Etisalat

Etisalat

Introduction

Etisalat has pro-actively enhanced its presence in the international markets. The company in addition to strong footprint in the Middle East also operates in Africa and other Asia countries like India, Sri Lanka and Pakistan. The group's international revenues in FY 2010 were 23% of the overall group revenues. The great advantage of having such a diverse spread of operations is economy of scale and Etisalat also benefits from the many synergies of operating and standardizing numerous mobile networks. Compared to stand-alone operators, the company enjoys significant cost savings as the group gains more favorable terms from suppliers, in particular with popular handsets that are instrumental in the many market-leading offers and services. The group also enjoys strong bargaining power for procurement of network equipment and the creation of value-added services through content licensing, joint ventures with media providers and similar initiatives. Etisalat has a broad portfolio of communication services ranging from fixed line, mobile and satellite phone to submarine cable installation and maintenance, and clearance services.

The group's broad portfolio of services comprise telecom, satellite communications, cable TV, education, directory services, smart card manufacturing, marine project services, facility management, fiber optic network solutions, software services, and ICT projects. Its telecommunication operations include fixed line and mobile telephone, data services, mobile TV, IPTV, clearance services, data services, directory services, and WiMax, among others (www.etisalat.ae). Etisalat operates in several countries, where the mobile penetration rates are low. The mobile business in UAE has reached more than 150% penetration in 2008 when Etisalat UAE have decided to expand its business by investing in new developed international market with low penetration in mobile usage plus high population , based on that and to keep the satisfaction of Etisalat shares holders and to keep the growth in its yearly revenue , Etisalat have deicide to acquire 46% from one of the green filed telecom operators with its partners in India and to establish Etisalat DB ( formally Swan telecom ) with a right to launch 2G network in 15 circles in India. Thus, in the context of the paper we intend to touch upon different aspects in order to develop an effective and efficient understanding of the team.

Discussion

Context Analysis

The mobile user in India has grown at a rapid pace, the pace at which the market has evolved can be deciphered from the fact that mobile subscribers in 2001 were around 5 million and by the October of 2011 the number grew up to climb the ladder of 881 million subscribers. Moreover, Etisalat in India also enjoys closeness to the home market. The closeness tends to be interpreted as psychological closeness; geographic closeness; economic closeness; political closeness; etc). Plus, millions of Indian citizens are working in UAE and thousands of them own their own properties and business and mainly in Dubai. By Entering into the Indian Market, the company tends to capitalize on attractive offers to the Indian citizens working and staying in UAE (www.etisalat.ae). So that they can remain connected to the mother land and ...