Jul 04 2006 |
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UAE: Etisalat seeks new ways to boost revenue as market share looks set to fall
DUBAI-Etisalat's bid for Egypt's third mobile licence today is intended to facilitate its long-term strategy to diversify its revenue before its market share in the UAE falls. "We recognise that our market share will reduce," said the company's chief marketing officer, Essa Al Haddad, speaking with Khaleej Times. Du, the UAE's second telecom company, is expected to start operating shortly and aims to capture a 30 per cent share of the UAE market over the next three to four years.Etisalat's goal is to become one of the top10 telecom operators globally by 2010. "This goal is achievable," he said. "We are confident we will reach them. It is a tall order with a possible erosion of 30 per cent market share. The aim of our international and national strategy is to complement any revenue erosion that takes place." Etisalat's market capitalisation is $33.1 billion and according to Al Haddad, the company is ranked number 35 globally.
A mobile licence in Egypt would allow etisalat to offer its users a "seamless" service across the region, explained Al Haddad. He said the population movement between Saudi Arabia, the UAE and Egypt is "very high" and "we think etisalat can leverage a lot from this. As people move between these countries they would like to have a seamless service provider."
For consumers, this means that roaming charges will likely fall. As long as calls are being routed through different operators, charges will remain relatively high. "This is the value that Egypt adds," said Al Haddad. He also said that the entry of an international telecom operator in Egypt should help to increase the number of mobile users. Currently, the penetration rate is estimated to be only 10 per cent. In contrast, at over 100 per cent, the UAE has the highest penetration of mobile in the Arab world, he said.
On the domestic front, Al Haddad said: "Luckily we live in a country where there are always new projects and this creates a hunger for telecoms." He cites the mega Emaar and Nakheel projects as examples of future drivers of demand. "These are the places from where we see the next market share coming. It is not fair to say the cake is shrinking. Personally, I believe the cake is getting bigger."
BY LUCIA DORE (Senior correspondent)
© Khaleej Times 2006
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