Wireless Federation

Etisalat has announced a further expansion of its mobile business data service initiatives with Emirates NBD bank using Etisalat’s services to power its Point of Sale (POS) terminals for credit/debit card transactions through its Mobile Data network.

Du, has introduced a new promotion called Unlimited Blackberry for its subscribers in UAE. The new and existing BlackBerry subscribers can now benefit from no activation or monthly fees for unlimited service until 5 November, 2008, all they have to do is just register themselves.

Post promotional period, subscribers will have to pay AED 130 for the ‘Unlimited National’ data plan per month and AED 260 per month for the ‘Unlimited International’ data plan per month to have access to email, messaging and internet.

For companies, du provides Blackberry Enterprise solutions that enables wireless enterprise applications and connectivity to back-end systems. In addition, du’s Blackberry Internet Service is more suited to individual users who need wireless access to communications and information.

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Emirates Integrated Telecommunications Company PJSC, or Du, Chief Executive Osman Sultan revealed, that the company will be launching Research In Motion Ltd. (RIMM) BlackBerry in the Persian Gulf state after recieving goverment’s approval.

“Everybody knows BlackBerry and it was necessary for us to expand it to our entire customer base including prepaid customers,” Osman Sultan reported.

Earlier it was only Etisalat, that was the sole operator to provide BlackBerry in the UAE, which was launched 2 years ago.

Along with targeting the prepaid subscriber, it will also facilitate the corporate subscribers.

This launch indicates a cut throat competition among the two operators to win the licence to market Apple iPhone.

“Apple will make the decision with the regulators, we want to offer our services to our customers through any devise they wish it to be a BlackBerry interface, Microsoft Windows mobile, or Apple’s iPhone,” he said.

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UAE led five out of seven Gulf markets higher after second quarter results. As the banks leading losses, Saudi shares closed down. Dubai shares ended up 1.1% to 5405.44, led by bellwether Emaar Properties, up 1.5% to 10.50 dirhams, and Amlak Finance, up 3.4% to 4.53 dirhams. Air Arabia gained 2.6% to 1.61 dirhams. Its result is expected soon.

Abu Dhabi market rose 0.9% to 4976.15 at close, led by energy and real estate stocks. Bellwether Etisalat boosted the market, closing up 2.1% to 19.65 dirhams. Aldar Properties reported second-quarter net profit stood at 1.23bn dirhams. Shares in Saudi Arabia, the largest Gulf market, closed down 0.4% to 8740.74. Bank helped lead losses with Samba Financial Group falling 4% to 66.75 riyals. Saudi Basic Industries Corp (Sabic), gained 0.2% to 129 riyals.

Kuwaiti shares closed slightly up at 14977.5. Wataniya Telecom gained 2.8% to 2.180 dinars. The telecom company’s second quarter net profit rose 47.2% to 26.5mn dinars from a year earlier. Bahrain’s market closed down 0.7% to 2791.92, led by service shares. Muscat shares rise 0.6% to 10737.10 driven by banks.

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Inspite of calls for more competition, it will be four years before the United Arab Emirates gets another mobile operator. TRA declined to comment, the watchdog’s director general has previously said it was standard procedure to give a new entrant such as Du a two or three-year grace period to gain market share and become sustainable before adding a third competitor.

According to the statistics, the country’s wireless market is currently divided between Etisalat and Du claimed 77.7% and 22.3% market shares respectively at the end of March 2008.

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Etisalat, the leading Telecom regulator of Middle East has prove the ability to deliver quality service as recognised once again with research findings and market intelligence reports that it now leads the world’s fastest-growing mobile operator table. According to latest findings, Etisalat was named the fastest growing telecommunications company in the world having achieved a 106.41 per cent growth in proportionate mobile subscriber base in the first quarter of the year 2008 ahead of other regional competitors MTN and Zain.
In fact, the South Africa-based MTN Group didn’t picture in the top five table which had the Zain Group in a far second position ahead of SK Telecom. Whereas, Etisalat subscriber base in their combined operational territories amount to 106.31 million, the Zain figure is put at 70.31 million which cuts across the Middle East and Africa.

Mr. Hakeem Belo-Osagie, Chairman, Etisalat Nigeria said: “Etisalat’s global strides are extremely reassuring for us; we are confident that Etisalat will also strive to replicate these standards in the telecom industry in Nigeria.

MTN and Vodafone both recorded increases and moved into the top ten, with annual growth rates of circa 40 per cent in their proportionate bases, putting Etisalat far ahead of other regional players with 106.41 per cent in the same quarter.

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Etihad Etisalat (Mobily) announced second half net profits of US$206.42million (SAR 774 million), up 40% over last year’s results of US$ 147.78million (SAR 554 million) over the same period.

Revenues grew by 24% from US$ 1.04billion (SAR3.906 billion) in the second half of 2007 to US$1.29 billion (SAR 4.851 billion) for second half results of this year.

The operational profit grew from US$213.4 million (SAR 800 million) at the end of the second half of 2007 to US$ 257.15million (SAR 964 million) for the second half of 2008, presenting a 21% growth.

Net profits grew 47% from SAR 304 million for Q2 2007 to SAR 448 million for the second quarter of this year, resulting in earnings per share growth from SAR 0.6 to SAR 0.91 over the period.

Revenues rose 25% across the period to SAR 2.544 billion for Q2 of this year, as compared to SAR 2.029 billion for 2007 second quarter results.

Operational profit grew from SAR 429 million in Q2 2007 to SAR 530 million for the second quarter of 2008, presenting a 24% growth.
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Etisalat, the UAE’s largest telecoms operator said monday that its first-half net rose 37.2% year -on-year to US$ 1.3 Billion (AED 4.79 Billion), due to higher revenues and and increase in mobile subscribers.

Earnings Per share (EPS) for H1, 2008 rose to USD 0.23 billion from USD 0.16 billion. This was reported by the UAE Mobile Operator, Etisalat, to the Abu Dhabi bourse website.

Etisalat’s second-quarter net profit rose 64.3% to US$ 0.77 billion (AED2.84 billion) from US$ 0.46 billion (AED1.72 billion) a year earlier, the company said.

Etisalat’s mobile subscribers grew 7% to 6.77 Million from 6.327 million 6 months earlier.(Source Annual Report 2007 on the Etisalat Website).

Ps: Etisalat acquired an additional 12% in West Africa Atlantic Telecom, raising its stake to 82%. Earlier, it had informed that it might bid for Iran’s third mobile license and also submit an offer for a US$ 1 billion stake in India’s Tata Telecom (Tata Indicom).

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The top executives of the two telecommunication providers in the United Arab Emirates say they have nothing to fear from the introduction of competition from new mobile operators in the future.

The chairman of etisalat and the chief executive of du were speaking on the sidelines of the Middle East Communications Exhibition and Conference (MECOM 2008) which was officially opened yesterday at the Abu Dhabi National Exhibition Centre by HE Khaldoon Al Mubarak, Chairman of Abu Dhabi Executive Affairs Authority and CEO of Mubadala Development Company.

Both were responding to questions about Mobile Virtual Network Operators, which provide services to their customers over the existing infrastructure of licensed operators. They have dramatically changed the telecom landscape in Europe, the US and parts of Asia, bringing down the cost of calls.

The head of the UAE Telecommunications Authority, also speaking on the sidelines of MECOM yesterday, said it was premature to discuss their immediate introduction but mobile virtual network operations would be examined “down the road.”

Their introduction into the UAE would be seen as “an opportunity and not a threat” by Mohammad Hassan Omran, Chairman of etisalat. “I think it will happen with all the alliances and partnerships taking place and there will not always be the need for new networks to be established – we can provide them,” he said. Asked if etisalat would consider becoming a virtual operator in overseas markets, he added: “I would love to.”

Osman Sultan, CEO of du, agreed mobile virtual networks were “not a threat in a mature market” such as the UAE and it was “natural that these things should happen.”

With 6,500,000 customers, etisalat is the UAE’s biggest telecom provider and is expanding dramatically internationally with ventures and partnerships in the Middle East, Asia and Africa. Du, with two million customers, is concentrating on the domestic market.

Mohamed N. Al Ghanim, Director General of the UAE Telecommunications Regulatory Authority, said it was premature to discuss the early entry of virtual mobile operators. “Competition has only just started and we are looking at the market,” he added. “We will look into it down the road. First we will have to see if the market will be able to absorb another mobile operator, or a virtual mobile operator. It is a question of timing. We must do things in stages, just as in Europe and the rest of the world.”

Virtual mobile network operators don’t own infrastructure but buy bulk time at a discounted rate from licensed mobile network operators and resell to customers with additional services. There are now more than 300 such operators across the world and in some countries they outnumber licensed operators.  The first country in the Middle East to establish a legal framework for virtual mobile is Jordan.

MECOM 2008, which continues until Wednesday 28 May 2008, is being held under the patronage of HH General Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Executive Council of the Emirate of Abu Dhabi.

MECOM, with more than international and regional exhibitors, is the region’s premier dedicated event for the telecommunications industry showcasing the best in hardware, software and services. MECOM is officially supported by the UAE Telecommunications Regulatory Authority and Dubai Internet City. ICT Industry Partner for the event is Dubai Internet City. Platinum sponsors are etisalat, the UAE Information and Communication Technology Fund and du. Gold sponsors are Ericsson, Blackberry, EMS and the Abu Dhabi Media Company.

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UAE incumbent Etisalat has posted a record profit in the first quarter of 2008. Net income in the three months to 31 March 2008 rose 15.5% year-on-year to AED2.12 billion (USD577.3 million), the company said in a statement on the Abu Dhabi bourse website. It reported a 4% increase in mobile phone subscriptions since the start of the year, reaching 6.63 million. CEO Mohammed al-Qamzi told Reuters news agency that the company was adding about a million mobile phone users per year in the UAE, and expected foreign operations to contribute more to profit this year as the UAE home market matures. ‘Foreign countries will contribute more this year, [led by] Saudi Arabia,’ said Qamzi, adding that he expected full-year profit growth to exceed the 15.5% recorded in the first quarter. Etisalat operates in 16 countries across the Middle East and North Africa. Earlier this month it revealed that it was looking to enter the Indian market, and was holding talks with several companies, including Spice Communications, about possible acquisitions.

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