Saudi Telecom Company becomes a leading provider of ICT infrastructure services in the kingdom. The step was also part of the company's broader plan of ensuring that they boost the 5G network's launch across the kingdom. The expansion of operations by the Saudi Telecommunication Company explains the issues that organizations face when initiating change and helps understand the best framework that can be used to understand organizational dynamics.

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Steps the Organization Followed In Implementing the Change

The set was the initiation of the change, which began with the desire to take advantage of the 5G network launch. As a result, the company proposed some ways to ensure that they are in the best position to take advantage of the new development once it materializes. The launch of the 5G networks was going to start a new segment for telecommunication companies (Towerxchange.com, 2020). The company embarked on the search for the best strategy to take advantage of the looming business opportunity. The next step was the launch of TAWAL Company, Saudi Telecom Company's subsidiary, that will take charge of the mobile tower segment. The company carved out most of its towers and established TAWAL, a tower company that would take control of the portfolio. There was expected traffic on mobile towers after the launch of the 5G network. The total traffic on mobile networks in the country was expected to increase by close to 21% by 2024 (Towerxchange.com, 2020). The growth would operators compel mobile operators to improve their tower infrastructure, especially in the populated areas, to meet the high demand for mobile services. As part of implementing the change, the carve-out of the company's mobile towers was to ensure that the new portfolio grows fast enough to meet the expected rise in demand for mobile sites.

The last step was TAWAL beginning its operations by getting into mobile infrastructure agreements with mobile service providers such as Integrated Telecommunication Company. Several operators started to launch the 5G network, forcing them to upgrade their current sites and get new mobile towers. The company started expanding its mobile towers, and at the moment, the company owns 40% of the tower infrastructure in the kingdom (Towerxchange.com, 2020). TAWAL has been undertaking considerable investments to promote the sharing of mobile towers by mobile operators.

Change Framework Used By the Company

From the analysis of the steps followed in implementing the change, they used the change path model. According to the change path model, the first step in the organizational change process is awakening, which involves developing the need for change (Mäkikangas et al., 2019). In the Saudi Telecommunication Company's strategy for growth, it first started with providing reasons why there was a need for change due to the launch of the 5G network. The second step is mobilization, which involves suggesting ways to help get to the future state. The launch of the 5G network made the organization see the need to establish a separate business that will take charge of the mobile towers. The third step is acceleration, which involves the implementation of the action plan. Saudi Telecom Company implemented the action plan by establishing TAWAL, a separating organization in charge of mobile towers. The last step is institutionalization, which involves making the change part of an organization's culture. Saudi Telecom Company began its operations by getting into mobile infrastructure agreements with other operators to reinforce the implemented change.

Stakeholders in the Saudi Telecommunication Company Change Process

One of the Saudi telecommunication change process stakeholders was the government through the national regulatory authority (CITC) and the country's ministry of communication and information technology. Firstly, through the two entities, the government ensured that STC observes the terms and conditions of establishing a tower company (Towerxchange.com, 2020). The operations of TAWAL were to be per the government regulations. Secondly, the government works to ensure that 5G network coverage in the whole kingdom is achieved, facilitating the mobile towers' monetization. Another key stakeholder in the change process was the other mobile operators in Saudi Arabia. The mobile operators were the primary business partners who facilitated the running of the tower company. For instance, the mobile operators began entering into trade agreements with the company, thus reinforcing the implemented change.

Review of Strategies and Best Model for Initiating Future Changes

One of the key strategies that the company successfully executed was the development of TAWAL to take charge of the mobile tower infrastructure. The success of the plan is evident in the position of the tower company in the industry. According to is cited as one of the major tower companies globally and the biggest in the kingdom. As of January 2020, the company generally owned 40% of the country's tower sites, and out of this, only 10% are shared (Towerxchange.com, 2020). However, its strategy to boost the fifth-generation network's rollout through the tower company's launch has not attained the intended objectives. The 5G network rollout's success also required mobile operators' partnering with the manufacturers of mobile devices. The lack of such collaboration has significantly derailed the rollout of the 5G network in the kingdom.

One of the frameworks that can help the organization under what is needed in organizational change is the Nadler and Tuchman's congruence model. The model provides a way of analyzing the organization's key elements and how they can affect change implementation (Sabir, 2018). The model can help the organization look at every aspect, including the strategies and how they have impacted the desired output. For instance, in the STC change process, stakeholders such as the telecommunication companies play a central role. The Nadler and Tushman model can help analyze the stakeholders' role in meeting the desired output. When the organization looks at each element in the organization and the role it plays in change implementation, it can successfully help in identifying problems and propose the best ways to overcome them.

In conclusion, the Saudi Telecommunication Company is one of the firms in the Kingdom of Saudi Arabia that has expanded its operations to take advantage of the opportunities in the telecommunication industry. The fifth-generation network in the kingdom has resulted in the mobile tower infrastructure, a portfolio that STC has entered through the launch of TAWAL. The idea behind establishing the tower company was prompted by the need to take advantage of the fifth-generation network's business opportunity. The business has ensured it expands its operation by entering into mobile infrastructure agreements with other mobile operators. The government and other telecommunication companies supported the monetization of the mobile towers. Although the launch of TAWAL was successful, the anticipated growth of 5G network use due to the rollout has not met the company's expectations. To successfully initiate change in the future, the company should use the Nadler and Tushman model because it considers every element that might require an organization's transformation.

References

Franklin, U., & Aguenza, B. (2016). Obstacles, Resistance and Impact of Change in Organizations: An Examination of the Saudi Telecommunication Company (STC). International Journal Of Academic Research In Business And Social Sciences, 6(4). https://doi.org/10.6007/ijarbss/v6-i4/2068

Mäkikangas, A., Mauno, S., Selenko, E., & Kinnunen, U. (2019). Toward an understanding of a healthy organizational change process: A three-wave longitudinal study among university employees. International Journal Of Stress Management, 26(2), 204-212. https://doi.org/10.1037/str0000059

Sabir, A. (2018). The Congruence Management -a Diagnostic Tool to Identify Problem Areas in a Company. Journal Of Political Science And International Relations, 1(2), 34. https://doi.org/10.11648/j.jpsir.20180102.11

TowerXchange - telecom tower industry TAWAL takes over 14,000+ towers in Saudi Arabia - TowerXchange – telecom tower industry. Towerxchange.com. (2020). Retrieved 19 September 2020, from https://www.towerxchange.com/tawal-takes-over-14000-towers-in-saudi-arabia/