Etisalat - growth

etisalat's subscriber base touches 63m

The number of subscribers with Emirates Telecommunications Corporation (etisalat), the country's leading telecommunication services provider, has touched 63 million in its global network, setting the company at a leading position as a regional and international player.

"We intend to compete for the fixed line licence in Egypt, as this will represent a substantial added value to the company's portfolio. We also have massive plans to expand in Africa, as are extending our operations in Tanzania up to two million subscribers by the end of 2008, compared to the present 800,000 subscribers," etisalat chairman Mohammad Hasan Omran told Gulf News in an exclusive interview yesterday.

He said his company is also targeting opportunities in the Algerian market, where etisalat is awaiting the government's decision on selling Algerian Telecommunications Company.

"We are also present in Nigeria after acquiring 40 per cent of the network there, and seven other African countries under the umbrella of Atlantic Telecom, of which we own 70 per cent."

He said Asia is also on his radar, where the company is studying opportunities to enter the Indian and Vietnamese markets, given that the operations prove feasible.

"The Indian market in particular is characterised by strong growth pros-pects, and we are already holding negotiations with a number of Indian companies to establish a strategic partnership that will give us a strong foothold in this huge market," he said.

On his company's investments in the third generation (3G) services, he said the 3G services are not that costly an investment when compared to the basic infrastructure.

"Usage of 3G services is growing rapidly, especially in the UAE, Saudi Arabia, and Egypt, after introducing the possibility of high speed internet connection for computers through mobile handsets," he said.

On competition in the domestic market, he said: "For Emirates Integrated Telecommunications (du) to get a market share is only a natural development, as it seeks to compete in the local market. Yet our financial results since the introduction of its services have been much better compared to the past, and that is beyond our expectations. Competition results in expansion and maturity of the market, and I think the competition will yield positive results."

Omran said etisalat expects its subscriber base in Egypt to reach 10 million in three years.

"We were targeting to attract 10 million subscribers within the first three years. According to the present figures and growth rates, we will surely surpass that figure comfortably," he said.

"And now, we have signed agreements with the other two service providers to provide us with the local roaming service.

Growth: Nigerian venture

Mubadala is a very efficient investor whether within the UAE or overseas, etisalat chairman Mohammad Hasan Omran said.

"In principle, our negotiations to purchase a stake of its Nigerian mobile network was a success, resulting in our acquisition of 40 per cent of the network," he said.

Nigeria is a vast country with a population of 135 million, and a rapidly growing economy, backed by the country's oil wealth. Nevertheless, the mobile networks there are inefficient and insufficient, which represents a real growth opportunity, similar to other countries with large populations such as Egypt and Pakistan.