Emirates Telecommunications Corporation (Etisalat) provides fixed-line, mobile, Internet, data, and other telecommunications services directly and through its subsidiaries in the UAE and other countries.

Etisalat, whose monopoly as a mobile and fixed-line operator was broken in 2005, when Emirates Integrated Telecommunications Company (du)Emirates Integrated Telecommunications Company (du) won the license to become the second fixed-line and mobile operator in the UAE, submits 50% of its revenues to the UAE government as royalties in addition to 60% of profits, making it a major contributor to the UAE budget.

The total group subscribers for mobile, fixed-line and Internet were 63 million at the end of 2007, which represented a 103% increase from the previous year. By the end of 2007, Etisalat had increased its annual mobile subscribers by 15.46% to 6.4 million, its Internet subscribers increased by 32% to 875,000 and its fixed-line subscribers by 3% to 1.3 million.

Etisalat’s revenues stood at AED22.9 billion (USD6.24 billion) in 2007, 64% of which earned from group mobile subscribers. Net profits amounted to AED7.3 billion (USD1.99 billion) at the end of 2007. Etisalat is the second largest telecommunication company in the MENA region and 16th in the world, in terms of market capital of AED123 billion (USD33.5 billion), as of June 2008.

In the UAE, Etisalat’s subsidiaries include Emirates Cable TV and MultimediaEmirates Cable TV and Multimedia, a cable television and home entertainment provider; Etisalat ServicesEtisalat Services, a managed services provider; and Thuraya SatelliteThuraya Satellite Telecommunications a provider of satellite-based mobile telephone products and services.

Etisalat began its international expansion when it won Saudi Arabia’ second GSM license for AED12.67 billion (USD3.45 billion) in 2004. By end of 2007, Etihad EtisalatEtihad Etisalat, or Mobily’s mobile subscribers had increased by 84% to 11.1 million. Etisalat sold 8.75% of Mobily’s shares in April 2008, decreasing its holding to 26.25%.

In Africa, Etisalat acquired 50% of Atlantique Telecom’s shares. Based in the Ivory Coast, AT owns mobile operators in Benin, Burkina Faso, Togo, Niger, Central African Republic, Gabon and Ivory Coast. In 2007, Etisalat increased its shares in AT to 70% and again in May 2008, to 82%. AT group subscribers totaled 2.9 million at the end of 2007, which is a 107% increase from the previous year.

Also in Africa, Etisalat signed an agreement to acquire 40% of and manage Emerging Markets Telecommunications Services, Nigeria’s fifth GSM operator.

In January 1999, Etisalat acquired a stake in Zanzibar Telecom, one of Tanzania’s mobile operators, for AED8.8 million (USD2.4 million) and increased the stake by 17% in July 2007.

A consortium led by the UAE-based Etisalat won the license to manage a GSM operator in Egypt, for EGP16.7 billion (USD2.9 billion) in July 2006. The company attracted 1.6 million subscribers by the end of 2007.

Etisalat entered Afghanistan, when it won the license to become the fourth GSM operator in May 2006 for AED147.3 million (USD40.1million). The company began operations in August 2007.

Etisalat’s first acquisition in the Far East was in December 2007 with a 15.97% stake in the Indonesia-based PT Excelcomindo Pratama, for AED1.6 billion (USD438 million). PT, which is one of Indonesia’s mobile operators, had 15 million mobile subscribers at the time of acquisition.

At the end of 2006, Etisalat acquired 26% of Pakistan Telecommunication Company (PTCL), a Pakistan-based telecommunications provider, for AED9.6 billion (USD2.6 billion).

Etisalat has a 4% stake in SudatelSudatel, which provides mobile, fixed and Internet services in Sudan. Also in Sudan, Etisalat is one of 10 founders of Canar TelecomCanar Telecom, a fixed-line operator. In September 2007, Etisalat increased its shares in Canar, from 37% to 82% for AED584.17 million (USD159 million).

Etisalat is in the process of establishing Etisalat Software Solutions in India, which will develop and provide software products and IT services for Etisalat.