Etisalat

Emirates Telecommunications Corporation, also known as Etisalat, is the telecommunications carrier and internet service provider in the United Arab Emirates. Etisalat provides all type of telecom services in addition to cable TV service. Etisalat is currently moving to a 3G network.

At the end of September 2005, the numbers of lines in service are 1,222,905 for telephone, 4,305,821 for mobile and 4,698, 17 for internet. Mobile penetration now exceeds 95 per cent."

In May 2005, the UAE Telecommunications Regulatory Authority approved the formation of a new telecoms company, which will effectively end Etisalat monopoly, creating a du. The new $1.1 billion telecoms provider will be 40% owned by the UAE's General Pensions and Social Security Authority and other state interests, with the remaining shares earmarked for private sector shareholders including an initial public offering, which may or may not be open to foreigners. The new telecommunication company (Du) is starting to gain a wide fame with variety of services such as (mobile TV, video calls, video mail, mobile broadband and different billing options)

Etisalat is on an expansion spree. After making its presence felt in Pakistan, Saudi Arabia, Egypt and West Africa, Etisalat is prepared to pay up to $3 billion to bid for state-run Algeria Telecom.

The Abu Dhabi-based firm (Etisalat) has been expanding aggressively abroad as it has lost a virtual monopoly in the UAE to Dubai-based Du, which aims to gain 30% of the UAE market share.

SWOT Analysis

UAE Telecommunications Sector - SWOT

Strengths

��Ñ"nEtisalat is reducing broadband tariff prices to encourage greater take-up

��Ñ"nRollout of further undersea fiber optic cables should enable for greater

International data service access, and at reduced prices

��Ñ"nUAE has one of the lowest mobile tariffs in the region

Weaknesses

��Ñ"nNegligible