Term Paper

2324 Words 10 Pages
Strategic Analysis of Etisalat
2011
Paritosh Kashyap

Etisalat, the telecom giant from UAE is among the one of the non oil sector based success stories from the Gulf. This given analysis will consist of the basic introduction followed by the overall telecomm market in UAE. Post which the growth and expansion of various businesses of Etisalat over the last decade will be studied which will be followed by some of the major international subsidies of Etisalat. In the concluding part the future strategies of Etisalat will be analyzed.
Introduction
Emirates Telecommunication Corporation, branded as Etisalat is one of the major telecommunication companies in the world, operating across Middle East, Asia and Africa. It provides mobile and
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The telecom sector in UAE has been highly regulated with Etisalat having monopoly in the market for most of the time. In spite of having monopoly like many of its other Emirati counterparts, Etisalat has always been upfront in coming up with newer technologies and value based innovation in the market. By 2005 mobile penetration was more than 100 % where as internet and broad band penetration was more than 60 %.
The market dynamics changed in 2006 with the emergence of Du, another telecomm company in the market (2dayDubai.com, 2009). Du is owned- 40 % by Dubai government, 20% by Mubadala, 20% by TECOM (Dubai technology and commerce free zone) and rest 20 % is owned through publicly listed shares in Dubai financial market. Presently due to saturation as well as competition the top line of the Etisalat seems to be affected in UAE, but it is growing rapidly through international expansion and acquisitions of other players. Moreover the overall ICT sector of UAE (consisting of IT along with telecom) is poised for a strong growth in the near future. Both the major Emirates of UAE- Dubai as well as Abu Dhabi have ambitious growth plans in the form of Dubai 2015 and Abu Dhabi 2030 respectively and they realize the fact that strong ICT sector is a precondition for achieving the ambitious

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