News
Etisalat to face tough competition
ISLAMABAD, June 20 : With the successful bidding for 26 percent stakes in Pakistan Telecommunications Company Limited, UAE’s state-run Emirates Telecommunications Corporation (Etisalat) is set to enter a highly competitive and de-regulated market over the next three months.
Internationally, the key UAE Telecom player has announced to launch its GSM network in Saudi Arabia besides pursuing plans to participate in telecom projects in Turkey as well with more to follow.
Founded on August 30, 1976, the Etisalat provides telecommunication services to the United Arab Emirates and is one of the leading service providers in the Middle East, media report said.
Emirates was one of the first to introduce mobile telephones in the Middle East in 1982 and launched the GSM service in September 1994. On June 13, its UAE mobile network user total crossed the 4 million mark, giving it a customer base of 95 percent of the country’s 4.2 million population.
The company’s ratio of 19:20 represents one of the highest mobile phone penetration rates in the world.
Etisalat maintained its growth record in all major areas in the first quarter of 2005.
Etisalat’s reported net revenues rose to Dh 3,036 million, and a net profit of Dh 1,020 million in the first quarter of 2005. Its total assets stand by Dh 2,711 million or 15 percent over last year.
During 2004, the Etisalat had reported revenues of Dh 10.4 billion and a net profit of Dh 3.4 billion during 2004, say official audit reports.
The revenue and net profit for the year have shown steady growth over 2003 by 13 per cent and 19 per cent, respectively. While the company’s earnings per share increased to Dh 10.4 from Dh 8.7 over the previous year, its total assets increased by Dh 2.5 billion to Dh 20.4 billion.
Etisalat’s mobile connections in the UAE increased by 24 per cent to 3.7 million lines in 2004, representing a penetration rate of 88 percent, which is comparable with the most advanced countries in the world.