|
Etisalat's big call to action for the future
by ArabianBusiness.com staff writer on Sunday, 09 September 2007
Etisalat
has introduced several new services in the last six months, despite its
strong position and mobile penetration being over 100%.
Mohammad
Hassan Omran, chairman of Etisalat, outlines the telecomms powerhouse's
plans to become a truly global force in the telecommunications
industry.
What have been your business highlights of the year so far?
Over
the last six months, we have launched many services in the UAE,
including Etisalat Pushmail and international calling plans, all
designed to offer our customers choice and improve their lives.
Blackberry subscribers also increased to 15,000, enabling the UAE's
executives to remain productive on the move.
With the greatest quality network coverage in the country and 444
international roaming partners in 180 countries, our customers can stay
connected across the globe. The second half of the year will see even
more services aimed at enhancing the productivity and lifestyle of
people in the UAE.
Since June 2006, we have grown the market
for mobile services and recruited over one million additional mobile
subscribers, taking the total to over 6 million mobile subscribers.
Penetration
of Etisalat's mobile service in the UAE now stands at 142%. At the end
of June 2007, fixed line services reached 1.31 million lines. Since the
introduction of internet into the UAE in 1995 and broadband in 1999,
the number of internet users in the UAE has exceeded the 2.5 million
mark, representing a penetration rate of 60%.
The financial results for the first half of this year demonstrate the company's diverse capabilities and competitive strengths.
We
achieved financial results exceeding expectations and continue to
achieve strong results supporting our continued leadership in the
region's telecommunications industry. This is a direct outcome of the
company's strategy and commitment to providing the highest quality and
most user-friendly services and telecommunication solutions, which help
Etisalat maintain its position as the UAE's operator of choice.
In
your home market of the UAE, the company is enjoying great financial
success. For example, you added a million new mobile subscribers in
first half of 2007, in the same period that a second operator entered
the market, and with mobile penetration already riding high at over
100%? How are you achieving this?
The market for
mobile is changing very fast. Not only is it a mere communication
device, it is becoming a personal assistant which you can use to
communicate, to get into your email, to send photos, to watch videos,
to do much more work than before. I am positive about the market growth
and the future needs.
Most communication, until recently, was
between a human and a human. But it is becoming more and more human,
being to machine and machine to machine. Using Sim cards, your car, for
example, will be able to communicate with your dealer, for updates,
maintenance checks or for security reasons. We can predict
significantly more usage for mobile services.
Another example
is for fleet management to manage cars in transit. This will require
communication between the car itself and the centre, or maybe between
two cars. So you can see much more usage coming. Therefore, it is
difficult to forecast the right number for mobile saturation.
What are the key themes of Etisalat's GITEX Technology Week presence?
The
theme of this year's stand is ‘Experience Has No Substitute',
highlighting Etisalat's more than 30 years of experience. The stand is
divided into two key sections, one for businesses and the other for
individual users. We are also extending the GITEX experience to our
customers around the UAE through a range of promotions for both
individuals and businesses.
How has the entrance of
the second operator, du, here in the UAE affected Etisalat's business,
and how are you meeting the challenge this competition poses?
Etisalat
has grown even more during the presence of competition in the UAE. We
have achieved record profits and the number of our mobile phone
customers has exceeded 6 million.
When more services and more
variety are available to the customer then there is more usage. As you
have seen in the last six months, we have introduced several new
services and this is because of the dynamic market. We have to be more
active in introducing different services for different customer needs.
This is good for the market as it benefits the customer and the
industry in fostering a healthy competitive environment. Our financial
results over the last three years, in comparison to our latest report
for the last six months, show that we have nearly doubled our profit
growth. In 2005 and in 2004, profit growth was between 18-19%. Now we
are reporting net profits of around 33%. This shows there is still a
lot of growth in the market. These figures are showing what Etisalat is
about. Etisalat, with its customer focused vision and commitment to
innovation in service provisioning, is achieving its set targets and
the financial results are an indication of the performance of the
company and our strategy.
Our growth, expansion and financial results reflect on Etisalat's
position today. I am optimistic there is enough to go around for
everyone, with what we can see in the huge development of the economy
in the UAE. Competition is good and healthy for the country, good for
the consumer and good for Etisalat.
Here
in the region we've seen numerous country phone licenses being
auctioned off recently. Your organisation, for instance, won Egypt's
third mobile license, but you decided not to bid for an Iraqi license.
How do you assess what licenses to go for?
Etisalat
is considering extending its operations into new markets as part of its
vision towards its ongoing expansion. Etisalat believes that it will
succeed with its new operations by relying on the wealth of experience
and knowledge in all telecoms related services that it has gained over
the past three decades to fuel growth, subscriptions and revenues. Our
strategy is based on four pillars. Firstly, we enter new markets to
offer services and telecommunication solutions based on intensive
studies and market research, relying on our experience gained over
these years and considering any long-term partnerships.
Our growth, expansion and financial results reflect on Etisalat's
position today. I am optimistic there is enough to go around for
everyone, with what we can see in the huge development of the economy
in the UAE. Competition is good and healthy for the country, good for
the consumer and good for Etisalat.
Here
in the region we've seen numerous country phone licenses being
auctioned off recently. Your organisation, for instance, won Egypt's
third mobile license, but you decided not to bid for an Iraqi license.
How do you assess what licenses to go for?
Etisalat
is considering extending its operations into new markets as part of its
vision towards its ongoing expansion. Etisalat believes that it will
succeed with its new operations by relying on the wealth of experience
and knowledge in all telecoms related services that it has gained over
the past three decades to fuel growth, subscriptions and revenues. Our
strategy is based on four pillars. Firstly, we enter new markets to
offer services and telecommunication solutions based on intensive
studies and market research, relying on our experience gained over
these years and considering any long-term partnerships.
Secondly,
we aim to introduce new services that meet the needs of a specific
market and its customers. Thirdly, we should add significant value and
benefits for the customers and industry in the markets we are
considering entering, especially in the region, as we have the wealth
of know-how to tailor-make the right telecom solution for the right
market. Finally, we look for synergies in cultures and markets which
will help replicate our success in the UAE.
We approach our
expansion market by market. For each market we have different strategy
to suit and integrate the communication solution with the needs,
culture and traditions of the country.
Which markets are of particular interest to Etisalat in the future?
We
have declared our interest to bid in Qatar. Qatar will be running two
bidding rounds, one for a GSM license and one for the fixed-line. We
will participate in both.
Wherever we go, we have the intention to offer a total telecommunications solution and add value to the market.
We
see most of the growth in operators in the region is from mobile
operators. But we offer both mobile and fixed-line services, as well as
carrier-wholesale, Internet and cable television. Wherever we go, we
have an interest in offering a total solution and this is shown from
our operations across Africa and Asia.
There are always
opportunities to review, and if we spot an opportunity that will
develop strong returns, we have the ability to utilise it for the
benefit of customers, shareholders and the industry.
When
it comes to helping the region's citizens develop and transfer their
skills, what role is Etisalat playing? How do your Academy &
University projects help?
Part of Etisalat's
commitment to the telecommunications community and also to the
reputation of the nation includes the establishment of Etisalat
University College.
The College trains engineers in the aim to
develop local staff with high qualifications to aid our general needs
and the needs of the telecom sector across the region.
Etisalat
has also set up Etisalat Academy to train new employees and to offer
training for companies locally and internationally.
We have a
country which has very good relationships with the rest of the world, a
country which is welcomed by other countries, which has a good
reputation. Etisalat has an outstanding relationship in being one of
the main players in the telecommunications sector in the world; and the
positive reputation gained through the years in the UAE and in the
market generally have given Etisalat the strength to play a major role
in the industry and, of course, one of our major factors for our
success is our staff.
What is your vision for the Etisalat Group in 10 years' time?
Etisalat
aims to become one of the leading telecommunications service providers
in the world. We already offer a wide range of services to customers,
businesses and also other service providers and ISPs.
We will use these services to expand and grow our footprint beyond our presence in 14 markets and into the global league tables.
|
