Department Structure

Telecom Companies

Michel Chamat

Highly Confidential MSE 2015 1

Functional Organizational Structure
•  The Functional Organizational Structure  is a common type of organizational structure in which the organization is
divided into smaller groups based on specialized functional areas.

• Advantages:

1. Increases the work efficiency of the company, as major sections functions only in their specified fields.

2. Increases the performance of individuals, as every member is placed in his specific department.

3. Increases the knowledge and experience of individuals, as employees from the same field are placed in the same team or
department and share their knowledge with others.

• Disadvantages:

1. Communication between different departments becomes more difficult due to the limited relations between the sections.

2. Harder decision-making process, as different sections ,having different points of view, share the same execution board.

 Despite having some disadvantages, the functional organizational structure proved to be, especially in the
telecommunication field, the most efficient department structure. As reported in 2014, these worldwide companies are
serving around 25% of the global population , and are making revenues of over 400 billion $ combined.

Highly Confidential MSE 2015 2

Lebanese Companies

Alfa - Touch

Highly Confidential MSE 2015 3

 Department Structure : ALFA

Chairman & CEO

VP, HR, Admin and Chief Technology Chief Communications Chief Commercial Chief Corporate Chief Financial Officer
Legal Affairs Officer Affairs Officer Officer Strategy & Quality Manages financial planning
Ensures proper function and Marketing and Customer and record keeping
Employment and Legal Issues
safety of the data center
Communication and PR
Service
Officer

IT Team
Legal Counsel Software Development, Public Relations Engineering Team Quality Department Finance Department
Solutions and Security

Legal Cooperation and Sales and Marketing

Network Media Relations Accounting and Reports Team
International Law Department

Advisor
Provide Expert Advices and Customer Service External Relations Strategic Planning
Consultancies

Human Resource Management

Research Department
Department

Internal Audit

Highly Confidential MSE 2015 4

 Department Structure : TOUCH

CEO

Chief Operations Chief Commercial Chief Corporate Chief Information and Head of Human
Chief Financial Officer
Officer Officer Management Officer Security Officer Resources Department

Sales and Marketing IT Team

Finance Department Legal Counsel Investor Relations Unit Software Development, Human Resource
Department Solutions and Security

Legal Cooperation and

Strategic Planning Engineering Team External Relations Network
International Law

Accounting and Advisor

Provide Expert Advices and Media Relations Quality Department
Reports Team Consultancies

Management
Public Relations Research Department
Department

Internal Audit Customer Support

Highly Confidential MSE 2015 5

Lebanese Companies Structures

ALFA TOUCH ALFA TOUCH

COO – Chief Corporate

NO
Operation Unique chairman and YES Management YES YES
Officer CEO Officer Level 1

CCO – Chief Technology

Commercial YES YES Officer - Level YES YES
Officer 1

Financial Investor YES

YES YES NO The company is owned
Officer Level 1 Relations Unit by ZAIN

Legal Affair NO
COO heads the General
HR Level 1 YES YES Officer – Level YES Counsel and the Law
1 Department

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Summary : Lebanon
• Two cellphone operating companies : ALFA and TOUCH.

• Department structures : Very similar ,with large execution boards managing all different sections of the company
under a functional organizational structure.

• In both companies, different departments are managed by Chief officers and supervised by the CEO :

1. Chief Commercial Officer : Deals with Media, Marketing and Production branches of the company.
Heads the sales, engineering and marketing teams.

2. Chief Financial Officer : Responsible for financial planning and record keeping.
Heads the financial and managerial teams.

3. Chief Human Resources Officer: Manages the recruitment and employment of staff.
Has direct contact with the HR Generalists.

4. Chief Technology Officer: Ensures the proper function and the security of the data center.
Heads the IT and technical teams.

5. Chief Corporate Management Officer: Supervise the quality of work within the company.
Heads the quality department and external relations with investors and other
companies.

• Despite the similarities, the companies adapted different approaches when dealing with legal affairs and investor relations.
The main reasons for making changes in these departments are the availability of a foreign investor and the involvement of the
chairman in the ongoing business of the company.

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Summary : Lebanon
• Availability of a Chief Operation Officer - COO :
As ZAIN is a major stakeholder of TOUCH, the company has a COO who oversees the ongoing business in the company and
reports to the CEO. The chief officer also heads the legal counsel, who oversees the legal affairs of the company, and the
advisors for expert advices about the ongoing and future businesses.

• Availability of a Chief Legal Affairs Officer :

As the chairman of ALFA oversees the business directly as a CEO, no COO is appointed in the company and the legal affairs
department is supervised by a chief officer.

• Having the services of both ALFA and TOUCH covering only Lebanon, the execution board focuses mainly on national users,
as no global nor regional marketing officers are needed. To maximize the work efficiency of these Lebanese companies, the
previous department structures were implemented by separating the functions by expertise and minimizing the number of
departments and board members.

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Regional Companies

Etisalat – Zain – Ooredoo –

Syriatel – STC – Mobinil

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 Department Structure : ETISALAT - UAE

CEO

Chief Commercial Technology and Chief Information

Chief Financial Officer Internal Affairs Head
Manages Financial Planning
Officer Operations Head Chief Internal Audit Officer
and Record Keeping Manages media, marketing Group Ensures the safety and proper
and customer service
Group operation of the data center

VP of Talent
Chief Technology Chief Procurement Chief Legal and
Finance Department Chief Strategy Officer Management and
Officer Officer Regulation Officer
Human Resourcing

Sales and Marketing Advisor Chief Internal Control

Strategic Planning Engineering Team Provide Expert Advices and Human Resources
Department Consultancies
Office

Media Relations
Management Ads, Social Media, and Accounting and IT Team
Commercials Chief Digital Services General Counsel Software Development,
Department Reports Team Solutions and Security

VP of International
Public Relations Roaming and Mobile Internal Audit Corporate Secratary Network
Services

Legal Cooperation and

Costumer Service
International Law

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 ETISALAT – Recent Developments
• Based in the UAE , operates in 18 countries in Asia and Africa.

• In 2010 and 2011, major losses were reported by the company due to “competition and drop in prices”. The company reported a
24% decrease in the net profit in 2012, and therefore eyed restructuring to cut losses. (Reuters,2012)

• In 2012, ETISALAT owned 66% of the shares in Egypt and appointed a new CEO , as the former CEO of Etisalat Misr was
transferred to the UAE. Also, major changes were done in the excusive board this year, as new appointments were made in the
following posts : group chief executive, chief financial officer , chief marketing officer, new chief regional officers for Asia ,Africa,
and the Middle East. (Reuters,2012)

• As reported by the company, the company sold 9.1% of its shares in PT XL Axiata Tbk in 2012 for 1.87 billion AED. (Etisalat,2012)

• Also as confirmed in 2015, Etisalat sold all its shares in the French Speaking West-Africa to Maroc Telecom ,for 474 Million Euro,
due to the increasing competition in this region as well as the language gap between the company and the communities.
(Reuters,2015)

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 ETISALAT - Department Structure Analysis
1. Public Relations Department :

The department has been able to bring forward the point of view of the company to the public, raising their earning profits.
Role : Establish and maintain relations that results in mutual benefits.
Activities : Promotes the company in a good way.
Develops good relationships with stockholders.
Creates efficient ways to advertise and promote the activities of the company.

2. Media Relations Department :

The company uses its website efficiently enough to attract various costumers.
Role : Handles everything related to the company in front of the public.
Activities: Maintains good contact both locally and internationally.
Manages interviews given by the head officers of the company.
Manages all the activities related to the media.
Affects the image of the company.

3. Communication Department:

Criticized for keeping their high fees, but managed to minimize the power distance between employees.
Role : Establish and maintain good relations with employees, consumers and community.
Activities: Good salaries for employees but some sort of dictatorship is applied .
Concentration on consumer relations due to competition.
Maintains common ground with traditions and living conditions of the community.

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 ETISALAT - Department Structure Analysis
4. Financial Department

Report decrease in revenues in the past years, but managed to sell the company’s shares in competitive regions.
Role : Provides the head board with the financial changes in the company.
Activities : Calculates the yearly profit or loss of the company.
Calculates the comprehensive income.
Provides the cash flows for the year and a summary of the accounting policies.

5. Regulatory Department :

Role : Make sure the company abides the local and international laws
Activities: Provides the board with feedbacks and possible issues about the company
Establish contacts with federal and governmental personnel to work on specific issues

6. Information Department:

Managed to implement major upgrades on the services of the company.

Role: Make sure the company’s data base and data center are safe and clear from problems.
Activities: Provides technical solutions for the customers and employees.
Develops and maintains good network connection within the company.
Provides good security cover for the data center.

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 Department Structure : ZAIN - KSA

CEO

Chief Financial Officer Chief Commercial Chief Regulatory Chief Strategy Officer Chief Technology
Manages Financial Planning Chief Internal Auditor
and Record Keeping
Officer Officer Develops strategic initiatives Officer

Communications and Director, International, Advisor Strategy and Business

Investor Relations Wholesale and Provide Expert Advices and General Counsel Engineering Team
Consultancies
Development
Director Roaming

Sales and Marketing Accounting and Legal Cooperation and IT Team

Finance Regional CEOs Software Development,
Local and Regional Officers Reports Team International Law Solutions and Security

Advisor
Strategic Planning Media Relations Internal Audit Provide Expert Advices and Network
Consultancies

Public Relations Human Resources

Customer Service

Highly Confidential MSE 2015 14

 Department Structure : OOREDOO - Qatar

CEO

Chief Operations Chief Financial Officer Chief Human Strategy and Chief Technology
Manages Financial Planning Business Head Group
Officer and Record Keeping
Resources Officer Wholesale Head Group Officer

Human Resources Chief New Businesses

General Counsel Finance Training and Recruitment Chief Strategy Officer Engineering Team
Group Officer

Accounting and Chief Small and IT Team

Chief Legal and Chief Sales and
Strategic Planning Reports Team Medium Business Unit Software Development,
Regulatory Officer Service Officer Solutions and Security
Officer

Legal Cooperation and Chief Wholesale and

Internal Audit Customer Service Media Relations Network
International Law International Officer

Advisor
Provide Expert Advices and Chief Marketing Officer Enterprise Marketing
Consultancies

Sales and Marketing

Local, Regional and
Worldwide Marketing Officers

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 Department Structure : SYRIATEL - Syria

CEO

Chief Human
Chief Admin and Legal Chief Commercial Chief Corporate Chief Information and
Resources and Chief Financial Officer
Affairs Officer Officer Management Officer Security Officer
Administration Officer

Human Resource and IT Team

Sales and Marketing Accounting and
General Counsel Administration Software Development, Finance
Local and Regional Officers Reports Team Solutions and Security
Department
Contracting and Legal
Advisory Unit Quality Department Internal Auditor Network Strategic Planning
Provide Expert Advices

Regulatory and Management

Procurement Accounting and
Governmental Affairs Customer Service Information Systems
Department Reports Team
Unit Department

Legal Cooperation and

Investor Relations Unit Technical Department Internal Audit
International Law

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 Department Structure : STC - KSA

CEO

Chief Financial Officer Technology and

Customer Service Sales and Marketing Senior VP of Projects
Manages Financial Planning Business Head Group Information Head
Head Group and Record Keeping
Head Group and HR
Group

VP of Customer Care VP of Enterprise VP of Technology and VP of Strategic

VP of Finance VP of Marketing
and Experience Business Unit Operations Planning

VP of Small and
Engineering Team
VP of Consumer Unit Finance Medium Enterprise VP of Sales VP of Field Operations
Research and Development
Sales

VP of Business VP of Information VP of Regulatory

VP of Services Strategic Planning VP of Wholesale
Operations Technology Affairs

VP of Procurement and VP of Business Sales and Marketing IT Team Human Resources

Customer Service Software Development, Training and Recruitment
Support Services Development Local and Regional Marketing
Solutions and Security

Accounting and Media Relations Legal Cooperation and

Ads, Social Media, and Network
Reports Team Commercials International Law

Highly Confidential MSE 2015 17

 Department Structure : MOBINIL - Egypt

CEO

Chief Corporate, Chief Financial Officer

Chief Regulatory and Chief Commercial Chief Customer Chief Technology
Strategy and Business Manages Financial Planning
Wholesale Officer Officer Service Officer Officer and Record Keeping
Development Officer

Sales and Marketing Advisor

General Counsel Provide Expert Advices and Customer Service Engineering Team Finance
Local and Regional Officers
Consultancies

Director of the Public IT Team

Legal Cooperation and Accounting and
Enterprise Marketing Opinion Research Software Development, Strategic Planning
International Law Reports Team Solutions and Security
Center 

Manager, Public Mergers &

Network Internal Audit
Relations and Media Acquisitions

Media Relations
Ads, Social Media, and
VP, Commercial
Commercials

Public Relations Human Resources

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Regional Companies Structures

ETISALAT ZAIN OOREDOO SYRIATEL STC MOBINIL

COO – Chief
Operation NO NO YES NO NO NO
Officer

CCO – Chief
YES
Commercial YES YES NO YES YES
Head Group
Officer

YES
HR Level 1 NO NO YES YES NO
Head Group

Customer
Service – YES
NO NO NO NO YES
Consumer Head Group
Officer Level 1

Internal Audit
YES YES NO NO NO NO
Level 1

Highly Confidential MSE 2015

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 Summary : Regional
• Six cellphone operating companies : ETISALAT, ZAIN, OOREDOO , SYRIATEL, STC and MOBINIL

• Similarly to the Lebanese organizations, the department structures of many regional companies are the same. The Functional
Organizational Structure is adapted to distribute the work by functions on the different sections, with an executive board of chief
officers.

• In comparison with Lebanese companies:

 Major differences :

1. Wholesale officers : Introduce the new services provided to different customers, companies and sectors .

2. Regional Marketing officers: Handle marketing business in different countries and specific geographic areas.

3. Head Group: Functions of major sections are divided on more than one chief officer.

 Main Similarities :

Executive boards mainly composed of Financial, Regulatory, Marketing and Technology chief officers. These directors are
essential to manage the different functions of these regional companies.

• To supervise the ongoing business in the company and to manage the marketing of its worldwide branches, OOREDOO and
STC both have a Chief Operations Officer ,who reports directly to CEO, and Global Marketing Officers in different countries
around the globe.

• Depending on the community, Customer Services in the Middle East region have a lower structural level in most of the
companies.

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Worldwide Companies

Vodafone – China Mobile –

AT&T Mobility – Telekom -
Orange

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 Department Structure : VODAFONE

CEO

Chief Commercial and Chief Financial Officer Chief Technology Group Enterprise Group Strategy and
Manages Financial Planning Development Director Regional CEOs
Operations Officer and Record Keeping
Officer Director
Develops strategic initiatives

External Affairs Product Management Advisor

Finance Head of Digital Provide Expert Advices and MEA and APAC, CEO
Director Director Consultancies

Head of Fixed Access Sales and Marketing CEOs in Middle East

Media Relations Strategic Planning Engineering Team
and Convergence Team and Asia

Information
Public Relations Customer Service Corporate Affairs CEOs in Africa
Technology Director

General Counsel and IT Team Accounting and

Software development, Europe, CEO
Company Secretary Solutions and Security
Reports Team

Legal Cooperation and Chief Financial Officer,

Network
International Law Europe

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Department Structure : CHINA MOBILE

CEO

Executive Director Executive Director

Chief Financial Officer planning and construction, network
marketing, data business and
Manages corporate affairs, finance and operation, business support,
corporate customer management of the
internal audit of the Company information management of the
Company
Company

Company Secretary Sales & Marketing Team Engineering Team

Handles Local and Regional Business Research and Development

Advisor Media Relations IT Team

Provide Expert Advices and Software development, Solutions and
Ads, Social Media, Commercials
Consultancies Security

Legal Cooperation and

International Law Public Relations Network

Accounting and Reports

Finance Customer Service
Team

Strategic Planning

Highly Confidential MSE 2015 23

 Department Structure : AT&T

CEO

Chief Financial Officer Internal and Global Marketing

IT and Customer Chief Technology Senior Executive ,
Manages Financial Planning Legislative Affairs Officer
and Record Keeping
Service Head Group Officer Human Resources
Head Groups Manages media relations

Talent Development
Corporate Financial CEO, Mobile and External and VP ,Marketing
Executive Operations and Chief Diversity
Planning Business Solutions Legislative Affaire Communication
Officer

IT Team Home Solutions and

VP, Network and
Finance Software development, Chief Strategy Officer General Counsel Human Resources
Solutions and Security
Product Planning

Mobility Architecture and Advisor Supply Chain and

Finance Services Employment of New working Provide Expert Advices and
habits
Design Consultancies
Fleet Operations

Chief Technology Legal Cooperation and Sales and Marketing

Strategic Planning Customer Service
Officer , AT&T Labs International Law Team

President of
Accounting and Chief Compliance
Technology Media Relations
Reports Team Officer
Development

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 Department Structure : TELEKOM

CEO

Chief Financial Officer Data Privacy, Legal

Europe and Senior VP, Chief Human Resource
Manages Financial Planning Affairs and Sales Director
and Record Keeping
Technology Communications Officer
Compliance

Chief Compliance Sales and Marketing

General Counsel CEO, T-Mobile Poland Media Relations Human Resource
Officer Team

Executive VP, Regulatory, Strategy Research and Accounting and

Public Relations
Controlling and Economics Innovations Reports Team

Executive VP. Investor Legal Cooperation and

Network Customer Service
Relations International Law

Finance I T Tea m
Software development, Solutions and Security

Strategic Planning Digital Services

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 Department Structure : ORANGE

CEO

Chief Financial Officer Technology and Communication and Innovation and

Chief Human
CEO General Secretary Manages Financial Planning Operations Head Public Affairs Head Marketing
and Record Keeping
Resources Officer
Group Group Products development

VP, Merges and Human Resources Public Affairs VP, Partnerships and
Company Secretary Brand Director
Acquisitions Director Directors connected objects

Head of Financial Chief Costumer

Communication and
General Counsel Communication and VP, Healthcare Experience and Mobile Marketing Director
Brand Director
Investor Relations Banking Officer
Employer Branding
VP, Sourcing and VP, Strategic VP, Mobile Payment
and Campus Brand Director VP, Technology center
Supply Chain Partnerships and NFC
Management Director

Head of European and Finance Director and Press Services VP, Products and
Engineering Team
Economic Regulations Treasurer Director Services

Head of Corporate and IT Team

Legal Cooperation and
Financial Legal Software development, Costumer Services VP, Marketing Vision
International Law Solutions and Security
Department

Highly Confidential MSE 2015 26

Worldwide Companies Structures
CHINA AT&T
VODAFONE TELEKOM ORANGE
MOBILE MOBILITY

CCO – Chief
Commercial YES YES YES YES YES
Officer

Financial
YES YES YES YES YES
Officer Level 1

HR Level 1 NO NO YES YES YES

Regulatory
NO NO YES YES NO
Officer Level 1

Customer
Service –
NO NO YES NO NO
Consumer
Officer Level 1

Technology
YES YES YES YES YES
Level 1

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Summary : Worldwide
• With their services spread around the globe, these worldwide cellphone operating companies use the Functional
Organizational Structure : ORANGE, TELEKOM, AT&T, CHINA Mobile and VODAFONE.

• CHINA Mobile have a board of only three executive directors, taking control over different functions of the company: CCO,
Chief Financial Officer and Chief Technology Officer. The chief officers have multitasks and most of the company’s business is
commonly supervised..

• While in the four western based companies, the functions are distributed as widely as possible. AT&T and VODAFONE have
more chief officers than the others, with every division functioning independently of the others. In addition, AT&T has a chief
customer service officer while VODAFONE have Regional CEOs in the execution board.

• Due to their worldwide and regional services, marketing departments have major roles in these companies, with global and
regional marketing officers managing the marketing business in different regions and countries.

• Despite their smaller execution boards ,TELEKOM and ORANGE have of financial, marketing, technology and human
resources chief officers. The marketing section in these companies are widely invested, as the services of these European
companies covers a huge part of the world.

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Summary : Worldwide
• In comparison with Lebanese Companies :

 Major Differences :

1. Larger Execution Boards : Different functions of the companies have many chief officers for efficiency reasons.

2. Wider Marketing Targets : Company’s services are not limited to local geographic areas.

3. Technology and Marketing Sections: Widely invested due to national and regional competition, and for customer’s
satisfaction

 Major Similarities :

• Worldwide companies, as well as Lebanese ones, have their department structures based on the functional organization chart.
The CEO oversees the company’s business and controls the executive board, where each chief officer heads a major
department in his specific section.

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