Interview with Adrian Shatku - CEO and Founder of UNIFI Communications and CEO of WIS Telecom

Opportunity, Freedom, Perseverance

SPIRIT of true disruptors

SUCCESS The Uber moment

Opportunity, Freedom, Perseverance

SPIRIT of true disruptorS Adrian Shatku CEO and Founder of UNIFI Communications CEO of WIS Telecom

Adrian Shatku is the Founder and CEO of UNIFI Communications and CEO of WIS Telecom. Having followed Adrian for the last 2 years, I can say that he is one of the few entrepreneurs devoted to transforming our industry. He is a true disruptor. Having led UNIFI to great success, he acquired WIS Telecom 18 months ago and has since been focused on integrating the two entities to create a driving force, relevant to the new digital consumer.

Busy riding the wholesale consolidation wave, Adrian is continually on the lookout for new acquisitions to feed the core of his innovative vision. I recently had the pleasure of meeting him in Berlin, during which he shared his views of the current consolidation wave and the impact it will have on our industry. He also talked about how UNIFI Communications intends to lead the digital wholesale transformation as a lean, agile and customer focused organization.

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RIDING THE CONSOLIDATION WAVE

In my opinion, the consolidation of the wholesale market is finally in full flow. Do you agree and if so who do you think will come out as the winners and losers?

It’s already in full force. Investors have begun to see the potential value of this market consolidation and we ourselves are currently involved in numerous due diligence acquisition processes.

In my view, our industry cannot survive in its current state. At the end of the day, I do not think that there will be a winner to take it all, but rather a handful of carriers who will successfully transition from core commodity providers to competitive market innovators and value creators.

My hope is that, through this consolidation process, our industry can move away from relentless commodity competition to discover new untapped values. In my opinion, this new growth will come from the application of Platforms as a Service.

I think we are currently living the ‘Uber moment’ of our industry. The winners are those that will reach the on-demand model first. In order to get there, we need to maximize efficiency and provide a seamless transition to an on-demand service model.

For the very first time, service providers must adapt their business model to a different market environment. At the core of this transition are three powerful market pressures: product substitution, extreme rivalry and new players all fighting for a declining business.

Let’s face it, the subscription model is dead and penetration is above 100% in most markets. We are all faced with the almost insurmountable challenge of helping them find new ways to increase their revenue.

Therefore, I believe that the only way forward is if carriers can provide their customers with on-demand communication solutions.

This means that they must transition from the pure interconnect model to one offering communication platform as a service (CPaaS). This new type of business model will help drive revenue and position them as leaders in tomorrow’s marketplace.

How do you plan to capitalize on new acquisitions to trigger your transformation?

Well, I think the key to our success will be strategic acquisitions that help us remain relevant, create value and better address the mobile world. We are also looking to acquire companies which complement our geographies, customer base and create cost synergies.

For the last 18 months, consolidating UNIFI and WIS has been a hell of a ride. This integration process has taught me how to strike the right balance between creating value and maximizing efficiency. As you know, WIS was the International Carrier Service arm of Orascom.

It was designed to run all its Opcos, which at their peak served close to 250 million subscribers, with offices in Nivelles, Milan and Rome. It was a great challenge to merge WIS’ more traditional incumbent mindset with the disruptive one found in UNIFI’s New York headquarters.

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BE READY TO GO ABOVE AND BEYOND

Do you think there is a secret to UNIFI’s success?

When I launched UNIFI in 2001, we were operating in what was the beginning of the Unified Communications as a Service (UCaaS) segment. So, for almost 14 years, we operated in hard to reach markets, as a high value niche service provider, focused on helping mobile operators.

Later, we converted the company into a full grade international carrier, which then led us to the WIS acquisition. They were a great match for us, as they were prepared to meet the challenges of the Orascom mobile operator markets, such as Algeria, Tunisia, Egypt, Zimbabwe, Pakistan, Burundi, Central African Republic, Congo, and Bangladesh in addition to more mature ones such as Italy.

WIS gave us a larger platform and scale.

However, when it came time to integrate, it was a challenge to unify the mindset of these two organizations. You can implement new technologies, systems or processes rapidly, but you cannot change people’s mindset overnight.

Consequently, not just us as a company, but the industry must find a way to bring in the new generation who embodies new ways of doing business. The younger generation uses blockchain and crypto, and understands the impact of IoT, mobility and the on-demand mindset - they are never afraid to disrupt the status-quo.

We need to employ people who are not scared to look at the world, and its challenges, through a different pair of eyes. I trialed this

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concept within UNIFI, brought in very bright people in my team, with no prior experience, and now they are my top performers.

We will also continue our acquisitions journey by growing our legacy business, adding geographies, new customers and most importantly, new revenue streams and capabilities that our customers can pass on to their customers.

We will focus more on our core capabilities by looking for acquisition targets to help enable a swift evolution. This may require us to purchase a vendor and harness their capabilities to speed our transformation towards an on-demand Communication Platform.

How does UNIFI/WIS differentiate from other wholesalers?

We are not the largest wholesaler - we are probably in the top 15 - but in my view, we are one of the most agile. It is very easy for me to make key decisions rapidly at any time of day or night, 7 days a week. This gives us a significant competitive advantage in today’s fast moving world.

Also, one of the key challenges faced by most large wholesalers is that they need to be able to apply contradictory strategies.

They must prepare for the long term, while being in a position to react rapidly to evolving technologies, competition and customers.

Not many companies are equipped to do so, but I think we’re one of the lucky ones that is.

I like to think that we are also able to distinguish ourselves from other wholesalers by going the extra mile for our clients. I’ll often respond to customers myself to make sure they are

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getting the service they expect. In addition, regularly meeting with clients reminds me that providing basic service is not good enough anymore. We must partner with them to play an integral part in their growth and foster long-term business relationships.

To put this into perspective, when I think about my company’s value, three things come to my mind: Reach, Quality and Trust. I work every day to bring these to our customers.

Because, as you know, at the end of the day, all that customers really care about is: Can I trust you? Can you provide me with quality and support? and Can you help me make money? Delivering this is what will make us relevant in the long term.

REBELS WILL SAVE THE WORLD

on to our readers to achieve success in business?

Stay true to your values. Act with integrity, persevere, do not look for shortcuts and always be willing to adapt. But more importantly, be bold and have the guts to do what it takes to succeed.

I personally follow this mantra every day. I do feel that some of us are born to challenge the status quo. That is what gets me up in the morning. So, if I have the opportunity to disrupt and re-invent our industry, then I will take it.

You know what they say Isabelle:

‘The rebels, love them or hate them – they might just change or save the world’.

What drives you to be an entrepreneur in such a challenging industry?

I am an immigrant. I arrived in New York at the age of 20, with less than $2,000 in my pocket. I have been a waiter, a dishwasher and have worked on Wall Street. I joined the telecom industry right after the deregulation wave, and later decided to go my own way by starting my own company in 2001.

As any immigrant, my story is one defined by risk taking, perseverance and spirit, all values that translate well into our company and the way I conduct my business.

At the end of the day I want to do something meaningful, with integrity, that creates a positive impact on our industry and society.

What’s the best advice you wish to pass

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ABOUT THE AUTHOR Isabelle Paradis President HOT TELECOM

Isabelle is President and Founder of HOT TELECOM, one of the most innovative and creative telecom research and consulting companies in the industry.

More recently, Isabelle has been working with many of the world’s telecom service providers to help them define their transformation strategy. She has published several articles and reports on the subject and has spoken at numerous conferences around the world to share her views on the future of the international telecoms business.

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