e& Group CEO: Transforming From a Telco to a Techco
Interview with Hatem Dowidar exploring the challenges of leading a transformation of the telco to a techco service provider.
The McKinsey article “e& Group CEO: Transforming From a Telco to a Techco” highlights the challenges faced by the CEO and the strategies employed to successfully transition from a traditional telco to a techco.
It features an interview with Hatem Dowidar, CEO of a UAE-based telecom operator serving 162 million customers across 16 markets in the Middle East and Africa.
The discussion, conducted by McKinsey senior partner Wajih Abou-Zahr and partner Eefke Post, explores e&’s ambitious transformation from a traditional telecommunications company (telco) into a technology-driven company (techco), alongside insights into the telecom industry’s future, talent strategies, and the growing role of environmental, social, and governance (ESG) considerations.
Dowidar outlines how e& restructured its organization over the past year to support this shift, moving from a conventional telco model—featuring a single consumer and enterprise division—to a structure with distinct business pillars.
These include etisalat by e& (the UAE telco), e& international (overseeing 15 markets outside the UAE), and e& enterprise (focusing on solutions like cloud, cybersecurity, IoT, and AI). This “delayering” was driven by the need to adapt to rapid digital disruption, freeing up resources through technologies like AI, robotics, virtual networks, and cloud services to pursue innovative, future-oriented projects.
The transformation was motivated by the telecom industry’s struggle to capitalize financially on its technological influence amid ongoing disruption. Dowidar emphasizes that becoming a techco enhances e&’s appeal to top talent by positioning it as a leader in cutting-edge fields like AI and cybersecurity. Initiatives such as a graduate trainee program focused on AI integration across roles exemplify this approach.
Additionally, ESG has become a priority, evolving from philanthropy to a strategic imperative tied to operational efficiency and talent attraction, reflecting broader industry trends.
Dowidar sees the telecom sector evolving with technologies like 5G, requiring telcos to become more agile and customer-centric. For e&, this transformation aims to ensure sustainable growth by diversifying revenue streams and leveraging technology to meet modern demands, positioning the company as a global tech player rather than just a connectivity provider.
